Some Australian managed services providers allegedly are in an “uproar” over Kaseya’s SaaS pricing vs. on-premise pricing. But take a closer look at the situation, and you’ll likely discover the SaaS “uproar” may actually involve an apples-to-oranges price comparison of tools that offer vastly different capabilities. Here’s some perspective.
The controversy started when CRN Australia reported:
“Kaseya’s launch of its software-as-a-service (SaaS) model, announced on Monday in partnership with Ingram Micro, has sparked anger among some of the vendor’s resellers. Kaseya has denied accusations from some Kaseya resellers that the low pricing of its SaaS service – $9.95 for an account and $1.50 per seat per month – has undercut the cost of bulk licences sold directly by the vendor.”
Ingram Micro is one of several initial Kaseya SaaS partners worldwide. Now here’s the twist: CRN Australia and the Australian resellers didn’t spend much time probing and explaining the difference between the base, low-cost SaaS tool (called Kaseya IT Toolkit) vs. the more expensive, on-premise platform (Kaseya’s Master IT Service Provider Edition). Before you get into a “price” discussion, you need to look under the hood. Comparing the two Kaseya offerings, in my opinion, is a bit like comparing Intuit QuckBooks Online vs. an on-premises Oracle Financials deployment.
I realize some on-premises managed services software is a bit pricey. And I also realize there have been alleged shelfware problems in the MSP software market. But the Kaseya SaaS vs. On-premises price debate requires VARs and MSPs to really look at the capabilities and intended target markets — rather than jumping right to the price list.
Third-party Perspectives
Some long-time Kaseya partners echo my opinion. Rich Forsen, president of Network Depot (an MSP that runs Virtual Administrator,another Kaseya SaaS partner) thinks the pricing “controversy” is nothing more than an apparent miscommunication between Ingram Micro and resellers.
“While Ingram could perhaps had done a better job of communicating the limitations of IT Toolkit in comparison to the full Kaseya platform to its customers, I’m not really sure what all the fuss is about here. As one of the few companies in the world that actually has had permission to provided hosted licensing to the resellers, we at VirtualAdministrator.com are in a pretty good position to understand the impact of the SaaS offerings.”
There are two elements that should be clarified here which will probably tone down the rhetoric, said Forsen:
- First, IT Toolkit is currently designed to be limited to 25 users, so any impact this pricing has on anyone doing any level of volume should be minimal.
- Second, the IT Toolkit product is really designed to provide Kaseya and its partners with an answer to LogMeIn and similar “remote only” platforms.
“The LiveConnect feature allows some nice additional functionality above and beyond just remote control, but at the end of the day, IT Toolkit is a “per instance,” live use product, and is priced appropriately,” says Forsen. “Any reseller that wants to take advantage of the full bevy of K2 features should look either at buying their own on-premise version, or look into the upcoming ITCenter product. Having had several conversations with people all the way to the top of the Kaseya ladder, it appears to me that Kaseya’s primary intention here is to remove barriers to entry to the Kaseya technology and get more partners into the Kaseya family. IT Toolkit is a great way to do that.”
Readers Decide
Ultimately, I believe the CRN Australia article screams “fire” where there might be no smoke. But I concede: I’m not running Kaseya’s IT Toolkit nor am I running Kaseya’s on-premises software. So I’ll be curious to see where readers ultimately stand on the SaaS vs. on-premise pricing discussion. Is there really a controversy here?
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Posted In: Australia | Master MSPs | On Premise | Remote Monitoring & Management Software | Sales | Software as a Service and Hardware as a Service
Tags: Australia Managed Services Providers | CRN Australia | Intuit Quickbooks Online | K2 | Kaseya 2 | Kaseya Australia | Kaseya Ingram Micro | Kaseya IT Toolkit | Kaseya LiveConnect | Kaseya Master IT Service Provider Edition | Kaseya MITSPE | Kaseya SaaS | MSP Shelfware | Network Depot | Oracle Financials | Rich Forsen | Virtual Administrator
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Joe – our stance is this – we’re 100% SaaS. Our customers pay in arrears depending on which features you use and for which customers you use it. So, our customer’s never ever pay a penny/cent more than they need to.
Customer’s tell us that this is a huge advantage when considering RMM tools as it works for all models they operate (break/fix, bank of hours, fixed monthly, etc)
…. our pricing ethos came from GFI MAX’s Scottish roots … being as Scots folks are, famously frugal
Chris Martin
GFI MAX
Easy, Affordable Tools for IT Support Companies.
Chris: Thanks for the update on GFI Max. I know a healthy number of MSP-oriented tools are pure SaaS. And generally speaking, demand for those SaaS approaches seems to be growing. But I also hear from a good number of readers who want the option of SaaS OR on-premises… And that’s why a good number of software developers have bet on both models…
-jp
Hi Joe,
Your title says it all: “A Debate about Nothing”. This is just people getting worked up about misinformation and not taking the time to validate it. IT Toolkit is a remote control tool and completely different than Kaseya’s on Premise Solution. As Chris mentioned the full version of Kaseya will also be available as a SAAS offering and will be priced accordingly.
Anyone else think it inappropriate to post a completely unrelated comment in an attempt to shamelessly plug another product?
-Alex
Sorry I meant Rich Forsen from Virtual Administrator, Chris is his partner.
Alex: Thanks for offering your 2 cents on the situation. Curious to see how MSPs ultimately balance the on-premise vs. SaaS options… We’ll be watching.
-jp
This is certainly interesting times for the MSP world, I believe it’s not only the Aussie customers who are up in arms, but also the UK.
My view on the whole matter is that the customers who are currently using full Kaseya (not tool kit) through a 3rd Parties on a Pay-As-You-Go model are concerned that their monthly invoices may shoot up – some posts I have seen have mentioned double and triple what they are already paying, others saying they can’t possibly by the platform outright for the tens of thousands it is.
On the SaaS vs On Premise – a choice the MSP has to make, our offering remains the same which ever the MSP chooses, simple low fee of £1 per device per month and a pay for what you use.
James Fletcher | CentraStage
James: Thanks for the additional info. Where are those posts alleging price concerns?
-jp
http://tech.groups.yahoo.com/group/UKSBSG look for UK hosted Kaseya providers
Interesting read
James: Thanks for the link. I’ll check it out.
-jp