Flamingo Launches AI Platform to Transform MSP Market

ByRicardo

Backed by $2.2M in pre-seed funding, Flamingo combines open-source instruments with autonomous AI brokers to assist MSPs slash prices and improve productiveness.

Flamingo, a Miami-based startup, at this time launched from stealth with OpenFrame, a platform combining AI automation with open-source infrastructure to rewrite the economics of managed service suppliers (MSPs), corporations that present IT help to small and medium-sized companies. Over 1,000 MSPs have already joined Flamingo’s waitlist forward of launch, representing roughly 3% of the managed providers market, with greater than 150 early adopters actively testing and collaborating via Flamingo’s Slack neighborhood.

The $380 billion MSP trade is caught in a revenue squeeze. Most suppliers function on razor-thin 8–12% web margins, caught between steep vendor charges consuming 25–35% of income and labor prices consuming one other 25–35% for repetitive duties like password resets, disk alerts, and troubleshooting. Flamingo constructed OpenFrame to flip that equation and empower MSPs to break away from vendor lock-in and scale profitably.

“MSPs are paying twice for a similar drawback: as soon as to distributors and once more to technicians,” stated Michael Assraf, CEO and founding father of Flamingo. “OpenFrame fixes each: open supply cuts the seller tax, and AI eliminates repetitive work. The result’s freedom, effectivity, and actual profitability.”

Traditional MSP platforms focus solely on both software program infrastructure or automation, however can’t deal with the underlying economics. Legacy distributors present complete tooling however at steep prices that compress margins. Meanwhile, open-source options exist however require important technical experience to deploy and combine, making them inaccessible to most MSPs. The siloed nature of those approaches prevents MSPs from fixing each the seller value drawback and the labor effectivity drawback concurrently.

“We’ve been dropping money and time to costly software program licenses whereas our technicians spend hours on repetitive duties that ought to already be automated,” stated Stephen Garriques, CEO at SecureTokens. “OpenFrame eliminates each bottlenecks and cuts vendor prices whereas boosting productiveness. The skill to self-host and preserve full management of our infrastructure makes it a real game-changer for the way we run our enterprise.”

OpenFrame combines the liberty of open supply with the effectivity of autonomous AI brokers. Its duo, Fae and Mingo, automates each customer-facing and back-end operations, from password resets to menace detection, turning MSPs into lean, high-margin software-like companies. Fae handles client-side duties like password resets, low disk house warnings, and system patches, whereas Mingo manages MSP operations, together with menace detection, suspicious course of monitoring, and routine upkeep. Unlike conventional AI assistants that solely present suggestions, these brokers take motion autonomously however require technician approval for delicate operations, hanging a stability between automation and oversight.

“For years, MSPs have been getting squeezed between vendor payouts and labor prices. From my expertise as a CEO working with MSPs within the cybersecurity house, I perceive the ache and frustration of not having a viable different,” says Michael Assraf, CEO and founding father of Flamingo. “By changing each, OpenFrame helps MSPs probably remodel their enterprise economics from at this time’s 8-12% web margins to 50-60% EBITDA margins.”

OpenFrame can be accessible in two deployment choices: self-hosted for full management for free of charge, or managed providers with per-device pricing. At launch, the platform will embrace:

  • Remote Monitoring and Management (RMM)
  • Remote Access and Mobile Device Management (MDM)
  • Integrated SIEM
  • Free beta entry via February 2026

“MSPs have been compelled to select between wholesome margins and nice service. Flamingo makes that selection out of date,” stated Pascal Unger, Managing Partner at Focal VC. “By merging open supply with autonomous AI, they’re attacking the 2 largest ache factors within the trade head-on. Michael’s background and the momentum we’re already seeing make this one of the crucial thrilling shifts within the MSP house in years.”

Flamingo beforehand raised $2.2 million in pre-seed funding led by Focal VC and Array VC. With this launch, the corporate will develop its group and develop its gross sales, help, and engineering operations to serve the rising waitlist of over 1,000 MSPs. The firm’s community-driven strategy, together with its lively Slack neighborhood of 150+ members and OpenMSP, the neighborhood platform launched in July 2025, has accelerated the fast adoption of its know-how.

“The 1,000-strong waitlist tells us the trade is prepared for this modification,” Assraf added. “We’re dedicated to development and have been onerous at work creating options that can be versatile to the altering panorama, all whereas staying core to our mission of serving to MSPs break away from vendor lock-in.”

The publish Flamingo Launches AI Platform to Transform MSP Market first appeared on AI-Tech Park.

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