https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Business Models


Where Are The Managed Services IPOs?

  • Written by Joe Panettieri 1
  • April 7, 2008
If the managed service market is so darn hot, when can we expect MSP platform providers to begin launching initial public offerings?

Wall StreetIf the managed service market is so darn hot, when can we expect MSP platform providers to begin launching initial public offerings?

I raised that question during an interview with Nimsoft CEO Gary Read on Monday (April 7). While Read can’t speak directly for other MSP platform providers, he certainly has some strong opinions about Nimsoft’s potential path to an IPO. Here’s a sampling of his thoughts.“For us, we’re definitely building toward an IPO,” said Read, during a discussion about the company’s acquisition of Indicative Software. “That is where we would like to take the company but we’re not there yet with critical mass. It’s expensive to IPO a company and you have to get a pretty high revenue run rate.”

Still, Read appears to have a long-term IPO goal on his calendar. “If we continue to execute against plans, 2009 could be [the IPO year] for us,” he says.

Nimsoft’s annual revenue grew 77 percent in 2007. When you toss in Indicative Software’s sales as well, Nimsoft’s overall revenue was about $35 million for the year. The company has built a fast-growing reveue base by positioning itself as a cost-effective, easy-to-implement alternative to CA Unicenter, IBM Tivoli, HP OpenView and BMC Software.

In anticipation of a potential IPO down the road, Nimsoft already runs itself like a public company by focusing on Sarbanes-Oxley and other corporate compliance regulations, says Read.

When looking at the broader managed services market, Read says he is “surprised” that more platform providers have yet to pursue IPOs. But he notes that SolarWinds, which specializes in SMB network management, filed its S1 document for an intended IPO in March.

At the same time, Read says he won’t be surprised if big technology companies begin to acquire MSP platform providers — a la Dell’s buyout of Silverback Technologies.

As for Nimsoft, Read seems to be in the buying — rather than selling — mood. His company’s acquisition of Indicative Software “really does start to signal a breakout moment for us,” says Read.

Indeed, a breakout moment that could help to position Nimsoft for an IPO in 2009.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Business Models Strategy Technologies

Related


  • 501 Somewhere Logo
    It’s 501 Somewhere: Janet Schijns on Transformational Leadership
    Schijns talks about what it takes to be a true leader, transformational technology, and her three steps for success.
  • Two cloud-shaped hands shaking among other clouds in the sky.
    IBM Buys Cloud MSP Taos for Expertise in AWS, Azure, Google
    Channel partners will be able to take advantage of the combined companies’ hybrid cloud capabilities.
  • ThinkPad X1 Titanium Yoga
    Lenovo to Ship Its Thinnest ThinkPad Yet with X1 Titanium Yoga
    Lenovo's expanded commercial line includes revamped ThinkBooks and AR glasses.
  • Ransomware and malware
    Help Your Customers Mitigate Malware: Viruses, Worms, and Trojans…Oh My!
    With the right antivirus protection, your customers can better detect and prevent the spread of malware.

2 comments

  1. Avatar Roger Wait April 9, 2008 @ 11:51 pm
    Reply

    The smart money says MSPs will get their own houses in order and work on corporate compliance efforts, but remain privately held in 2008. The markets are too volatile right now and the US sub-prime crisis isn’t over.

    The smart MSPs will have all of their financials in order heading into 2009, and will be able to pull the IPO trigger relatively quickly if/when financial markets stabilize.

    The only big risk in all this is if venture money runs out before MSPs have a chance to go public. I don’t see that happening.

    Congratulations, BTW, on having the only site that knows how to write about managed services and financial issues. Far too many tech sites out their that overlook the business component.

  2. Avatar Northern Exec April 9, 2008 @ 11:56 pm
    Reply

    One other piece of info your article overlooked: Many MSP software providers are located in Canada. Generally speaking, it’s easier to go public on Canadian markets (compared to US markets) because the Canadian companies face fewer regulations, IMHO.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Kaseya Unified RMM Solution Tackles Growing Number of Connected Devices
  • How Secure is Your Cloud Data?
  • Tenable Research: Publicly Known Vulnerabilities Increased in 2020
  • McAfee Employees Getting Pink-Slipped in Likely 'Belt-Tightening'

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

Cloud-Based CRM: What SMBs Need to Know about Backup and Recovery

January 19, 2021

Cybersecurity: What to Expect in 2021

January 19, 2021

Help Your Customers Mitigate Malware: Viruses, Worms, and Trojans…Oh My!

January 15, 2021

Webinars

View all

Blueprint for a Scalable MSSP Practice in 2021

January 21, 2021

Who’s Behind the Mask? Hacker Personas Explained

January 26, 2021

How Managed Hosting Providers Thrive with the Alternative Cloud

February 24, 2021

White Papers

View all

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

Backup and recovery is essential for #cloud-based CRMs @ConnectWise #SaaS #dataprotection #cloudbackup #databackup… twitter.com/i/web/status/1…

January 19, 2021
ChannelFutures

You an #MSSP looking to avoid a #SolarWinds-type breach? @Asigra, @Barracuda, @CynetSystems give advice. Don’t blam… twitter.com/i/web/status/1…

January 19, 2021
ChannelFutures

What to expect in 2021 @Webroot #cybersecurity #MSP #remoteworkforce #remoteworking #Carbonite… twitter.com/i/web/status/1…

January 19, 2021
ChannelFutures

From #itautomation to #workfromhome, a look at 2021 trends from @BitTitan. dlvr.it/RqwFZg https://t.co/EkCeJVNAPo

January 19, 2021
ChannelFutures

Are you helping your clients with #cloudgovernance? Now is the time. @CloudSphereAI @fortanix @MontyCloudInc… twitter.com/i/web/status/1…

January 19, 2021
ChannelFutures

.@StratusAwaysOn announces new #partnerprogram for VARs. #edgecomputing dlvr.it/Rqvrxf https://t.co/vcLw8e4Ob6

January 19, 2021
ChannelFutures

bit.ly/3bSd4nD twitter.com/DigiRobot/stat…

January 19, 2021
ChannelFutures

In the latest 'It's 501 Somewhere', @channelsmart (Janet Schijns) talks about what it takes to be a true leader.… twitter.com/i/web/status/1…

January 18, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X