Category Archives for "Managed Services News"

Jun 07

Why All MSPs Need to Understand the M&A Landscape

By | Managed Services News

Even if you’re not making an M&A move, your competitors are.

Why must all MSPs understand the industry’s M&A landscape, even if they are not actively seeking a deal? Because even if you’re standing pat, your competitors aren’t. Plus, if someone suddenly makes you an offer, you’ll want to know whether it really is too good to refuse.

During a recent webinar with MSP veteran Gary Pica of TruMethods, now a Kaseya company, we dove into how things look today on the M&A front and where they’re heading tomorrow. The M&A topic is more crucial than ever because the market is really heating up due to a few key factors.

The target market for MSPs is small and midsize businesses, and SMBs are continuing to increase their technology spending–even during the current economic downturn and recovery. SMBs will continue spending a larger percentage of their revenue each year as they revolutionize their systems.

This M&A spending is attracting attention, which means more money flowing into the space. Private equity firms are taking over software companies and the MSP channel, following the money that indicates growing opportunity.

At the same time, running and growing an MSP has become much more complex as customers demand an increasingly broader set of solutions. Providing a holistic, customizable offering requires investments in tools, technology and training, along with hiring staff with the right skills in a tight labor market.

Last, but certainly not least, MSPs and their clients are under near-constant attack. The quantity and quality of cybersecurity threats are increasing and evolving, spurred by higher-quality bad actors backed by deep pockets and foreign governments. Because 70% of security is hygiene, process, compliance and governance, MSPs are faced with the choice of growing and maturing their operations themselves, merging or partnering with a third party to get their security stance up to par, or doing nothing and take their chances.

It’s Still Early Days

Despite what may feel like a flurry of M&A activity in the MSP industry, it is only the beginning. Billions of dollars are still waiting on the sidelines. Meanwhile, M&A is top of mind for many MSPs.

According to our 2021 MSP Benchmark Survey, 26% of MSPs are looking to make an acquisition in the next two to three years, while 8% are hoping to sell during that same time frame. Not only does that indicate a future surge in activity, but it also means some MSPs not currently contemplating an exit might start receiving some unsolicited inquiries in the not-to-distant future.

These events are changing the nature of competition in the MSP market, even for those that aren’t active in the M&A arena. Private equity rollups are forming massive players along with an increase in MSPs with more than $4 million in revenue. These larger entities have proper sales and marketing organizations (often utilizing Kaseya’s Powered Services) interacting with your customers, educating them and arming them with tougher questions for you. Throw in the increasing complexities and importance of cybersecurity, and it’s obvious that scale is now a major competitive advantage.

 Who’s Shopping and What Are They Offering?

There are a few main types of buyers in the MSP market. Private equity-backed rollups are targeting MSPs with at least $1 million in annual EBIDTA along with smaller tuck-in businesses for strategic purposes. Meanwhile, “super-regional” MSPs with more than $8 million in EBIDTA are looking to accelerate their growth by buying up smaller players in their market.

Then there are strategic buyers that aren’t currently in the MSP business but are looking to add those services to their portfolio. These are typically office technology and services business, such as photocopier companies and accounting firms that already have a footprint with lots of SMBs.

Of course, the million-dollar question is how much are these companies willing to pay to snap up MSPs that fit their target criteria. Unsurprisingly, the more an MSP makes, the more they’re worth, and private equity firms are willing to pay a premium for larger outfits since they can serve as a platform for additional acquisitions.

There really isn’t a universal formula to calculate these valuations, but in general it’s a multiple of

Jun 07

AT&T to Offer Up to 1 Million Customers Cisco Webex Calling

By | Managed Services News

AT&T Business serves nearly 2,000 of the largest multinational companies.

Cisco and AT&T have teamed up to offer as many as 1 million AT&T business customers Cisco Webex Calling.

AT&T Business is offering Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC). That will help businesses optimize operations and accelerate digital transformation in nearly any environment.

UCMC will enhance reliability and performance for all Webex Calling with AT&T – Enterprise users, the companies said. AT&T and Cisco expect to offer up to 1 million users the UCMC platform over the next five years.

New Hybrid Workplace

Javed Khan is senior vice president and general manager of Cisco Collaboration.

