Kaseya rallies MSPs this week at the Connect IT Global 2021 conference, which also combines in-person content in Las Vegas with virtual components. In total, the physical and virtual event is expected to attract around 3,000 people, according to the company.
So what exactly should MSPs expect from Kaseya CEO Fred Voccola, members of the management team and key technology partners? Check out the blog below throughout the week for ChannelE2E outlook, Kaseya updates and more.
To note: Blog originally published on October 19, 2021. Regularly updated thereafter.
9. How to create virtual office practices: Nerdio addresses this issue for MSPs at the conference and helps MSPs build virtual desktop practices on Microsoft Azure Virtual Desktop and the new Windows 365 service. “We continue to receive many questions about Windows 365, and MSP are starting to understand the importance of leaving the on-premises world and moving to the cloud, âJoseph Landes, Nerdio’s chief revenue officer, told ChannelE2E via email.
8. Kaseya MSP Software Suite: Before exploring the latest Kaseya product enhancements (see Article 7 below), here’s an overview of the company’s overall suite of products for MSPs and IT pros. The portfolio includes:
7. Kaseya Product Improvements: Now that you have an overview of Kaseya’s overall product portfolio (see point 8 above), here are the Kaseya product specific improvements that surfaced at the conference. They understandâ¦
- Computer Glue Improvements:
- IP access control in IT Glue, which allows technicians to restrict access to IT Glue to specific IP addresses
- Security checklist templates in IT Glue to help technicians secure IT Glue.
- RapidFire Tools:
- Find details on the new VulScan Portable Vulnerability Scanner (PVS).
- RapidFire Tools Network Detective Pro now supports Azure infrastructure discovery and reporting.
- Graphus messaging security: MSP administrators can now save time by managing and configuring settings for end customers from a central location with just a few clicks, Kaseya said.
- Extended backup for Salesforce: Can now automatically repair lookup relationships when records are restored.
- myITdashboard and myITprocess: Now showcase new integrations and features with BMS.
- Units: Now includes endpoint backup alarm and monitoring integration with VSA.
6. MSP documentation software – IT Glue Security: SaaS alerts, an independent software startup led by CEO Jim Lippie, has introduced new security features that allow MSPs to monitor user behavior associated with their instances of IT Sticks. Kaseya owns IT Glue, a popular MSP documentation software platform.
5. Status of MSP mergers and acquisitions: Voccola will share the latest statistics and some predictions on MSP’s mergers and acquisitions. Among the anecdotes to note before the event:
- ChannelE2E has tracked around 650 M&A transactions so far in 2021.
- Dozens of private equity firms remain active in the MSP market, with more and more movements every month.
- Valuations have gone from a benchmark of around 5X to 8X EBITDA to historic highs, according to our substantive conversations with MSPs and private equity firms. ChannelE2E is aware of two major M&A deals this year that had valuations of 18 times EBITDA or more.
Nonetheless, ChannelE2E does not believe that such high valuations of MSP M&A can continue. At some point – as interest rates rise – the cost of borrowing to fund M&A deals will also rise – forcing buyers to make offers more in line with historical standards. The Joker ? No one knows when this shift to normal valuation will happen, or if the MSP market will experience some kind of dramatic valuation correction along the way …
â¦ These are our thoughts. We’ll ask Voccola for his thoughts and perspectives when we speak.
4. Kaseya is hiring a CISO: Kaseya hired FBI veteran Jason Manar as a CISO. The rental comes after Kaseya suffered a ransomware attack in July 2021 (see point 3 below). Manar was most recently Deputy Special Agent in charge of the FBI, overseeing all cyber espionage, counterintelligence, intelligence and language service programs for the San Diego office. Manar will oversee information security and compliance for Kaseya.
Key to Remember: Yes, Manar is very familiar with the attack that hit Kaseya in July 2021. But that’s not all. During the event, Manar will present âAn FBI Agent’s Perspective on the Changing Threat Landscape,â with key lessons from his 16 years as a Federal Agent.
3. After the ransomware attack – Key lessons? : The REvil Ransomware Attack Against Kaseya VSA July 2021 certainly dominated the headlines mid-year. The attack spread to around 50 MSPs and 1,500 downstream customers. When talk of the attack began to subside, rumors spread that the The FBI sat on the decryption key for a few weeks – a realization that added insult to injury for some MSPs.
Yet Kaseya for the most part handled effective crisis communications amid the attack and its aftermath. While Voccola has spoken to U.S. government leaders and the major business press, Senior Vice President Dana Liedholm has remained both proactive and responsive with industry media throughout the recovery process.
Fast forward to the present day and the wonders of ChannelE2E:
- What were Kaseya’s main lessons from the attack and the resulting investigation?
- Did the company adjust its software development processes after the attack?
- Beyond the hiring of Jason Manar as CISO (see point 4 above), has the company adjusted the organization of its management team, its reporting structures and / or its responsibilities? to support cybersecurity, information security and risk mitigation?
We will seek answers to these questions this week.
2. M&A Speculation – Will the Big Four Ever Become the Big Three? : In the MSP software market, Kaseya’s head-on competition most often involves ConnectWise, Datto and N-capable. Every now and then rumors crop up that the Big Four could become the Big Three in a possible M&A deal involving two of the companies. But which ones – and when? (Note: we realize that gamers like Atera, Barracuda, NinjaRMM, Syncro and SuperOps.ai, among others, have also gained momentum in the market.)
I’m generally skeptical of Big Four / Big Three M&A speculation as the resulting combination would likely trigger product overlap. Nonetheless, I’ll ask Voccola what he thinks about the possibility or how the industry could potentially consolidate.
1. What is Kaseya’s financial plan (potential IPO?): Voccola in September 2020 said Kaseya is expected to be a public company by around September 2021. Fast forward to today, and Kaseya is still owned by a private equity firm. Insight Partners – which acquired Kaseya in 2013. Subsequently, TPG joined as an investor Kaseya in 2019.
The current key question: Did the ransomware attack impact Kaseya’s financial performance? and / or IPO plan; or any other associated timing? The short answer, I believe, involves the following:
- Although RMM’s sales felt some pressure in the aftermath of the attack, Kaseya has a diverse business that performed well in the third quarter of 2021, sources close to the company told ChannelE2E.
- Rather than the IPO, sources close to the company have long expected Kaseya to pursue a potential recapitalization in the private equity market by the first quarter of 2022. This is also my own speculation. .
Granted, my financial speculation above is unconfirmed. But we’ll do our best to get updates on the financial side of Kaseya de Voccola this week.
More news about the conference: Do you have news to share from the Kaseya Connect IT conference? Send me the details and we will potentially mention them in the blog above.