Pax8’s Ryan Walsh On MSPs Embracing Cloud Marketplaces: ‘It’s Evolution Or Extinction’

‘The cloud and AI are not just buzzwords anymore; they are real forces reshaping our industry. The competition is fiercer, and the way we do business needs to change if we’re going to stay ahead,’ says Ryan Walsh, co-founder and chief strategy officer of Pax8.

Ryan Walsh said MSPs must embrace new business models, particularly digital marketplaces, to stay competitive in a world where change is constant and accelerating.

“Today’s business environment is evolving faster than ever,” said Walsh, co-founder and chief strategy officer of Denver-based cloud marketplace Pax8. “The future does not wait. It’s moving at a pace that we can’t afford to ignore. And the question is, are you moving with it, or are you standing on the sidelines waiting for things to stabilize?”

Walsh spoke at CRN parent company The Channel Company’s XChange March event in Orlando, Fla., this week about the growing importance of adapting to marketplace models, saying those that don’t embrace it will be left behind.

“The cloud and AI are not just buzzwords anymore; they are real forces reshaping our industry,” he said. “The competition is fiercer, and the way we do business needs to change if we’re going to stay ahead.

“There are two kinds of companies today, those moving with the change and those being left behind,” he added. “If your rate of change is slower than the market, you’re in trouble.”

More than half of MSPs are expected to buy through marketplaces by 2025, he said, but only a small percentage of companies are fully leveraging the advantages of these platforms.

Pax8’s new cloud marketplace, launched in 2024, uses data insight and AI to enhance business growth and security opportunities for MSPs. Some of the features include Opportunity Explorer, which utilizes AI and data analytics to identify sales opportunities within existing client bases, and Storefronts , which allows MSPs to create branded, self-service portals for their customers.

“Smaller MSPs, in particular, are punching above their weight by adopting these new models faster,” he said. “Innovation often comes out of necessity, and these businesses are finding new ways to remain competitive in a rapidly changing market.”

One trend Walsh is seeing is the increase of customers looking for self-service and digital marketplaces. With the influence of AI, buyers now prefer a digital, self-service experience as they are becoming more and more tech-savvy. The buyer is also looking for convenience, transparency and speed as well as a trusted adviser, he said.

And with data supporting the shift toward marketplace-driven models, he said those who embrace it will be the ones to thrive in the years ahead.

“This is an existential moment for the industry,” he said. “The line in the sand has been drawn. It’s evolution or extinction. We’ve built our marketplace with MSP success in mind. This is about empowering you with the tools and technology to stay competitive. The winners are the ones who aren’t waiting. They’re adapting now, and they’re using AI, automation and marketplaces to drive their growth.”

Tommy Vaughan, president of Lynchburg, Va.-based Central Technology Solutions, said Pax8’s focus on cloud-based solutions and a digital marketplace places the company in a prime position to capture expanding demand in the market.

“I believe Pax8 is absolutely on the right track with where the current market is heading,” he told CRN. “The current market is going away from the old-school servers to the cloud, security and branding. It’s what we’re seeing in the market, and it’s absolutely going to continue to grow.”