OpenMSP Blog.

The Managed Service Provider (MSP) market is vast, with over **40,000 providers** serving clients across industries. However, the majority of these MSPs — around **75% — generate less than $3 million in annual revenue**. These small MSPs often operate with limited resources, small teams, and constrained budgets, making it challenging for them to adopt the complex and expensive tools often designed for larger organizations.

Open-source technology has come a long way from its early days as a niche solution embraced by enthusiasts. Today, it rivals and, in many cases, surpasses proprietary enterprise software in terms of functionality, reliability, and security — all at a fraction of the cost. For Managed Service Providers (MSPs), open-source tools represent a transformative opportunity to reduce costs, increase flexibility, and deliver better value to clients.

For Managed Service Providers (MSPs), vendor payouts represent one of the most significant expenses, often consuming 20–35% of their annual revenue. These recurring costs, tied to licensing fees and software subscriptions, create a constant drain on profitability. While automation tools have helped reduce operational inefficiencies, they rarely address the elephant in the room: vendor dependency.