Managed service providers NETRIO and SUCCESS Computer Consulting are merging to form what executives from both companies are calling one of the largest full-service MSPs in North America, with a focus on SMBs.
The merger deal closed in August, though the two companies announced the merger in mid-October. Executives declined to talk about the financial details of the deal, though the two brands will continue to coexist for the time being. What the merged company will look like will become clearer over the next six to 12 months, according to SUCCESS CTO Brandon Nohr.
During that time, “we’ll be able to leverage a good portion of the technical and support functions of each company as a combined organization,” Nohr said. “Some functions may continue to stay separate – such as regional touch points – where it makes sense to do so. We recognize that small and mid-market organizations have unique challenges and need a single partner to help them consolidate partner/vendor relationships and help drive efficiencies.”
Nohr added that the goal is to make the merged company’s interaction with customers to be simple, easy, and efficient, adding that “with that in mind, we will be integrating the teams functionally – sales, customer success, delivery, etc. – as well as the technology platforms – BSS and OSS [business and operational support systems] – that run the organization.”
Looking at Managed IT, Security
Minnesota-based SUCCESS, founded in 1992, offers a range of services, including cybersecurity, managed IT, Microsoft Office consulting, and network support. NETRIO is a 21-year-old company based in Texas whose offerings include managed IT services, cybersecurity, and network operations center-as-a-service (NOCaaS).
The merged company will have a focus on three technology areas, including managed IT services that include networking and connectivity, hardware and software as a service, and Microsoft 365 and Office support. Another area will be cloud services, such as managed clouds, cloud migration, and disaster recovery.
A third concentration will be managed cybersecurity and include fractional vCISO support, endpoint detection and response (EDR), managed detection and response (MDR), and security operations centers (SOCs).
Accelerated Security Risks
The increasing speed and sophistication of threat groups make cybersecurity a key issue for SMBs, many of which don’t have the budget, skills, or experience to manage the security risks they’re facing, which makes MSPs a sensible option, according to SUCCESS’s Nohr.
“Bad actors continue to become more creative, deceptive, and adept at exposing the weaknesses of all size organizations,” he said. “Small and mid-market businesses struggle to know where to effectively spend to reduce risk. Because of this, it has become a requirement for companies to either bring in external help to manage all aspects of their security posture, or partner, leveraging internal and external resources to develop a complete security and compliance model where they have gaps in talent or tools.”
The demand for managed security services is growing as rapidly. According to market research firm Statista, the market last year was $31.05 billion and is expected to grow to $65.53 billion by 2028. In a blog post earlier this year, Morten Kjaersgaard, founder and CEO of cybersecurity firm Heimdal, wrote about the growing demand for MSSPs, particularly among SMBs.
“Small and medium-sized businesses have grown increasingly conscious of the risk of cybercrime in recent years, and they have come to terms with the fact that they lack the expertise to address this issue internally,” Kjaersgaard wrote. “As a result, large corporations are not the only ones looking for a good MSSP partner anymore, and there has been an increase in demand for the service of reputable MSSPs.”
AI Ups the Ante
The accelerated rise of generative AI is making cybersecurity an even greater challenge and will be another area where SMBs struggle to invest and maintain their own platforms, Nohr said, noting the rapid changes in the threat landscape brought on by the emerging technology.
“Not only privacy concerns but also less sophisticated attackers can now level up much quicker,” he said. “So, when we think about advanced and persistent threats, they are non-stop and from all directions. Small to medium-market companies must do the same by enabling technologies that allow both MSPs and organizations to react more quickly to security events and help mitigate the risks of outside parties gaining unauthorized access to their organizations.”
Both NETRIO and SUCCESS have begun introducing AI platforms into their delivery models to advance their security capabilities, according to Nohr.
