ConnectWise, Microsoft, Pax8 Launch Unified Managed Services Platform for SMB Security & Efficiency

The business of managed services has inexorably shifted in recent years, pushed onward by a tidal wave of digital transformation among small to midsized businesses (SMBs) and an equally rapid escalation of cybersecurity threats. Amid this shifting landscape, the partnership of ConnectWise with Microsoft and Pax8 signals a watershed moment for Managed Service Providers (MSPs) seeking integrated, scalable, and security-focused management solutions. Their newly launched offering, ConnectWise Endpoint Management & Security for M365, is designed to meet the evolving needs of MSPs and their SMB clients, delivering a comprehensive suite of endpoint management, security, backup, and automation tools—all tightly integrated and easily consumable through the Pax8 marketplace.

Elevating the MSP Value Proposition: Addressing Security and Efficiency​

For modern MSPs, the days of piecemeal tooling and siloed platforms are nearing an end. The need for seamless, automated solutions that reduce operational overhead while strengthening security postures has never been clearer. According to the 2024 Verizon Data Breach Investigations Report, 94% of malware was delivered via email, and ransomware attacks on SMBs have increased by double digits year-over-year. In parallel, the global MSP market continues its strong upward trajectory, forecast to reach over $350 billion by 2027, fueled by rising demand for managed security and endpoint services. Yet, operational complexity, fragmented security tools, and inefficient workflows often stand in the way of true service excellence.
ConnectWise, Microsoft, and Pax8—each a leader in their respective domain—have joined forces to deliver a bundled platform that speaks directly to these pain points. At its core, ConnectWise Endpoint Management & Security for M365 offers a deeply integrated stack, blending endpoint Remote Monitoring and Management (RMM), advanced security, backup, and operational dashboards under one roof.

Inside the Solution: Key Components and Architectural Overview​

The bundled offering, provisioned through the Pax8 cloud marketplace, is composed of several critical pillars:

Microsoft 365 Business Premium​

The foundational element is Microsoft 365 Business Premium, bringing together best-in-class productivity, collaboration, and compliance capabilities. Beyond its familiar Office suite, this tier introduces robust enterprise-level security features such as Endpoint Detection and Response (EDR), email filtering, vulnerability assessments, software-as-a-service (SaaS) app detection, and granular policy enforcement. Notably, these are features typically associated with large enterprise deployments but are now available and pre-integrated for SMB clients via their MSPs.

ConnectWise RMM Pro​

Next is the ConnectWise RMM Pro, which deeply integrates with Microsoft Intune for streamlined device management and policy enforcement. Other highlights include:

• Intelligent alerting for rapid issue identification and troubleshooting.
• Basic network monitoring, a crucial capability for maintaining uptime and diagnosing bottlenecks.
• Robotic Process Automation (RPA) Starter, shipping with a workflow builder and 24 pre-built automation templates.
• A Hyperautomation dashboard that enables MSPs to visualize, track, and optimize automation across environments.

The inclusion of RPA capabilities is especially pivotal in today’s climate, enabling MSPs to automate repetitive tasks, reduce manual intervention, and ensure consistent policy application across diverse client environments.

MDR for Microsoft Defender (Endpoint + M365)​

A standout feature is the Managed Detection and Response (MDR) service for Microsoft Defender, which extends 24/7 monitoring, detection, and incident response powered by ConnectWise’s Security Operations Center (SOC). This brings enterprise-grade security intelligence and response capabilities within reach for SMB clients, who often lack the resources to build or staff an in-house SOC.

ConnectWise Backup and Security Dashboard​

Finally, the ConnectWise Backup and Security Dashboard—an evolution of its earlier Backup360 and Security360 platforms—offers a unified view of backup status, restore points, and cybersecurity posture across all connected tools and endpoints. The result: faster, more informed decisions and a substantial reduction in the complexity of managing disparate platforms.

Simplicity Through Integration: The Pax8 Marketplace Advantage​

One of the most significant benefits of this bundle is its availability through the Pax8 marketplace. Pax8 has built a reputation as a leading cloud distributor, particularly admired by MSPs for its streamlined procurement and provisioning workflows. Traditional models of procurement—requiring negotiation with multiple vendors, complex licensing, and manual billing processes—are replaced with one-click provisioning, consolidated billing, and centralized license management.
This not only eliminates administrative headaches but also enables MSPs to scale their offerings with agility. As Nick Heddy, Chief Commerce Officer at Pax8, explained in the launch announcement, “With a single solution, MSPs can now access Microsoft licensing, endpoint security, automation, and managed detection and response—all integrated and all available through our marketplace.” The workflow enhancements are likely to resonate in a sector where margin pressures, compliance demands, and the war for cybersecurity talent continue to intensify.

Critical Analysis: Strengths and Strategic Impact​

The ConnectWise-Microsoft-Pax8 alliance is notable for more than just its technological merits. Its core strengths revolve around four areas:

1. Security as a Differentiator​

Bringing MDR, policy automation, and comprehensive EDR together as a single offering immediately raises the cybersecurity baseline for MSP-managed SMBs. With ransomware, phishing, and insider threats on the rise, such security-first bundles become not just differentiators, but necessities. The 24/7 MDR service, leveraging ConnectWise’s SOC and Microsoft’s Defender telemetry, ensures real-time response to emergent threats—a vital capability given the increasing sophistication and velocity of attacks.

2. Operational Efficiency and Scalability​

By integrating RMM, automation, security, and backup into a single pane of glass—provisioned and managed through Pax8—MSPs can meaningfully reduce operational friction. This allows them to support more clients, respond to issues faster, and reallocate precious staff resources from “keeping the lights on” to delivering higher-value services such as security consulting and compliance management.

