SolarWinds and Kaseya set out their service stalls in a hybrid cloud world
The two companies are growing fast in response to data management demands in the enterprise and the tools that are required by service providers to look after their clients.
As cloud and hybrid cloud deployments in the enterprise rapidly increase, the business for managed service providers (MSPs) is growing as end customers choose to serve their cloud needs with an as-a-service model.
Central in this equation are the technology vendors that supply MSPs with the network management, data management and security tools to make sure as-a-service applications are delivered efficiently and securely. And it’s a busy and lucrative market of its own.
The managed services market is expected to grow from $180bn currently to $282bn by 2023, a compound annualised growth rate of 9.3%, according to market research firm MarketsandMarkets.
Two leading companies in the space have generated plenty of interest in the past few days with the way they are approaching the growing hybrid cloud space, with solutions to help the MSPs get it right for customers.
Service management vendor Kaseya has just received an investment of over $500m to help accelerate growth, including through acquisitions. Investors include TPG, a global alternative asset firm, and Insight Partners, an existing investor in the company.
The company grew around 30% in 2018 through increasing its customer base to around 40,000 customers worldwide, as well as completing and integrating four major acquisitions, including Unitrends, Spanning Cloud Apps, RapidFire Tools and IT Glue.
Fred Voccola, CEO of Kaseya, said: “TPG will help us explore opportunities to continue our growth and deepen our commitment to the market, our products and our customers’ success.”
Voccola says he expects privately owned Kaseya to go for an initial public offering (IPO) “within 18 months”.
Shortly after the funding announcement, Kaseya confirmed it had acquired ID Agent, a US threat intelligence and identity monitoring provider for an undisclosed sum. With the deal, Kaseya enhances its IT security management suite by adding end-user protection to its existing infrastructure protection suite.
ID Agent’s products include Dark Web ID, a dark web monitoring platform, and BullPhish ID, a phishing simulator and security awareness training platform.
“By utilising Kaseya’s IT Complete Security Suite, MSPs can completely protect their user networks and sensitive data from cybercriminals, ransomware and other malicious attacks,” said the vendor.
To improve cloud support in Europe, the company also plans to open a new data centre in France. This would be number 16 in the company’s global data centre footprint.
Another major vendor in the growing service provider space is SolarWinds (NYSE: SWI), and that company is also on the acquisition path to improve its product suite. It has just launched SolarWinds Passportal suit, a unified set of password management and privileged client knowledge management tools, adding to its IT security product portfolio.
The technology comes from the acquisition of Passportal earlier this year. Kevin Thompson, CEO of SolarWinds, said: “This product suite will arm IT service providers with the ability to more effectively manage and secure the broad range of IT ecosystems under their control.
The company is currently holding its EmpowerMSP customer event in Amsterdam, the Netherlands – attended by Data Economy – and is keen to map out how it is making the job of its MSP clients easier.
John Pagliuca, executive vice president, general manager, MSP, SolarWinds, told delegates: “We want MSPs to increase profitability through automated tools already bundled into our products.”
As part of this automation drive, a recent ongoing project has brought automated handling of 600 objects and 300 policies that MSPs can routinely come across as part of their end client management.
The company has also added SolarWinds Endpoint Detection and Response through its partnership with security vendor SentinelOne, which develops “autonomous” endpoint protection. The software responds to the latest threats to customers with automated and patented “behavioural artificial intelligence”.
And SolarWinds is happy to offer customer guidance when it comes to the politics of data security. Tim Brown, VP of security at the SolarWinds MSP business unit, was asked by Data Economy what he thought about the impending fall out from the US Cloud Act.
With the law, US firms could potentially be asked to hand over the data of their clients at the request of US legal or intelligence agencies. Brown said: “I would advise data users to encrypt their data and keep control of the encryption keys. If any US company is ever asked for any client data they will only be able to hand over encrypted files when complying with any requests stemming from the Cloud Act.”
Sounds straightforward, not that data management ever is, which is why companies like Kaseya and SolarWinds exist!