Flamingo launches OpenMSP to help MSPs cut software costs
The MSP and MSSP sector, currently valued at $83.76 billion, faces significant challenges due to the high cost of commercial software and technician salaries. Industry estimates suggest that commercial software licensing absorbs between 20-35% of MSP revenue, with technician wages accounting for an additional 20-30%. This cost structure places many providers in a difficult position as they try to balance business growth and operating margins.
OpenMSP has been designed to address these issues by providing a systematic approach to reducing costs and improving margins. Developed by Flamingo, the open-source platform features an AI Margin Increase Report generator, which analyses an MSP's current software usage and produces a tailored report outlining current licensing expenditures, projected savings from replacing commercial software with open-source alternatives, and detailed implementation guidance.
The platform also includes a vendor mapping directory cataloguing 155 commercial vendors in four primary categories: Network Operations Centre (NOC), Security Operations Centre (SOC), IT operations, and business operations. For each commercial solution, OpenMSP identifies potential open-source equivalents, offering viable alternatives for 63% of the catalogued platforms. Examples of these mappings include commercial vendors such as ConnectWise, Datto, and Kaseya alongside open-source counterparts like TacticalRMM, Wazuh, and Odoo.
The adoption of open-source tools has traditionally been hindered by concerns around support, deployment complexity, and system integration. However, industry stakeholders note that these barriers are diminishing as open-source solutions mature. "Over the past 15 years, I've closely followed the evolution of open-source technology in the IT and security space. What started as basic tooling has now matured to the point where many open-source solutions rival, and often outperform, commercial products. While challenges around support, deployment, and orchestration remain, they're becoming significantly easier to manage," said Michael Assraf, Chief Executive Officer and Founder of Flamingo. "At my previous startup, I witnessed Managed Service Providers (MSPs) increasingly adopting open-source tools in isolated cases. OpenMSP was created to take that trend further - offering structured support and a unified path forward for MSPs ready to embrace open source at scale."
According to Stephen Garriques, Chief Executive Officer of SecureTokens, the platform has already delivered tangible benefits: "OpenMSP gave us a data-backed roadmap to restructure our SOC and NOC tooling using open-source platforms like TacticalRMM and Wazuh. We cut licensing costs by 27%, eliminated vendor lock-in, and gained tighter integration across our stack. The AI report made it easy to justify the shift internally and execute with confidence."
Key features of OpenMSP include side-by-side comparisons of leading commercial platforms and their open-source alternatives, allowing MSPs to make informed decisions regarding their technology stack and avoid vendor lock-in. Community support is another focus, with the platform offering access to a peer-driven user network, best-practice playbooks, and guidance for safe adoption and operationalisation of open-source tooling.
The platform is offered without cost, with MSPs able to access both the AI-powered margin analysis tool and the complete vendor directory. The platform aims to empower providers to take control of their cost structure while maintaining, or even enhancing, the capabilities required for their service operations.
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