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 Channel Futures

MSP 501


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501 Flashback

MSP 501 Flashback: Digital Innovator Logically Keeps Growing, Adding Services

  • Written by Edward Gately
  • August 4, 2020
Logically capped off 2019 with two MSP acquisitions.

… a revenue view — much less than 1% of our annual revenue. We do have a small subset of our customers who are no longer in business — temporarily or permanently. Some have stopped needing IT services, but the number is quite small. And another bucket would be a handful of customers that, as we reached out to understand how our customers were doing, it became clear that they probably needed a little bit of temporary help. And so extended payment terms and things like that have been another pretty small bucket of impact on our business in support of our customers as they’re working through the coronavirus.

CF: What are some examples of verticals that Logically works with?

MC: It’s important to note we’re not a verticalized company. However, as we get a foothold with certain accounts, word of mouth and in our business, some of the things we do particularly to support our customers in regulated environments ends up meaning that we pick up more customers in some verticals just naturally. So health care is an example. State and local government, and education are some good examples where we’ve acquired customers and slightly shifted our service offering to be in line with things that they deal with uniquely, like the Health Insurance Portability and Accountability Act (HIPAA) in health care, and that has organically launched us into picking up other customers in those verticals.

CF: What does innovation mean to Logically and why is it important?

MC: Not only do we want to differentiate ourselves by being a national player with regional presence and strong regional support, but also we do a lot of innovation internally. And some of it we pick up through mergers and acquisitions. We do technical innovation of products that we use with our customers and to serve our customers. For example, OpLogic, but also our SecureCore, our next generation, best-in-class security offering. But also in our service offerings as well, most notably with our expansion with the Carolinas acquisition into security audit and compliance services. That came through acquisition. But we are working to make that available to all of our customers as applicable, not just in the Carolinas.

CF: Are you seeing growth in demand for your services despite the pandemic?

MC: We are. I would say it’s slightly muted compared to what we otherwise would have expected. But we’re in single-digit year-over-year growth in the first half of the year. We expect to maintain that through the end of the year. It’s not quite what we had planned for, but we are still net growing.

CF: What would you say is Logically’s competitive advantage over other national MSPs?

MC: I think the national nature of us –and there aren’t many that have our scale out there – gives us the opportunity to do innovations that we can then take to the regional markets in which we operate. So I think the national scale, while maintaining regional high-touch service levels and customer attention, is probably our biggest differentiator.

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Tags: MSPs Best Practices Business Models Digital Transformation Mergers and Acquisitions MSP 501 Security Specialty Practices Strategy

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