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I’m now convinced that all IT service providers — MSPs, VARs, resellers — need quoting and sales proposals software. Ironically, I reached that conclusion while researching a potential home improvement project. Here’s the back story, and how it shaped my views back in the managed services providers.
Accounts payable (AP) is one of the most basic processes every business undertakes. Plus, improvements in AP efficiency and cost can have a huge impact on a company’s bottom line — especially in the case of SMBs, which need to run at maximum efficiency just to stay competitive. Investments in AP efficiency can provide significant hard and soft ROI. Here’s where managed services providers (MSPs) can potentially assist SMBs.
MSPmentor 100 companies, representing the world’s top managed services providers, grew their recurring annual revenues to $1.04 billion in 2011, up 28 percent from 2010. Here’s a preliminary look at our fifth-annual MSPmentor 100 survey results.
Managed service providers considering a shift into cloud services are faced with a number of considerations: What should I offer? How much do I need to lay out in infrastructure costs? How can I get the word out? Each of those three questions demand answers that, if incorrect, could severely impact an MSP’s success.
Call it the second managed services merger (or acquisition) of 2012. Canfield Computers and Steel Valley Computers, both of Ohio, have essentially merged their IT services and managed services businesses, effective January 1, 2012. The combined company apparently will work under the Candfield Computers moniker. Financial terms were not disclosed but here’s some anecdotal information about the deal.
Network Depot has acquired Evolve Technologies, MSPmentor has confirmed. The New Year deal combines two well-known managed services providers (MSPs) that support SMB customers in the Washington, D.C., metropolitan area. Here are the initial details.
As the New Year approaches, we’re looking back at the most read managed services stories of 2011. Yesterday, we recapped the 10 most read MSP news stories from Q1, 2011. Now, let’s look at the most read MSP stories from Q2, 2011 and their implications for managed services providers.
For the second time today, MSPmentor has confirmed new merger and acquisition (M&A) activity in the managed services market. The latest emerging deal, expected to be announced in Q1 2012, involves an MSPmentor 100 company that will merge with a cloud services provider. The other pending M&A deal, MSPmentor reported earlier today, involves two MSPs on the U.S. east coast. Yes folks, the 2012 merger season is starting early.
Two well-known managed services providers are finalizing M&A (merger and acquisition) discussions, and the two MSPs will likely announce a business combination in January 2012, MSPmentor believes. The pending deal, which apparently involves two MSPs on the U.S. east coast, will potentially be the first managed services M&A deal announced in 2012.
Aspire Technologies Inc., which develops QuoteWerks sales proposal and quoting software for VARs and MSPs, is wrapping up its “best year ever,” according to President John Lewe (pictured). Looking ahead to 2012, it sounds like QuoteWerks will place a larger spotlight on QuoteValet — an online quote delivery and acceptance platform that creates a personalized Web page for customers. Here’s the background.
Many managed services providers continue to hurt themselves with poor pricing practices and lack of price integrity, according to a new 2112 Group research report sponsored by N-able Technologies and NetEnrich. Generally speaking, MSPmentor believes the report’s conclusion is on the mark.
Here’s a quick question: Would you sell your managed services provider business for 10 to 12 times EBITDA (earnings before interest, taxes, depreciation and amortization)? In other words, if your earnings were about $200,000 in 2011, would you sell your MSP business for $2 million to $2.4 million? Before you answer consider this update from Mike Jones, CEO of ETG, one of North America’s top MSPs serving the health care vertical. Jones recently reached an intriguing decision.
Zenith Infotech, the private cloud storage provider, and its bondholders remain locked in a court case, but Zenith Infotech CEO Akash Saraf told MSPmentor his company is still interested in working out a potential settlement with bondholders. Saraf also told MSPmentor that Zenith Infotech’s publicly disclosed financial records are consistent with information Zenith Infotech has shared privately with Bombay High Court.
If the CEO of a managed services provider dies, what happens to the company and its customers? That question continues to pop up in the managed services market where two untimely deaths offer tragic reminders about succession planning.
Zenith Infotech, which is locked in a legal battle with bondholders, has assured the Bombay High Court that its publicly disclosed finances are accurate and properly reflect the sale of Zenith RMM to Summit Partners, according to The Economic Times of India.
By raising $6 million in new funding, Autotask joins a lengthy list of MSP-centric software companies and cloud services providers that has tapped private equity or venture capital — or made acquisitions in 2011. Here’s the scorecard… and a look at two cloud-centric software companies that will very likely raise money next.
Autotask has raised $6 million in venture capital and private equity to fund global expansion, a spokesman has confirmed. Also, a report from Albany, N.Y., quoted Autotask CFO Vince Zumbo (pictured), about the new financing. Even before the funding arrived, Autotask apparently spent $1 million on its European expansion this year, the report stated. Here are some perspectives for Autotask’s community of managed services providers and VARs.
U.S. commercial real estate prices fell to a post recession low earlier this year, and mortgage interest rates are hovering near historic lows. That made me wonder: As managed services providers (MSPs) and small business owners plan for 2012, is it time to consider buying the commercial office space you currently rent?
When Kaseya named a new CFO and a new executive VP earlier today, I wondered if the moves signaled a shift in the company’s financial and business strategy. CEO Gerald Blackie (pictured) offered up a concise answer: “These personnel moves signal no change in strategy for Kaseya” — and the company continues to march forward with a global growth plan. Here’s a bit more background.
Kaseya, which specializes in IT automation software, has made two updates to its executive ranks. The company has named Anne Huemme CFO and Monica Hoppe executive VP, global human resources. In a prepared statement, Kaseya CEO Gerald Blackie said the moves are designed to help Kaseya scale globally.
No need for panic. But here’s a trend worth watching as U.S.-based MSPs partner with India-based IT service providers: The Wall Street Journal reports that India-based companies have a “humungous” foreign bond debt coming due. The debt, much of it due in 2012 to 2014, will likely “further decelerate” India’s economy, the Journal reported. Here’s some perspective as MSPs mull the global partner ecosystem.
In recent months, MSPmentor has evangelized all-in, per-user managed services pricing. We’ve told readers to follow advice from TruMethods, an MSP coaching firm that promotes a “cake” pricing model, rather than an “ingredients” pricing model. Generally speaking, I think TruMethods’ advice is right on the mark. But some readers keep telling me per-device pricing for managed services is alive and well, particularly in the emerging mobile device management (MDM) market.
When MSPmentor blogged about the crowdfunding trend yesterday, several readers sent me emails outlining additional funding options for small business owners, entrepreneurs and MSPs. Among those I heard from: BoeFly and Seedups. Here’s a look at their strategies, and the potential funding implications for SMBs.
