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N-Able CEO Pagliuca: This Isn’t ‘Your Grandad’s N-able. This Is N-able 2.0’

Joseph F. Kovar

‘The common thread is a focus on partnership. That’s what we built our reputation on a couple of decades ago. And that’s what we continue to build our reputation on. That’s why we went back to the N-able name,’ says N-able CEO John Pagliuca following the company’s IPO.

N-able was acquired by SolarWinds in 2013. ...

I call that N-able 1.0.

 

If you look at the N-able of 2013 prior to the acquisition by SolarWinds, and the N-able of 2021, now an independent public company, what are some of the key differences between the two?
The common thread is a focus on partnership. That’s what we built our reputation on a couple of decades ago. And that’s what we continue to build our reputation on. That’s why we went back to the N-able name. ... Along the way, we picked up a tremendous amount of assets and services for MSPs. We bought LogicNow, which is the company that I actually came from where I was CFO. And so we brought in a cloud-based platform. We brought in world-class data protection and backup and disaster recovery offerings. And we added a bunch of security offerings for MSPs.
We introduced the MSP Institute, which is our largest piece of collateral for MSPs, so that they can learn and train their people. And we built a world-class customer success team. We’ve got a huge team that is zero commission. They’re not there to make commission. They‘re there to help the MSPs.

So it’s not your grandad’s N-able. This is N-able 2.0, and it’s at scale, it’s a ‘rule of 50’ company.

 

What do you mean by ‘rule of 50?’

Typically speaking, a good health indicator for a software company is the ‘rule of 40.’ You take the revenue growth and you add it to the profit. So if you’re a 10 percent revenue grower at 20 percent or 30 percent EBITDA, that’s rule of 40. Typically, the industry says, ‘Hey, that’s a healthy business.’ We think that means you’re not trying hard enough. So we like to be a ‘rule of 50’ company. So we’re about a 15 percent [revenue] grower, and we’re about in the low to mid 30s from an EBITDA point of view. And we believe that’s the right mix.

 

 

 
Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

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