https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity, Equity & Inclusion
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
    • MSP 501 Information Center
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
    • Diversity, Equity & Inclusion
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
    • MSP 501 Information Center
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2022 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Channel Partners 101 (CP 101)
  • Events
    • Back
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Mergers and Acquisitions


Shutterstock

Hacker

MSP Faces Cryptocurrency Blunder as Agents Get Fired Up About Consolidation

  • Written by James Anderson
  • May 28, 2021
What do you when your employee installs cryptocurrency mining software on your client's server?

An MSP ran into a big crypto problem, and agents discussed the future of their industry.

Partners aren’t holding back from talking about the challenges they face. As we do regularly on Fridays, we took to Reddit and LinkedIn to find the juiciest partner conversations about opportunities and controversy. In one case, a partner discussed the rogue actions of an employee that cost an MSP its customer. In addition, partners discussed consolidation in the agent channel.

Check out these intriguing conversations before you start your Memorial Day weekend.

Agent Conversations

Consultant and analyst Peter Radizeski stirred the pot on LinkedIn, discussing recent transactions in the channel. He cited Upstack’s purchase of M2 Enterprise Group and AppSmart’s investment in NXTSYS, as examples of partners “exiting” the industry.

“While the opportunity for partners to sell stuff is at an all-time high, the actual income (commissions) is at an all time low,” Radizeski wrote in a post. “Pricing is compressed in many markets. Vendors are consolidating or changing or going bankrupt. How many partners want to continue in the wake of that?”

Peter Radizeski comments

Source: LinkedIn

However, team AppSmart-NXTSYS took issue with Radizeski’s use of the word “exit.”

NXTSYS CEO Dave Wallace said his team is by no means exiting the industry. NXTSYS will be buying out its long-term investor as a result of the investment and targeting “exciting growth plans.” But AppSmart won’t be taking over the company.

“We are far from retiring and love the ability to keep growing. Our strategic partnership with AppSmart allows [VP of sales] Jared [Adamcik] and I to stay in the equity/ownership driver’s seat of NXTSYS. We get to laser-focus on our big plans with MSP’s and agents,” Wallace said.

Wallace did agree that consolidation between channel partners will ramp up in upcoming years.

“Many agencies at the 20-25 year mark are indeed looking for an exit or retirement,” Wallace wrote.

Crypto Goes Awry for MSP

One MSP asked peers for advice about a major screw-up. One of their employees installed cryptocurrency mining software on a customer’s server. As you can imagine, this did not go over well.

Angry client from msp

Commenters largely agreed that the MSP needed to own the problem.

“You’re (as the manager, not as an individual) in the wrong. You need to wear the burden. Put together a plan to ensure this doesn’t happen again and perhaps offer either free hours of support or some other compensation to regain faith,” dankynanky wrote.

Other commenters recommended that the owner use its errors and omissions (E&O) insurance, seek out legal help and even sue the employee. Another poster asked why antivirus software didn’t catch the problem. Apparently the employee added an exception to the antivirus.

“The relationship is probably toast at this point,” Joe_Cyber wrote. “Most firms in this situation would take it on the chin and move on. For what it’s worth, I’m sorry this happened to your business.”

The /msp subreddit has enjoyed a busy week filled with hot comment threads. Various MSPs discussed the difference between Datto and Axcient backup solutions, a concerning Microsoft termination letter and customers’ poor communication skills.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email James Anderson or connect with him on LinkedIn.
Tags: Agents MSPs Best Practices Business Models Channel Chatter Mergers and Acquisitions Strategy Technology Solutions Brokerages

Most Recent


  • Catching cloud in net
    Node4 Is Growing, Acquires Microsoft Cloud Specialist risual
    MSP Node4 acquires risual to strengthen Microsoft Cloud capabilities and public sector footprint.
  • Select a Hire
    ScienceLogic Taps VMware, Everbridge Alums Amid Staff Expansion
    Jasmina Muller formerly led channel at Everbridge.
  • Data integration
    Data Integration and the Digital Experience Platform Evolution
    Data management is key to turning random touch points into a better customer experience.
  • Trophy
    Microsoft Reveals 2022 Partner of the Year Awards
    Microsoft will showcase the winners and finalists at its annual Inspire partner event later this month.

