Kaseya Rides 2018 Momentum Into the New Year
… “a lot of movement from Kaseya on the security side,” not only through acquisition but also through product integrations.
Kaseya’s Advice to Partners
The competitive landscape for MSPs is growing more crowded every day, but Voccola says there are some opportunities for partners to gain new customers that are either emerging or not being taken advantage of.
Customers working out of small offices/home offices (SOHO) with fewer than 10 employees are looking for MSPs to integrate the different components of their IT infrastructure. These customers pay less and can be demanding, so they aren’t the ideal clients. But it’s a relatively new market that Voccola says is poised for growth.
The “large small businesses” with an employee headcount of 10 to 60 or so is a highly competitive market many MSPs may think is already cornered. Indeed, much of these organizations are already consuming their IT through an MSP, but Voccola says they’re starting to shop around. Because these buyers are increasingly educated, partners don’t have to do a lot of hard selling for things like BDR, compliance management or extra security layers because these savvy customers know how important those pieces are.
While much of the larger midsize and enterprise markets are saturated, MSPs can still carve a place out for themselves by developing a niche offering and contracting with internal IT to cover the bases the company doesn’t have the resources to manage, such as compliance, network monitoring or level-three support. These gigs are beauties, says Voccola, because the contracts are long-term and have a lot of zeroes — sometimes hovering around $25,000 per month. The fact that the buyer is an internal IT department is a huge selling point for this market.
“You’re dealing with an IT-knowledgeable customer, which is better nine times out of 10 because then the technicians are dealing with competent technicians,” he says. “You’re not talking to a dentist who doesn’t really understand what a firewall is.”
These niche MSPs also present an attractive opportunity to potential investors, either private equity or competing MSPs looking to expand their offerings and market share.
Regardless of what market an MSP targets, Voccola stresses that the biggest competition isn’t going to come from the large MSPs, but from mature providers that excel at sales, marketing and service-delivery capabilities. The field is so crowded, the competition so fierce, and the buyer so educated that only shops with efficient processes and teams that operate like well-oiled machines will rise to the top.
It’s an exciting time to be in the channel, where the market forces are changing rapidly and big money is flowing in and out. If you’re Kaseya, it’s an especially big thrill ride, coming off of one blockbuster year and moving full steam ahead into another.
“It’s so cool, and it’s fun,” says Voccola. “I’m blessed, lucky, fortunate. Pick your word, but it’s super fun to be in this right now.”