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The Power of Peer Groups for MSPs

Everyone in the industry is fixated on identifying the next big thing. All fingers point to AI as the biggest industry trend and while we cannot disagree with that, here at Channel Partners Conference & Expo and the MSP Summit Series, we believe there is a major trend that deserves much more attention. 

As the channel’s momentum accelerates, one of the biggest trends we are watching is the how the power of peer groups is impacting the trajectory of the nearly $600 billion managed services industry. Yes, peer groups do go back to the channel’s very beginning. We can remember resellers (that’s what they were called back in the day) getting together in hotel conference rooms, signing NDAs and disclosing their financials in somewhat friendly and loose sessions. Fast forward to today and peer groups are becoming big businesses for the likes of Kaseya, ConnectWise, the major distributors and others.

But while many partners participate in supplier and vendor peer groups, they also seek gatherings organized by independent third parties that are not pushing a platform or specific technology stack. We have been hearing that from the attendees of our channel events along with members of our advisory board. As a result, we are partnering with MSP-Ignite. We’re working closely with the organization’s founder Steve Alexander to host peer groups at our 2025 events starting with the Channel Partners Conference & Expo/MSP Summit to be held March 24-27 in Las Vegas. Register for the event and join the peer group meetings Channel Partners Conference 

Len DiCostanzo, founder of MSP Toolkit and a longtime MSP and industry consultant who serves as our MSP Mentor put it this way, “Peer groups are crucial for MSPs to be successful in today’s business environment. Especially as MSPs move from a lifestyle business to one that is seeking to grow. With competition coming from all directions, and M&A activity ratcheting up, MSPs need to be at the top of their game, not only with numbers but with service delivery, client success and building a winning culture.” Find out more about the MSP Peer Group at Channel Partners Conference.

 DiCostanzo makes a great point, so we put those issues to Alexander to have him answer a few of the most pressing peer group issues of the day. Alexander has more than 35 years of experience in the managed services space having founded, built, and sold two successful MSPs. He’s played a pivotal role in dozens of M&A transactions, bringing invaluable insights to every transition. At MSP-Ignite, Alexander centers the company’s peer groups around a key principle: building on each member’s strengths to drive sustainable growth. He’s served on advisory boards for local nonprofits and national business groups and is a respected voice in the channel. Find out more about MSP-Ignite.

Channel Partners: You have been involved in peer groups for a long time. After many years they have taken on new importance. What is happening now that is driving such renewed interest in peer groups? 

Alexander: There has been a real push from the vendor community to recognize that even the most successful business benefits from peer collaboration and accountability. They recognize that as their customers grow, they grow. Consolidation in the industry is forcing small companies to understand the importance of having dialed in financials as well. Peer growth organizations like MSP-Ignite that are laser focused on financials, cybersecurity hygiene and accountability aligned to each members goals are leading the charge for MSPs. 

CP: What is your advice to the average MSP who is interested or wants to participate in a peer group? 

Alexander: Find one that aligns with your goals. If the goal is to align with a vendors’ goals, speak with the vendor. If the goal is to collaborate and be accountable to your specific goals, speak with one of the independent peer groups. If you are looking to shape your organization based on what I call the “MSP in a Box” structure, that’s available as well. It used to be that partners were reluctant to share best practices or their secret sauce. For a peer group to work, you must be willing to share. So how do partners get comfortable with that concept? 

We live in a time where every concept imaginable can be researched online. Unique ideas are not likely going to be what drives an MSP. Execution is key. Our groups are guaranteed no geographic competition to help make members comfortable. The truth however is that once you are with the right people, sharing becomes easy because of the mutual trust. 

CP: What is the No. 1 thing you hear from partners who have attended peer groups or participate in them? 

Alexander: This is going to sound self-serving, however it really is the case. What we here at first is “I’m really upset that I didn’t do this sooner.” Established members are constantly thanking their fellow members for being a board of advisors that keep them true to their shared goals.

CP: What is your advice on commitment to peer groups? Should it be a long-term commitment, or is it better to use peer groups to help your business solve a pressing immediate problem? 

Alexander: While we do not ask for any long-term commitment, we do counsel to try to make it a two-year commitment. Building trust takes longer for some than it does for others. Aligning some of the challenges that are easy to see with a plan of action takes some time as well. The early value will be game changing. The value after the first couple of years is life changing for those that stay with it. With an average membership of over five years, we have the pleasure of witnessing it all. 

 

 

Steve Alexander