Why Most MSPs Are Becoming Commodities (And What the Top 10% Are Doing Differently)

Imagine you’re a business leader—not an MSP—walking the floor at an MSP conference.

Booth after booth. Pitch after pitch.

When you leave, your dominant impression is simple: Everyone looks and sounds exactly the same.

Every MSP claims:

• “proactive support”

• “24/7 monitoring”

• “security-driven approach”

• “cloud expertise”

• “strategic guidance”

None of that is differentiation. It’s expected. It’s table stakes.

This is the root of commoditization: buyers can’t see meaningful differences, so they default to price.

And here’s the part most MSPs underestimate: MSPs aren’t being commoditized by the market—they’re being commoditized by their own messaging.

Not because they lack capability. But because they communicate in ways that erase the very strengths they’ve built.

Meanwhile, the top 10% of MSPs are not struggling with this at all. They enjoy:

• higher margins

• better clients

• faster sales cycles

• deeper loyalty

• and dramatically higher trust

  
  

They don’t win because they’re technically superior. They win because they behave—and present themselves—differently.

Let’s break down why.

Where Commoditization Comes From (It’s Not Where You Think)

MSPs get commoditized when:

• their packages mirror competitors

• their messaging focuses on tools instead of outcomes

• they talk features instead of business value

• they recycle industry language

• their brand identity is indistinguishable

• their “strategic guidance” is tactical, reactive, and inconsistent

When buyers hear the same pitch from ten providers, they rely on the only variable left: price.

This is the “me too” spiral the industry has trapped itself in.

It’s not malicious—it’s structural. When everyone uses the same vendors, the same tools, the same bundles, and the same terminology… sameness becomes inevitable.

Unless you intentionally break the pattern.

Why Top MSPs Don’t Suffer From Commoditization

The top performers have figured out what most MSPs haven’t: Commoditization doesn’t happen when solutions are similar. It happens when value is communicated the same way.

Here’s what high-performing MSPs do differently:

• they charge at the right price point

• they anchor value to business outcomes

• they build systems and intellectual property that competitors lack

• they specialize deeply

• they become category storytellers instead of category participants

• they make the buyer feel understood in ways other MSPs can’t

This is why their margins are often 3x higher than the industry average. Not because they’re selling more—they’re selling differently.

How the Top MSPs Break Away From the Pack

1. They Specialize Instead of Compete Broadly

Generalists compete on price. Specialists compete on relevance.

When you anchor deeply into a vertical, your:

• messaging

• case studies

• processes

• compliance knowledge

• benchmarks

…all speak directly to the world your clients live in.

This instantly removes you from the commodity pool.

2. They Compete on Meaning, Not Tools

Everyone sells the same stack. So, the more you talk about tools, the more you sound identical.

Top MSPs translate technology into business meaning:

• reduced compliance exposure

• faster operational throughput

• lower per-seat labor cost

• predictable growth

• reduced executive risk

• better business outcomes

This changes the buyer’s question from: “Which MSP is cheapest?” to “Which MSP understands my world?”

3. They Build IP Others Can’t Copy

Leading MSPs create:

• frameworks

• scorecards

• dashboards

• methodologies

• governance systems

• proprietary assessments

These become their superpowers—signals of maturity competitors can’t replicate with a new tool or service bundle.

IP creates separation. Separation creates pricing power.

4. They Build Brand Authority, Not Just Brand Awareness

Average MSPs market. Top MSPs teach.

They:

• publish insights

• speak at events

• share benchmarks

• host executive briefings

• discuss real business issues

• articulate the cost of inaction

• shape thinking

Thought leadership is differentiation.

Differentiation is insulation from price pressure.

5. They Educate Their Market Into Understanding Their Value

Most buyers don’t understand operational maturity, total cost of ownership, or risk exposure—so they compare MSPs on surface-level attributes.

Top MSPs run continuous education cycles:

• newsletters

• scorecards

• board-level reporting

• executive alignment sessions

• financial mapping

• maturity roadmaps

Over time, they shift from vendor → advisor → partner.

This is how you escape commoditization permanently.

The MSP Market Isn’t Oversaturated—It’s Under-Differentiated

Commoditization is not caused by too many MSPs.

It’s caused by too many MSPs sounding the same.

The winners in the next decade will be those who:

• build a compelling brand narrative

• develop systems competitors lack

• specialize in industries that value expertise

• anchor their value to outcomes that matter

• invest heavily in authority and education

Do these things and you don’t just rise above price pressure—you eliminate it.

Commoditization Is a Positioning Problem—Not a Market Problem

The market didn’t commoditize your MSP.

Your messaging did.

Your positioning did.

Your lack of differentiation did.

But the fix is within reach.

Because commoditization isn’t a permanent label. It’s a symptom. And symptoms can be treated.

The MSPs that break away are the ones who stop competing on sameness and start competing on meaning.

Once you make that shift, the market looks different.

And more importantly, the market sees you differently.