Category Archives for "Managed Services News"

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

IT Facing Major Security Issues, But Cloud Security May Be Most Immense

By | Managed Services News

A number of reports point to security problems within client environments, but cloud could be the biggest.

No surprise: IT leaders continue to cite environment-wide security as one of their biggest challenges. Cloud security ranks among the most pressing of those issues. But of course, it’s not the only one.

For 72% of people responding to Snow Software for its 2021 IT Priorities Report, ensuring overall security presents significant obstacles. And they said fears around security grew when considering technology that IT either doesn’t know about or doesn’t manage.

That’s not a shock. Ever since COVID-19 struck last year, organizations have faced more IT and cloud security problems. The pandemic spurred a sudden, global shift to remote work and simultaneous, unplanned cloud adoption. In fact, by last September, total cloud spending among many organizations had risen 19.3% over April, the first full month of pandemic-related restrictions. That’s according to VMware and its report, How 2020 Changed the Way We Use the Cloud.

Meantime, employees newly working from home often realized they did not have the tools they needed to do their jobs well. So, they downloaded, sometimes on the sly, cloud resources for collaboration that might not have been IT-approved.

All this has led to a security crisis within IT. COVID-19 opened the door for hackers worldwide to exploit new security gaps. And they continue to take advantage of those holes.

The Human Factor

Yet managed security service providers know external threats aren’t the only ones they have to worry about on customers’ behalf. Clients’ employees threaten the integrity of the work environment, too, even if they don’t mean to do so. Insider breaches remain a big problem for IT. This year alone, enterprises and SMBs can expect insider incidents to reach 33%, up from 25%, per Forrester Research.

“The overall number of insider threats will also be pushed higher as firms get better at identifying and attributing incidents to insider activity,” analysts wrote in the company’s Predictions 2021 report.

Of course, while insider threats may not necessarily be intentional, that does not reduce their impact. As Guru Pai, CEO of Privafy, said last year, “the human being will continue to be the most vulnerable part of cybersecurity. Either consciously or unconsciously, that’s going to be the place where compromise happens.”

Combined – and even separately – internal and external threats qualify as giant security problems. But if new findings from Infrascale offer any indication, MSPs and MSSPs benefit. Three in four (74%) respondents told the data protection vendor they turn to MSPs for help with their security needs.

Meantime, and at the risk of sounding repetitive, most of these organizations are moving workloads into the cloud. Or they have already moved them. They are doing so for better efficiency and, often, improved security. The question is whether partners are ready to handle the specific security challenges that accompany cloud.

Cloud Security Strategies for MSPs/MSSPs to Embrace

Infrascale's Russell Reeder

Infrascale’s Russell Reeder

“MSPs need to bolster their cloud migration and cloud security capabilities – especially for finance, education, health care, and manufacturing – so as to be prepared for the ultimate need of digital transformation and successful cutovers to the cloud,” said Russell Reeder, Infrascale CEO.

Brian Allison, vice president of global channels and alliances at Snow, agreed.

Snow Software's Brian Allison

Snow Software’s Brian Allison

“Those MSPs that already specialize in providing cloud services and support may be seeing exponential gains compared to those who may be early in their journey to add cloud into their offerings,” he told Channel Futures. “For ‘born in the cloud’ MSPs, there seems to be a real opportunity to increase the potential for growth by adding support for more than one public cloud provider and embracing multicloud services. For those MSPs who primarily still focus on legacy enterprise technologies, now is the time to accelerate your organization’s own transformation.”

A key way to do this, Allison added, is to hire people who know cloud and security in depth.

“The opportunity provided by the cloud has created a double-edged sword for MSPs,” Allison said. “While there are huge growth opportunities, the market value of cloud talent has also gone up. The talent that MSPs may have in their organization is also being sought after by the public cloud providers like AWS, Microsoft and Google. And to develop a cloud expert, certain corners cannot be cut.”

Partnering with Other Partners

Another recommendation? Consolidate or partner with other MSPs and/or MSSPs.

“Bringing together a shop with AWS experience and another with Azure, for example, would certainly help diversify offerings and provide additional opportunities for growth,” Allison said. “Or acquisitions of boutique MSPs known for their unique skills by larger MSPs may be in order.”

Aptum's Craig Tavares

Aptum’s Craig Tavares

Along the way, MSPs/MSSPs must keep in mind that a cloud environment is only as secure as the polices and controls that oversee it. Managed hosting provider Aptum discovered in a recent survey that 82% of IT professionals face this dilemma as they expand and diversify their cloud infrastructure.

“Although no single solution on its own can guarantee 100% security, especially in a multi/hybrid cloud approach, experienced partners can assist organizations in choosing the right combination of security technologies that complements their workloads no matter where they are hosted and ensure visibility across disparate environments,” said Craig Tavares, global head of cloud at Aptum.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

Companies Seek IT Security Resellers with Technical Know-How

By | Managed Services News

Providers can offer managed services to fill customers’ cyber-defense needs.

F-Secure's Elena Zykova

Elena Zykova

The COVID-19 crisis has forced companies to rethink their business operations and priorities. Many businesses have moved their employees to home offices and remote locations away from secure IT perimeters and office networks. In addition, digitalization, cloudification and regulatory compliance are prompting companies to seek new tools and new ways of working.

Through it all, cyberattacks keep pummeling organizations. Attackers have leveraged the crisis, using pandemic-related story lines to attract clicks on malware-laden attachments. Indeed, 51% of malware in the first half of the year was spread via email, the majority using themes related to COVID-19, according to the company’s attack landscape report. Attackers have also preyed upon technologies that enable remote work, such as Office 365 credential phishing and targeting vulnerable Remote Desktop Protocol (RDP) ports.

