IT management vendor Kaseya is expecting its MSPs to have grown their revenues by 35 per cent by the end of the year as it aims for 70 per cent growth internally, according to its CEO Fred Voccola.
Kaseya's solutions are designed primarily for MSPs, and its X20 scheme means that it earns just £1 for every £20 its MSPs earn from using its products for managed services.
"For every unit of currency we only get £1 when the MSPs collect £20 from their customer in the form of managed services. We only make money when they do," explained Voccola.
Voccola (pictured right) said that its MSPs have grown by 26.5 per cent on average in the first three quarters of 2016, with another eight percentage points expected by the end of 2016.
"Our MSPs are growing at a rate twice that of the overall growth rate of the industry. The market for small to mid-sized businesses' use of technology is blowing up. They are now viewing technology as mission critical, and the MSPs' markets are growing exponentially," he said.
"Everything from how we do support and training to our pricing is all about making our MSPs grow and make as much money as they can."
The privately owned vendor was founded in 2000, but Voccola joined as CEO in 2015. It is headquartered in Ireland and has offices in London, the US, the Netherlands, Switzerland, Germany, New Zealand, India and Australia.
Although he remained tight-lipped about the company's figures for last year, Voccola did say it was on track to grow its revenues by 72 per cent by the end of 2016, with a further 50 per cent growth expected in 2017.
One of Kaseya's main products is its professional services automation (PSA) tool, BMS. Voccola added that it prices the product at 20 per cent lower than its competitors including ConnectWise and Autotask.
"MSPs make no money from [PSA systems]," he explained. "Nobody is going to pay you to manage their CRM. We offer it for less because we want to free up the capital that an MSP is using paying for those products, to be able to spend on revenue-generating processes. A 20-person MSP using ConnectWise etc is probably spending about $20,000 (£16,000) a year with them. We charge them $4,000 a year for that. So that is $16,000 we are saving them. They can take that and invest it in their business. They shouldn't be paying that much for something that doesn't generate revenue."
Kaseya launched its new PSA migrator solution this week, designed to simplify the task of moving PSA platforms from legacy applications to Kaseya's BMS.
"The challenge [with BMS] is that there is a perception that if a customer wants to move their PSA, it is very hard to do," Voccola added. "Our PSA migrator is a very inexpensive migration solution. It is a couple of hundred quid to do it but allows companies to migrate in under four working days."
Eric Smeets, transition manager at ITSN, said that the MSP has been working with Kaseya for around six years, and it has noticed a big improvement in the way the vendor communicates with its MSPs in the last few years.
"We have had our ups and downs. At the moment we are on an up-side, and have been for a couple of years. It seems to be getting better and better. Support has improved and product development is more in line with what we expect. Kaseya is actively making an effort to listen to customers.
"The new BMS integration tool looks great. It does what Kaseya needs to do. It incorporates the different aspects of an MSP into one tool. We have our customer relationship management, billing and overview of the service desk model for each customer, all in the same place for the first time."
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