Australia: MSP Software Moves Accelerate

The rules in the Australia managed services software market continue to evolve. As N-able CEO Gavin Garbutt heads to the land down under for a series of MSP events, rival Kaseya (in partnership with Ingram Micro) has launched a SaaS initiative for Australia and New Zealand solutions providers. Two years ago, I don’t think the Australia market was ready for SaaS-centric managed services offerings. Apparently, that’s changed.

Over the past year or two, a lengthy list of executives — representing Autotask, Level Platforms, Paglo (now owned by Citrix) and PacketTrap (now owned by Quest Software), to name a few — told me they had global reach because of their SaaS offerings. More recently, companies like ConnectWise have been launching hosted offerings in specific regions (Europe, Australia) to join the global SaaS movement.

But I’ve been skeptical. During a visit to Australia in 2008, I heard from numerous MSPs who expressed two key concerns:

  1. The country’s broadband infrastructure wasn’t good enough (in certain regions) for SaaS-oriented managed services tools.
  2. Many of those MSPs told me they wanted North American software providers to open local offices in Australia, to provide feet on the street and local training to channel partners.

Recent Momentum

Fast forward to 2010, and the issues above seem to be sorting themselves out.

Kaseya, in partnership with Ingram Micro’s Australia-New Zealand team, is the latest in a long list of companies to introduce a SaaS push in Australia. To address SaaS latency and performance issues worldwide, Kaseya’s SaaS efforts leverage Amazon’s Elastic Compute Cloud.

Will SaaS work in all of Australia’s regions? Only readers can tell me for sure (and I’ll be listening for clues…)

Meanwhile, continued hands-on, executive focus seems to be winning over Austalia and New Zealand channel partners. Numerous MSP software industry CEOs have visited the country in recent months. Check N-able CEO Gavin Garbutt’s calendar, and you’ll learn he’ll visit users and potential Australia partners March 8-12 for a series of company-hosted events.

There are even signs of local, Australia- and New Zealand-based SaaS software companies making MSP-centric moves. For instance: Keep an eye on Naverisk Ltd.

The big question: Will Australia’s VARs continue to need extensive education about the managed services market? Or will low-end, SaaS centric starter tools provide just enough capabilities to get more VARs started on the road to remote management? One is a business question, one is a technology question. Both questions still need to be answered.

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One Comment on “Australia: MSP Software Moves Accelerate”

  1. Joel Gaskell Says:

    It is certainly true that the broadband infrastructure here in Australia lags behind other developed nations of the world, but I’m not sure how much impact that would have in regard to SaaS when it comes to RMM or PSA tools. Any RMM tool, be it SaaS or not, relies on effective broadband access and it doesn’t seem to me that using SaaS as a delivery mechanism for such a tool places significant extra pressure on broadband infrastructure.

    The second point about software providers having a local presence is definitely significant and the providers seem to have acknowledged that with many recent moves. Selling into Australia from the US without making the commitment to have a local presence is just not acceptable.

    It is certainly an exciting time to be an MSP in Australia with the attention we seem to be receiving. Does this mean that the MSP market in the US is so mature and stable that Australia is currently seen as more fertile ground?

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