ConnectWise CEO Jason Magee in March disclosed three major focus areas to navigate the coronavirus pandemic's potential business impact. Fast forward to present day, and ConnectWise is now taking additional steps to further assist MSPs and technology solutions providers (TSPs), Magee said during an interview with ChannelE2E on April 20.
Among the key takeaways from the conversation, featuring Magee and CTO Steve Cochran:
1. Giving Back: Magee for the next six weeks is donating 40 percent of his salary to the ConnectWise Foundation. That money will flow into the ConnectWise Hand Wash Karaoke effort, which is pooling money that will be distributed to MSPs and TSPs -- even non-ConnectWise partners, Magee says.
2. Lead By Example: Magee is calling on additional MSP software company leaders to give back to the industry in similar ways. In terms of his own background, Magee notes that his career includes considerable time working in and around the IT channel -- and he understands the need to give back to the very companies that are the foundation for small business IT services and support.
3. Preparing for More Business Evolutions: The overall ConnectWise COVID-19 strategy (protect the company, protect colleagues, and protect partners) came together well in March, Magee says. Now that initial help-desk tickets related to WFH (Work From Home) are subsiding, both ConnectWise and partners can take a longer-term view and really think about how to reemerge post-pandemic with the right mix of solutions for the SMB market, Magee says.
4. ConnectWise R&D: ConnectWise's R&D team has successfully transitioned to a WFH (Work From Home) model worldwide, CTO Steve Cochran says. New feature and function development remains on track, but ConnectWise is being careful to avoid enhancement overload at a time when partners are extremely busy navigating the pandemic.
5. ConnectWise Conferences: The ConnectWise IT Nation Explore 2020 conference is scheduled as planned for June, though ConnectWise is watching the pandemic situation closely and the potential implications for face-to-face events.
MSP Industry Health: Q2 Dip Then Recovery?
The latest ConnectWise efforts surface as MSPs closely monitor customer invoice payments for April 2020, and overall Q2 cash flow.
Most of the U.S. economy remained open through mid-March 2020, though economic activity began to freeze late that month as the pandemic took hold.
Generally speaking, small business customers paid the bulk of their MSP invoices in March, anecdotal evidence suggests. Still, the MSP industry could face pressure since monthly recurring revenue (MRR) is expected to slip in some vertical markets throughout Q2.
The overall managed services market will likely decline 17 percent in Q2 2020, before rebounding in the second half of 2020, ISG Index research finds.