Cisco's Javed Khan

Cisco’s Javed Khan

“The shift to hybrid work changed how companies operate and accelerated adoption of integrated cloud collaboration solutions,” he said. “Our Webex solutions transformed the cloud calling experience and combine enterprise-calling features with market-leading virtual meetings and collaboration technology — all within the Webex app. And we’re proud to work with AT&T to provide its customers and employees with the tools and technologies they require to thrive in the new hybrid workplace.”

AT&T has a longstanding relationship of delivering voice services on Cisco’s platforms since 1997.

Recently, AT&T achieved Cisco’s UC Master Collaboration Specialization. That’s the highest level a third party can achieve. It also renewed its Gold Partner Certification. That’s the highest level of certification for Cisco partners.

AT&T Business serves nearly 2,000 of the largest multinational companies.

Rich Shaw is vice president of voice and collaboration for AT&T Business.

“Today’s environment requires tools that enable flexible and adaptable business operations,” he said. “Our work with Cisco is a great example of how we’re able to innovate faster, accelerate the deployment of cutting-edge technologies and unlock the full potential of our workforce and customers.”

Jun 07

Why All MSPs Need to Understand the M&A Landscape

By | Managed Services News

Even if you’re not making an M&A move, your competitors are.

Why must all MSPs understand the industry’s M&A landscape, even if they are not actively seeking a deal? Because even if you’re standing pat, your competitors aren’t. Plus, if someone suddenly makes you an offer, you’ll want to know whether it really is too good to refuse.

During a recent webinar with MSP veteran Gary Pica of TruMethods, now a Kaseya company, we dove into how things look today on the M&A front and where they’re heading tomorrow. The M&A topic is more crucial than ever because the market is really heating up due to a few key factors.

The target market for MSPs is small and midsize businesses, and SMBs are continuing to increase their technology spending–even during the current economic downturn and recovery. SMBs will continue spending a larger percentage of their revenue each year as they revolutionize their systems.

This M&A spending is attracting attention, which means more money flowing into the space. Private equity firms are taking over software companies and the MSP channel, following the money that indicates growing opportunity.

At the same time, running and growing an MSP has become much more complex as customers demand an increasingly broader set of solutions. Providing a holistic, customizable offering requires investments in tools, technology and training, along with hiring staff with the right skills in a tight labor market.

Last, but certainly not least, MSPs and their clients are under near-constant attack. The quantity and quality of cybersecurity threats are increasing and evolving, spurred by higher-quality bad actors backed by deep pockets and foreign governments. Because 70% of security is hygiene, process, compliance and governance, MSPs are faced with the choice of growing and maturing their operations themselves, merging or partnering with a third party to get their security stance up to par, or doing nothing and take their chances.

It’s Still Early Days

Despite what may feel like a flurry of M&A activity in the MSP industry, it is only the beginning. Billions of dollars are still waiting on the sidelines. Meanwhile, M&A is top of mind for many MSPs.

According to our 2021 MSP Benchmark Survey, 26% of MSPs are looking to make an acquisition in the next two to three years, while 8% are hoping to sell during that same time frame. Not only does that indicate a future surge in activity, but it also means some MSPs not currently contemplating an exit might start receiving some unsolicited inquiries in the not-to-distant future.

These events are changing the nature of competition in the MSP market, even for those that aren’t active in the M&A arena. Private equity rollups are forming massive players along with an increase in MSPs with more than $4 million in revenue. These larger entities have proper sales and marketing organizations (often utilizing Kaseya’s Powered Services) interacting with your customers, educating them and arming them with tougher questions for you. Throw in the increasing complexities and importance of cybersecurity, and it’s obvious that scale is now a major competitive advantage.

 Who’s Shopping and What Are They Offering?

There are a few main types of buyers in the MSP market. Private equity-backed rollups are targeting MSPs with at least $1 million in annual EBIDTA along with smaller tuck-in businesses for strategic purposes. Meanwhile, “super-regional” MSPs with more than $8 million in EBIDTA are looking to accelerate their growth by buying up smaller players in their market.

Then there are strategic buyers that aren’t currently in the MSP business but are looking to add those services to their portfolio. These are typically office technology and services business, such as photocopier companies and accounting firms that already have a footprint with lots of SMBs.

Of course, the million-dollar question is how much are these companies willing to pay to snap up MSPs that fit their target criteria. Unsurprisingly, the more an MSP makes, the more they’re worth, and private equity firms are willing to pay a premium for larger outfits since they can serve as a platform for additional acquisitions.

