Managed service providers play a critical role in supporting businesses by managing essential IT services and infrastructure, making MSP economics crucial for small to medium-sized businesses.

MSPs can provide IT solutions that allow SMBs to manage their technology needs more effectively without requiring in-house IT teams. Kaseya 365 supports this approach by offering a comprehensive, all-in-one subscription service designed to enhance profitability and operational efficiency, according to Gary Pica (pictured), founder of TruMethods LLC, a Kaseya Inc. company.

“So much has changed for MSPs in recent years in terms of the demands that SMBs have,” Pica said. “We have just in a short time since we were in Vegas, crossed over 5,000 MSPs. I’ve never seen an adoption at that rate, especially if you think about the fact that this is a multi-product offering … over 63% of our peer members are on Kaseya 365. They’re reducing their tools costs by anywhere from 10 to 25, 30%. It’s impactful.”

Pica spoke with theCUBE Research’s Christophe Bertrand, during an exclusive interview on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the significance of MSP economics and how Kaseya 365 plays a role in supporting it. (* Disclosure below.)

Inside MSP Economics meant to boost revenue and security for SMBs

By helping SMBs overcome resource limitations, improve security, access advanced technologies and stay focused on growth, MSPs have become a formidable force. As a result, Kaseya 365 accelerates MSP economics through integrated solutions, such as remote monitoring and management and managed detection and response, Pica pointed out. 

“I had MSPs just based on this change that could throw an additional 3 to 4% net profit, not gross profit, because it falls through all the way to the bottom line,” he said. “Of all the MSPs that I spoke to about the components that are inside of Kaseya 365, almost none of them had the same amount of MDR, like the security license, as they did RMM. In other words, they’re not fully protecting a percentage of their customer base.”

MSPs face significant challenges with margins and complexity as they strive to stay profitable and efficient because they have to tackle a myriad of issues, such as complex vendor management. As a result, Kaseya 365 is geared toward enhancing operational benefits and increasing profitability, according to Pica. 

“The fact that they’re going through their digital revolution at this time and changing their environment to more cloud environments, they have to be up 24/7,” he said. “MSPs have to have more tools, but they also have more and different services they need to offer. The average MSP is in that 8 to 12% net profit if they take a true owner salary, but top MSPs do run at 35% net profit … Kaseya 365 is the first step.”

Here’s the complete video interview with Gary Pica:

(* Disclosure: Kaseya Inc. sponsored this segment of theCUBE. Neither Kaseya nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE