Kaseya Promotes Rent-to-Own with MSPs - Page 2

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With just about a years worth of experience working with Kaseya, Swanson said he is very satisfied with the arrangement. His company has approximately $5 million in revenues, and the deal with Kaseya is already a money-making venture, he said.

As for the remote management of services, Swanson said it has made life easier for his company and staff. He said that he likes the idea of paying Kaseya a set payment each month and that he has found the company easy to work with.

Swanson said he speaks with Blackie at least once a month, and his company is a beta site for Kaseyas upcoming monitoring tool. The process of setting up the services is straightforward and reliable, he said.

"We set up agents on the client machines to run every night, and we write our own scripts," Swanson said.

Swanson said the biggest difference hes seen in terms of internal benefits is in time to resolution. "Before, we may have had a scheduled service call on the customers site every Friday, at which time wed have to fix three things," he said. "Now we get a call from the client and can fix a problem remotely on the day we hear about it."

As for options other than Kaseya, Swanson said he explored developing managed services software internally. However, he ruled that idea out when he got a look at some of the commercial products available. Swanson evaluated products from Ipswitch Inc. and SilverBack Technologies Inc. but chose Kaseyas technology.

"With patching, remote control and application management, Kaseyas software was more complete," Swanson said.

In a nod to caution, Swanson said he initially marketed the managed services using Kaseyas technology only to new clients because he wasnt sure the technology would work. Now satisfied with the software, Swanson is pitching managed services to all customers. Hes conducting road shows, making one-on-one presentations and touting the benefits in a newsletter.

So far, Swanson said, the concept of flat fees rather than the traditional practice of billing for time and materials is hitting a chord with customers.

As for Kaseya, Blackie said he is doing some aggressive marketing as well. At first, he looked for potential partners among MSPs in much the same manner as when he discovered Kaseya: through Web research. Now that the concept of flat-fee managed services has gained some momentum, and Kaseya has signed up a fair number of MSPs, Blackie said he is using that network of customers to find new customers.

Its an approach that has already proved successful. In the case of IT Solutions, Swanson said he first heard about Kaseya through a trade group; fellow member Steve Bender of InhouseIT, an MSP in Newport Beach, Calif., introduced Kaseya at a meeting.

According to Swanson, at least 10 of the trade groups 15 members have signed on with Kaseya. For Blackie, that kind of word-of-mouth marketing offers further evidence that he—and Kaseya—are on to something.

Megan Santosus is a free-lance writer based in Natick, Mass. She can be reached at megan.santosus@gmail.com.

Case file

  • Customer Kaseya
  • Location San Francisco
  • Organizational snapshot Founded in 2000, Kaseya today is the result of a merger between two startups: the original Kaseya, a software company that focused on private- and public-key encryption, and Adivio, a company launched by Gerald Blackie to develop software for managed services.
  • Business need Kaseya is a provider of software to MSPs. The software is sold as a private label to MSPs that then brand it and use the software to provide such remote services as patch management, system monitoring and software upgrades.
  • Technology partner IT Solutions Consulting, Jenkintown, Pa.
  • Recommended solution To provide its customers with remote managed services, IT Solutions selected Kaseyas software. For a predictable monthly fee, IT Solutions has purchased 1,000 licenses from Kaseya, with an option to own 5,000 licenses at the end of a five-year term. IT Solutions relies on Kaseyas software as part of its SharedVision service to provide customers with patch management, spyware removal and help desk live chat.
  • Lessons learned From Kaseyas perspective, focus on the needs of customers even though the target customers are MSPs. In addition, change business models as dictated by the market—in Kaseyas case, that meant changing from a subscription-based model to a flat-fee structure.

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