Tuesday, 06 September 2016 14:57

Kaseya sticking to acquisition strategy


Kaseya, a supplier of software to managed services providers, expects to make several more acquisitions in the next six months to two years.

Kaseya realises it needs to show its customers how they can be successful with their products. "Our success is based on their success," said senior vice-president and general manager of the company's managed services business, Miguel Lopez. "We've got to ensure our customers are successful."

The data the company had collected from surveys and other sources revealed a trend towards what Kaseya dubbed "MSP 2.0" — an approach that's broader than remote monitoring and management — so it developed and acquired new products to help MSPs deliver services around cloud, security and network systems management.

MSPs can be divided into two groups based on their growth rate, he said. Those growing 10% a year or faster are already offering cloud, security and network systems management. These are clearly the areas MSPs need to address, and they "don't want to be late to the game" as they would have less opportunity to build expertise and by the time they have developed the capabilities margins will be slimmer.

Different MSPs work with their customers in different ways, but the heart of the matter is helping customers to be more efficient, Lopez said.

Kaseya is looking to acquire more companies, following the success it had with Zyrion (acquired in 2013 for its Traverse network management software) and Scorpion Software (acquired in 2014 for its AuthAnvil user authentication software).

"Traverse is really resonating," said APAC managing director Craig Allen. MSPs want to differentiate their services by offering advanced monitoring that goes beyond "is it running?" to "how well is it running?"

Another example is the way Kaseya realised its customers were paying too much for professional services automation (PSA) software. That's a critical system for an MSP, said Lopez, but it doesn't generate any income. So Kaseya acquired the Vorex PSA platform and relaunched it as Kaseya Business Management earlier this year.

This product is relatively low-cost, which leaves MSPs with more money to invest in growing their businesses, said Lopez. It's also easy to implement, and some MSPs have been able to complete the project with no outside help within the 14-day free trial period. In comparison, one of Kaseya's customers in Europe picked a different PSA suite and its implementation took eight months.

Hundreds of MSPs around the world have already adopted Kaseya Business Management and, according to Allen, "it's been well received locally".

In addition to acquisitions, Kaseya is planning new products and new features for existing products, Lopez said. One example is a remote control system to compete with LogMeIn and the like, but at no extra cost to users of (unspecified) Kaseya products.

"We want to make sure [MSPs] can grow" by providing them with extra functionality at the same price, he said.

But Kaseya isn't following an "all or nothing" strategy. All of its products have REST APIs for integration, making it straightforward for MSPs to mix and match Kaseya's products with those from other vendors. Reflecting this openness, the company even allows competitors into its user conferences, Lopez noted.

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Stephen Withers

Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.

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