Canna-business: How US MSPs are getting high on marijuana's legalisation

IT industry taking advantage of $1bn Cannabis market

.When we think of Colorado, it's usual to think of skiing, snow, mountains and outdoor activities. And while there is plenty of all these things to enjoy in the Centennial State, for MSPs plying their wares in this East-meets-West spot of the country, there are many other faces of Colorado to consider.

For one, as more and more states start to legalize cannabis, Colorado remains at the vanguard of the dispensary industry. The state surpassed $1bn in annual cannabis sales last year - the first in the US to do so. Colorado citizens are buying on average $280 of cannabis every year, while 25 per cent of the state's visitors between 2013 and 2018 listed cannabis as a reason for visiting.

One Colorado-based MSPs told CRN's sister title Channel Partner Insight (CPI) that the growth and sale of cannabis has developed rapidly since the state became one of the first two to legalise the product.

Like any other industry, this new vertical needs the latest technology, along with a service provider to support that technology. And like every other industry, this burgeoning sector poses opportunities and challenges.

"There are questions in terms of dealing with dispensaries, Vince Tinnirello, managing director of Denver-based MSP Anchor Network Solutions, pointed out. "For example, you have to be willing to deal with someone who is going to write a check that is non FDIC insured but can use a regional bank, because recreational cannabis use is still illegal federally."

Peter Melby, CEO at Denver-based Greystone Technology, adds that while the sector has "obviously grown opportunities for MSPs" in the state, it does present challenges given that the regulation surrounding the sector is dynamic and changes often.

"It's a very legitimate business space for MSPs, but it's also created a lot challenge around the fact that it's kind of the Wild West when it comes to business because the regulations are changing every day. You don't quite know what you're getting into and you're having to adapt and respond very quickly. MSPs are not used to that; we're an industry that likes to see some consistency. So there's a lot of opportunity, but also a lot of risk if we don't do it right."

Read the full article on CPI to find out more about what's driving Colorado's IT market.