Kaseya Makes Multi-Million-Dollar Acquisition
Kaseya, which specializes in IT systems management software, has acquired ObjAcct Inc., a developer of XML-based accounting software. The deal, expected to be announced November 4, could arm MSPs and corporate IT managers with an emerging type of financial management software. Here’s the scoop.
Kaseya’s move highlights the managed service market’s continued evolution beyond traditional RMM (remote monitoring and management) and PSA (professional services automation) software.
ObjAcct, Inc. develops an XML-based accounting software suite. The software will allow MSPs and corporate IT managers to track and monetize the costs associated with delivering IT services, according to Kaseya CEO Gerald Blackie, who confirmed the deal.
According to an official Kaseya statement:
IT professionals will now be able to analyze and report combined technical and financial data to assist in the alignment of IT with the overall business goals of the organization…
…Kaseya now has all the ingredients necessary to complete its development of a fully integrated IT systems management solution encompassing money, people and IT assets, providing a genuinely new way to look at IT Systems Management and IT Service Management (ITSM).
Financial terms of the deal have not been disclosed, but word on the street says Kaseya had to make a multi-million-dollar commitment to acquire ObjAcct.
Over the past few years, Blackie has repeatedly mentioned his vision for providing an ERP-like financial platform for corporate IT departments and service providers. Part of that vision involved Kaseya’s 2009 buyout of Datatune, Inc.’s assets. Datatune had developed a Billing for IT Services application — which sounds somewhat similar to PSA (professional services automation) software. Lump the Datatune deal together with this week’s ObjAcct buyout, and Kaseya seems serious about linking financial management to the IT services industry.
Beyond Traditional Managed Services
No doubt, the traditional RMM (remote monitoring and management) and PSA (professional services automation) software markets are moving in multiple directions. Among some of the noteworthy moves so far in 2010…
- During the Kaseya Connect conference in June 2010, Blackie mentioned that Kaseya was marching toward the $100 million annual revenues mark. As part of that effort, Kaseya has diversified beyond traditional on-premise IT management software to introduce a range of SaaS offerings. Kaseya has also been developing Business Center PSA software.
- Autotask has pushed beyond PSA to acquire VARStreet, which helps IT service providers with product sourcing.
- CA Technologies acquired Nimsoft to focus more on cloud computing and mid-market managed services.
- ConnectWise has pushed beyond its PSA roots, using its ConnectWise Capital arm to invest in LabTech Software (RMM) and CharTec (hardware as a service). We’re watching ConnectWise closely this week; more moves could be coming during the ConnectWise IT Nation conference in Orlando, Fla.
- Level Platforms has focused increasingly on cloud monitoring capabilities and relationships with Intel, Hewlett-Packard and Microsoft while also preparing the Managed Workplace 2011 platform.
- ManageEngine has launched a “light” edition of its managed services software, while exploring close synergies with sister company Zoho — which specializes in SaaS.
- N-able has been promoting a freemium software strategy that arms MSPs with endpoint security and data protection options.
- PacketTrap, now owned by Quest Software, has been focusing more and more of its monitoring and management efforts on the network rather than basic endpoint management.
- Tigerpaw Software, which focus on PSA and CRM software, has been help VARs and MSPs to connect the dots between voice and IP opportunities.
- Zenith Infotech has pushed beyond remote management and BDR (backup/disaster recovery) to introduce hybrid cloud services (called SmartStyle) while sister company Vu TelePresence focuses on next-generation video conferencing.
- Did I miss any moves? It’s been a long day so please don’t flame me. Instead, post a comment or email me (joe [at] NineLivesMediaInc [dot] com) your perspectives.
Back to the Future
In some ways, Kaseya’s strategy reminds me of a former strategy at CA Technologies. Around 2001, CA promoted a solution called i-Can ASP. The effort was designed to help service providers meter and bill for their IT services. The effort ultimately failed because the ASP (application service provider) model imploded, plus CA was suffering from management turmoil.
Now, Kaseya is putting a different spin on financial management tied to IT services. And the effort includes key financial management experts. A prime example: It sounds like Lee Mellinger, president and CEO of ObjAcct, Inc., has joined Kaseya as part of this week’s buyout. Mellinger previously held key roles at eLedger.com, Anteq Software Corp. (acquired by Kaleden Online Ventures in 1999) and Solomon Software, according to Mellinger’s LinkedIn profile.
We’ll be watching to see how Kaseya leverages Mellinger’s talents and the ObjAcct code base.
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Yes it’s a very interesting move, and nice post with all the detailed trends. I think it highlights what the cloud is really about, that not being getting access over the net blah blah but about platforms exchanging information.
It’s the mashups which make the cloud such a powerful force for business transformation. That’s the basis of my idea of the Cloud Review Board see http://goo.gl/cjWZ3
Kaseya seems to have a big vision, and is executing on it.
Walter: Thanks for reading MSPmentor. I’ll check out the link. To the best of my knowledge, the Kaseya financial move will involve both on-premise and SaaS financial options. I’m still trying to get a better feel for where Kaseya is going in the financial market. We’ll be watching.
-jp
Hi,
Great post, and follow up. I notice that the article is more about companies that have recently acquired other companies. Doing a little bit of research myself, I’ve found another company called The Access Group who recently acquired mid-market HR solutions provider Select Software. Here’s the press release and the main URL of the site.
http://www.theaccessgroup.com/7933.aspx
http://www.theaccessgroup.com/
Thanks,
Dan
I wish Kaseya would focus more attention on making their core products better, rather than wasting time and resources on acquiring accounting software. Their current VSA version is less than polished but a vast improvement over prior versions. Backup and AV are less than stellar components. We are ready to drop both of them.
Yes there are new versions coming soon that will hopefully address some of their shortcomings, but as we have seen in the past, Kaseya over promises and under delivers. Their last release was 9 months past their intended ship date.
Support is still terrible from them. We solve most of our issues ourselves while waiting for their support to respond with what usually is stupid suggestions that a 1st level tech would suggest. By the time we get those, we are way past that.
Their product is expensive and we are always on the lookout for a replacement. For now we are in a wait and see mode. But if this announcement has the affect I think it will, we can bet on more delays in delivering new versions/features of VSA.
Bill