Despite – or perhaps in part because of – the upheaval, 81% of companies plan to increase their security budget in the next year, according to an F-Secure survey. When asked specifically how COVID-19 has impacted their budget plans, only 14% of companies reported their security budget would be decreased due to the crisis. With legions of employees teleworking from outside the network perimeter and potentially working from devices that aren’t company-managed, security teams need the additional support.

For the majority of companies, at least some of that support will be provided by value-added resellers and managed service providers. According to the same survey, 65% of organizations employ some form of managed security service to help with their company security posture. When asked why they value services, among the top reasons cited are 24/7 availability, the trust relationship companies have with their provider and lack of enough internal expertise to effectively use in-house products. The latter is also a key reason 69% of companies look for a security service provider with better technical know-how and above-average security knowledge, according to company market research.

Trust-Based Relationship

The truth is, when searching for a provider, companies aren’t just comparing prices and technology features. They’re looking for a trust-based relationship with a partner who can provide not only technology but also security insights, contextual intelligence and actionable advice around alerts and threats. Companies are seeking partners who can help navigate through complexity and help build the right security strategy for their business.

This demand for specialist expertise spreads across organizational sizes. Smaller companies understandably need more support with IT security, but even larger organizations who have more in-house staff still use some element of security services to augment what they already have. They seek providers who they can reach out to when they need it, who can provide consultation on what an alert or incident means, as well as help with processes, policies and remediation plans.

Become Trusted Advisers

This is where IT security services providers can shine: By offering services on top of technology that put your business in the position of trusted adviser. With product licenses yielding razor-thin margins, it’s services that will allow resellers to grow their businesses – services such as vulnerability management, detection and response and IT security management. In fact, companies with subscription businesses are growing six times faster than nonsubscription companies, according to the Zuora Subscription Economic Index report in September 2020.

Even providers who don’t yet have the know-how or expertise in security can realize the benefits of offering services along with technology and giving customers the option of subscribing or paying up-front. Building or expanding a service portfolio can be challenging for traditional license resellers. To support partners in this crucial change, technology suppliers should look into offering free consultancy to enable the partners and support their business transformation every step of the way. Enablement elements should include, among other things, top-notch training and competence development programs, service productization workshops and consultancy around how to deliver security as a service using their technology, rethink the support they offer to the partners to pivot from reactive to stand by or proactive engagement or even co-servicing together.

Difficult periods tend to compel companies to focus more on their core business and optimize in every possible area, outsourcing functions that aren’t their core competencies. In this time of transition, IT resellers should take advantage of the opportunity to build their cybersecurity competencies with the support of a trusted cybersecurity vendor. Providers can assume the role of not just technology supplier for their customers, but trusted cybersecurity adviser offering managed services to fill or augment their customers’ cyber-defense needs. In doing so, resellers can transform their businesses for growth in a newly reshaped business climate.

Elena Zykova is director and head of Global Channel Operations at the global cybersecurity company F-Secure. Elena has been focusing on creating and aligning the go-to-market and channel strategies as well as building and implementing the frameworks which ensure their successful execution. She is passionate about building the eco-system and enabling its players to succeed in becoming the trusted advisers to business customers. She earned her master’s of engineering in industrial management at the Metropolia University of Applied Sciences in Finland. You may follow her on LinkedIn and @FSecure on Twitter.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

Feb 12

M&A Activity in Tech Sector Is Booming, Shows No Sign of Slowing

By | Managed Services News

ConnectWise’s acquisition of Service Leadership and Pax8’s new partnership with RocketCyber are among the highlights.

2020 was a year of twists and turns and ups and downs that not even the most adept of fortune tellers could have predicted. Finding one’s business bearings was, at times, like trying to find a cotton ball in a blizzard. 

Yet somehow, through the chaos, spending on tech mergers and acquisitions (M&A) soared to its highest level in years. Almost impossibly, the total value of tech and telecom transactions announced around the plague-ravaged world in 2020 topped $600 billion, according to 451 Research’s M&A KnowledgeBase. MSPs were at the center of many deals.

Looking for more M&A? Keep our monthly roundup of mergers and acquisitions impacting the channel.

Highlights

According to S&P Global’s Market Intelligence’s annual Tech M&A Outlook, there are a few key highlights worth noting:

  • Last year’s record spending came in more than 25% higher than the firm recorded for the “before times” year 2019. Furthermore, it was more than four times the amount spent in the similarly recession-scarred year of 2009.
  • The data showed a staggering $485 billion worth of spending on tech and telecom acquisitions in aggregate for the final two quarters of 2020. That pushed the value of deals announced in just the final half of last year higher than the full-year totals for every year except two since 2002 (according to the M&A KnowledgeBase). To top that off, the tech M&A market exited 2020 at a trillion-dollar run rate.
  • The second half of 2020 marked a record level of spending as emboldened acquirers started making larger tech purchases. Tech vendors were announcing multibillion-dollar deals that would have been unimaginable just a few months earlier.
  • In the case of COVID-19, the slowdown was measured in mere months, rather than years. Already by summer, acquirers’ pent-up demand – combined with Wall Street’s confidence in the tech sector to thrive, not just survive, during the lockdown – flooded into the tech mergers and acquisitions market.

Already in the second month of 2021, the appetite for M&A shows no signs of slowing. See our slideshow above to see which recent deals have made headlines, most notably in the MSP community.

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