Flamingo (US) is stepping up with a radical new approach  -  an AI-powered, open-source operating system designed to automate workflows, unify tools, and give MSPs back control over their tech stack.

The company just raised $2.2 million in Seed funding, backed by Focal VC and Array Ventures, two firms known for supporting early-stage infrastructure innovators.

Founded by Michael Assraf, Flamingo is creating what it calls “the AI + Open Source OS for MSPs”  -  a single, intelligent control center that streamlines operations by automating billing, ticketing, vendor management, and other repetitive tasks that eat into profitability.

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The Hidden Pain in the MSP Market

The MSP sector has quietly become one of the most indispensable  -  yet underserved  -  industries in tech. MSPs keep the digital economy running: securing networks, managing cloud systems, and supporting millions of businesses behind the scenes.

But beneath that stability lies an efficiency crisis. According to the 2025 Kaseya MSP Global Survey, 76% of MSPs struggle with tool sprawl, and 68% say automation gaps directly impact their margins. Most juggle more than 20 software platforms daily, each with its own interface, pricing model, and integration quirks.

This fragmentation doesn’t just slow them down  -  it eats away at profit and scalability. Flamingo’s mission is to fix that through AI-driven orchestration layered over open infrastructure, turning what’s traditionally been manual chaos into a unified system.

“MSPs don’t need more tools  -  they need better control,” says Michael Assraf, Flamingo’s co-founder and CEO.

“Our vision is simple: automate the boring stuff and put the power back into the hands of the people doing the work.”

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Open Source Meets AI: The Power Stack

Flamingo’s architecture combines two powerful movements  -  AI automation and open-source freedom. The platform integrates with Remote Monitoring & Management (RMM), Professional Services Automation (PSA), and billing systems while enabling MSPs to build or modify their own modules.

This open framework allows service providers to customize workflows and share extensions with the community  -  a model inspired by how Kubernetes and Linux reshaped cloud infrastructure.

In essence, Flamingo is turning MSP software into a living ecosystem rather than a static product.

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The Founder’s Advantage in Building for the Underserved Core

Flamingo’s rise isn’t just about automation  -  it’s a lesson in founder intuition. The company’s success reflects a principle that too few early-stage founders recognize: the biggest opportunities often hide in industries that already look “solved.”

Most startups chase new, shiny markets. But Flamingo chose an old one  -  MSPs  -  that’s been quietly powering the digital backbone for decades.

That’s the real insight here: disruption doesn’t always come from invention. It often comes from recognition.

When you spot inefficiency in a mature system and rebuild it around first principles, you’re not entering a crowded market  -  you’re unlocking trapped value.

If you build for the overlooked operators who keep the machine running, you’ll own the rails everyone else rides on.

This is how entire industries flip. AWS started by solving Amazon’s own infrastructure pain. Stripe simplified payment chaos. Flamingo is following that same logic for MSPs  -  taking something messy, necessary, and foundational, and rebuilding it into a clean, open standard.

For founders, that’s the takeaway worth noting: sometimes the “unsexy” layer of the stack is where the next breakout lives.

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A Market on the Edge of Automation

The timing couldn’t be sharper. The global managed services market, valued at $342 billion in 2025, is projected to reach $602 billion by 2030, growing at an 11.2% CAGR (Allied Market Research).

At the same time, AI automation in IT services is accelerating rapidly. Gartner estimates that 70% of MSPs will deploy AI-based automation tools within three years  -  up from just 18% in 2022  -  as clients demand faster, predictive, and more personalized service delivery.

Layer that with the explosive growth of open-source adoption, expected to exceed $75 billion in market value by 2031, and you get the perfect convergence: a trillion-dollar industry ready for reinvention through flexibility and AI.

That’s exactly the lane Flamingo occupies.

By combining AI’s scalability with the transparency and adaptability of open source, Flamingo is creating the kind of infrastructure that can evolve with its users, not lock them in.

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Investor Confidence and the Long Game

Backing from Focal VC and Array Ventures signals growing investor faith in tools that empower rather than enclose.

Shruti Gandhi, Managing Partner at Array Ventures, calls Flamingo “the open backbone the MSP industry has been waiting for.”

“AI will automate complexity, but open ecosystems will decide who controls it. Flamingo is leading the charge to make sure control stays with the builders.”

It’s a thesis increasingly resonating with infrastructure investors  -  platforms that embrace openness tend to attract developer loyalty faster than those that guard it.

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What’s Next for Flamingo

With its $2.2 million raise, Flamingo plans to expand its engineering team, enhance its OpenFrame developer environment, and scale its open-source community.

The company is also working on next-gen AI copilots designed for MSP-specific workflows  -  from instant ticket triage to predictive diagnostics and client sentiment analysis.

Long term, Flamingo envisions becoming the default operating system for MSPs, where AI and open source combine to create a new standard of efficiency and autonomy.

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The Future of MSPs Is Open, Automated, and Human-Centered

Flamingo’s story is about more than efficiency  -  it’s about ownership. In a SaaS world where most service providers rent their tools, Flamingo is giving them the power to build, modify, and automate on their own terms.

If successful, it could signal a broader shift in enterprise software  -  one where open ecosystems, not closed licenses, define the next wave of growth.

Because in the end, the companies that win won’t be the ones with the most AI. They’ll be the ones who make AI belong to the people who use it.

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