There really isn’t a universal formula to calculate these valuations, but in general it’s a multiple of

Jun 07

AT&T to Offer Up to 1 Million Customers Cisco Webex Calling

By | Managed Services News

AT&T Business serves nearly 2,000 of the largest multinational companies.

Cisco and AT&T have teamed up to offer as many as 1 million AT&T business customers Cisco Webex Calling.

AT&T Business is offering Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC). That will help businesses optimize operations and accelerate digital transformation in nearly any environment.

UCMC will enhance reliability and performance for all Webex Calling with AT&T – Enterprise users, the companies said. AT&T and Cisco expect to offer up to 1 million users the UCMC platform over the next five years.

New Hybrid Workplace

Javed Khan is senior vice president and general manager of Cisco Collaboration.

Cisco's Javed Khan

Cisco’s Javed Khan

“The shift to hybrid work changed how companies operate and accelerated adoption of integrated cloud collaboration solutions,” he said. “Our Webex solutions transformed the cloud calling experience and combine enterprise-calling features with market-leading virtual meetings and collaboration technology — all within the Webex app. And we’re proud to work with AT&T to provide its customers and employees with the tools and technologies they require to thrive in the new hybrid workplace.”

AT&T has a longstanding relationship of delivering voice services on Cisco’s platforms since 1997.

Recently, AT&T achieved Cisco’s UC Master Collaboration Specialization. That’s the highest level a third party can achieve. It also renewed its Gold Partner Certification. That’s the highest level of certification for Cisco partners.

AT&T Business serves nearly 2,000 of the largest multinational companies.

Rich Shaw is vice president of voice and collaboration for AT&T Business.

“Today’s environment requires tools that enable flexible and adaptable business operations,” he said. “Our work with Cisco is a great example of how we’re able to innovate faster, accelerate the deployment of cutting-edge technologies and unlock the full potential of our workforce and customers.”

Jun 07

5G: Revolution or Evolution?

By | Managed Services News

Here’s what channel partners need to know for 5G mobility applications.

Whether you are reading the news, watching a game or just driving home after work, it is hard to miss the stories, advertising and other buzz regarding the launch of 5G. Designed to meet the world’s growing demand for wireless connectivity, 5G features both a new radio design and a redesign of the back-end core networks used by carriers to transmit wireless data, all focused on greatly enhancing the network capability, reliability and providing an enhanced user experience.

Thanks to these 5G advancements, organizations can now deploy a variety of new mobile broadband, internet of things (IoT) and other new applications, such as mobile high-definition video streaming, super-fast mobile Wi-Fi hot spots and immersive augmented reality capabilities.

What Exactly is 5G?

5G is a wireless cellular technology standard developed by the 3rd Generation Partnership Project (3GPP). The fifth such wireless cellular technology standard, 5G follows in the footsteps of 3G and 4G. Wireless cellular networks based on these standards can connect to smartphones, wireless routers, embedded modules and other wireless communications devices that also support the standard.

What Makes 5G Better than 4G?

5G delivers revolutionary improvements in data transmission speed, network latency, enhanced reliability, flexible deployment and other capabilities. In addition to its use of a new radio design and a new core network (called 5G Core Network or 5G CN), 5G can deliver these additional capabilities due to its use of more frequency bands than LTE and other existing wireless technologies.

How Can 5G Be Used for Mobility Applications?

The speed, latency, reliability, flexibility and other improvements reflected in 5G will improve organizations’ ability to use wireless cellular communications for many broadband, IoT and other mobility applications, including:

When it comes to police departments, fire departments, and other first responders, the better transmission of reliable, real-time video and data is the most immediate mobility application upgrade opportunity offered by 5G. Next would be augmented reality abilities to assist with the demand for real-time life-changing decision-making by first responders.

Today, people want connectivity wherever they are–even when they are in transit. Taking advantage of more flexible deployment options using 5G, public transit organizations can use vehicle area networks (VANs) to provide faster Wi-Fi to more passengers on their trains, trolleys, buses and ferries, allowing these passengers to watch high-quality videos, play low-latency games and access other demanding applications, even as they are traveling. These organizations can also use 5G vehicle routers to provide drivers with access to routing, scheduling and other cloud-based vehicle applications helping them better ensure the safety of their passengers and employees.