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

  • M&A
    Why All MSPs Need to Understand the M&A Landscape
  • Sign a Contract
    Unisys Adds Managed UCaaS with $153 Million Unify Square Acquisition
  • Telephone poles and lines
    Granite Buys Epik: Score One for Legacy Telecom
  • thumbs up
    FireEye Channel Partners to Benefit from Products Business Sale

Upcoming Events

View all

MSP Summit

September 13, 2022 - September 16, 2022

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Galleries

View all

Microsoft Reveals 2022 Partner of the Year Awards

July 6, 2022

Channel People on the Move: AT&T, HPE, Google Cloud, Comcast, More

July 5, 2022

Missed June’s Cloud News? AWS, VMware, HPE, Google Cloud Made Headlines

July 5, 2022

Industry Perspectives

View all

The Role of Mentors and Sponsors in Advancing Your Tech Career

July 5, 2022

How to Make Embracing Change Part of Your Company Culture

July 1, 2022

How to Differentiate to Leverage 5G’s Revenue Opportunity

June 28, 2022

Webinars

View all

VEP Platform for Delivery of uCPE, SD-WAN and SASE

June 29, 2022

The Digital Worker: How to Empower Customers with a Flexible, Scalable VDI Solution to Enable Remote Work

June 30, 2022

Growing Partner Revenue and Customer Satisfaction with Power Management Services

June 23, 2022

White Papers

View all

Work Goes Remote – (and Other Top ITOps Trends)

May 25, 2022

The New Bottom Line: How MSPs Can Meet the Healthcare Crisis While Evolving Their Businesses

April 19, 2022

How to build a Security Operations Center (on a budget)

April 4, 2022

Channel Futures TV

View all

Vonage a ‘Single Communications Stack Provider’ for Partners, Customers

IBM, Partners and the $1 Trillion Hybrid Cloud Opportunity

June 26, 2022

Agents Share ‘Secrets,’ Industry Opportunity

May 11, 2022

AT&T, Microsoft, Cisco, ThreatLocker on Unlocking Partner Potential

May 6, 2022

Twitter

ChannelFutures

Read about @ScienceLogic's two new hires. dlvr.it/STRqwM https://t.co/BWeZo4fXbs

July 6, 2022
ChannelFutures

Breaking down the 2022 #Microsoft @msPartner of the Year Awards. dlvr.it/STRlVC https://t.co/HspwIXREp2

July 6, 2022
ChannelFutures

RT @MSP_Summit: Today's #MSPSummit & Channel Leadership Summit #SpeakerSpotlight is on @Len_DiCostanzo, CEO of MSPToolkit! Learn from one o…

July 6, 2022
ChannelFutures

Global software company @Nable has acquired @Spinpanel, a multi-tenant Microsoft 365 management and automation plat… twitter.com/i/web/status/1…

July 6, 2022
ChannelFutures

.@nitelusa weighed in on @ABIResearch's latest study. dlvr.it/STRVYg https://t.co/CudmYUiLjz

July 6, 2022
ChannelFutures

.@Zoom's hiring of Brandon Knight brings aboard one of the most respected contact center experts in the agent chann… twitter.com/i/web/status/1…

July 6, 2022
ChannelFutures

Distributor @Infinigate to acquire @nuviasgroup to create "pan-European #cybersecurity powerhouse."… twitter.com/i/web/status/1…

July 5, 2022
ChannelFutures

[email protected], @AWSCloud, @VMware, @Azure, @HPE, more, all made big waves in June with respective #cloud news.… twitter.com/i/web/status/1…

July 5, 2022

MSP 501

The industry's largest and most comprehensive partner awards program.

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.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2022 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