In This Article
- How Pax8’s “managed intelligence provider” vision is catching fire faster than expected.
- Real-world MSP wins with agentic AI, from $1M in time savings to six-figure contracts.
- Why SMBs — not enterprises — are the biggest AI growth wave for channel partners.
Earlier this summer, Pax8 CEO Scott Chasin set a bold tone when he unveiled the vision for the next phase of AI, Agentic AI. The company urged MSPs to evolve into “managed intelligence providers” (MIPs) and seize what it described as a generational technology moment.
Now, shortly after that introduction, Pax8 President and Chief Commerce Officer Nick Heddy said the momentum surprisingly built faster than expected. In fact, he initially didn’t hold out much hope that the idea would take.
“MSPs are a stubborn bunch,” Heddy told ChannelPro in an interview. “I’m overwhelmed with the positive reaction. Attending shows just a few weeks later, I’m hearing people call themselves MIPs. It’s a thing.”
Fast Movement from Concept to Action
According to Heddy, the industry’s uptake has outpaced Pax8’s own projections. At its Pax8 Beyond 2025 conference in early June, the company introduced a visionary new research report titled The Agentic Inflection Point. The report explores how agentic AI systems, capable of autonomous decision-making and execution, will redefine business operations for SMBs.
At its crux is the concept that the MIP must orchestrate and govern AI agents that drive measurable business outcomes.
“To describe it succinctly, I would say it is about being proactive versus reactive. You’re either on the table or you’re at the table,” Heddy explained. “You’re either bringing your customers to have the conversation about what it all means, or you’re reacting to someone else pitching your customer first on how to leverage AI.”
After the company’s three-day conference, where it introduced supplemental information and guidance to its partners, two early data points stood out to Heddy:
- The Agentic Inflection Point report garnered nearly 10,000 downloads.
- About 1,000 partners completed half of the 60 modules in the company’s new Data and AI Guided Growth program.
“It is a signal to me that there is a craving for some guidance,” he admitted. “We like to think three, four, five steps ahead. We’d like to talk about the future, but the truth is that partners get to be the author of this.”
Nick Heddy
Real-world Wins with Agentic Thinking
Some MSPs, Heddy noted, aren’t waiting for perfect pricing models or packaged services before taking action. “They just have the conversation with their customer. They say, ‘Hey, I want to look at workflows that could be automated, perhaps take it a step further, and create an agent for you.’ ”
And there are some successes. One Pax8 partner in Australia documented $1 million in time savings for a financial services client by automating process intakes and outputs. The partner initially charged a fixed fee based on estimated hours, then refined the model for future work, Heddy shared.
In another example, an MSP in the United Kingdom landed three $100,000 contracts for AI readiness work after attending a Pax8 Data and AI Master Class. “There is just a series of no-regret moves [related to] securing your data, getting the hygiene up, and documenting processes,” Heddy emphasized.
Nick Heddy (second from right) discusses Agentic AI at a panel at ChannelCon 2025.
Proactive, Not Paralyzed
For Heddy, the message is simple: Curiosity is an MSP superpower. Use it.
“Before you get to the robots taking over everything, there are a lot of no-regrets smart decisions that you can make right now,” he said. “Do your customers have their processes documented? Do you have your data in a well governed, secure place? Those are the critical building blocks for unlocking agentic workflow.”
He also pushed back against advice to avoid AI tools in professional tasks. “Leverage all the tools and demonstrate that you know how to use them,” he said. “AI is going to be a differentiator. Don’t be scared of it. It is a technology evolution like any we’ve seen before. This is just our moment right now.”
Security Still Rules
While enthusiasm is high, Heddy cautions against losing sight of core safeguards.
“The only way to stop bad actors who are using AI is to leverage security that’s using AI like it is a competitive advantage,” he said. “Make sure you’re not buying into the hype. Come up with very practical and logical use cases. … You don’t want to inadvertently expose your customers to a threat because you didn’t understand how something was set up or how it was leveraging AI.”
SMBs: The Next Big Growth Wave
Heddy pointed to a market shift likely to shape the next chapter of the AI story: The revenue opportunity.
Microsoft, citing IDC research, estimated the small and midsized business (SMB) technology market at about $777 billion, outpacing the enterprise market which is at roughly $592 billion. Notably, the SMB segment is growing at a faster pace, he said.
That trend has tech giants adjusting their strategies to focus more heavily on SMBs, which Heddy sees as a win for the channel as well. “Large enterprises are leveraging AI to get productivity gains, displacing knowledge workers. Meanwhile, SMBs are using it to survive and compete. It’s just a different mindset that I think breeds more innovation.”
For MSPs, that means moving quickly.
“If you don’t have an AI-ready service offering to sell to your customers, you are at risk of missing this wave,” Heddy warned. “You need to have an AI-readiness module to get your customers ready for it. Some people want to wait and see what the next two or three moves are going to bring. But if you do that, you’re going to be behind. Be proactive.”
Frequently Asked Questions
Q: What is “agentic AI” and how does it differ from traditional AI?
A: Agentic AI refers to autonomous systems that make decisions and execute tasks. Pax8 says MSPs should evolve into “managed intelligence providers” (MIPs) who orchestrate and govern these agents for measurable business outcomes.
Q: How quickly are MSPs adopting Pax8’s vision of MIPs?
A: Faster than expected. Pax8 reported nearly 10,000 downloads of its Agentic Inflection Point report and about 1,000 partners engaging with its Data and AI program within weeks of launch.
Q: Are MSPs already generating revenue with agentic AI?
A: Yes. Examples include an Australian partner saving a client $1 million in time costs and a U.K. partner closing three $100,000 AI readiness deals after attending Pax8 training.
Q: What’s the biggest risk MSPs face with AI adoption?
A: Security missteps. Pax8 warns that failing to understand how AI tools handle data could expose customers to new threats. AI-powered security must be part of the strategy.
Q: Why is the SMB market key to this AI movement?
A: SMBs, valued at $777 billion and growing faster than enterprises, are using AI to compete and survive. That creates a prime revenue opportunity for MSPs who can deliver AI-ready services now.
Anjali Fluker is senior channel editor for The ChannelPro Network, where she covers news, trends, and best practices for the MSP community. She specializes in telling the stories that matter to IT providers serving the SMB market. When she’s not reporting on the latest in managed services, she’s connecting with channel pros at industry events across the country.
Images: DALL-E, Anjali Fluker/ChannelPro
