28 01732 759725 MSP Kaseya aiming to transform economics of MSP industry with Kaseya 365 subscription 365 at literally a fraction of the cost of what MSPs would have to pay otherwise. We expect this to completely change the industry. Our expectation is that every MSP will be ‘Powered by Kaseya’.” When Technology Reseller spoke to Voccola nine days after K365’s launch in the US, more than 1,400 MSPs had already taken out a Kaseya 365 licence. That represents about 3% of Kaseya’s total customer base, and about 1% of its worldwide addressable market of 144,000 MSPs serving small to mediumsized businesses. Since May 10, the number of subscribers has increased to 3,800. More profit Voccola says that K365’s pricing fundamentally changes the economics of the MSP industry, enabling MSPs to increase their profitability by up to 50% and at the same time deliver enhanced security to customers. “The average profit margin for an MSP in 2023 was between 12% and 14%. The reason it’s not more is because MSPs have to do more and more work to keep their customers’ systems always available and always secure – a lot of which isn’t understood or fully appreciated by nontechnical customers. “With Kaseya 365, we want to do two things. We want to change the unit economics so that MSPs can be 15% to 50% more profitable. And we want to ensure an MSP never has to make tough decisions about whether they should deploy the right amount of cybersecurity protections for a customer who’s not willing to pay.” He points out that MSPs’ desire both to make money and to deliver great solutions for customers presents a dilemma when a customer is not willing to pay for the levels of cybersecurity they need. “Do I, the MSP provider, tell the customer I won’t work with them? Do I give them a lower level of security because they won't pay for the higher level? Or do I give them that higher level even if it’s more expensive for me? Kaseya 365 eliminates that tough choice. It means that an MSP can provide MDR and EDR for every single one of their customers, even if the customer won’t pay for it.” Higher profit Voccola told Technology Reseller that if an MSP were to buy all the modules in K365 from different vendors it would cost $15 to $18, even at discount prices, compared to a K365 list price of $5.25. “If we cost roughly $5 and let’s say the market price for the different modules is $12, K365 represents an additional $7 of profit per month, per endpoint or user. The average MSP gets roughly $75 to $90 per month, per endpoint. Let’s say $100 per month per endpoint for ease of calculation. If they have a 12% profit margin, they’re making $12 per month per endpoint. With Kaseya 365 they are adding $7. Now they’re making $19 of profit per endpoint. That’s more than a 50% increase. And even if a customer won’t pay for some of these things, it’s all free in the licence so the MSP can afford to deploy it. It changes the game. “Our strategy is to be able to help MSPs ‘powered by Kaseya’ to be the best in the world. If an MSP is ‘powered by Kaseya’ they’re paying one half or one third as much for their software. They can take those savings as profit; they can hire more On June 12 Kaseya DattoCon Europe returned to the Convention Centre in Dublin, giving managed service providers (MSPs) in EMEA the opportunity to find out about the company’s latest IT management and cybersecurity solutions for MSPs, in particular Kaseya 365. The big announcement at Kaseya’s Connect Global conference in Las Vegas on April 29 to May 2, Kaseya 365, or K365 for short, is a single subscription that gives MSPs everything needed to manage, secure, back up and automate clients’ endpoints for a fraction of the cost of buying tools individually. These include remote monitoring and management (RMM), antivirus protection, endpoint detection and response (EDR), managed detection and response (MDR), patch management, ransomware rollback and endpoint backup, plus 20 automations to enhance workflow efficiency and reduce errors. Kaseya CEO Fred Voccola describes K365 as the logical outcome of the company’s growth, development and acquisitions over the last decade. “We’ve spent 10 years and over $12 billion building our company so we could deliver a unified, integrated, comprehensive platform called Kaseya Super sub Fred Voccola
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