Invests $10 million as SMBs seek compliance services
Kaseya, which offers IT infrastructure management solutions to MSPs and IT organizations, is investing $10 million to create a compliance business unit that will help MSPs provide managed services to SMB customers to ensure they remain compliant with global regulatory standards.
The Lowdown: Max Pruger, a longtime Kaseya executive before leaving the company in 2015, is returning to run the new unit as senior vice president and general manager of compliance. Pruger most recently spent three years as Chief Revenue Officer at cloud workspace management vendor CloudJumper.
The Details: Kaseya already had tools to help MSPs address compliance issues facing most of their customers, which consisted primarily of larger enterprises. However, challenges surrounding such regulations as HIPAA (Health Insurance Portability and Accountability Act), the European Union’s GDPR (General Data Protection Regulation), FINRA (Financial Industry Regulation Authority), and PCI DSS (Payment Card Industry Data Security Standard) are now hitting SMBs that are, in turn, looking to MSPs for help.
The Impact: SMBs represent a significant opportunity for MSPs not only to expand current relationships but also to acquire new customers. Like their larger brethren, SMBs also face a complex regulatory environment and significant financial penalties for compliance violations, so the increasing demand for help from SMBs around compliance services is a way of taking advantage of the opportunity.
Background: Kaseya earlier this year saw a huge infusion of $500 million from investors aimed at accelerating its M&A strategy, part of CEO Fred Voccola’s strategy of creating a “Swiss Army knife” of managed services that will enable MSPs to get what they need from Kaseya. The compliance space is a good one for Kaseya to move into. According to Grand View Research, the global enterprise governance, risk, and compliance market should grow at almost 13% a year over the next six years, hitting $64.62 billion by 2025.
The Buzz: “It has become increasingly apparent that compliance is the ‘Next Big Managed Service’ rapidly becoming a necessity for MSPs who want to remain competitive,” said Voccola. “Every MSP should offer compliance services. This is a blue ocean market that’s ripe to be tapped, and any MSP that doesn’t get into this game will sorely miss out.”
“I’m thrilled to return to Kaseya in my new role at such an exciting time in the market. Compliance is a critical issue that presents a significant opportunity for MSPs and has a great impact on their SMB clients,” said Pruger. “It’s a privilege to once again be a part of the Kaseya family and to directly impact the growth and success of our MSPs.”
“Compliance has become a necessity across many business sectors,” said Adam Schwam, CEO of Sandwire, a technology and business consulting firm and Kaseya MSP partner. “We’re thrilled that Kaseya recognizes the rapidly growing need to support compliance for SMBs – and the incredible revenue generator that this creates for MSPs. The fact that Kaseya is leading the charge by building a dedicated division to support this market goes to show how they continue to put their customers’ success first.”