Demand for compliance hots up

MSP customers worldwide are looking for more security and compliance in particular, according to Kaseya’s CEO Fred Voccola. He sees it as a major growth area for MSPs in particular. 

The Kaseya MSP survey coming out in a few weeks will claim that its own MSPs are growing faster than the market. 

In an interview with Comms Dealer sister publication IT Europa, he puts this down to, among other things, them selling compliance and integrated backup and security.

A typical MSP has perhaps 100 customers, he says, and Kaseya is seeing the same trend in most… they have around 20 employees and five of their customers are delivering half the revenue. 

These are either larger small businesses or medium-sized and their security needs are a little higher than small business, he says.

“They know what they want and they want more sophisticated solutions and 24x7 – even things that are AI instigated – looking for something a bit smarter,” he said.

He recognises that this is a growth market and existing products may be complex. “The MSP is limited on what they can invest in and provide a solution, so we are working on something for them.”

And other growth areas? “We do $50m-$60m of security business now, it is a hot topic, but means a lot of different things. Our fastest growing business is compliance, which is a close cousin to security.

“Compliance has moved downstream and affects all sizes of business. Everyone holds data so compliance is an issue.

“Looking at our transactions – last December we sold 100 compliance managers – that means 100 MSPs in that month got into compliance for the first time.

“Our compliance business is tripling every year and I think our managed services customers will generate $1bn in compliance by 2024, possibly sooner.” 

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