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Kaseya CEO Fred Voccola On Kaseya-Datto’s ‘Growth’ Focus, Plans For Datto Products And The MSP Profitability Boost From The Blockbuster Deal

C.J. Fairfield

’Our goal is to give these MSPs the best software kit possible so they can make the most money. We want to give them a platform that’s integrated so the engineers are the most efficient and we want to provide it to them at 30 percent less so that they make more money. That’s our job,’ says Kaseya CEO Fred Voccola.

What do you see as the economic impact of this deal on MSPs and the industry?

I think that the overall financial community, I’m talking public investors, private investors, private equity, now looks at the MSP market a little bit differently. Not that they didn’t look at it seriously before but this is a very large deal and brings attention to it, which is good. This will help continue the financial community’s interest in the sector, which makes valuations for MSPs higher. That’s a good thing. It’s already happening, but I think it helps accelerate that trend.

The less expensive MSP software is for the MSP, the more profitable MSPs can be and the more investment they can make in other areas of their business. The more MSPs leverage Kaseya’s strategy, the less they will have to spend on software. They can then buy more software, they can do more things and be more profitable.

You mentioned Kaseya’s products are 30 percent cheaper. Are there any chances of raising prices or implementing longer-term, multi-year commitments as a result of the deal?

We’re not buying Datto to reduce investment in Datto, change their culture or change their brand. I can’t tell you, due to legal reasons, what we will or will not do but I can say that every single acquisition we’ve done, every one of them, we’ve done them all the exact same way. We’ve never raised prices, we’ve done the opposite every single time. Very often the past is the best indication of the future.

In terms of our strategy on contracts, Kaseya sells products through one-year contracts and multi-year contracts. The pricing goes down the longer the contract, and most people tend to want the longer-term contract. People who choose to get short-term contracts pay a lot more.

Every vendor does one-year to three-year contracts, they do a myriad of pricing.

Will you continue to provide the one-year flexibility for Datto partners once this acquisition is finalized?

I can’t answer that other than saying every single Kaseya product has a one-year option and a three-year option.

 
CJ Fairfield

CJ Fairfield is an associate editor at CRN covering solution providers, MSPs and distributors. Prior to joining CRN, she worked at daily newspapers, including The Press of Atlantic City in New Jersey and The Frederick News-Post in Maryland. She can be reached at cfairfield@thechannelcompany.com.

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