ConnectWise Companies Pursue $100 Million In Combined Revenue
ConnectWise CEO Arnie Bellini says ConnectWise and the ConnectWise Capital investments are striving to achieve $100 million in combined annual revenues this year. Assuming ConnectWise is in that revenue neighborhood by the end of 2012, I believe ConnectWise would rank among the largest business management and IT automation software companies focused exclusively on VARs, MSPs and IT service providers. Here’s some perspective.
Bellini confirms the $100 million goal represents combined target revenues from ConnectWise as well as core ConnectWise Capital investments — such as LabTech Software and Quosal Software. It’s the latest sign that the lines are blurring between ConnectWise and the ConnectWise Capital portfolio companies.
Working From One Playbook
I don’t know how ConnectWise Capital’s investments in LabTech and Quosal are structured. But in recent months, ConnectWise has been busy coordinating release schedules across ConnectWise (PSA and business management software), LabTech (remote monitoring and management) and Quosal (sales quoting and proposal software). Gerwai Todd, director of strategy at ConnectWise, shared some of the synchronization strategy in March 2012.
As I speculated in November 2011, it’s pretty clear that ConnectWise is taking a Microsoft Office-like approach to business suites for VARs and MSPs.
Much in the way that Microsoft synchronizes Word, Excel and PowerPoint upgrades as a single office suite upgrade, I think you’ll eventually see the same approach across ConnectWise, LabTech and Quosal — even as ConnectWise strives to maintain API integrations with third-party software providers.
To the best of my knowledge, I think Kaseya may be the only MSP-focused software company that has pushed beyond the $100 million annual revenue mark. And Kaseya CEO Gerald Blackie has said the company has $1 billion revenue aspirations. But a large portion of Kaseya’s sales involve corporate IT purchases rather than VARs and MSPs (as customers) running the software. Also, I think Zenith Infotech may have been in the $100 million neighborhood before the Zenith RMM (now called Continuum) spin-off in September 2011.
Generally speaking, I think most software providers and cloud services providers working with VARs and MSPs (as customers) generate somewhere between $5 million and $30 million in annual revenues.
I realize that’s a big, broad range. And I apologize if I overlooked any of the larger players that may be competing in the $100 million revenue neighborhood. (For potential corrections, please post a comment or feel free to email me, joe [at] NineLivesMediaInc [dot] com.)
Oh, And One More Thing
Bellini mentioned the annual $100 million revenue goal during a lengthy call with MSPmentor last week. Most of the hour-long talk focused on leadership development, and the need for IT service providers to fail fast, adjust strategies accordingly, and march forward aggressively.
Of the 60-minute discussion, two minutes involved that $100 million revenue goal. But the figure certainly caught my ear. Bellini didn’t mention a potential exit strategy or IPO plan. During recent briefings, he’s always told me that the ConnectWise story will remain a simple one: Continue to empower IT Nation (VARs, MSPs and IT service providers) for growth. That, in turn, will empower ConnectWise for continued growth.
A key example: ConnectWise is in the process of hiring roughly eight regional consultants who will be available to work closely with ConnectWise User Group members worldwide.