Half of MSPs Won’t Survive—Here’s Why (and How You Can)
Let’s get straight to it: half of MSPs will not survive the next industry shakeout.
Industry expert Matt Lee didn't hold back when he shared this prediction—but he's right.
What separates MSPs that thrive from those headed for extinction?
It comes down to how effectively you process information and make strategic decisions.
In our conversation, Matt laid out the powerful DIKW Pyramid framework—a roadmap for evolving your MSP from a commodity to a strategic partner.
Here's how you can apply it:
What’s Inside?
Understanding the DIKW Pyramid: Clearly define each level—Data, Information, Knowledge, Wisdom.
The Cost of Ignoring the Pyramid: Real-world consequences of neglecting strategic data management.
Immediate Action Steps to Thrive: Practical, step-by-step actions you can implement immediately.
Free Downloadable Resources: Tools and worksheets to help you evaluate and upgrade your MSP's practices.
👇 Download Your Quick Guide Now 👇
Understanding The DIKW Pyramid
1. Data (The Base)
The raw, unprocessed information collected from your systems. Think logs, alerts, asset inventories—data alone has limited value.
2. Information (Context):
This is data with context, connecting dots to see patterns across your client environments.
3. Knowledge (Actionable Insight):
This level leverages your expertise to interpret information and apply it practically—identifying risks, root causes, and delivering tailored recommendations to your clients.
4. Wisdom (Strategic Value):
At the peak, you're guiding strategic decisions, managing risk proactively, and aligning tech plans with your client's business goals. Few MSPs consistently operate here—but those that do reap the rewards.
The Cost Of Ignoring The Pyramid
When MSPs fail to fully grasp and apply the DIKW Pyramid, the consequences are severe:
Commodity Trap: Without strategic differentiation, you’re stuck competing primarily on price, eroding profitability.
Increased Liability: Poorly managed data and information can lead to costly mistakes, regulatory penalties, and expensive lawsuits.
Client Dissatisfaction: Clients increasingly demand strategic insights. Failing to deliver actionable knowledge and wisdom results in client churn.
Market Vulnerability: MSPs operating at lower levels of the pyramid become vulnerable to competitors who provide higher-level strategic services.
Lost Opportunities: Missed chances to upsell premium services and long-term partnerships due to limited strategic insight.
Ignoring this pyramid isn't just risky—it's potentially fatal for your business.
Immediate Action Steps To Thrive:
Audit Your Current Position: Clearly identify your MSP's current level on the DIKW Pyramid.
Build from the Ground Up: Ensure comprehensive data collection before moving to information and knowledge.
Document Everything: Meticulously document to support your decision-making processes and protect your business.
Implement Strategically: Apply Matt’s "What, How, Tool, Proof" framework for smarter, aligned decision-making.
Your Next Move: Climb the DIKW Pyramid
We've distilled Matt’s insights into a straightforward, actionable PDF guide that covers:
✅ Clearly defining each pyramid level
✅ Practical steps to enhance your MSP's strategic position
✅ Simple ways to audit and document your current processes
👇 Download Your Quick Guide Now 👇
Dive Deeper with Video
• Whiteboard Breakdown: Get a visual breakdown of the DIKW Pyramid and actionable strategies to implement immediately. [Watch Here]
• Full Matt Lee Interview: Listen to Matt’s real-world experiences and the tough lessons that led to this essential framework. [Watch Here]
Final Thought: Future-Proof Your MSP
As Matt put it…
“Just suck a little less tomorrow than you did today.”
Don’t let your MSP fall victim to commoditization, lawsuits, or industry shakeouts.
Start climbing the DIKW Pyramid today and secure your future.
Talk soon,
Jeffrey Newton
MSP INSIDER