BP2.0
PlanningAI-First Managed Services — operational transformation of existing BP business
The Opportunity: Total Addressable Market
TAM (NZ SMB IT Spend)
$500M+
~50,000 SMBs × $10K avg IT spend
SAM (AI-Curious MSP Clients)
$36M
1,200 firms × $30K avg
SOM (Year 2 Target)
$1.5M
50 clients × $30K avg
| Client Segment | Users | Avg MRR | Annual Value |
|---|---|---|---|
| Small (10-25 users) | ~15 avg | $750 | $9,000 |
| Medium (25-75 users) | ~40 avg | $3,000 | $36,000 |
| Large (75-200 users) | ~100 avg | $10,000 | $120,000 |
| Blended Average | ~35 | $2,500 | $30,000 |
Market Thesis: ~20% of NZ SMBs (~1,200) are "AI-curious" — forward-thinking businesses that would pay a premium for AI-first IT services. We don't need to win the whole market, just the segment that values automation over cheap labour.
Crossing the Chasm: AI-First MSP Strategy
Beachhead: Existing BP Clients
Internal Transformation First
- • Start with existing BP client base
- • Prove AI-first model internally
- • Build case studies before external GTM
- • Lower risk — known relationships
Why internal first: Operational transformation is risky. Prove it works with friendly customers before selling externally.
Bowling Pin Strategy
1
BP Internal (Existing Clients)
M1-6: 5 clients on AI-first
2
AI-Curious New Clients
M6-12: 20 net-new AI-first clients
3
Scale & Replicate
Y2: 50+ clients, 60%+ margin
Crossing the Chasm Logic: Traditional MSPs compete on price. AI-first MSPs compete on outcomes. We're creating a new category — not cheaper IT, but smarter IT.
Whole Product: Traditional vs AI-First MSP
Traditional MSP Model
- • Revenue scales with headcount
- • Margins compress at scale (40-50%)
- • Knowledge walks out the door
- • Reactive: wait for tickets
- • Commoditised: compete on price
AI-First MSP Model (BP2.0)
- • Revenue scales with AI automation
- • Margins expand at scale (60-70%)
- • Knowledge is encoded in systems
- • Proactive: predict and prevent
- • Differentiated: compete on outcomes
Service Stack
Tier 1: AI Automation
70%
of tickets handled by AI
~$5/user/month cost
Tier 2: Augmented Human
25%
AI-assisted humans
~$15/user/month cost
Tier 3: Strategic Advisory
5%
vCIO / vCTO services
~$500/month retainer
The Bet: AI will replace 50-70% of Tier 1 MSP work within 3 years. MSPs that build AI into their DNA now will capture outsized margins. Those that don't will be squeezed.
The Offer: AI Automation Audit
Lead OfferValue Equation
| Dream Outcome | Know exactly what AI can automate in your business |
| Mechanism | 2-hour audit + automation roadmap + ROI calculator |
| Time to Value | Results in one session |
| Effort | We do the analysis, you get the insights |
| Risk | Free audit — insight guarantee |
Pricing
Managed Workplace $50/user
+ Security Stack $75/user
+ Compliance + vCIO $100/user
Insight Guarantee:
If we can't identify at least 3 automation opportunities worth $10,000+/year in savings, we'll pay you $500 for your time.
Audit Capacity:
We can conduct 5 audits per month to ensure quality. High-touch model.
Unit Economics
$2,500
Avg MRR/Client
60%
Target Gross Margin
50
Clients to Breakeven
Month 12
Breakeven
Investment Decision
Operational Note: BP2.0 is an operational transformation of the existing BP business, not a new product. Requires internal pilot before external GTM.
Investment
- Phase 1 (M1-6): $200,000
- Phase 2 (M7-12): $200,000
- Total Y1: $400,000
Month 6 Gate Criteria
- 5 existing clients on AI-first
- 70% Tier 1 automation achieved
- 60% gross margin on pilot clients
Breakeven
- 50 clients
- $1.5M ARR
- Target: Month 12-14
Recommendation: Approve with Pilot Phase
Key Assumptions
AI can handle 70% of Tier 1 tickets within 12 months
SMBs are willing to pay premium for AI-first
60% gross margin is achievable with automation
Existing BP team can transition to AI-first model
Tool integrations (RMM, PSA, AI) are mature enough
Key Risks
AI reliability: Start with low-risk automation, expand
Customer trust: Human oversight on all AI actions
Team transition: Reskill, don't replace
Competition: Speed to market is critical