Utilities have been another market segment that has pioneered the use of mobility applications in their fleets. 5G provides them with the opportunity to enhance the value of these applications, and deploy new applications, by upgrading the capabilities of the VANs in these vehicles, as well as providing real-time connectivity back to cloud based intelligent applications

Starting the 5G Journey with Sierra Wireless

5G’s ability to deliver higher data transmission speeds, lower latency, ultra-high reliability, faster handoffs and other performance improvements opens up a world of enhanced and new mobility applications to public safety agencies, public transit organizations and utilities.

For these organizations, 5G is both evolutionary and revolutionary. It is an evolution that will coexist with LTE while providing some improved capabilities today. And it is a revolution that opens the door for organizations to deploy transformative new mobility applications in the future.

As one of the world’s leading IoT solutions providers, Sierra Wireless is well-positioned to help IT and other digital transformation professionals build out their 5G strategies. In addition, as an active participant in 3GPP’s standard development process, Sierra Wireless can provide IT professionals with insights on what 5G options make the most sense for them–and what enhancements 3GPP plans to add to the standard in the future.

Sierra Wireless’ strong relationships with mobile network operators and other companies in the 5G ecosystem ensure IT professionals understand the broader picture for 5G, helping them better plan for and accelerate their deployment of new 5G applications. Combined with Sierra Wireless’ dedication to offering the most secure IoT solutions on the market, these capabilities make Sierra Wireless the perfect partner for organizations as they progress on the path to 5G.

Why Partner with GetWireless and Sierra Wireless?

Together with Sierra Wireless, GetWireless offers a global channel ecosystem designed to help our resale partners drive incremental revenue by offering leading IoT products, a robust partner program, and an easy partnership that provides tools to grow your business. Our channel program fuels collaborative growth, together with our partners. Our services are comprised of decades of experience working exclusively with channel partners in the IoT, mobility, in-building connectivity, fleet tracking, and many wireless markets.

Available services include:

  • Pre and post-sales support from certified sales and technical teams as well as training opportunities to enable your sales and technical teams
  • Deal registration and sales collaboration to generate margin, protect the price and drive effective sales cycles
  • Collaborative demand creation and marketing services in addition to a wide selection of professional services
  • Comprehensive inventory with strong logistics management for market-leading IoT solutions consisting of hardware, software, and device management
  • Sample and demonstration programs

GetWireless offers the solutions, tools and support to enable you and your customers to succeed with 5G. Contact us to learn more or to speak to one of our IoT experts today.

David Smith is the Vice President of IoT Solutions at GetWireless.

This guest blog is part of a Channel Futures sponsorship.

Jun 07

Deloitte Joins Cloud Cybersecurity Craze with CloudQuest Purchase

By | Managed Services News

The multibillion-dollar consultancy/VAR appears on track with analysts’ expectations for activity in this arena.

Organizations require cloud cybersecurity just as much as they do network and application defenses. Without a doubt, the need for cloud safeguards has soared amid all the COVID-19-fueled deployments. And now, after a year of frantic implementations, end users are assessing the strength of their cloud security.

So are the providers and channel partners responsible for protecting those environments. As research firm Omdia – which shares its parent company, Informa, with Channel Futures – noted in a report last June, “if you want to be relevant in cloud security, it’s a good time to buy into it.”

Vendors have heeded that advice over the past 12 months, particularly when it comes to cloud security posture management (CSPM). As just a few examples, Palo Alto Networks has purchased Bridgecrew, Evident.io and RedLock; Rapid7 snapped up Alcide and DivvyCloud; VMware bought CloudCoreo and CloudHealth; FireEye got Cloudvisory; and Trend Micro owns Cloud Conformity.

Now, Deloitte, the multibillion-dollar tax consultancy/VAR, is getting in on the CSPM action, too.

CloudQuest & CSPM

The behemoth channel partner on Monday said it has acquired CloudQuest. CloudQuest specializes in CSPM — or technology that identifies and remediates risks across IaaS, SaaS and PaaS. Deloitte did not say how much it paid for CloudQuest.

The deal bolsters Deloitte’s cloud cybersecurity portfolio. In fact, CloudQuest marks its second cloud security purchase of 2021. The first was Root9B, a threat intelligence provider, in January. More to the point, buying CloudQuest takes direct aim at helping end users stay safe as attackers set their sights on the cloud, Deloitte said.

