RMM Meets PSA Software: Quest-PacketTrap MSP Buys BlueFolder
Quest Software has acquired BlueFolder, a cloud-based provider of PSA (professional services automation) software. Quest will integrate BlueFolder with PacketTrap MSP, a remote monitoring and management (RMM) software platform. For managed services providers, this is the latest example of PSA and RMM software coming together under one vendor roof — somewhat similar to the ConnectWise-LabTech Software effort and Kaseya’s potential PSA ambitions. Here’s the analysis.
Quest (Nasdaq: QSFT) is an $850 million software company that offers a range of virtualization and management software to IT administrators and IT service providers. Quest Software in 2009 acquired PacketTrap MSP, which offers on-premises RMM software to MSPs. PacketTrap MSP has since delivered strong continued growth.
Now, Quest Software is buying BlueFolder, which offers a cloud-based service management platform. Yes, VARs and MSPs can use BlueFolder. But it also has a following in non-IT markets. BlueFolder’s SaaS platform allows service providers to manage customers, technicians, service requests, billing and invoicing, scheduling, dispatch and more.
Updated, 8:15am ET, Feb. 16: Quest Software has confirmed the BlueFolder acquisition. Financial terms were not disclosed.
Quest Software’s Strategy
I think Quest Software is embarking on a multi-chapter channel software strategy.
- Near Term: Watch for Quest Software to integrate PacketTrap MSP (on-premises software) with BlueFolder (cloud-based software) for MSPs and VARs.
- Mid Term: Watch for PacketTrap MSP to also emerge with a SaaS-based option.
- Long Term: I wonder if the lines between BlueFolder and PacketTrap MSP will eventually disappear in the cloud, essentially giving VARs and MSPs a single, comprehensive IT service management platform.
Overall, it’s clear that the BlueFolder deal is “more” than a PSA and MSP software move. Quest Software wants PacketTrap MSP and BlueFolder (to be rebranded as PacketTrap PSA) to push far beyond MSPs and to engage all types of channel partners as customers — resellers, VARs, integrators, consultants, etc.
This Sounds Familiar
The worlds of PSA and RMM software have been on a collision course for several years. A few examples:
- Sources say several RMM software providers have considered using or investing in SugarCRM as a potential PSA platform over the past decade.
- Kaseya has spent the past two to three years adding PSA-like capabilities to its RMM and IT automation software platform, but I believe most of Kaseya’s MSPs continue to opt for third-party PSA platforms like Autotask, ConnectWise and Tigerpaw.
- ConnectWise Capital invested in LabTech in 2010. Since that time, the lines between ConnectWise’s PSA platform and LabTech’s RMM software have gradually blurred as both companies focused intensely on integration.
Now, Quest Software is building on the PSA-RMM integration trend.
Competing and Cooperating
The strategy certainly has potential upside for Quest Software and its channel partner customers. But there also are challenges ahead:
- The PacketTrap MSP team must continue to offer tight integration to third-party PSA offerings.
- The BlueFolder team must accelerate its integration efforts with third-party RMM offerings.
Matt Bolton, division VP at Quest Software, has told me that Quest Software will definitely maintain and strengthen those third-party PSA and RMM vendor relationships. Mike Byrne, director of MSP at Quest Software, echoed those sentiments. Bolton and Byrne noted a lengthy list of Quest Software employees who are tasked with maintaining and building those RMM and PSA relationships.
Still, Quest Software — much like ConnectWise and Kaseya — must maintain a careful balancing act. Even as software vendors merger or buy one another, MSPs want open APIs and continued third-party integrations. Quest, ConnectWise and Kaseya have each vowed to offer those open platform options — even as each company seeks to build its own, end-to-end management platform for IT service providers.
Big Ambitions
There’s another story angle here to consider as well: Big software companies continue to pay more and more attention to MSPs. Recent examples include:
- Microsoft working with TruMethods to educate MSPs about Windows Intune.
- Cisco Systems introducing the Cisco OnPlus Service for MSPs.
- CA Technologies continuing to expand its Nimsoft business, which includes IT management and service desk software for MSPs.
- Symantec announcing a range of MSP software integrations.
Now, Quest Software — an $850 million company — is showing its MSP software and channel software ambitions. Buying PacketTrap MSP was step one. Acquiring BlueFolder was step two. The ultimate goal: Integrating both software platforms into a cloud service for VARs, MSPs and IT service providers over the long haul.
Updates…
1. Quest Software has confirmed the BlueFolder acquisition.
2. Financial details undisclosed.
3. In a prepared statement, Quest said it will “reveal its new product offerings in the first quarter of 2012 with an updated version of PacketTrap MSP, making stand-alone RMM or PSA products as well as the integrated business management solution available to MSPs.”
-jp
BlueFolder has a fantastic product that we’ve used for years but I’m a little nervous about this acquisition since we’re heavily invested in a competing RMM vendor: N-able.
Paul,
I would recommend speaking with both N-able and BlueFolder (PacketTrap PSA) to get the assurances you need on continued integration. I suspect both companies will really value your feedback. I trust the information N-able shares with me. Ditto with PacketTrap. And PacketTrap has vowed to keep moving forward with PSA integrations to third-party RMMs. But do your own research as well to make sure you have peace of mind.
-jp
Hi Paul,
Quest-PacketTrap is 100% committed to our Blue Folder (PT PSA) integrations with all of the RMM vendors. Based on Blue Folder customers like yourself, Blue Folder has been working with the RMM vendors to get you an integrated solution.
We are not only supportive of those efforts but our goal is to acceleratate them and get you an integrated solution with N-able sooner rather than later.
Feel free to contact me at anytime to discuss. I welcome it.
Best Regards,
Mike Byrne
Director of MSP, Managed Services (MSP) Division
[email protected]
Mike,
Thanks for that update. Please keep me posted as Quest/PacketTrap preps the official PacketTrap PSA release, PacketTrap MSP upgrades, third-party integrations, etc.
-jp
We are a modest sized MSP in Dallas. This is really good news. We use Level Platforms and then Autotask. We did invest heavily in it. But the truth is that we dont use most of Autotasks functions. The integration is also a bit clumsy. It would be really nice to have our PSA and MSP tool in one console. Not sure if Blue Folder has what we need, but this is where the industry needs to go.
MSP in Dallas,
We welcome reader comments but we push for readers to disclose their identities. Please disclose and/or keep that in mind for future comments.
-jp
But then we’d have every vendor in the world calling up. I dont want a call from Qwest.
MSP in Dallas: I understand. But you’re also lamenting about the integration between Autotask and Level Platforms. We work hard to make sure such comments come from identified MSPs rather than hidden rival software companies, etc. Hence my push to ensure readers disclose identities.
Also, I am familiar with MSPs who are happy with the Autotask-Level Platforms integration. Though I realize opinions about software platforms vary from MSP to MSP.
-jp
Conrats to the gang at PacketTrap! They are a team of talented and passionate individuals that, while utilizing the budget and negotiating power of Quest to create a comprehensive offering of IT service provider tools, have maintained their small company feel and agility. No easy trick. This acquisition will certainly compliment their portfolio. Cheers to my friends in SF!
Thanks Mark, we’re all blushing :o)
We are longtime users of Bluefolder and are about to adopt an RMM platform different from PacketTrap. I wish we had more info on the integration roadmap as well as upgrade paths for current users of Bluefolder like us.
Agreed! Our company has
Agreed! Our company has several Bluefolder accounts, and we love the program. Disheartened to hear that they are no longer taking on any new accounts. If anyone can suggest a similar program, I would love suggestions. Dell seems to be of little to no help in this area.