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Unlock new revenue streams by becoming AI-ready with Microsoft’s Copilot and Sales Advisor tools, leveraging powerful incentive programs for accelerated growth.

The AI readiness imperative

The managed services landscape is evolving rapidly. Today, forward-thinking managed service providers (MSPs) are capitalizing on AI’s potential to drive growth, while others watch from the sidelines. According to industry reports, MSPs adopting AI-ready solutions experience 30% higher client retention rates and a 15% increase in cross-selling opportunites leading to significant boosts in monthly recurring revenue.

Why should MSPs care about AI readiness? The risks of staying on the sidelines go beyond missed trends; they affect long-term revenue potential and client loyalty. AI isn’t a future consideration; it’s a present-day advantage that separates MSPs with strategic vision from those struggling to maintain client satisfaction. Here’s how MSPs can avoid turning AI into a missed opportunity and instead make it a powerful, revenue-driving engine.

Level up your MSP’s AI readiness: Download your free guide to get started today!

Why AI readiness matters for MSPs

For MSPs, the journey to AI readiness isn’t just about acquiring technology; it’s about creating a robust foundation that integrates AI to enhance business value continuously. Not having AI-ready solutions can lead to:

  1. Missed upsell opportunities: Without the tools to deliver advanced AI solutions like Microsoft Copilot, MSPs may lose out on lucrative upsell opportunities, especially in security, productivity and compliance.
  2. Lack of differentiation in the market: As clients become more AI-savvy, MSPs without AI readiness risk losing clients to competitors that offer AI-backed value, efficiency and productivity improvements.
  3. Lower revenue and ROI: AI-ready MSPs benefit from incentive programs that reward early adoption and offer savings for bundling services. MSPs without these incentives miss out on high-ROI pathways to expand services and scale faster.

Microsoft Copilot myths

For MSPs, procurement has shifted from a cost-saving activity to a strategic growth driver. The old days of generic AI are over; enterprise-grade AI solutions like Microsoft Copilot offer customized, scalable support that enhances security, compliance and integration. MSPs hesitating on this transformation are missing major revenue opportunities due to a few common misconceptions:

  1. Belief that ChatGPT alone can handle enterprise needs
  2. Concerns about initial implementation costs
  3. Uncertainty about achieving immediate ROI

Let’s unpack these myths and understand why Microsoft Copilot is crucial for MSP growth.

Transforming revenue with Microsoft Copilot

Many MSPs see ChatGPT as a convenient, low-cost entry into AI, but relying solely on it for enterprise solutions is a short-sighted strategy. While ChatGPT is valuable for basic tasks, it lacks the security, compliance and scalability essential for enterprise environments. Here’s why Microsoft Copilot provides distinct benefits that position it above generic AI tools and is the superior choice for MSPs:

  • Enterprise-grade security and compliance: Unlike basic AI solutions, Copilot is equipped with built-in compliance features critical for regulated industries.
  • Seamless integration with Microsoft 365: Microsoft Copilot is designed for workflow integration, reducing disruptions and minimizing additional learning curves for clients.
  • Incentives and financial rewards: While generic tools offer some functionality, they don’t match the added benefits of Copilot. Microsoft’s incentive programs reward MSPs that bring clients on board with AI solutions, making Copilot a financial win.
  • Continuous evolution: Regular updates add value automatically, requiring no additional investment or downtime.

Pro Tip: MSPs utilizing Copilot’s enterprise features report up to 40% increased client operational efficiency, creating built-in upsell opportunities.

Relying on ChatGPT alone limits an MSP’s ability to deliver comprehensive, secure and industry-compliant solutions. Microsoft Copilot enables MSPs to meet enterprise requirements and maintain a competitive edge.

The true cost of implementation

Some MSPs hesitate to adopt Microsoft Copilot, fearing that upfront costs will outweigh potential benefits. However, these initial expenses can be managed through Microsoft’s incentives and are outweighed by long-term revenue growth.

  • Microsoft incentive programs: Microsoft offers extensive incentive programs specifically for MSPs adopting Copilot. These can significantly offset initial costs, making the solution more accessible and profitable right from the start.
  • Reduced training costs: Microsoft’s AI solutions are familiar to users already working within the Microsoft ecosystem, minimizing the learning curve and reducing training expenses. MSPs can implement Copilot without extensive re-skilling, allowing for quicker time-to-value.
  • Increased operational efficiency: Copilot’s advanced automation capabilities reduce time spent on manual, repetitive tasks, improving operational efficiency and freeing up resources for high-value activities. MSPs often see a quick return on investment as productivity improves across teams.

