Kaseya’s Voccola: MSPs, SMBs Must Take Cybercrime, Compliance Seriously

KASEYA CONNECT — With the launch of Kaseya 365 this week, Kaseya CEO Fred Voccola said “everything we’ve done over the past decade has led us to this moment” and hailed it as a “monumental game-changer.”

Channel Futures sat down with Voccola after his Kaseya Connect keynote address in Las Vegas to discuss Kaseya 365. We also talked about the dangers he sees lurking for MSPs and SMBs from cybersecurity and coming government regulation. These two issues are important to Voccola — Kaseya was a victim of a 2021 ransomware attack, and he has spent a lot of time with lawmakers discussing regulation.

Channel Futures: What makes Kaseya 365 the biggest thing you’ve done?

Fred Voccola: It changes the unit economics of the MSP industry permanently, in a massive way. If you take the most common assumptions, you'll find a typical or an average MSP is doing about 15% profit margin. The amount of revenue that an MSP gets per endpoint, if you measure it that way, is about $100. So that means they're making about $15 of profit per endpoint. With Kaseya 365, they're making between $22 and $25 in profit per endpoint. MSPs are now among the most profitable companies, the most profitable business service providers in the world, whereas before, they were at the low end.

The second thing is this: Because the unit economics have changed, MSPs no longer have to make the almost impossible choice of providing an incomplete security stack to their customers, who might be too cheap or too shortsighted to pay for it. That’s because MSPs now can provide the security kit required and not charge the customer, and still generate the margins that they need to run their business. It literally changes everything.

See the slideshow above for the rest of our one-on-one conversation with Kaseya's Fred Voccola.