Backed by $2.2M in pre-seed funding, Flamingo combines open-source tools with autonomous AI agents to help MSPs slash costs and increase productivity.

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.

“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.”

OpenFrame will be available in two deployment options: self-hosted for complete control at no cost, or managed services with per-device pricing. At launch, the platform will include:

• Remote Monitoring and Management (RMM)
• Remote Access and Mobile Device Management (MDM)
• Integrated SIEM
• Free beta access through February 2026

“MSPs have been forced to choose between healthy margins and great service. Flamingo makes that choice obsolete,” said Pascal Unger, Managing Partner at Focal VC. “By merging open source with autonomous AI, they’re attacking the two biggest pain points in the industry head-on. Michael’s background and the momentum we’re already seeing make this one of the most exciting shifts in the MSP space in years.”

Flamingo previously raised $2.2 million in pre-seed funding led by Focal VC and Array VC. With this launch, the company will expand its team and grow its sales, support, and engineering operations to serve the growing waitlist of over 1,000 MSPs. The company's community-driven approach, including its active Slack community of 150+ members and OpenMSP, the community platform launched in July 2025, has accelerated the rapid adoption of its technology.

"The 1,000-strong waitlist tells us the industry is ready for this change," Assraf added. "We're committed to growth and have been hard at work creating solutions that will be flexible to the changing landscape, all while staying core to our mission of helping MSPs break free from vendor lock-in."

About Flamingo

Flamingo helps IT service providers transform their business economics through OpenFrame, the company's open-source platform combining AI agents with enterprise-grade tools. Founded by Michael Assraf, a veteran of the cybersecurity and MSP industries, with offices in Miami Beach, Flamingo's mission is to provide MSPs with solutions that proactively improve margins and operational efficiency wherever they operate. Learn more at https://flamingo.run.

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