#50 – From the Trenches: Data Portability, PE Money & MSP Basics That Still Matter (Karl Palachuk)

In this episode of From the Trenches on the BMK Vision Podcast, Josh Peterson sits down with Karl Palachuk for a grounded conversation about what still matters in MSP leadership—especially when the industry feels noisier, richer, and more complex than it’s ever been.

This is not a conversation about chasing the next platform or reacting to the newest vendor narrative. Karl brings the long view: why fundamentals outlast trends, why “blocking and tackling” is still the difference between calm operations and constant stress, and why the MSPs who win over the next decade will be the ones who build durable systems—not just bigger stacks. That discipline is exactly what the Vision operating system is designed to reinforce: clarity, execution cadence, and leadership decisions that compound.

If you’re an MSP owner navigating vendor consolidation, private equity pressure, and the AI wave—while still trying to protect margin, retain talent, and keep client service strong—this episode will feel uncomfortably relevant in the best way.

Why do MSP fundamentals still matter when everything feels “new”?

Short answer: because fundamentals are the only part of the business that scale cleanly.

When MSP owners feel stuck, it’s rarely because they don’t know enough technology. It’s because execution is leaking through dozens of small cracks: unclear service standards, inconsistent ticket flow, vague accountability, poor financial visibility, and a culture that relies on heroics instead of systems.

Karl’s point is simple and painful: the basics aren’t “basic” because they’re easy. They’re basic because they’re foundational—and ignoring them quietly taxes everything else you try to build.

• Operational discipline creates margin without requiring growth
• Repeatable processes reduce leadership fatigue and decision churn
• Clarity beats urgency—especially when the vendor world gets loud

The MSP problem this episode solves

Many MSPs are successful enough to survive—but not structured enough to stay calm when the industry shifts. Vendor consolidation accelerates. Private equity influence increases. Pricing changes. Terms change. Integrations break. And the owner wakes up realizing how much of their business depends on assumptions they don’t control.

This episode addresses three real MSP leadership tensions:

• Wanting stability while the vendor ecosystem keeps changing underneath you
• Trying to modernize (AI, automation, advisory) without abandoning operational fundamentals
• Realizing your “core systems” can quietly become vendor lock-in liabilities

Data portability is not a feature—it’s risk management

Most MSPs treat data portability as a migration project: painful, expensive, disruptive, and therefore easy to postpone. Karl reframes it as something more important: an ownership right and a business safeguard.

If your PSA (and the operational tools tied to it) can’t export your data cleanly, your MSP is effectively accepting vendor lock-in as a default strategy. That might feel tolerable in stable times. It becomes dangerous when ownership changes, incentives change, or the product roadmap stops aligning with your business.

• Your operational data is not “inside the tool”—it’s part of your business IP
• Portability reduces the cost of strategic change (even if you never migrate)
• Freedom to move creates negotiating power you don’t get otherwise

Private equity isn’t the problem—dependence is

Private equity itself isn’t inherently good or bad. The real issue is how concentration changes behavior: pricing pressure, bundled contracts, reduced flexibility, and a widening gap between what vendors optimize for and what MSPs need to operate profitably.

The leadership move is not panic. It’s preparedness. Mature MSPs treat their vendor stack like a supply chain: they evaluate concentration risk, build escape hatches, and make decisions based on long-term operational control—not short-term convenience.

• Vendor “stability” can hide strategic fragility
• Consolidation increases the cost of switching—so you need leverage earlier
• Being prepared is not being disloyal; it’s being responsible

AI is an inflection point—and waiting has a cost

Karl draws a parallel that MSP owners should take seriously: cloud was a watershed, and AI is shaping up the same way. In both cases, the losers aren’t the people who “don’t love the technology.” The losers are the people who decide they’re not going to learn one more thing.

There is a practical business consequence to this. AI and automation reintroduce a kind of consulting mindset that many MSPs have lost: diagnosing unique client problems and designing outcomes—not just executing a standard delivery formula. That’s the difference between being a service vendor and being a strategic partner.

• AI adoption rewards learning velocity, not technical purity
• Automation creates margin when paired with clear delivery standards
• Advisory growth requires curiosity—and willingness to feel “new” again

Related resources from Bering McKinley

• MSP consulting services that help you lead, scale, and win
• Managed service provider consulting: your partner for MSP excellence

Want to continue the conversation?

If you’re an MSP owner trying to build real durability—operationally, financially, and strategically—explore the Vision operating system or apply to be a guest on the podcast.

👉 Apply to be on the BMK Vision Podcast
👉 Learn more about Vision

Episode highlights

• Why MSP “blocking and tackling” still determines profit and stress levels
• The difference between formula-driven delivery and true consulting leadership
• How the cloud era foreshadows the AI era—and what that means for MSP owners
• Why private equity influence changes the risk profile of your vendor stack
• Data portability as an ownership right, not a migration project

About the guest: Karl Palachuk

Karl Palachuk is a veteran MSP author, speaker, and community builder known for translating real operator experience into practical leadership guidance. Through Small Biz Thoughts, Karl helps MSPs strengthen fundamentals, think long-term, and navigate industry shifts with more clarity and less hype.

Connect with Karl Palachuk on LinkedIn →

Frequently asked questions

What is data portability for MSP tools like a PSA?
Data portability is your ability to export and move operational data (tickets, agreements, configurations, billing context, and related records) without losing integrity—so your business is not locked into a single vendor’s ecosystem.

Why should MSP owners care about private equity in the vendor ecosystem?
Because consolidation can change incentives: pricing, contracts, product roadmaps, and support quality. The leadership move is to reduce dependence and build options—even if you never switch.

Is AI actually relevant to MSPs, or is it just another trend?
AI is shaping up as an inflection point similar to cloud. The opportunity isn’t “AI tools.” It’s reintroducing consulting thinking, automating repeatable work, and creating new advisory value when paired with disciplined execution.

Why do MSPs struggle even when revenue is stable?
Because stability can hide operational drift: inconsistent standards, unclear accountability, and weak financial visibility. Over time, those gaps create stress, margin compression, and leadership fatigue.

How do I know if my MSP is too dependent on a vendor?
If switching feels impossible, if you can’t cleanly access your data, or if a change in terms would materially disrupt operations, you’re not just using the tool—you’re exposed to it.