The MSP Evolution: Building Flexibility and Choice into Licensing Models

Managed Service Providers (MSPs) have long operated in a landscape shaped by vendor licensing models, which have often been quite rigid and have become increasingly monopolistic. Recent developments, particularly the strategic shifts by Broadcom and Citrix, have intensified pressure on MSPs, forcing many to reevaluate their infrastructure strategies and partner relationships. 

Broadcom’s acquisition of VMware brought sweeping changes to the VMware Cloud Service Provider (VCSP) programme, changing long-standing licensing structures and pricing models. Similarly, Citrix, now under the Cloud Software Group (CSG) following its merger with TIBCO Software and acquisition by Vista Equity Partners and Evergreen Coast Capital, has moved away from its ‘channel-first’ model. The company now focuses on direct sales to the top 1000 enterprise accounts, leaving smaller MSPs sidelined and redirected to top-tier distributors, many of whom lack the agility or technical depth to support them effectively. 

Disruption as a Catalyst for Innovation 

While these shifts have created short-term challenges, they also present a unique opportunity for MSPs to evolve. The traditional model, where MSPs owned every layer of service delivery, from infrastructure to software licensing, is giving way to more flexible, scalable approaches. MSPs are increasingly embracing hosted platforms and wholesale infrastructure models that support multi-cloud environments like AWS, Azure, and Google Cloud. 

This evolution allows MSPs to reduce capital expenditure, streamline operations, and regain control over their service stack. By shedding the burden of proprietary data centres and rigid vendor contracts, providers can deliver better outcomes for clients and avoid being locked into vendor-driven pricing models. It is a win-win scenario: MSPs gain agility and cost-efficiency, while customers benefit from improved reliability, broader geographic coverage, and modern management tools. 

The Rise of the Wholesale MSP Model 

One of the most transformative trends in the MSP space is the rise of the wholesale model. This is where MSPs procure infrastructure services from vendors such as 11:11 Systems and offer it under their own branding. This model offers unmatched flexibility, scalability, and control over the customer relationship. 

Rather than beholden to vendor licensing terms, MSPs can tailor services to meet the specific needs of their clients. They can scale rapidly, integrate specialised solutions, and offer enterprise-grade services without the overhead of managing physical infrastructure.  

This shift empowers MSPs to focus on innovation and customer experience rather than navigating complex vendor ecosystems. 

How the MSP Landscape Has Evolved 

This wholesale model aligns well with how the MSP industry is evolving.  In recent years it has undergone significant transformation, driven by several key factors:  

Cloud Adoption: The widespread adoption of cloud computing has fundamentally changed how MSPs deliver services. Traditional on-premises models are being replaced by SaaS, hybrid and multi-cloud architectures, enabling greater flexibility and scalability. 

Security Demands: With cyber threats on the rise, MSPs are increasingly expected to provide robust security solutions. This has led to the emergence of Managed Security Service Providers (MSSPs) and the integration of advanced threat detection, compliance, and incident response capabilities. 

Automation and AI: Automation tools and AI-driven platforms have enabled MSPs to improve efficiency, reduce manual workloads, and deliver proactive support. Predictive analytics, self-healing systems, and intelligent monitoring are becoming standard offerings. 

Customer Expectations: Clients now demand more than just uptime, they expect strategic guidance, seamless integration, and continuous innovation. MSPs must evolve from service providers to trusted advisors. 

Vendor Consolidation: Mergers and acquisitions among major vendors have reshaped the partner landscape. As seen with Broadcom and Citrix, these consolidations often lead to tighter control over licensing and reduced support for smaller partners. 

In this evolving and shifting environment, 11:11 Systems has emerged as a trusted partner for MSPs seeking stability and growth. By offering wholesale infrastructure access, seamless workload migrations, and a robust global platform, 11:11 Systems helps MSPs navigate vendor changes with confidence. 

A New Ecosystem of Resilience and Choice 

The MSP evolution is not just about technology; it is about building a new kind of ecosystem. One that values resilience, customer experience, and scalable growth. As MSPs move away from vendor monopolies and embrace flexible models, they are better positioned to meet the diverse needs of modern businesses. 

This shift also encourages innovation. Freed from rigid licensing structures, MSPs can explore new service offerings, expand into untapped markets, and deliver tailored solutions that drive real business outcomes. For customers, this means more choice, better service, and a stronger foundation for digital transformation. 

The ability to pivot, adapt, and innovate in response to market changes is now a key differentiator. MSPs that embrace this mindset will not only survive but thrive in this new landscape. Whether you are a partner navigating vendor transitions or a customer seeking reliable cloud solutions, the message is clear: flexibility, choice, and strategic alignment are the pillars of future success. 

The MSP industry is at a crossroad. Legacy models are being challenged, and new paradigms are emerging. The wholesale MSP model, supported by partners like 11:11 Systems, offers a compelling path forward, one that prioritises agility, customer ownership, and scalable growth. As the landscape continues to evolve, MSPs must remain vigilant, proactive, and open to change. By doing so, they can turn disruption into opportunity and build a future-ready business that delivers lasting value for their customers.