3. Addressing Skills Gaps​

The ongoing shortage of skilled IT and cybersecurity professionals consistently tops the list of challenges cited by MSPs. Providing advanced, pre-integrated tools that automate routine security and endpoint management tasks can help mitigate the impact of these skills shortages, enabling leaner teams to accomplish more with less.

4. Pricing Transparency and Market Reach​

With the bundle available directly through the Pax8 marketplace, pricing transparency, simplified billing, and easy up-sell opportunities become standard. This is particularly impactful for MSPs serving geographically dispersed or rapidly expanding SMB clients, who often need to turn up or scale down services at short notice.

Potential Risks and Areas for Caution​

While the advantages are compelling, MSPs should evaluate the following risks and considerations before diving headlong into the new platform:

1. Vendor Lock-In​

The depth of integration in the bundle, while offering operational efficiencies, can also increase dependency on the ConnectWise-Microsoft-Pax8 ecosystem. Should MSPs wish to migrate to alternative RMM, security, or backup platforms in the future, significant retooling may be required. The open ecosystem of ConnectWise mitigates this to some degree; however, MSPs must enter such arrangements with a clear exit strategy and an understanding of potential switching costs.

2. Complexity of Onboarding​

For MSPs not already invested in Microsoft 365 Business Premium or ConnectWise’s automation platforms, initial onboarding and staff training can present a learning curve. The robust set of features—ranging from advanced SOC alerts to hyperautomation dashboards—necessitate structured onboarding programs and potentially require a period of adjustment. While Pax8’s marketplace is designed for simplicity, the underlying toolset is sophisticated and may not be optimally aligned with the processes of all MSPs.

3. Data Residency and Privacy​

With data management, backup, and security telemetry now flowing through multiple vendors and cloud platforms, SMB end clients—especially those in highly regulated sectors—may have detailed questions about data residency, compliance with local data protection laws, and the mechanisms for responding to data breaches. These concerns underscore the need for clear documentation, transparent data processing agreements, and regular compliance audits.

4. Flexibility for Niche Needs​

While the bundle covers the core requirements for most SMBs, certain verticals (such as healthcare, legal services, or finance) may have more specialized compliance or security requirements that are not fully addressed by the out-of-the-box stack. MSPs serving such clients should evaluate the compatibility of this integrated solution with sector-specific needs and regulatory obligations.

Industry Reception: What Trusted Voices Are Saying​

The initial reaction from industry observers, MSP consultants, and channel publications has been largely positive, with strong praise for the partnership’s focus on lowering the “friction to entry” for comprehensive security and operational management. Manny Rivelo, CEO of ConnectWise, commented, “We’re combining enterprise-grade security, automation, and monitoring into a single, easily consumable solution for MSPs. This is about empowering partners to scale faster, reduce complexity, and deliver real value to their clients in a world of growing cyber threats.” This sentiment has been echoed by partners attending the IT Nation Secure event, as well as by third-party analysts tracking MSP trends.
Yet, niche forums and MSP discussion groups have flagged the typical concerns associated with most bundled solutions: questions about long-term roadmap alignment, customizability of automation workflows, and the ability to integrate emerging technologies such as AI-driven security analytics and industry-specific compliance modules.

Competitive Landscape: How Does It Compare?​

This launch places ConnectWise, Microsoft, and Pax8 squarely in competition with other major players in the integrated IT and security management space. Vendors such as Datto (Kaseya), N-able, and NinjaOne have also rolled out integrated security automation and endpoint management platforms, often with their own bundled MDR services and marketplace distribution models.

Feature Comparison Table​

All data verified as of June 2025 using vendor documentation and channel analyst reports.
While competitors may offer similar components, none have matched the depth of integration between Microsoft 365’s security stack, ConnectWise’s automation/SOC platform, and cloud marketplace provisioning at the scale represented by this alliance. Still, as the MSP tools market grows more crowded and complex, continued innovation, pricing flexibility, and openness to third-party integrations will be vital to sustaining this leadership position.

Forward Looking: What’s Next for MSPs and Their Clients​

The timing of this launch—coinciding with IT Nation Secure and a string of high-profile security incidents in the SMB sector—could not be more apt. As cyber insurance premiums escalate and regulatory scrutiny intensifies, both MSPs and their clients are under pressure to proactively demonstrate cyber resilience, maintain operational uptime, and prove compliance with ever-evolving standards like GDPR, CMMC, and HIPAA.
For MSPs already deeply embedded in the Microsoft and ConnectWise ecosystems, scaling up with this new integrated bundle will likely deliver immediate security and efficiency benefits. For others on the fence, the platform’s success will hinge on ConnectWise, Microsoft, and Pax8’s ability to maintain openness, sustain rapid feature innovation, and transparently address lingering concerns around privacy, onboarding, and long-term flexibility.

Conclusion: A Turning Point for Managed Services​

The joint launch of ConnectWise Endpoint Management & Security for M365 by ConnectWise, Microsoft, and Pax8 represents more than just a bundled offering—it is a reflection of where the managed services industry is headed: toward holistic, automation-driven, and security-first solutions that empower MSPs to simultaneously drive growth and simplify complexity. While no single platform can be all things to all partners, this partnership is setting a new baseline for what MSPs and their SMB clients can expect in terms of integration, security, and operational efficiency.
As the digital threat landscape continues to evolve, and as regulatory and operational pressures mount, integrated platforms like this will be central to the ongoing transformation of the MSP sector. Yet, as always, success will depend not just on technology, but on the ability to thoughtfully address real-world business needs, industry requirements, and the ever-shifting nuances of cybersecurity risk. For MSPs ready to rise to this challenge, the tools have never been more powerful—or more accessible—than they are today.

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Source: GlobeNewswire ConnectWise, Microsoft, and Pax8 Launch Integrated Cybersecurity and Endpoint Management Solution for MSPs