Category Archives for "Managed Services News"

Jul 15

HP Debuts Remote Work Solutions for the New Normal

By | Managed Services News

A new suite of offers enable partners to deliver integrated, services-based print solutions.

HP on Wednesday introduced HP Remote Work Solutions. The new offer equips HP Amplify partners with solutions to help business customers thrive in the “new normal” work environment. The announcement was made in conjunction with the unveiling of HP Amplify, the company’s new, unified global partner program.

HP Remote Work Solutions think about the “new normal” in three ways. The suite of offers enable partners to deliver integrated services-based print solutions.

HP's David Prezzano

HP’s David Prezzano

“The HP Remote Work Solutions will help our partners stay current with all the trends that are happening right now, as a result of COVID-19,” Dave Prezzano, global head, print services and solutions at HP said in a news briefing. “Some companies are returning to the office, some people are working in a hybrid fashion — in the office and at home, and some people are dedicated to working from home. We want our Amplify partners to stay current with these trends.”

Breaking It Down

  • For remote fleet managers, HP Advance is a new modular-based enterprise output management system. It allows customers to manage an entire fleet of HP and non-HP devices from a single web-based console. That’s for both Windows print and non-Windows print.
  • The new and upgraded HP Command Center is a single tool for HP partners to deploy and manage cloud applications for their customers. It also enables fleet onboarding.
  • The HP Workpath ecosystem enables workers to connect to cloud-based platforms directly from the multifunction printer (MFP). Introduced last October, HP Workpath enables the creation of workflow apps for an HP MFP. Today, there are more than 100 apps in the ecosystem, and thousands deployed. HP also announced a revenue sharing model for HP Workpath, for developers and resellers selling Workpath apps. Partners can access a broader range of apps by having the order and payment process transacted through the HP Command Center.

Office and WFH

To enable office workers, HP offers touch-free printing, HP Roam and HP Secure Print. HP is giving customers a 90-day free trial for features that help minimize contact with printers. HP’s touch-free printing enables workers to release a print job with their phone or the tap of their badge without having to touch the control panel.

The company also is expanding HP Roam to LaserJet Pro devices, simplifying print on the go from a mobile device to any HP Roam-enabled computer. HP Roam targets SMBs.

The company enhanced HP Secure Print, a cloud-native solution that releases documents only to authorized users. It now supports all network types, including traditional networks behind a firewall as well as serverless print environments.

And, for work-from-home employees, HP offers Instant Ink a subscription-based service that automatically detects when a customer runs low and needs more. The service automatically mails new cartridges to the user.

The New Normal

The global pandemic has disrupted how work gets done. At the same time, it has accelerated digital transformation efforts. That’s according to HP Insights research released in May. More than two in three (69%) medium and enterprise businesses said they will digitize workflows post COVID-19. Another 70% agree that a more distributed workforce raises security risks and processes. And 73% agree that their printing strategy needs to change.

“What we’re seeing now is a second wave of proactive planning. That’s where companies say, ‘Now I see this new normal where employees, work and information is more distributed. How do I plan an approach that makes more sense in that environment?’ I bring this up because it’s a great opportunity for our partners and HP to work together,” said Prezzano.

Print is important to how work gets done, wherever it gets done. In other research – HP’s Power of Print Study – done in June, respondents rallied around print. For example, nine in 10 (90%) agreed that print helps them stay more organized, engaged (90%) and effective (82%). Ninety percent also said that print makes it easier to collaborate.

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

HP Rebuilds Partner Program to Be Data-Driven, CX-Focused

By | Managed Services News

Amplify is HP’s new unified global partner program.

HP built Amplify, its new partner program, introduced Wednesday, from the ground up. The company calls Amplify a single, simplified and consistent global program. A year in the making, the design puts customer experience (CX) at the core.

What redefines HP Amplify from HP Partner First is the changing relationship HP has with partners. Previously, the HP partner program was defined by two pillars — performance and capability. There’s a third pillar going forward: collaboration and data.

HP's Christoph Schell

HP’s Christoph Schell

“In more digital engagement with customers, those two [pillars] are really important, but there’s one thing missing; that is the ability to collaborate. The ability to bring a segment of one, single customer value propositions to life,” Christoph Schell, chief commercial officer at HP said. “What’s at the heart of collaboration is data. Data becomes an additional currency that defines the relationship that HP has with its partners.”

Data will be used to deliver a one value proposition to customers. That’s because it’s data that informs the end-to-end journey customer journey.

“The data our partners have is very important to define how we engage with customers, how we think about products and services that we want to bring to market, and how we manage outcomes once we’re in the infrastructure of our customers,” Schell explained.

The new refreshed and modernized HP partner program, with a new name, still draws on much of what stood out in the HP Partner First, with much input from partners.

A Closer Look

Amplify has two tracks for partners — “synergy” and “power.” The new tier structure replaces the multi-tier one, and multiple partner programs go away. HP expects the lion’s share of partners to fall into the synergy, or foundational, track.

Amplify Synergy is built for the majority of partners. It has minimum entry requirements and offers standard benefits and resources, minimum commitment, specialization incentives and increased opportunity.

