What an amazing week. After meeting more than 150 VARs and managed service providers in Australia, I've got a much better feel for the emerging managed services market in the land down under. Here's a recap of my trip, along with some key trends from Australia's managed services industry.
- The Market Opportunity: Estimates vary greatly, but I'd say there's somewhere between 5,000 and 12,000 VARs in the Austalia market. I realize that's a broad range, but companies come and go. And there are surely thousands of one-man shops that consider themselves VARs.
- Also of note: Since Australia has so many remote rural towns, it's a good bet remote managed services will be even more popular (on a per capita basis) than in the United States.
- MSP Installed Base: I'd estimate Australia has roughly 500 MSPs running a range of remote monitoring and management systems and charging fixed monthly fees for their services. That figure might be a bit inflated, since many of the MSPs have moved to managed services platforms in the past 12 months and are still ramping up their fixed managed services models.
- Mergers and Acquisitions: Yes, MSPs are buying one another in Australia. In fact, I've got details on a recent deal but I still need to double-check a few facts before posting a blog on that one.
- Smart MSP: Mathew Dickerson from Axxis Technologies and the author of Slam ranks among the best MSP-centric public speakers I've met. During the events I attended, Dickerson described his own transition from VAR to MSP, the errors he made, and his tireless focus on customer service. He's the real-deal.
- Vendor Perspectives: I spent the week speaking at a series of Kaseya-Intel events in Melbourne, Sidney and Brisbane. My content offered a vendor-neutral view of the US market, but I also got a heavy dose of Kaseya and Intel perspectives all week. Admittedly, I need to reach out to other platform providers to make sure I have the complete picture on the country.
- With those disclaimers in mind, I did hear some compelling sales data. Tim Dickinson, Kaseya country manager for Australia and New Zealand, says the company has roughly 250 to 300 MSP customers in Australia.
- I know other MSP software companies are doing business in Australia. Just last week, N-able said 25 percent of their revenue comes from outside the United States -- with a portion of that revenue coming from Australia.
- Still, Kaseya seems to be the most aggressive, most established platform provider in the country. If I'm wrong -- or if someone would care to debate me on that claim -- I'm all ears.
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