The managed service supplier (MSP) business faces persistent challenges with tight revenue margins starting from 8% to 12%, largely attributable to steep vendor charges consuming as much as 35% of income and labour prices accounting for an extra 25–35%, particularly for repetitive duties like password resets and system monitoring.
To deal with these points, Miami-based startup Flamingo, based by cybersecurity veteran Michael Assraf, formally launched its revolutionary OpenFrame platform in 2025.
Michael Assraf, founding father of Flamingo, informed TFN, “MSPs are squeezed by excessive vendor payouts and labour-intensive operations, which depress margins at the same time as shopper expectations rise. Michael noticed ahead‑pondering MSPs quietly changing industrial instruments with enterprise‑high quality open‑supply to reclaim margin-proof {that a} unified, AI‑orchestrated FOSS stack might bend the fee curve at scale. Flamingo exists to make that transition secure, sensible, and automatic for mainstream MSPs.”
Right this moment, Flamingo closed a $2.2 million pre-seed funding spherical led by Focal VC and Array VC to speed up platform growth, develop its gross sales, assist, and engineering groups, and scale the enterprise to satisfy rising market demand.
Flamingo claims greater than 1,000 MSPs have joined its waitlist, representing roughly 3% of the worldwide managed companies market, whereas over 150 early adopters are already testing the platform by way of Flamingo’s Slack group.
Open supply meets autonomous AI
Michael Assraf, with deep expertise in each the MSP and cybersecurity sectors, based Flamingo to assist MSPs escape vendor lock-in and automate labour-intensive workflows that restrict profitability and scalability.
“MSPs are paying twice for a similar drawback: as soon as to distributors and once more to technicians. OpenFrame fixes each: open supply cuts the seller tax, and AI eliminates repetitive work. The result’s freedom, effectivity, and actual profitability,” stated Michael Assraf, CEO and founding father of Flamingo.
Assraf goals to basically remodel the economics of managed companies by combining cutting-edge AI with open-source infrastructure, making it simpler and more cost effective for MSPs to function profitably with out sacrificing management.
Assraf added, “OpenFrame is an AI‑pushed, open‑supply working system for MSPs. It unifies the MSP stack behind a single information mannequin and API, with each self‑hosted (open supply) and managed (SaaS) paths- no lock‑in. Core integrations embrace Tactical RMM, FleetDM, MeshCentral, and others.”
Flamingo’s OpenFrame platform stands out technologically by deploying two autonomous AI brokers(Fae and Mingo) that automate a broad spectrum of MSP features. Fae tackles customer-facing points like password resets and disk alerts, whereas Mingo manages backend operations, together with menace detection and routine upkeep.
Not like rivals equivalent to ConnectWise, Datto, and Pulseway, which both rely solely on expensive proprietary software program or require complicated experience to deploy open-source instruments, Flamingo blends autonomous AI automation with open-source flexibility.
Technicians retain oversight on delicate actions, guaranteeing a stability of effectivity and management. The platform is obtainable each as a free self-hosted mannequin for full infrastructure management and a managed companies model priced per gadget.
What’s subsequent?
Trying ahead, Flamingo plans to leverage its latest funding to speed up AI developments, develop its operational groups, and scale adoption throughout the increasing MSP market.
With over 1,000 MSPs already on the waitlist and greater than 150 early adopters actively engaged through its group Slack, Flamingo is poised to disrupt the $380 billion MSP business, enabling suppliers to considerably increase EBITDA margins from present single digits to doubtlessly 50–60%.
“MSPs have been pressured to decide on between wholesome margins and nice service. Flamingo makes that alternative out of date. By merging open supply with autonomous AI, they’re attacking the 2 greatest ache factors within the business head-on. Michael’s background and the momentum we’re already seeing make this one of the thrilling shifts within the MSP house in years,” stated Pascal Unger, Managing Associate at Focal VC.