The initial investment in Microsoft Copilot can be mitigated through available incentives and rapid gains in operational efficiency. MSPs benefit from immediate cost-saving advantages that lead to sustained, scalable growth.

Can AI readiness increase ROI?

MSPs may be concerned that AI adoption won’t yield fast, measurable returns, but Microsoft Copilot is designed to deliver value quickly, with clear pathways to ROI through strategic deployment.

  • Structured AI implementation roadmap: Microsoft provides MSPs with a step-by-step roadmap for Copilot deployment, helping align AI adoption with each client’s business goals. This structured approach maximizes early wins and showcases ROI at each stage.
  • Revenue from upselling and cross-selling: With Copilot, MSPs can offer clients high-value services, such as enhanced security monitoring, advanced data analytics and predictive insights. These offerings not only boost revenue but also foster stronger, longer-term client relationships.
  • Lifecycle rewards for client growth: Microsoft’s lifecycle incentives reward MSPs for expanding AI services over time. This helps create a recurring revenue stream, ensuring that each deployment is financially rewarding across its lifecycle.

With Microsoft’s structured approach and incentives, MSPs don’t have to wait long to see returns. Early wins and recurring revenue from expanded service offerings make Copilot a financially sound investment for MSPs committed to growth.

Competitive advantage through incentive-driven AI readiness

MSPs that leverage Microsoft Sales Advisor and incentives are well-positioned to become AI readiness leaders. This approach not only drives ROI but also strengthens client loyalty by offering comprehensive, financially supported AI services that meet evolving needs.

By integrating these tools and incentives into their services, MSPs can foster sustainable growth, optimize client satisfaction and solidify their role as indispensable AI readiness partners.

Maximizing opportunities with Microsoft Sales Advisor and incentives

Imagine automatically uncovering security gaps, understanding complex usage patterns, and receiving actionable recommendations—all without extensive manual research. Sales Advisor doesn’t just provide insights; it offers predictive business intelligence, driving proactive growth opportunities.

Microsoft Sales Advisor and its incentive programs offer MSPs a pathway to not only enhance their service offerings but also unlock new revenue streams and cost-saving advantages. When strategically leveraged, these tools become powerful assets for building a resilient AI-driven business model that scales with demand and bolsters client relationships.

1. Leveraging Microsoft Sales Advisor for strategic growth

Microsoft Sales Advisor turns AI-driven procurement into a strategic growth mechanism. Sales Advisor is more than a tool for finding leads; it’s an intelligence engine that empowers MSPs to understand client needs offering real-time intelligence and targeted recommendations. Through this it becomes a high-level reconnaissance tool for MSPs, revealing upsell potential, security recommendations, and client-specific growth paths to position AI services effectively. Here’s how MSPs can harness its full potential:

  • Identify and prioritize AI readiness needs: Sales Advisor assesses clients’ current tech stack and digital maturity, identifying gaps that AI solutions can address. MSPs can use this information to develop a tailored AI roadmap for each client, positioning AI tools (like Microsoft Copilot) as essential next steps in their digital journey.
  • Cross-selling with security and compliance services: AI adoption is tightly linked to cybersecurity needs, making security solutions an ideal upsell for MSPs. Sales Advisor can reveal potential risks in clients’ systems, helping MSPs introduce AI-enabled security services as a proactive approach to safeguarding client data and operations.
  • Personalized upsell recommendations: Using insights from Sales Advisor, MSPs can present clients with recommendations that are directly aligned with their growth goals. For instance, a client focused on productivity gains might be interested in AI-powered collaboration tools, while a security-conscious client could benefit from advanced threat detection solutions.
  • Building long-term partnerships through AI innovation: Sales Advisor’s data-driven approach allows MSPs to create ongoing, AI-driven engagements, fostering stronger client partnerships. By introducing AI as part of a phased strategy, MSPs become trusted advisors guiding clients through each stage of AI adoption, from basic implementation to transformative use.

