January 15, 2026  —  Allison Ho

Why the traditional MSP business model is breaking and how to fix it

Table of contents
The linear scaling trap 
The hidden cost nobody discusses 
Enter hyper-productivity 
The 4-phase transformation 
Your roadmap forward 
Acronis Cyber Protect Cloud
for Service Providers

The modern workspace has been scattered beyond recognition. Laptops that once sat neatly within corporate perimeters now operate from kitchen tables, airport lounges and co-working spaces across time zones. This isn't just a logistical headache for managed service providers (MSPs). It's an economic problem disguised as a growth opportunity. 

More endpoints should mean more revenue. Instead, most MSPs are experiencing the opposite: more complexity, higher operational costs and razor-thin margins that keep getting thinner. The math simply doesn't work anymore.

The linear scaling trap 

Traditional MSP economics followed a predictable formula: More endpoints meant more technicians, more tickets and proportional revenue growth. But when workspace endpoints multiply faster than headcount can scale, that linear model collapses under its own weight. 

Consider what happens when a ransomware alert fires in a typical MSP environment today. A technician opens the EDR console, checks the backup dashboard, logs into the email security portal, verifies patch status in the RMM tool and manually correlates data across four different platforms. Thirty minutes elapse and the damage has spread. 

When every alert requires manual investigation, every remediation needs hands-on intervention and every endpoint demands individual attention, you've built a service model that physically cannot scale to meet modern workspace security demands.

The hidden cost nobody discusses 

Tool sprawl and manual workflows create obvious productivity drains. But there's a darker consequence: an expanded attack surface. Each additional management console, every separate administrative portal and every disconnected security tool introduces new vectors of risk. For MSPs managing hundreds of client environments, this fragmentation is both inefficient and dangerous. 

The question isn't whether MSPs need to evolve. It's whether they can evolve fast enough to survive the workspace explosion without getting buried in operational complexity. 

Enter hyper-productivity 

Leading MSPs are discovering that automation and AI don't just improve efficiency at the margins. They fundamentally transform the economics of service delivery. 

When detection, triage, remediation and recovery workflows operate autonomously through integrated platforms, technicians shift from reactive firefighting to proactive supervision. One technician can suddenly manage 400 to 500 endpoints instead of 250. Alert noise drops dramatically. Mean time to respond plummets. And critically, cost per endpoint decreases while service quality improves. 

This is hyper-productivity: letting machines handle the repetitive 80% so humans can focus on the strategic 20% that requires judgment, creativity and client relationship management. 

The 4-phase transformation 

Moving from labor-intensive manual management to automation-driven hyper-productivity requires deliberate execution. It's not about buying new tools. It's about redesigning how MSP services are delivered, priced and scaled. 

The transformation follows four distinct phases 

  1. Assess your current state. 
  2. Automate high-frequency tasks. 
  3. Integrate platforms to enable cross-tool workflows.  
  4. Monetize outcomes through value-based pricing models.  

Each phase builds on the previous, reducing risk while delivering measurable gains. 

But execution details matter enormously. Which workflows should you automate first? How do you maintain human oversight while maximizing automation? What does platform integration look like in practice? And most importantly, how do you translate operational efficiency into sustainable revenue growth? 

Your roadmap forward 

The workspace explosion isn't slowing down. MSPs that continue operating with manual, labor-intensive service models will find margins compressed to unsustainable levels. Those that embrace automation, AI and integrated workspace security will unlock scalable profitability while delivering better outcomes to clients. 

Want the complete playbook? Download the full eBook to get the detailed roadmap for transforming your MSP business model and operations, including specific KPIs to track, automation strategies to implement and pricing models to adopt.

Acronis
eBook
Workspace explosion: A roadmap to win in the new economics of MSP-managed endpoints
Acronis
Author
Allison Ho
Content Marketing Manager
Allison Ho is Content Marketing Manager at Acronis. Allison develops content on cybersecurity, data protection, artificial intelligence and endpoint management while closely collaborating with thought leaders. Her technology B2B marketing experience includes expertise in SEO.

About Acronis

A Swiss company founded in Singapore in 2003, Acronis has 15 offices worldwide and employees in 50+ countries. Acronis Cyber Protect Cloud is available in 26 languages in 150 countries and is used by over 21,000 service providers to protect over 750,000 businesses.