The managed services landscape is undergoing a fundamental shift, propelled by rapid advancements in artificial intelligence (AI) and intensifying market demands. Traditional models of remote monitoring and management (RMM), reliant on manual oversight and ticket-based resolutions, are increasingly inadequate as enterprises grapple with sprawling, distributed IT environments and escalating cybersecurity threats. The AI-driven infrastructure management market, valued at approximately $135.8 billion in 2024, is projected to expand significantly to $394.5 billion by 2030, at a robust CAGR of 19.4%, according to MarketsandMarkets. This surge underscores a seismic shift toward automated, intelligent infrastructure solutions.
Emerging Trends in AI-Based Infrastructure Management
As artificial intelligence becomes more deeply embedded in IT operations, managed service providers are reimagining how infrastructure is monitored, secured, and scaled. The following trends highlight how AI is reshaping core aspects of service delivery and operational efficiency.
- Real-Time Proactive Remediation: AI-driven platforms offer real-time anomaly detection and automatic issue resolution, drastically reducing downtime and operational disruptions.
- Integrated Cybersecurity: Automated vulnerability scanning and compliance enforcement through AI enable MSPs to preemptively address threats, significantly enhancing client trust and operational resilience.
- Automation-Driven Scalability: AI facilitates exponential growth in managed endpoints without corresponding increases in technician headcount, enabling higher margins and improved profitability.
- Enhanced Technician Efficiency: Automated monitoring and intelligent diagnostics significantly improve technician-to-endpoint ratios, transforming reactive firefighting into strategic oversight.
Market Landscape: Strategic Shifts and Players
The Managed Services Provider (MSP) ecosystem is experiencing rapid transformation, propelled by both established technology providers and innovative startups driving AI adoption. Recent industry research from IDC forecasts the global MSP market will surpass $393 billion by 2028, driven significantly by the adoption of AI-driven automation and analytics that enhance proactive service management and cybersecurity capabilities.
While major market players are increasingly integrating sophisticated AI frameworks to enable real-time threat detection, proactive maintenance, and automated compliance management, smaller niche providers are also making substantial impacts. These specialized AI-centric startups offer solutions in areas such as intelligent endpoint management, anomaly detection, and automated regulatory compliance, meeting growing enterprise demands for customized, granular IT solutions.
This accelerating adoption of AI infrastructure marks a significant departure from traditional, manual-driven remote monitoring management (RMM) and ticket-based approaches. According to Gartner, by 2027, over 75% of enterprises will leverage AI-driven IT operations platforms, up from less than 25% in 2023. Such shifts reflect a fundamental realignment in MSP operations, with AI integration becoming a critical component rather than an optional enhancement, redefining efficiency, scalability, and client service excellence across the industry.
M&A Landscape: Accelerating Industry Consolidation
Consolidation in the AI-enabled MSP industry has accelerated notably over the past year, driven primarily by firms strategically acquiring specialized capabilities to bolster their market positions. Recent data from Grand View Research indicates global M&A activity in the IT services sector increased by approximately 22% in 2024 alone, with nearly half of these deals focused specifically on enhancing AI and cybersecurity competencies. The acceleration of consolidation in the MSP sector is driven by the increasing enterprise demand for comprehensive, AI-driven infrastructure solutions. Deloitte reports that 68% of mid-sized MSPs prefer acquisitions over in-house development to swiftly integrate AI capabilities, overcoming resource and time-to-market constraints.
We continue to see accelerating investments and M&A interest in the AI-enabled MSP industry as further validated by a few notable transactions below:
Shield Technology Partners (Thrive/ZBS Powered), a firm with a network of high-performing IT service businesses, headquartered in Tampa Bay acquired ClearFuze Networks, IronOrbit, Delval Technology Solutions, and OneNet Global- specialized providers of managed IT services. These acquisitions significantly strengthen and complement Shield's capabilities in AI-driven infrastructure management, cybersecurity, and advanced remote monitoring solutions. The expanded portfolio drives cross-synergies and enhances Shield Technology Partners’ market position, enabling them to deliver integrated, proactive IT solutions and accelerating their growth within the managed services sector.
