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IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About

a16z News

Mar 31, 2026

3/31/2026

Collapsing The In-House Versus Outsourced IT Tradeoff In Security And Compliance

IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About · a16z News

Business, Finance & Industries · Mar 31, 2026

The article says businesses face a false choice between costly, scaling-challenged in-house IT/security/compliance teams and inadequate, reactive MSP outsourcing—both economically inefficient for mid-sized firms (about 3–5% of revenue, ~$1.5–$2.5M for a $50M company)—and the real opportunity is to collapse that tradeoff, not just optimize vendors or ticketing.


3/31/2026

Significant Yet Overlooked Opportunity In IT Security And Compliance Operations Served By MSPs

IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About · a16z News

Business, Finance & Industries · Mar 31, 2026

The biggest commercial tech opportunity is the under-innovated operating layer—IT, security, and compliance services—where recurring, outsourced demand from schools, SMBs, and local businesses creates a trillion-dollar, fragmented market ripe for platform-level disruption despite little Silicon Valley attention.


3/31/2026

Centralized Coordination Layer Reduces IT Cost Growth By Replacing Silos With Systemic Automation

IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About · a16z News

Science, Technology & Innovation · Mar 31, 2026

The “Modern IT Operating System” is a centralized coordination layer that reduces IT’s hidden scaling costs—caused by cross-tool and cross-vendor handoffs—by standardizing workflows, automating ticket triage/resolution, learning root causes, enforcing security, and producing real-time compliance docs so firms can scale IT with systems instead of more people and vendors.


3/31/2026

Legacy MSP Business Model and Fragmented Delivery Architecture Hinder Modernization, Causing Inconsistent IT Services and Customer Dissatisfaction

IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About · a16z News

Business, Finance & Industries · Mar 31, 2026

The MSP industry's core failure is a legacy, incentive-misaligned business model: fragmented, human-dependent providers (small shops and PE rollups) are often disincentivized from permanent fixes, producing inconsistent IT/security/cloud/compliance services, low SMB satisfaction, rising complexity, and a need to rethink service delivery architecture rather than just swap point tools.


3/31/2026

Automation And AI Enable Software Driven IT Operations With Humans Reserved For Strategy And Edge Cases

IT: The 6T Industry that Silicon Valley Hardly Ever Thinks About · a16z News

Science, Technology & Innovation · Mar 31, 2026

A recent shift in automation and AI lets software reliably handle routine IT operations workflows—like lifecycle management, ticket triage, security enforcement, compliance tracking, and root-cause prevention—freeing humans to focus on architecture, strategy, incidents and novel edge cases and enabling a move from labor-heavy outsourcing to software-centered service delivery.