Kaseya Blown Away by MSP Response to Kaseya 365

KASEYA DATTOCON EUROPE — MSP take-up of Kaseya’s new subscription program, Kaseya 365, has exceeded all expectations, said the company's CEO, Fred Voccola.

More than 3,000 MSPs have signed up for Kaseya 365, six weeks after the launch of the new subscription program. There are also already more than 3 million endpoints on 365.

“We have more MSPs on Kaseya 365 than most vendors in the space have MSPs, period,” said Voccola. “I don’t say that in a haughty way. But this is a big, big, big thing that we’ve done and it has exceeded our expectations by huge amounts. We thought we’d have maybe 3,000 or 4,000 in a year.”

The Kaseya 365 subscription includes remote monitoring and management (RMM), antivirus protection, endpoint detection and response (EDR), managed detection and response (MDR), patch management, ransomware rollback and endpoint backup. It also includes 20 core automations to improve workflow efficiency.

Kaseya 365 costs $5.25 per endpoint. The company also is offering Kaseya 365 Express without MDR for $2.25 per device. A report by Channel Futures’ sister company Canalys suggests that Kaseya competitors have been put on alert by Kaseya’s low prices.

“Quite frankly, no one can compete against the price point,” said Greg Jones, VP, business development EMEA. “It’s ridiculously low for everything in a box, one single subscription for MSPs to manage and scale their business in a secure way.”

Related:Kaseya Teases Big Changes to Partner Program

“Is it a coincidence that N-able put themselves up for sale three weeks after we announced this?” asked Voccola, in typically unfiltered fashion. “I don’t know. But it’s always good to have competition because it makes you better. As much as I don’t like our competitors, you’ve got to respect them. I definitely don’t like them, though,” he laughed.

Kaseya 365 Boosting MSP Profit Margins

Voccola was speaking to Channel Futures at Kaseya DattoCon Europe in Dublin, Ireland. There, he said, MSPs have SMB customers that won’t pay a premium for the level of cyber protection they need.

“Now they can,” he said. “Because Kaseya 365 is priced such if that customer says, ‘I will not pay for advanced cybersecurity,’ the MSP can give them K365 which has all the advanced cybersecurity and they’re still making the same profit margins. It just changes the entire game.”

Voccola compared Kaseya’s IT Complete platform to when Microsoft came out with its Office suite of applications. He said MSPs need one integrated package that offers everything they need, rather than a series of point solutions.

“A Huntress or some other single-product companies, they’re good companies, they care about their technology and they’re passionate," said Voccola. "But they don’t think about the customer. What makes an MSP unique? Not the business side of an MSP, but what the engineers and the technicians actually do. They’re multifunctional engineers. They’re doing security and endpoint management and backup and compliance. They’re doing everything, all 50 elements of IT and security in their daily workflow. So they don’t want to have 15 different screens and vendors to do their job. Because by traversing between these different things, they waste time.”

The CEO said he’s on a mission to increase MSP profit margins, which he said is around 10% – much lower than other service providers like lawyers or accountants.

“It’s the lowest profit margin by far and they’re doing the hardest job and providing the most value,” he said. “With Kaseya 365 we double that profitability.

“Not only that, but it’s one integrated piece of software," he added. "I think we’ve enabled the financial unit economics to change.”