Kaseya and the VAR500?

var500-09-awards

To be sure, the VAR500 (formerly the VARBusiness 500) is a well-read media report. And generally speaking, landing on the annual VAR500 is a distinguishing achievement for many solutions providers, IT consulting firms, VARs and service providers.

But here’s the potential problem: Kaseya issue a press release about the VAR500 honor. And over the past two weeks or so, several of Kaseya’s own customers have reached out to me — expressing concern about the Kaseya press release.

All of the sources expressed the same sentiment: Kaseya’s listing on the VAR500, they allege, suggests the software company is going direct in some areas and bypassing MSPs in some market segments.

Kaseya’s Channel Strategy

In many ways, the Kaseya direct vs. indirect “debate” is old news. Kaseya CEO Gerald Blackie has told me multiple times the following:

When I asked Kaseya about potential channel confusion related to the VAR500 report, Executive VP Jim Alves reinforced Blackie’s previous statements:

Some rivals see the market differently. N-able, for instance, has announced pure channel and mid-market strategies that funnel all sales leads out to partners.

If this was a normal day and a normal blog entry, the story would end here: Some Kaseya partners express concern, Kaseya offers response, and I move onto my next blog as readers weigh in on this entry.

The Other Twist

Still, there’s a subplot to this story. Specifically, Alves isn’t sure how or why Kaseya wound up on the VAR500 list in the first place. Offered Alves:

With that thought in mind, why did Kaseya issue that press release about the VAR500 honor? Especially when the VAR500 report lists Kaseya’s consulting, services and reselling revenue at a lofty $50 million annually.

Where did that number come from?

Kaseya is a privately held, so I can’t prove or disprove the $50 million consulting/reselling figure. But let’s just say “I doubt it.”

The bottom line: Whether you embrace or question Kaseya’s channel strategy, Blackie and Alves have a consistent message for MSPS — 100 seats or less is pure channel; 100 seats or more and Kaseya’s direct sales team could be in the running. But I can’t figure out why Kaseya put out a VAR500 press release that ultimately triggered direct sales concern among some of the company’s channel partners.

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