2. Stacking incentives for revenue growth and cost offsets

Microsoft’s incentive programs are designed to reward MSPs for advancing AI readiness across their client base, offering financial benefits that MSPs can use to reduce costs or enhance their service offerings. By strategically stacking incentives, MSPs can maximize these opportunities:

  • AI solution incentives: Microsoft offers substantial incentives for deploying AI services across the ecosystem. By bundling AI offerings (like Microsoft Copilot) with core solutions, MSPs can stack incentives for each eligible service, maximizing financial returns and creating attractive bundled packages for clients.
  • Hero SKU bundling: Bundle security and AI tools for comprehensive client packages, maximizing revenue per client.
  • Volume-based rewards: As more clients adopt AI solutions, MSPs can qualify for additional volume-based rewards, making it profitable to scale AI services across multiple clients. Volume-based incentives enable MSPs to increase margins as they expand AI maturity services to more businesses, driving consistent revenue growth.
  • Tiered benefits: Leverage progressive rewards and volume-based bonuses.
  • Customer lifecycle rewards: Microsoft provides lifecycle incentives that recognize MSPs for engaging clients at every step of the AI adoption process. These incentives not only compensate MSPs for initial sales but also reward them for retaining and expanding AI services over time, turning long-term relationships into reliable revenue streams.
  • AI-specific training and support funding: Some Microsoft programs include training and support funds that MSPs can access for themselves or their clients. MSPs can utilize these resources to upskill their teams, enhance client training, and smooth the AI implementation process—reducing support costs and reinforcing client satisfaction.
  • Special promotion periods: Take advantage of time-sensitive promotions to increase earnings.

3. Creating a roadmap for clients that aligns with incentives

To make the most of Sales Advisor insights and Microsoft incentives, MSPs should guide clients through a structured AI readiness roadmap. This roadmap doesn’t only help clients achieve AI maturity but also ensures that MSPs can fully capitalize on available incentives. Here’s a sample roadmap  that MSPs can customize:

  • Phase 1: Initial assessment
    • Use Sales Advisor to analyze client readiness.
    • Identify immediate gaps and align them with AI solutions that are eligible for incentives.
    • Discuss incentive opportunities with clients to create a financial case for AI adoption.
  • Phase 2: Pilot programs and early adoption
    • Implement initial AI tools (e.g., Microsoft Copilot) in targeted areas like productivity and collaboration.
    • Capture early feedback and document results, demonstrating the value of these tools to clients.
    • Leverage AI solution incentives to offset costs, making AI adoption more accessible for clients.
  • Phase 3: Expansion and customization
    • Expand AI capabilities across the client’s organization, adding custom AI services tailored to specific needs.
    • Maximize volume-based rewards by broadening AI usage across departments or multiple clients.
    • Reinforce client loyalty through support and AI-specific training, funded by Microsoft’s lifecycle incentives.
  • Phase 4: Full AI maturity
    • Position AI as a fundamental part of the client’s strategic growth, transitioning from isolated tools to integrated, organization-wide solutions.
    • Maintain an ongoing engagement, using lifecycle rewards to fund future enhancements and generate continuous value for the client.
    • Revisit the Sales Advisor analysis regularly to identify new upsell or cross-sell opportunities, ensuring that clients remain at the forefront of AI-driven innovation.

Why MSPs can’t afford to wait

The AI readiness wave is here, and clients increasingly expect solutions that drive productivity, secure data and streamline operations. MSPs that delay AI adoption risk more than just the initial investment, they risk their competitive edge. In a rapidly changing landscape, once competitors establish themselves as AI leaders, catching up becomes exponentially harder.

Consider the missed opportunities: while forward-thinking MSPs capitalize on Microsoft’s AI-readiness incentives, deliver proactive, advanced services and strengthen client loyalty, those that hesitate may see clients migrate to more innovative providers. Businesses now value partners who bring cutting-edge, AI-driven solutions, making AI readiness a critical market differentiator.

Moreover, Microsoft’s AI incentives won’t be around forever. Missing out on these time-sensitive opportunities translates into a significant loss in both potential revenue and cost savings.

By becoming AI-ready with Microsoft Copilot now, MSPs can position themselves as trusted, forward-thinking partners ready to meet evolving client demands and capitalize on the AI-driven future.

Looking ahead: Turning AI readiness into ongoing revenue

The path to AI readiness is a dynamic one, with opportunities to elevate client relationships and revenue streams at each stage. By maximizing Microsoft incentives and harnessing the power of tools like Sales Advisor, your MSP is primed to offer unparalleled value, positioning you as the go-to AI readiness partner.

As you navigate new territory through AI readiness, remember that there are even more opportunities to unlock value. Our next installment will explore how MSPs can leverage Microsoft 365 Copilot’s extensibility and customization features to create ongoing revenue streams. Learn strategies to tailor AI solutions that align with unique client goals, turning each engagement into a long-term, scalable relationship.

Don’t wait to unleash the power of AI in your organization. Discover how Microsoft Copilot can transform your business.

Download your guide to Copilot today!

Written by The Sherweb Team Collaborators @ Sherweb