As telecom operators race to build AI-driven digital marketplaces and partner ecosystems, many overlook a highly influential mid-market player: managed service providers (MSPs).

That view comes from Angus Ward, CEO of Beyond Now, which develops digital marketplace software that helps telecom operators build partner ecosystems and deliver bundled digital services.

Ward said telecom operators have traditionally focused their ecosystem strategies on hyperscalers, software vendors, and platform providers, underestimating the role MSPs play in shaping customer technology decisions.

"Many telecom operators believe that through their existing customer base, they can already reach SMB customers, so the focus naturally shifts to large partners," he told Channel Dive. "That's where the 'ecosystem' conversation has traditionally sat."

That strategy overlooks many of the practical ways SMB purchasing decisions are made.

"What's missed is that reach is not the same as influence," Ward said. "MSPs are often closest to the customer, shaping key technology decisions daily. For many SMBs, support and advice often matter more than price when choosing solutions, especially as technology becomes critical to their business operations."

The telecom industry has largely treated MSPs as distribution channels rather than strategic ecosystem partners.

"There has been insufficient thought about how to enable them, grow them, and help them succeed as independent partners."

Solving the 'last mile'

As technology portfolios expand, so does the role of MSPs.

Customers want help solving business problems when making purchases. Ward said most SMBs tend to adopt technology incrementally, validating value before scaling deployment.

"Most SMBs are outcome-oriented because they're just trying to run their business," he said. "They are highly cost-sensitive, so they often start small, test a technology, and only invest further if it delivers value."

MSPs bridge that gap by translating business needs into deployable solutions.

"MSPs understand the customer's problem and context, turn it into a solution, and then assemble the right services to deliver it," Ward said. "The 'last mile' is really about interpretation and trust, making something complex feasible for the customer."

Digital marketplaces increase rather than decrease the need for this kind of expertise. Ward said that when customers face an expanding menu of technology options, advice from a trusted MSP becomes more valuable.

From reseller to orchestrator

According to Ward, the MSP business model is evolving from traditional product resale to outcome orchestration.

Service providers are no longer just reselling connectivity or software licenses; they are expected to combine services from multiple vendors into complete customer solutions.

"This means less focus on transactions and more on design, integration, and lifecycle management," Ward said. "They are essentially stitching the ecosystem together to deliver something usable to the customer."

The same shift applies to AI, which in business contexts is often not a standalone technology.

"AI capabilities can be quite abstract," Ward said. "MSPs are the ones who turn it into practical tools, package it as services, and ensure it actually works in the customer's environment."

Task-oriented agentic automation adds to partners' AI opportunities.

"We will see AI sold less and less as a standalone capability and more as part of bundled solutions," Ward said. "The opportunity is huge, but it will favor MSPs that can move beyond basic resale into solution design and service delivery."

A paradigm shift

Building a stronger MSP ecosystem is not easy. If telecom operators want closer relationships with service providers, they need to rethink more than just business models.

"It starts with mindset," Ward said. "Culturally, MSPs need to be seen as a core part of the value chain."

Partners expect a frictionless experience from onboarding and incentive structures to customer ownership and platform capabilities.

"The common thread is moving from 'selling through partners' to truly 'building with partners,'" Ward said. "The market is moving toward outcomes rather than products. MSPs that can embrace B2B2X business models through digital marketplaces to deliver those outcomes will ultimately win."