Redefining Managed Service Economics

Managed services have long operated on a best-of-breed basis. Now Kaseya has upended that model with a low-cost consolidated package, seeking to redefine the economics of partner-led services. Mike DePalma, vice president of business development at Kaseya, joins Changing Channels to explain.

For quite some time now, managed service companies have developed services consisting of technology collections that pull together multiple vendor offerings to address customer needs. While this “best of breed” approach generally results in effective systems, it can be difficult and expensive to pull off.

Channelnomics research has found that a substantial number of MSPs are laboring under high costs that are sapping their profitability. The costs come from licensing software from multiple vendors, as well as training and retaining staff that can operate these complex systems.

The holy grail of managed services is the simplification of systems into consolidated applications with well-integrated features and lower total cost of ownership. This approach, in theory, leads to better organizational management, predictable costs, and improved service delivery to end customers.

Earlier this year, Kaseya rolled out Kaseya 365, a new package that provides MSPs with the tools they need for service delivery at a single low subscription price. Kaseya believes this model, which it’s been working on for years, will redefine the economics of managed services.

Mike DePalma, vice president of business development at Kaseya, joins Changing Channels to discuss the new model, what it means for the managed service community, and where the MSP model is going next.