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.
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.
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.
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.
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.