Deloitte's Vikram Kunchala“As organizations work to build or advance their security postures for cloud or hybrid cloud environments, we’re expanding and diversifying our services and solutions portfolio to help our clients continuously monitor, prevent and remediate security threats,” said Vikram Kunchala, risk and financial advisory cyber cloud leader and principal at Deloitte.

Founded in 2017, CloudQuest built its platform on Google Cloud Platform. Those cloud-native capabilities let users manage security workflows while reducing risk and improving data security. For instance, CloudQuest integrates with various ticketing and security analytics platforms.

A Wise, Strategic Move

The CloudQuest and Root9B purchases set the stage for Deloitte’s success in cloud cybersecurity. As Adam Etherington, principal analyst of digital enterprise services at OMDIA, wrote in a report last month, “Innovation and strong road maps of solutions are key as enterprises look for long-term partnerships in security versus transactional. They want to have confidence that their partners are investing so that their future requirements will be met.”

Deloitte says it aims to achieve just that.

“We see incredible opportunity in novel approaches that help organizations securely transform and operate while also realizing competitive advantage,” said Deborah Golden, risk and financial advisory cyber and strategic risk leader and principal, at Deloitte. “Our acquisition of CloudQuest represents our profound commitment to transforming alongside our clients, competing vigorously in the market, and aggressively building out tech-enabled approaches that position Deloitte … as an unquestionable business enabler.”

And Deloitte says the addition of CloudQuest to its Cyber Cloud portfolio likely won’t be its last such deal. The VAR says it will keep expanding its focus on cloud security orchestration, automation and response (SOAR) services and solutions. That’s because demand remains high.

“While the global pandemic slowed some things, it didn’t slow cloud migration or cloud reliance for the vast majority of organizations,” Kunchala said.

To be sure, as MarketsandMarkets notes, the cloud security market will grow from $34.5 billion last year to $68.5 billion by 2025. That represents a compound annual growth rate of 14.7%. The research firm notes the factors driving that increase include the rising number of sophisticated cyberattacks on cloud computing systems, as well as the need for compliance with various upcoming regulations.

 

Jun 07

Why All MSPs Need to Understand the M&A Landscape

By | Managed Services News

Even if you’re not making an M&A move, your competitors are.

Why must all MSPs understand the industry’s M&A landscape, even if they are not actively seeking a deal? Because even if you’re standing pat, your competitors aren’t. Plus, if someone suddenly makes you an offer, you’ll want to know whether it really is too good to refuse.

During a recent webinar with MSP veteran Gary Pica of TruMethods, now a Kaseya company, we dove into how things look today on the M&A front and where they’re heading tomorrow. The M&A topic is more crucial than ever because the market is really heating up due to a few key factors.

The target market for MSPs is small and midsize businesses, and SMBs are continuing to increase their technology spending–even during the current economic downturn and recovery. SMBs will continue spending a larger percentage of their revenue each year as they revolutionize their systems.

This M&A spending is attracting attention, which means more money flowing into the space. Private equity firms are taking over software companies and the MSP channel, following the money that indicates growing opportunity.

At the same time, running and growing an MSP has become much more complex as customers demand an increasingly broader set of solutions. Providing a holistic, customizable offering requires investments in tools, technology and training, along with hiring staff with the right skills in a tight labor market.

Last, but certainly not least, MSPs and their clients are under near-constant attack. The quantity and quality of cybersecurity threats are increasing and evolving, spurred by higher-quality bad actors backed by deep pockets and foreign governments. Because 70% of security is hygiene, process, compliance and governance, MSPs are faced with the choice of growing and maturing their operations themselves, merging or partnering with a third party to get their security stance up to par, or doing nothing and take their chances.

It’s Still Early Days

Despite what may feel like a flurry of M&A activity in the MSP industry, it is only the beginning. Billions of dollars are still waiting on the sidelines. Meanwhile, M&A is top of mind for many MSPs.

According to our 2021 MSP Benchmark Survey, 26% of MSPs are looking to make an acquisition in the next two to three years, while 8% are hoping to sell during that same time frame. Not only does that indicate a future surge in activity, but it also means some MSPs not currently contemplating an exit might start receiving some unsolicited inquiries in the not-to-distant future.

