It’s been just over two and a half months since Kaseya CEO Fred Voccola announced Kaseya 365, a single license for a complete bundle of MSP offerings at a hugely discounted price. Kaseya set promotional pricing at $3.99 per endpoint for the standard package and $1.75 for the “Express” package which doesn’t include the company’s managed detection and response offering.
How has the uptake been?
“The uptake rate has been well beyond our expectations, and I think it’s been so successful,” Voccola told ChannelE2E in a July 17 interview.
So far, Kaseya has contracts with 4,000 MSPs to manage 5 million endpoints using the Kaseya 365 license. Pricing has risen since the original promotional pricing was announced at the Kaseya Connect event in Las Vegas on April 30. It’s now $5.25 per endpoint for Kaseya 365 and $2.25 for the Express version without MDR.
Voccola's Take: Why Kaseya 365 is Successful
Voccola attributes Kaseya 365's success thus far to a few different factors that are related to cybersecurity and AI. But the biggest piece is MSP profitability. Basically, many MSPs struggle to be profitable, Voccola said. Indeed, some MSPs are losing money. Every MSP peer group has examples of MSPs who find themselves in the red and are trying to find ways to turn that around.
Voccola believes that Kaseya 365 changes the unit economics of the MSP industry by saving MSPs $5 to $10 per endpoint in expenses, making it easier to turn that profit.
The built-in MDR makes it easier for MSPs to offer advanced cybersecurity to end customers who previously said those services were too expensive. The integration among the different functions, such as RMM, PSA, MDR, BDR and more, enable greater efficiency for technicians who work with the tool platform, according to Voccola.
Voccola said that Kaseya spent $12 billion over the course of the last 10 years – his full tenure at Kaseya – building Kaseya 365. The single license platform tool was inspired by the Microsoft 365 Office suite.
Kaseya 365 Reception: Will it Spark a Price War?
The introduction of Kaseya 365 and its discount pricing by Kaseya sparked debate in the industry about whether it would start a price war among MSP tool vendors. The answer to that is still not quite clear. But at least one competitor hinted at a big announcement at its upcoming event in November.
Meanwhile, Kaseya’s Voccola started hinting about another big announcement from his company at DattoCon later this year.
Voccola Teases DattoCon Announcement
“We won’t rule out a major acquisition announcement for this one,” Voccola told ChannelE2E. “That’s not to say that’s what it is going to be, but this time we will not rule that out. I think the industry is going to receive a tremendous value injection.”
What could the announcement be? N-able’s private equity investors were reportedly exploring a sale earlier this year. Both ConnectWise and Kaseya have hired IPO-savvy CFOs in recent months. Syncro’s investors have moved the existing leadership team out and installed former Continuum CEO Michael George at the helm of that company. NinjaOne got a big infusion of investment dollars earlier this year, and, as Canalys Chief Analyst Jay McBain noted at the time, a good chunk of that money came from a Snowflake founder and a Datadog founder – two giants in the data and AI market.
ChannelE2E will be following any leads about Kaseya’s next big secret announcement. Got any tips? Send them to [email protected].
