Nimsoft CEO Gary Read: Another Big Quarter for Managed Services
U.S. investors are dealing with a bear stock market. And our SaaS 20 Stock Index is down nearly 20 percent this year. Time for managed service providers to panic? Perhaps not. Anecdotal evidence — including a bullish blog entry from Nimsoft CEO Gary Read — suggests the MSP market continues to hum along. Here’s the scoop.
In his July 1 blog entry, Nimsoft’s Read wrote:
“Without giving the game away completely (we have an internal presentation tomorrow and I want the employees to know first).
We did GREAT. Another amazing performance. More brand new customers than ever before. New record revenues in every category. Our MSP business showed tremendous growth plus our end user growth is very strong in both the mid-market and the large enterprise (F500 customers coming on board).”
Read’s strategy at Nimsoft somewhat parallels recent trends over at Kaseya, which continues to service MSPs but is also pushing hard into the corporate IT space.
So, the bottom line: I don’t think MSPs are immune to the economic slowdown. I do think some small businesses will have trouble paying their MSPs in the months ahead. But if Nimsoft’s Read is correct, there seems to be continued upside demand for managed services solutions.