AI for MSPs: Bridging the Skills Gap and Enhancing Cloud Managed Services Profitability

Business of Tech: Daily MSP News & IT Services Analysis · Nov 24, 2025 · 14m

Cloud managed services are experiencing rapid growth, with the market projected to expand from approximately $50.62 billion in 2025 to $120 billion by 2035, reflecting a compound annual growth rate of 8.16%. This growth is driven by organizations across various sectors, including finance and healthcare, seeking to enhance their cloud operations and address cybersecurity risks. However, a widening performance gap among managed service providers (MSPs) is evident, as only the most capable firms are capitalizing on this demand. According to Service Leadership data, while the overall…