Flamingo, a Miami-based startup, today launched from stealth with OpenFrame, a platform combining AI automation with open-source infrastructure to rewrite the economics of managed service providers (MSPs), companies that provide IT support to small and medium-sized businesses. Over 1,000 MSPs have already joined Flamingo’s waitlist ahead of launch, representing roughly 3% of the managed services market, with more than 150 early adopters actively testing and collaborating through Flamingo’s Slack community.
The $380 billion MSP industry is stuck in a profit squeeze. Most providers operate on razor-thin 8–12% net margins, caught between steep vendor fees consuming 25–35% of revenue and labor costs eating another 25–35% for repetitive tasks like password resets, disk alerts, and troubleshooting. Flamingo built OpenFrame to flip that equation and empower MSPs to break free from vendor lock-in and scale profitably.
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“MSPs are paying twice for the same problem: once to vendors and again to technicians,” said Michael Assraf, CEO and founder of Flamingo. “OpenFrame fixes both: open source cuts the vendor tax, and AI eliminates repetitive work. The result is freedom, efficiency, and real profitability.”
Traditional MSP platforms focus exclusively on either software infrastructure or automation, but can’t address the underlying economics. Legacy vendors provide comprehensive tooling but at steep costs that compress margins. Meanwhile, open-source alternatives exist but require significant technical expertise to deploy and integrate, making them inaccessible to most MSPs. The siloed nature of these approaches prevents MSPs from solving both the vendor cost problem and the labor efficiency problem simultaneously.
“We’ve been losing time and money to expensive software licenses while our technicians spend hours on repetitive tasks that should already be automated,” said Stephen Garriques, CEO at SecureTokens. “OpenFrame eliminates both bottlenecks and cuts vendor costs while boosting productivity. The ability to self-host and maintain full control of our infrastructure makes it a true game-changer for how we run our business.”
OpenFrame combines the freedom of open source with the efficiency of autonomous AI agents. Its duo, Fae and Mingo, automates both customer-facing and back-end operations, from password resets to threat detection, turning MSPs into lean, high-margin software-like businesses. Fae handles client-side tasks like password resets, low disk space warnings, and system patches, while Mingo manages MSP operations, including threat detection, suspicious process monitoring, and routine maintenance. Unlike traditional AI assistants that only provide recommendations, these agents take action autonomously but require technician approval for sensitive operations, striking a balance between automation and oversight.
“For years, MSPs have been getting squeezed between vendor payouts and labor costs. From my experience as a CEO working with MSPs in the cybersecurity space, I understand the pain and frustration of not having a viable alternative,” says Michael Assraf, CEO and founder of Flamingo. “By replacing both, OpenFrame helps MSPs potentially transform their business economics from today’s 8-12% net margins to 50-60% EBITDA margins.”
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