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R365 momentum - escaping the MSP treadmill (and buying back time for AI outcomes)

Let’s say the quiet part out loud - the traditional MSP value proposition is getting squeezed. Not because managed services aren’t needed (they are), but because “break/fix + tool soup + hero technicians” doesn’t scale in the AI era — it bleeds margin, burns people out, and crowds out real transformation work.


In 2025, Omdia describes the MSP market shifting “from aggressive expansion to cautious consolidation” under rising labor costs and margin pressures, with one exec cited estimating MSPs can spend up to 80% of total costs on labor. That’s not a strategy — that’s a treadmill with a profit-and-loss statement attached. And it shows up in the benchmarks: Service Leadership’s data (ConnectWise ecosystem) flagged managed services revenue growth around -0.2% in Q4 2024 and noted project margins also slipping.



Meanwhile, MSPs themselves are basically yelling “profitability or death” in survey form: Datto’s State of the MSP survey found 91% rate profitability as at least a medium priority over the next 12 months, with 63% calling it a top/high priority. And MSP leaders point to the same structural pressures: price pressure/commoditisation and tech shifts (including AI/automation) threatening old business models.


The real villain- cost-to-serve from tool sprawl + low-value tickets

The “waning value” isn’t the market — it’s the old operating model. The economics get torched by a nasty combo -


  • Too many tools, too many dashboards, too many gapsAuvik’s 2025 IT Trends Report found 50% of MSPs use 10+ tools just to manage client networks, and 74% say server monitoring contributes to sprawl by requiring a separate tool (or separate tools). Auvik

  • Scale increases exposure, and security stacks multiplyOne 2025 managed-security study reported MSPs manage ~50 clients and 1,728 endpoints on average, and most use at least four separate security tools (larger providers average six). It links sprawl to integration gaps, visibility blind spots, higher operational burden — and notes MSPs with bigger tool stacks often report thinner margins even with higher revenue.

  • Same study: 50% cited lack of automation as the biggest barrier to scaling security services.

  • Tool sprawl isn’t just annoying — it creates risk and waste. JumpCloud’s 2025 IT Trends data highlights the impact of “tool sprawl”, including security gaps (56%), cost inefficiencies (44%), and compliance risks (44%).

  • Humans pay the tax ITPro’s coverage of the Auvik findings reports 60% of respondents experience moderate-or-higher burnout, and 44% say workload burden restricts productivity. (If your delivery model requires permanent adrenaline… congratulations, you’ve reinvented burnout as a service.)


The market signal is clear - consolidate + shift to outcomes

This is bigger than MSPs — it’s the whole tech stack world. Gartner reported 75% of organisations pursued security vendor consolidation in 2022 (up from 29% in 2020), driven by dissatisfaction with cost hemorage, operational inefficiency and that all to stark issue of poor integration across heterogeneous stacks.


And the commercial direction is unmistakable - a KPMG/HFS report noted more than 80% of buyers now see “modern managed services” as outcome-based, as-a-service subscription solutions rather than piecemeal offerings — up from 62% the year before. KPMG In other words: stop selling hours and patchwork; start delivering outcomes with a clean operating system.


So what does “R365 momentum” actually mean at Rare?

It means we deliberately move clients away from the expensive mess (multi-tool + break/fix gravity) into a simpler, single-experience operating model that -

  1. creates growth, cost savings and digital enablement journey's

  2. reduces tool sprawl and cost-to-serve,

  3. tightens security and operational visibility, and

  4. buys back time for the work that actually compounds value in the AI era: data foundations, process redesign, automation, AI use-case delivery, training, governance, and continuous improvement.


That’s where Rare's consumption IT for everything comes in - strategically coherent, predictable, outcome-aligned packaging (devices, security, network foundations, support) so the organisation stops being held hostage by capex spikes and “time-and-materials forever”.


And yes — we like Kaseya 365 (your “K365”) as part of that R365 enablement strategy because it is explicitly designed to consolidate the endpoint stack. Kaseya positions Kaseya 365 as an all-in-one endpoint subscription to manage, secure, back up and automate endpoints. Their launch material spells out the included components (RMM, patching, AV, ransomware detection, EDR, endpoint backup; MDR in the Pro tier). Their 2025 cost-and-sprawl write-up is even more direct: a unified subscription replaces separate tools for remote control, patching, antivirus, EDR, security policies, automation, and reporting.


The Rare (365) punchline - secure time is the scarcest resource in the AI era

AI doesn’t reward organisations that “try a tool.” It rewards organisations that can run an operating rhythm: use-case → governed data access → tested models → measured behaviour → continuous refinement.


You simply cannot do that if your Organisation, practice and or IT function is drowning in swivel-chair admin, dashboard-hopping, brittle integrations, and low-value tickets. So section 4 is really this -


R365 momentum = the deliberate and measured reclaiming of capacity — by consolidating and standardising the support stack — so you can redirect scarce human intelligence into digital outcomes, not digital fog.


That’s how you get uplifting momentum that actually sticks - less digital and support theatre, more traction, and an organisation that can genuinely “fight for fantastic” in the exponential age.



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