‘We're going to see the first MSP with €1bn revenues in the next 24 months’: Pax8 BEYOND EMEA 2024 recap

Strap in for bold predictions, big ambitions and mic drop moments from Pax8’s first European BEYOND event in Berlin

The first €1bn revenues MSP in the next 24 months, managed services as the channel’s biggest opportunity for growth, and Pax8 knowing the truth: distribution is broken.

These were just some of the top quotes from Pax8’s inaugural European partner event, Pax8 Beyond EMEA, in Berlin this week.

CRN was present for the conference which aimed to provide partners with a glimpse into the future.

More than 500 partners, MSPS and vendors, from over 40 countries across the continent, as well as APAC and the Americas gathered to find out what Pax8 was set to announce and how it would affect them.

Beyond the cloud(s)

Harald Nuij, CEO EMEA in his keynote made sure every single attendee understood how glad the company was of how many were in attendance, and how it values partners.

“It is vital to connect, to meet each other, to share, to learn from one another. This will not only help us learn more, but it will also make us learn faster and help us thrive get to the next level,” Nuij told the audience.

“It is vital to connect.”

These words resonated throughout the event, Pax8 making them its motto, its battle cry.

Nick Heddy, president and chief commerce officer spoke in length of Pax8’s journey, dividing it into three phases: disruption mode, community mode, and marketplace mode.

Heddy described the first mode as “a big idea to transform small businesses.”

“We burst onto the scene as a cloud commerce, marketplace. The initial response a was ‘what are you guys talking about?’

“You did not need us to be a marketplace, and saw us as a cloud distributor, but we knew the truth; distribution is broken.

“Support was non-existent, billing is a nightmare, and instant provisioning was expected and not there.

“While everyone repeated the same old messages on stage, we cut through the noise, with a vision of the future that keeps partners at the centre of the business.”

Community mode, Heddy continued, involves not only building the coalition of partners, but growing trust in MSPs globally.

And then, marketplace mode.

“At BEYOND last year, our global CEO Scott Chasin talked about the marketplace mode, a vision of the future that keeps you at the centre of the business, and it's my great honour to share that, on June 17, 2024, we launched our new marketplace experience.

“Our mission here at BEYOND is to give you the tools you need to succeed.

“We're making sure your business outpaces your competitors today and will last them tomorrow.”

Heddy added Pax8 is currently serving more than 37,000 partners across 46 countries and has a community serving over 600,000 SMB customers in 62 countries.

He told attendees Pax8’s new marketplace “combines innovation designed by you and enablement that is built for you.

“We're making sure your business outpaces your competitors today and will last tomorrow.”

Heddy also announced the launch of Pax8 Voyager Alliance, “a transformative programme built to elevate every partner, whether you're starting up or scaling up, going live on November 4.”

He described it as a tailored programme, adapting to the business and the level it wants to evolve to.

“We built this truly progressive model, one that meets you exactly where you are and builds momentum to take you to the next level, delivering what you need precisely when you need.”

‘One of the biggest growth opportunities for the channel is managed services’

Alastair Edwards, chief analyst at Canalys, joined Heddy on stage to talk about the future of the IT channel.

He said despite the many challenges society is currently facing, the global economy was worth around $105tn (£80.85tn) last year and is expected to see a three per cent revenue growth this year.

"Technology is underpinning and driving that growth,” Edwards told the audience.

“Your customers are going to become more and more dependent on technology to help fuel and drive and evolve and innovate their businesses.

“One of the biggest growth opportunities we will see for the channel is managed services. Managed services this year globally will reach around $548bn.

“You have to create services that are profitable and addressing the challenges that your customers face, which are complexity, cost, and incredibly complex IT environment.”

Edwards closed with his three recommendations for MSPs.

“Digitisation in your business will be critical to your success, but don't lose touch with your customers.

“Digitisation needs to be combined within ever greater levels of intimacy with your customers.

“You need to build deeper specialisations and skills than you've ever done to define your differentiation.

“That’s why working as part of a collaborative ecosystem becomes more important than ever.

“And finally, innovation. The only way you're going to accelerate your business at the speed of your customers is to lead with innovation and be bold.”

Next: Pax8 CEO Scott Chasin talks AI and its impact for MSPs...

‘Chasin’ a dream

Scott Chasin, CEO of Pax8, then took the stage.

Described as a “Steve Jobs type of figure” by some Pax8 partners, his speech about the marketplace quickly made everyone understand why.

“What is a dream? A dream is a blueprint for an unrealised future. But the way to create that blueprint is by first predicting the future and moving towards the major milestones that you think are part of that future,” he said.

“At Pax8, it is our mission to build a marketplace like no other, a marketplace that not only harnesses the power of the future but transforms it to keep you informed, to cut through the noise and empower this strong community with the education that you need to stay at the forefront so that you can grow your businesses, save money and reduce risk.

“I want Pax8 to be your guide into the future, to help you identify the key trends so you can use them to your advantage.”

Blue or red pill?

Earlier in his keynote, Heddy told attendees AI is projected to bring $17tn to the global economy by 2030, and that MSPs now need an AI strategy to not only survive, but also grow in the future.

Just last week, Chasin told CRN he was “worried” for companies who aren’t leaning into AI.

At BEYOND, he brings AI into the red pill and blue pill dilemma. The blue pill representing the optimistic future for AI, and the red for everything that can go wrong.

“But a choice is not to be made, as we’ve already swallowed both,” Chasin stated.

To put it simply, time is not to asking cute questions to ChatGPT anymore.

Tomorrow, AGI (artificial general intelligence), machines as smart as humans, and ASI (artificial super intelligence), machines smarter than us, will be introduced to the public.

“We will achieve nothing short of the most impactful technological achievement for mankind,” said Chasin.

“Some people are concerned about the possibility that ASI will make us all obsolete or even enslave us. But in my optimistic opinion, it will give us superpowers, to make us superhuman.”

AI will be a cornerstone in every product MSPs sell and support

Chasin closed out his keynote with a few predictions around AI, its impact on cybersecurity, and MSP market consolidation.

He believes in the near term, possibly up to 80 per cent of all software will be written by AI.

“This shift means that AI will not just be a tool, but a cornerstone in every product that MSPs sell and support, becoming an essential element in driving efficiency innovation and growth as AI becomes embedded in every facet of operations, it will redefine how value is delivered and maintained.

“Next is AI driven decision making.

“AI is poised to integrate into your customer life cycle and manage it end-to-end by automating data analysis and insights.

“AI can anticipate customer need at each stage, delivering timely solutions and fostering deeper relationships.”

Chasin touched on AI’s impact in cybersecurity.

“Attackers are already leveraging AI capabilities, and it's only a matter of time until we see AI powered ransomware at scale.

“MSPs will develop and offer their own personalised marketplaces, curating tailored solutions for specific customer needs. It's going to be available sooner than you think. In fact, it's already available today.

“Lastly, MSP market consolidation will persist.

“It may even accelerate in the near term, fuelled by significant interest from private equity.

“This trend shows no signs of slowing down, and I'll make a prediction right now. We're going to see the first MSP with a €1bn revenue in the next 24 months.”

“MSPs will form global collaboration networks, sharing, resources, services, technology, agents and even clients.

“Ultimately, they will form a coalition so that your small business clients will be able to manage multiple partners more efficiently.

“That's the new Pax8 marketplace in the future, a place like no other, where innovation meets intelligence, and of course, is powered by AI, providing data driven insights and revolutionising how you do business.

“Because your future is our future, and your future starts now.”