Wildix’s Robert Cooper

Not everyone is enamored by the inpouring of capital.

Robert Cooper is Wildix’s managing director for the Americas. He said that despite the growth of private equity spending, several MSPs have seen their business equity pulled out.

“I think a lot of the M&A within the MSP community is being driven by the fact that many MSPs are being driven out of the business. There are players that have come into the market that are now sucking the value out of the channel, sucking all the business equity out of the MSPs. As they have begun to really drain the swamp, if you will, they have really put the hurt on a lot of MSPs.”

Cooper added: “We’re going to be in a time of crisis and inflation, and I think money will become tighter. Many people have already begun that shift to a monthly recurring revenue (MRR) or an opex model, and so cash is not as high in the bank as it used to be. But now they have recurring revenue, so their valuations are going to be better. Now is a good time for them to think about moving. So I think you’re going to see many [MSPs] look at that. You’re going to see some bigger players trying to get bigger to compete.”