AvePoint, a global firm in data security, governance, and resilience, headquartered in New Jersey, has acquired Overijssel-based Ydentic, a specialist in identity management and cybersecurity solutions for enterprise IT environments. The acquisition expands AvePoint's capabilities in secure identity access, compliance automation, and proactive cybersecurity frameworks. By integrating Ydentic’s advanced identity governance technologies, AvePoint strengthens its delivery in secure, AI-driven enterprise solutions across hybrid and cloud-based infrastructures.
Sophos, an Oxfordshire-based company of advanced cybersecurity solutions, including Managed Detection and Response (MDR) and incident response services and a broad portfolio of endpoint, network, email, and cloud security technologies acquired Secureworks, a leading provider of extended detection and response (XDR) and managed cybersecurity services, to strengthen its Managed Detection and Response (MDR) portfolio. Headquartered in Atlanta, Georgia, Secureworks specializes in threat intelligence, advanced XDR platforms, and managed security operations. The acquisition significantly enhances Sophos’s capabilities in real-time threat detection, incident response, and integrated cybersecurity solutions, reinforcing its position as a global leader in comprehensive, AI-driven cybersecurity services.
N-able, an IT services and consulting firm based in Morrisville NC acquired Adlumin, a cybersecurity-focused AI platform specializing in real-time threat detection, compliance automation, and extended detection and response (XDR). Headquartered in Washington - Columbia, Adlumin offers an AI-native security operations platform that unifies SIEM, SOAR, and compliance workflows through advanced analytics. This acquisition enhances N‑able’s cybersecurity capabilities, integrating Adlumin’s automation-driven threat response into its managed services suite, strengthening N-able’s position as a leader in intelligent, integrated security solutions for modern, distributed IT environments.
What do these deals signal?
These acquisitions are far more than isolated transactions, they reflect a profound strategic realignment across the MSP landscape. The common thread among them is a deliberate pursuit of AI-native capabilities that can deliver measurable improvements in cybersecurity, compliance automation, and service efficiency. According to a recent McKinsey survey, nearly 40% of technology consultancy acquisitions now involve AI-specialist firms, a clear indicator that traditional service models are being reengineered around intelligent automation. This trend signals three critical shifts:
- AI is becoming the nucleus of competitive differentiation, and a present necessity.
- M&A is now the fastest path to AI integration, especially for mid-sized MSPs seeking to bypass long R&D cycles.
- The market is consolidating around intelligent, full-stack service delivery, where AI enables seamless operations, security, and compliance across hybrid environments.
For investors, founders, and MSP leaders, these transactions offer timely insights and key learnings on how value creation is being accelerated in the current environment, representing a time-sensitive window of opportunity: embrace AI-driven transformation now or risk being eclipsed by more adaptive, innovation-focused competitors. The MSPs that can integrate and scale AI capabilities effectively will set the pace for the next decade of enterprise IT services.
Future Outlook: Embracing the AI Imperative
The integration of AI into infrastructure management marks a defining transformation in the managed services industry. As enterprise IT environments grow more complex and cybersecurity threats escalate, AI-based solutions are no longer optional enhancements, rather, they are becoming foundational to service delivery. MSPs that swiftly adopt AI-led automation, predictive maintenance, and cybersecurity platforms can reduce IT Operations cost by 30-45% while increasing operational efficiency and service reliability. These platforms not only enhance scalability and profitability but also elevate the overall client experience through proactive, resilient infrastructure management.
Strategic mergers and acquisitions remain critical accelerators in this evolution. IDC reports that over 30% of MSP-related M&A activity in 2024 targeted AI-specialist companies and startups, highlighting the urgency for firms to build intelligent capabilities through partnerships and acquisitions. This trend underscores a broader shift: the future of MSP success lies in the ability to integrate, scale, and innovate through AI. At SA, we believe firms that lead in this transformation through investment, strategic partnerships and continuous innovation will define the next era of enterprise IT services.
SA Global Advisors (SA), a leading global investment banking firm specializing in strategic investments and M&A transactions in the Technology, Media, and Telecom (TMT) sectors, empowers entrepreneurs and investors to capitalize on this pivotal shift and capture growth opportunities that create multi-fold value in today’s MSP market. By providing flexible growth capital and facilitating partnerships and strategic acquisitions, SA supports MSP businesses in realizing the full potential of their growth vision, while balancing risk.
To share feedback on this blog or discuss opportunities SA can enable to amplify growth for your MSP business, please reach out to us at info@saglobaladvisors.com.