Axcient CEO On Record-Breaking Growth: MSP Consolidation Is A ‘Big Driver’
‘Many of these partners have multiple BCDR solutions that they want to combine. We can bring a more economical solution to the table, and when MSPs are hiring technical resources they can be a lot more efficient with that investment,’ says Rod Mathews, CEO of Axcient.
Let's talk about the record-breaking growth in both revenue and in quarterly bookings in the first quarter. What do you contribute that growth to?
There’s a lot of things contributing to that growth. There are things that are happening in the market around MSP consolidation, which is a big driver of simplifying BCDR portfolios. Many of these partners have multiple BCDR solutions that they want to combine. Twenty-six percent of them that we surveyed back in October had more than four BCDR solutions. Eighty-seven percent have more than one, and there’s an average of three. Simplifying that down really helps focus and helps reduce cost because you don’t need as many solutions to start with. We can bring a more economical solution to the table and when MSPs are hiring technical resources they can be a lot more efficient with that investment. That’s probably the biggest driver, that kind of consolidation in the market.
Do you think Axcient’s growth could be a good indicator that there’s an even bigger need for MSP services, especially in the SMB market?
Yes. This particular use case that we’re covering with BCDR, 74 percent of those partners that are referenced say it’s extremely important to their business. That same percentage think that that BCDR revenue is going to grow in 2023. So it’s a huge part and a huge amount of wallet share for these MSPs to start with. Then when you start looking at needing to simplify and consolidate, looking for more modern solutions to some of the DR use cases in particular, all of those things contributed to things shifting our way.