HP's Luciana Broggi

HP’s Luciana Broggi

“Partners in this track are valuable to HP and represent an important part of our business. We want to work with them and continue to drive the relationship,” said Luciana Broggi, HP’s global head of HP route-to-market.

Amplify Power is for, well, power partners. Partners in the Power and Power Services track demonstrate deeper collaboration with HP. Increased ROI means increased reward. That ROI comes in the form of higher rewards, data insights, sale and technical resources, and marketing support to drive new sales and renewals.

Power partners will see greater collaboration with HP in developing joint business plans and developing a strong business proposition for customers. Those partners who focus more on a services proposition will have access to HP’s services portfolio and delivery capabilities.

“The partners will decide where they want to play,” said Broggi.  “It’s up to the partner to decide on the number of steps they want to take, or certain capabilities they need to invest in to be part of one track or the other.”

The 3 Pillars

The HP partner relationship builds on the three pillars — performance, capabilities and collaboration.

Performance: Amplify, the new HP partner program, will reward partners for a variety of performance indicators. Rewards go beyond sales revenue, such as investing in and improving digital skills, data sharing, e-commerce, omni-experience solutions and services capabilities.

Capabilities: By integrating data capture and analysis, HP Amplify allows partners to stand out in a crowded market. Partners who invest in improving their capabilities can become more competitive, more relevant and more profitable.

HP is increasing the number of capabilities it will work at with partners. This will depend on the partner.

“For partners who want to be the best in the more traditional transactional business, who want to grow faster, be very efficient and provide the best customer experience, this will require …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

Sign up for Channel Futures’ new EMEA newsletter, where we feature news and analysis involving companies based in Europe, the Middle East and Africa, as well as those doing business in that region.
Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

Jul 15

M&A in the Channel: What Does the Post-COVID World Look Like?

By | Managed Services News

Will merger and acquisition activity in the channel be based on expansion or survival?

The IT channel has long been a hive of activity for mergers and acquisitions (M&A). But as restrictions start to lift, it is worth considering how the post-pandemic M&A landscape will look.

Understandably, we’ve seen cash conservatism during COVID-19, as businesses have retrenched and protected their assets. However, economists and analysts expect the aftermath of the pandemic to result in a surge of M&A. They see deal premiums being reduced and previously unavailable assets coming up for sale as businesses look for external financing.

Boomi's Mike Kiersey

Boomi’s Mike Kiersey

“After a period of quiet, enforced by widespread economic disruption and uncertainty, the M&A market appears to be on the rise,” said Boomi principal technologist Mike Kiersey.

Kiersey believes that since many MSPs are struggling with digital and shifting business patterns, M&A offers a chance of expansion and, for some, survival.

“Many solution providers will be turning to private equity to keep their business afloat, whilst others will be buying to complement and expand their tech stack. Especially with the continued rise of cloud-based solutions needed for the new normal,” he said. “For some, disruption will be an opportunity to tap into the market in a way they have been previously incapable.”

Survival or Seizing Opportunity?

Acquisition has played a major part in the growth of pan-European distributor Exclusive Networks. The strategy has helped the firm expand into new geographies, including North America with the acquisition of VAD Fine Tec. It has also used M&A to increase market share in existing territories and accelerate growth into new markets.

Andy Travers, EVP, worldwide sales and marketing, Exclusive Networks, said COVID-19 hasn’t affected the firm’s M&A strategy.

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Exclusive Networks' Andy Travers

Exclusive Networks’ Andy Travers

“For sure there will be some casualties in the coming months, as more and more companies look for investment to survive. In fact, we’re already seeing an uptick in frequency of acquisition opportunities. But we also see the strong getting stronger, which is why we will continue to take a more long-term strategic view of M&A as opposed to a short-term opportunistic one.”

Jim Lippie, SVP partner development, Kaseya, believes M&A going forward won’t be about survival; rather, it’s about seizing opportunity. He said that private equity firms now see an opportunity to make money after seeing how dependent on technology businesses have been during the pandemic.

“MSPs became the economy’s ‘first responder’ at the outset of COVID-19,” he said. “They clearly demonstrated their value to business customers who never truly appreciated them in the past. With greater industry appreciation comes more growth for the MSPs in a position to capitalize.

Lippie said private equity firms also understand market consolidation.

Kaseya's Jim Lippie

Kaseya’s Jim Lippie

“We will see consolidation in the MSP space, which will lead to a more mature industry with larger and more sophisticated MSPs. In the end, investors and strong MSP operators will benefit from all the buying and selling over the next several years on our way to consolidation.”

The exec said the only MSPs currently in survival mode are the ones who serve vertical markets hit hard by COVID-19 — or those that didn’t have a high enough ratio of recurring revenue in their portfolio to sustain their operations.

“Those are the MSPs who will see lower valuations as they look to be acquired now (4-6x EBITDA). But the larger ‘platform MSPs’ that are already at scale will trade at premium valuations for the foreseeable future (10-14x EBITDA).”

Challenges

So, what hurdles do MSPs face when it comes to buy or selling a business? And does the unprecedented environment present …

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