Venture Capitalists Invest In Managed Services
Venture capital firms are opening their wallets for managed service providers. The two latest examples: NetMagic Solutions has raised $20 million and Voxify has raised $15 million. Both companies specialize in managed services — though their target markets are vastly different.
NetMagic, based in India, is extending its remote data management services to North America. Funding from Fidelity International Limited and Nexus India Capital will fuel that expansion. NetMagic specializes in hosting servics space for financial services firms, telecom providers, online commerce and other vertical markets. The company also offers remote infrastructure management, mail and messaging services.
Meanwhile, Voxify has raised $15 million if fourth-round funding from Intel Capital, El Dorado Ventures, Palomar Ventures and Sigma Partners. The company specializes in speech recognition technologies that automate customer call centers. Voxify’s solution can be delivered on premises or as a managed service.
The flow of venture money into MSPs should provide some level of comfort to the managed services market during these uncertain economic times.
But the rising tide of money may not lift all MSP boats. Several recent stories across the web suggest that the managed services industry will become a commodity play within the next 18 to 24 months.