LogMeIn: Starting to Gain MSP Momentum?
In the past week, I’ve heard from three managed services providers who have switched from traditional RMM (remote monitoring and management) software to LogMeIn. And in the media business there’s an old saying: Three’s a trend. Or is it?
According to one MSP, the company switched to LogMeIn and cut its RMM bill from over $8,000 per month down to about $1,500 per month “with no loss of efficiency,” according to the MSP. “LogMeIn — a publicly traded company with lots of resources — is aggressively targeting MSPs now.”
Agreed. When we launched MSPmentor in 2008, we didn’t hear much about LogMeIn’s managed services partner strategy. That began to change by September 2009, when LogMeIn started talking up the managed services market. Through most of 2010, we heard about LogMeIn’s momentum on mobile devices — particularly the Apple iPad and iPhone, and now the Android Tablet. By January 2011, it was finally clear to MSPmentor that the company’s freemium strategy has caught on with corporate customers and some MSPs.
Still, I must concede: I’m curious to see how deep LogMeIn decides to go with MSPs. Most of the traditional RMM software companies remain in growth mode. Plus, those RMM players have build loyal user groups, and the RMM providers spend considerable time and money at MSP-centric partner conferences.
In contrast, I think LogMeIn focuses mostly on corporate IT managers. And so far that strategy has treated LogMeIn well. For its third quarter ended Sept. 30, 2010, LogMeIn’s revenue surged 34 percent to $25.3 million, and net income more than doubled to $4.0 million from $1.8 million.
Back in October 2010, CEO Michael Simon said LogMeIn was benefiting from the mobile workforce trend, stating at the time:
“We believe that our mobility infrastructure provides a great complement to the new generation of mobile hardware and software products. The rapid rise of smart, web-enabled devices is creating a distinct opportunity for LogMeIn’s remote access and remote support products.”
Looking ahead, I’ll be curious to see if Simon mentions channel partners and MSPs during the company’s next earnings call. Because chatter about LogMeIn seems to be picking up within the MSP industry.
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