Kaseya CEO backing SME facing MSPs

The recently appointed CEO of Kaseya is putting more focus into its MSP channel business which serves the SME community

This article can also be found in the Premium Editorial Download: MicroScope: MicroScope: September 2015:

Kaseya is a company on a mission to get itself in a position to go through with an IPO at some point in the near future and take the business to the next stage.

To aid in that process the firm, which develops the tools that managed service providers use, has recently brought on board a fresh CEO to get the business into a position where it can go public.

Fred Voccola (pictured) is just over a month into his time as Kaseya CEO and takes up the leadership of a firm that already generates half of its revenues outside of the US and has a large established customer base of MSPs that use its technology to help them provide services to the SME market.

The firm operates in two distinct markets with a go-to-market for each. The first is the SME space, where those customers are served by the channel; plus the mid-market where they have an IT resource and can buy direct from Kaseya.

The focus for the time being is going to be much more on the SME side as the company looks to increase its foothold in a market that has seen fairly significant growth as more resellers change their business models to become MSPs.

"Both customer bases are growing fairly rapidly but the dollar growth rate of MSPs is so much bigger. We allow MSPs to make money or sell more services to the customers and we have seen an organic growth rate in existing MSPs at around 16% a year," he said.

Voccola is keen to stress that the firm helped create the MSP market by providing the technology to support its development but it recognises the need to continually evolve its proposition to make sure it is delivering the channel and their customers what they need.

As part of its efforts to be better the firm is ploughing millions into a customer services centre with the appointment of a chief customer officer to make the experience of working with the vendor in Voccola's words, "easier and more profitable".

He is also banging the drum about the tens of millions that the software firm spends on R&D to underline its commitment to developing new features that meet the demands of both MSPs and customers.

One of the challenges is dealing with a market that might be labeled as 'MSP' but is made up of several different types of channel player. Kaseya views one of its responsibilities as providing education to help more make the jump towards becoming a services based business.

"We want to help the box shifters and have a programme telling them how they can be an MSP," and Voccola added that it would also put the reseller in a better position with the customer, "because they get more transparency about the inner workings of the customers and they will see Kaseya responding to the challenges in the market."

From a UK perspective the changes in the market that Kaseya has noticed is a shift from MSPs providing regional coverage to ambitions of being able to support customers in a larger area.

Spencer Young, vice president of international sales at Kaseya, has noticed that there are still plenty of opportunities for MSPs to deliver solid backup and DR offerings although talk is increasingly turning to try and get more support for cloud applications.

"Devices that access the cloud applications need to be managed and the user experience needs to be managed and we need to be able to do that by providing [the tools] for it to be handled remotely," said Voccola.

With the MSP growth continuing and the channel as well as mid-market customers becoming aware of the need for smarter tools to manage devices and apps the stage is set for Kaseya to take advantage of those market conditions.

Voccola is driving the firm forward and plans to be much more vocal about what it can offer and how it will support partners in the UK over the next few months ahead.

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