Kaseya’s Fred Voccola

Fred Voccola is CEO of Kaseya. He agrees that cybersecurity concerns are propelling M&A activity.

“The technology economy is growing so fast, so much faster than the non-technology economy, that even in the private equity world, there is a labor shortage. Today, we’re finding, as an operator of a large software company, one of our biggest challenges is hiring and developing great people.”

He said this is not any different in the world of private equity.

“The number of experienced people who have software, technology and technology distribution experience is still relatively small,” Voccola said. “So, over the next several years, as more and more financial experts and the private equity community get experience, you’ll find them doing more asset allocation to that category. Additional money will be put into software, internet and the technology services sector. It’s the best place to get the highest return, for private equity of all kinds, venture, growth and buyout.”

He added: “The larger MSPs typically have a higher growth rate and higher profit margin than smaller MSPs, which is usually not the case in most industries. It doesn’t mean small MSPs are not doing well. This macro trend of small to midsize businesses around the world, digitally transforming and spending more on technology, is allowing all boats to rise in the channel – small, medium, large – everyone is going to do better. However, MSPs large enough to have dedicated professionals to work on the business means that dedicated sales and marketing professionals, service delivery architects and financial professionals, will do better.”