Amid Kaseya’s purchase of Datto, several rivals across the MSP software and technology market are preparing “special offers” in a bid to pull MSPs to alternative platforms for RMM (remote monitoring and management), PSA (professional automation services), cloud backup and disaster recovery, cybersecurity and more.
However, migrating the MSP software platform can be a high order. Sure, special offers and discount pricing can be attractive. But we remind MSPs to focus on areas such as:
- Product quality and scope;
- onboarding and 24 × 7 support;
- vendor track record;
- pricing history;
- subscription flexibility (ability to quickly increase, decrease and even cancel contracts); at
- ability to deliver on product roadmaps.
Also, note: The MSP technology market is both consolidated (see the more than 1,000 M&A deals listed here) and growing. In fact, the global managed services market will reach $ 557.1 billion by 2028, representing a 12.6% compound annual growth rate (CAGR) from 2020, according to research by Fortune Business Insights.
MSP Software and Technology Platform Providers
Amidst that backdrop, here are some of the names MSP’s technology platform should know-sorted by the number of their employee’s head as listed on LinkedIn (as of April 12, 2022). The head numbers, admittedly, loosely represent the size of the company but are not 100% accurate because some employees may not list their company bios and affiliations on LinkedIn. However, here’s a look at each company and their positioning in the MSP technology market …
ConnectWise – 2,257 employees: Strong in PSA (professional services automation) and RMM (remote monitoring and management), with a growing footprint in NOC (network operations center) and SOC (security operations center) services, among other areas. The IT Nation community is a big difference. The company needs to successfully deliver the Asio unified software platform build-out and a new ConnectWise RMM build-out. Owned by private equity firm Thoma Bravo.
Datto – 2,053 employees: Strong in data protection and PSA, with growing momentum in RMM and various cloud services. Mainstream media continues to refer to Datto as a cloud software company. That’s true to some extent – but Datto looks more at the on -premises storage appliance business and the hardware network business. Next, Datto needs to succeed with its Microsoft Azure cloud data protection strategy while integrating with Kaseya. And perhaps most importantly, Kaseya needs to retain Datto’s key employees and associated characteristics of the corporate culture.
Kaseya – 1,752 employees: Strong in RMM and MSP documentation software, with a growing footprint in data protection, PSA, cybersecurity and long list of acquired technologies. CEO Fred Voccola arrived in July 2015 and ultimately saved the company from obscurity. Voccola gradually consolidated the struggling business, plugged in multiple acquisitions, and developed a very successful strategy of going to market. What do MSPs want next? Improved product support, more flexible licensing, steps to use Datto’s security posture practices, and assurances that Datto’s corporate culture is not lost.
Barracuda – 1,738 employees: Perhaps better known in the corporate IT market, Barracuda also has a growing installed base of MSPs. The company, owned by Thoma Bravo, is strong in cybersecurity and data protection, with some RMM capabilities. Key steps include the acquisition of Skout Cybersecurity in July 2021 for XDR and SOC capabilities that support MSPs.
Not so, 1,132 employees: Strong in RMM with a growing footprint in data protection, cybersecurity and additional IT management and automation areas. Publicly held but also owned by Thoma Bravo. N-able announced the following business performance metrics for Q4 of 2021:
- Total revenue of $ 89.5 million, up 12% from Q4 of 2020.
- GAAP net income was $ 2.1 million, compared to a $ 9.9 million loss in Q4 of 2020.
- The net retention rate remained at 110 percent-which means MSPs are expanding their N-able interactions.
NinjaOne – 381 employees: Originally dedicated to RMM, the company used organic R&D to extend its platform to data protection and ticketing services. NinjaOne has the same MSP and VAR channel strategy – leading to rapid growth in the SMB and midmarket IT sectors. NinjaOne is a venture supported by Summit Partners, but the investment involves a minority percentage of the business – and that means NinjaOne continues to control its fortunes in terms of software development and MSP partner priorities.
Atera – 185 employees: The remote IT management and MSP software provider raised $ 77 million in Series B funding at $ 500 million valuation in July 2021. General Atlantic led the round with participation from K1 Investment Management.
Liongard – 138 employees: Not a traditional MSP software company, Liongard gives MSPs a “unified visibility platform gives you the data you need, when you need it, so you can spend less time digging for data, and more time growing your MSP. ” The end-to-end visibility approach, in theory, could disrupt traditional RMM platforms at some point, ChannelE2E suspects.
Syncro – 89 employees: A cloud startup focused on PSA, RMM and more. Growing fast, Syncro took on Datto veteran Emily Glass as CEO in December 2021. Syncro, supported by Mainsail Partners, enables MSPs to easily test and activate cloud-based software for business automation and IT management. In addition to home-grown software, Syncro recently acquired Watchman Monitoring to further support Apple’s environments.
SuperOps.ai – 65 employees: A cloud startup focused on PSA, RMM and AI. The company, led by Freshworks veterans, has quietly tested its platform with MSPs around the world. The code has now moved to production mode. Several venture capital market makers – including former Tiger Global Management investor Lee Fixel – invested $ 14 million in SuperOps.ai in January 2022.
Additional MSP Software and IT Automation Rivals
Other potential rivals and alternatives to keep in mind, sorted alphabetically, include:
- HolaPSA, with fewer than 50 employees listed on LinkedIn, is quietly gaining momentum in the PSA market.
- Ingram Micro, which promotes CloudBlue for various PSA, ticketing and IT automation functions.
- Naverisk, which is probably best known in Australia and New Zealand for RMM, service desk, PSA and data backup capabilities.
- Pax8: Best known as a cloud marketplace for MSPs, Pax8’s automation capabilities will increasingly overlap with some RMM and PSA software companies, ChannelE2E believes. Pax8, backed by Softbank venture capital, will support approximately 20,000 MSP in April 2022.
- ServiceNow, which is widely used by MSPs for mid-market IT service management (ITSM), ticketing and co-managed services. Moreover, M&A activity involving ServiceNow MSPs and IT consulting firms is especially strong.
- Sherweb, which now has its own ticketing and ITSM platform for MSPs.
Rivals in Cloud Backup and Disaster Recovery
Additionally, dozens of cloud backup and disaster recovery (BDR) technology providers will seek to muscle in on Datto’s installed base. Names and sectors to know include:
MSP Software and Technology: More Venture Capital, Private Equity Coming Soon
Note: The competitive landscape is subject to major change. Many venture capital firms and private equity firms – names like Thoma Bravo, Insight Partners, Summit Partners, Vista Equity Partners and even Softbank – have massive war chests, and are investigating the market for more investment and acquisitions.
With that context in mind, MSPs should focus on technologies that truly solve business problems in the long run – rather than pursuing shiny deals or special pricing offers that day.