These events are changing the nature of competition in the MSP market, even for those that aren’t active in the M&A arena. Private equity rollups are forming massive players along with an increase in MSPs with more than $4 million in revenue. These larger entities have proper sales and marketing organizations (often utilizing Kaseya’s Powered Services) interacting with your customers, educating them and arming them with tougher questions for you. Throw in the increasing complexities and importance of cybersecurity, and it’s obvious that scale is now a major competitive advantage.

 Who’s Shopping and What Are They Offering?

There are a few main types of buyers in the MSP market. Private equity-backed rollups are targeting MSPs with at least $1 million in annual EBIDTA along with smaller tuck-in businesses for strategic purposes. Meanwhile, “super-regional” MSPs with more than $8 million in EBIDTA are looking to accelerate their growth by buying up smaller players in their market.

Then there are strategic buyers that aren’t currently in the MSP business but are looking to add those services to their portfolio. These are typically office technology and services business, such as photocopier companies and accounting firms that already have a footprint with lots of SMBs.

Of course, the million-dollar question is how much are these companies willing to pay to snap up MSPs that fit their target criteria. Unsurprisingly, the more an MSP makes, the more they’re worth, and private equity firms are willing to pay a premium for larger outfits since they can serve as a platform for additional acquisitions.

There really isn’t a universal formula to calculate these valuations, but in general it’s a multiple of

Jun 07

AT&T to Offer Up to 1 Million Customers Cisco Webex Calling

By | Managed Services News

AT&T Business serves nearly 2,000 of the largest multinational companies.

Cisco and AT&T have teamed up to offer as many as 1 million AT&T business customers Cisco Webex Calling.

AT&T Business is offering Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC). That will help businesses optimize operations and accelerate digital transformation in nearly any environment.

UCMC will enhance reliability and performance for all Webex Calling with AT&T – Enterprise users, the companies said. AT&T and Cisco expect to offer up to 1 million users the UCMC platform over the next five years.

New Hybrid Workplace

Javed Khan is senior vice president and general manager of Cisco Collaboration.

Cisco's Javed Khan

Cisco’s Javed Khan

“The shift to hybrid work changed how companies operate and accelerated adoption of integrated cloud collaboration solutions,” he said. “Our Webex solutions transformed the cloud calling experience and combine enterprise-calling features with market-leading virtual meetings and collaboration technology — all within the Webex app. And we’re proud to work with AT&T to provide its customers and employees with the tools and technologies they require to thrive in the new hybrid workplace.”

AT&T has a longstanding relationship of delivering voice services on Cisco’s platforms since 1997.

Recently, AT&T achieved Cisco’s UC Master Collaboration Specialization. That’s the highest level a third party can achieve. It also renewed its Gold Partner Certification. That’s the highest level of certification for Cisco partners.

AT&T Business serves nearly 2,000 of the largest multinational companies.

Rich Shaw is vice president of voice and collaboration for AT&T Business.

“Today’s environment requires tools that enable flexible and adaptable business operations,” he said. “Our work with Cisco is a great example of how we’re able to innovate faster, accelerate the deployment of cutting-edge technologies and unlock the full potential of our workforce and customers.”

Jun 07

Why All MSPs Need to Understand the M&A Landscape

By | Managed Services News

Even if you’re not making an M&A move, your competitors are.

Why must all MSPs understand the industry’s M&A landscape, even if they are not actively seeking a deal? Because even if you’re standing pat, your competitors aren’t. Plus, if someone suddenly makes you an offer, you’ll want to know whether it really is too good to refuse.

During a recent webinar with MSP veteran Gary Pica of TruMethods, now a Kaseya company, we dove into how things look today on the M&A front and where they’re heading tomorrow. The M&A topic is more crucial than ever because the market is really heating up due to a few key factors.

The target market for MSPs is small and midsize businesses, and SMBs are continuing to increase their technology spending–even during the current economic downturn and recovery. SMBs will continue spending a larger percentage of their revenue each year as they revolutionize their systems.

This M&A spending is attracting attention, which means more money flowing into the space. Private equity firms are taking over software companies and the MSP channel, following the money that indicates growing opportunity.

