This is a great illustration of a pattern I have been writing about. IT services sits in a fascinating spot on what I call the Trust-Task Matrix: most of the day-to-day work (ticket resolution, patch management, access provisioning, compliance monitoring) is high routine and moderate trust. That puts it squarely in the AUTOMATE and VERIFY quadrants, which is exactly why it is ripe for AI-native disruption.
The 40,000 fragmented MSPs with fewer than 10 employees, aging operating models, and no structural incentive to innovate is also a textbook setup for the buy-and-transform playbook. I spent two years evaluating 200+ companies in fragmented service verticals through a search fund. IT services checks every box: sticky client relationships, predictable cash flows, zero tech adoption, and owners ready to exit.
I wrote about this thesis this Monday,
including the Trust-Task Matrix framework and an argument about why the current margin assumptions are built on subsidized AI inference.
This is a great illustration of a pattern I have been writing about. IT services sits in a fascinating spot on what I call the Trust-Task Matrix: most of the day-to-day work (ticket resolution, patch management, access provisioning, compliance monitoring) is high routine and moderate trust. That puts it squarely in the AUTOMATE and VERIFY quadrants, which is exactly why it is ripe for AI-native disruption.
The 40,000 fragmented MSPs with fewer than 10 employees, aging operating models, and no structural incentive to innovate is also a textbook setup for the buy-and-transform playbook. I spent two years evaluating 200+ companies in fragmented service verticals through a search fund. IT services checks every box: sticky client relationships, predictable cash flows, zero tech adoption, and owners ready to exit.
I wrote about this thesis this Monday,
including the Trust-Task Matrix framework and an argument about why the current margin assumptions are built on subsidized AI inference.
chiponmyshoulder.substack.com/p/the-16-trillion-flip
Do I need to optimize software BOMs too?
Agree, that's one reason why I support DATS a distributed real time threats protocol
Yes… I still develop www.trustgov.tech for that