Will SolarWinds Engage Managed Services Providers?

SolarWinds, the IT management software provider, is buying TriGeo, which specializes in  log and event management software. SolarWinds is paying $35 million in cash for TriGeo. The deal, expected to close in Q3, will allow customers to "collect volumes of data from virtually any device on a network and correlate that data in real-time, resulting in greater visibility, security and control," SolarWinds claims. As a publicly held company, SolarWinds' moves should be of particular interest to managed services providers. Here's why.

Most MSP software providers are privately held companies. As a result, few disclose earnings and profit information. SolarWinds, meanwhile, is publicly held so earnings results and business wins are fairly easy to track. SolarWinds mostly targets corporate IT departments but the company does have a following within the service provider market. The reason: SolarWinds claims to offer "end-to-end" data center monitoring solutions.

SolarWinds is in growth mode. In its 1Q ended March 31, 2011, SolarWinds' revenue grew 25 percent to $43 million compared to 1Q 2010. During 1Q 2011 SolarWinds acquired Hyper9, a provider of virtualization management software. In the first 10 weeks following that acquisition, SolarWinds increased the number of Hyper9 customers by nearly 250 percent, SolarWinds said.

With that performance in mind, MSPs should now  turn their attention to the SolarWinds-TriGeo deal.  According to SolarWinds, TriGeo's technology will allow IT managers to aggregate and interpret "detailed log and event data to enable IT infrastructure monitoring and troubleshooting, ensuring compliance with regulations such as PCI, SOX and HIPAA, and monitoring and reacting to security-related issues, such as user privileges and firewall rules."

Many MSPs manage such tasks for their end-customers. We'll be watching to see if SolarWinds positions TriGeo's offerings for the managed services community.

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