At the same time, running and growing an MSP has become much more complex as customers demand an increasingly broader set of solutions. Providing a holistic, customizable offering requires investments in tools, technology and training, along with hiring staff with the right skills in a tight labor market.

Last, but certainly not least, MSPs and their clients are under near-constant attack. The quantity and quality of cybersecurity threats are increasing and evolving, spurred by higher-quality bad actors backed by deep pockets and foreign governments. Because 70% of security is hygiene, process, compliance and governance, MSPs are faced with the choice of growing and maturing their operations themselves, merging or partnering with a third party to get their security stance up to par, or doing nothing and take their chances.

It’s Still Early Days

Despite what may feel like a flurry of M&A activity in the MSP industry, it is only the beginning. Billions of dollars are still waiting on the sidelines. Meanwhile, M&A is top of mind for many MSPs.

According to our 2021 MSP Benchmark Survey, 26% of MSPs are looking to make an acquisition in the next two to three years, while 8% are hoping to sell during that same time frame. Not only does that indicate a future surge in activity, but it also means some MSPs not currently contemplating an exit might start receiving some unsolicited inquiries in the not-to-distant future.

These events are changing the nature of competition in the MSP market, even for those that aren’t active in the M&A arena. Private equity rollups are forming massive players along with an increase in MSPs with more than $4 million in revenue. These larger entities have proper sales and marketing organizations (often utilizing Kaseya’s Powered Services) interacting with your customers, educating them and arming them with tougher questions for you. Throw in the increasing complexities and importance of cybersecurity, and it’s obvious that scale is now a major competitive advantage.

 Who’s Shopping and What Are They Offering?

There are a few main types of buyers in the MSP market. Private equity-backed rollups are targeting MSPs with at least $1 million in annual EBIDTA along with smaller tuck-in businesses for strategic purposes. Meanwhile, “super-regional” MSPs with more than $8 million in EBIDTA are looking to accelerate their growth by buying up smaller players in their market.

Then there are strategic buyers that aren’t currently in the MSP business but are looking to add those services to their portfolio. These are typically office technology and services business, such as photocopier companies and accounting firms that already have a footprint with lots of SMBs.

Of course, the million-dollar question is how much are these companies willing to pay to snap up MSPs that fit their target criteria. Unsurprisingly, the more an MSP makes, the more they’re worth, and private equity firms are willing to pay a premium for larger outfits since they can serve as a platform for additional acquisitions.

There really isn’t a universal formula to calculate these valuations, but in general it’s a multiple of

Jun 07

AT&T to Offer Up to 1 Million Customers Cisco Webex Calling

By | Managed Services News

AT&T Business serves nearly 2,000 of the largest multinational companies.

Cisco and AT&T have teamed up to offer as many as 1 million AT&T business customers Cisco Webex Calling.

AT&T Business is offering Webex Calling with AT&T – Enterprise to Cisco’s Unified Communications Manager – Cloud (UCMC). That will help businesses optimize operations and accelerate digital transformation in nearly any environment.

UCMC will enhance reliability and performance for all Webex Calling with AT&T – Enterprise users, the companies said. AT&T and Cisco expect to offer up to 1 million users the UCMC platform over the next five years.

New Hybrid Workplace

Javed Khan is senior vice president and general manager of Cisco Collaboration.

Cisco's Javed Khan

Cisco’s Javed Khan

“The shift to hybrid work changed how companies operate and accelerated adoption of integrated cloud collaboration solutions,” he said. “Our Webex solutions transformed the cloud calling experience and combine enterprise-calling features with market-leading virtual meetings and collaboration technology — all within the Webex app. And we’re proud to work with AT&T to provide its customers and employees with the tools and technologies they require to thrive in the new hybrid workplace.”

AT&T has a longstanding relationship of delivering voice services on Cisco’s platforms since 1997.

Recently, AT&T achieved Cisco’s UC Master Collaboration Specialization. That’s the highest level a third party can achieve. It also renewed its Gold Partner Certification. That’s the highest level of certification for Cisco partners.

AT&T Business serves nearly 2,000 of the largest multinational companies.

Rich Shaw is vice president of voice and collaboration for AT&T Business.

“Today’s environment requires tools that enable flexible and adaptable business operations,” he said. “Our work with Cisco is a great example of how we’re able to innovate faster, accelerate the deployment of cutting-edge technologies and unlock the full potential of our workforce and customers.”

>