Kaseya this week announced it had completed a transaction to acquire IT Glue, a provider of documentation tools that have been widely embraced by managed service providers (MSPs).
The deal to acquire IT Glue, which provides documentation software to over 5,000 MSPs, was first commenced two years ago, says Kaseya CEO Fred Voccola. IT Glue will continue to operate as an independent arm of Kaseya, which previously integrated documentation software from IT Glue into the Kaseya IT Complete management platform.
Kaseya is now riding a massive wave of investment in IT being made by small-to-medium businesses (SMBs) that are occurring at six times the rate of growth of the gross domestic product (GDP) in the U.S., says Voccola.
While much of that growth is being driven by an expanding economy, SMBs are increasingly starting to realize how much of their business is now dependent on IT. The challenge SMBs face is they usually can’t afford to hire full-time internal IT staffs, which means they are now relying on MSPs to manage IT on their behalf more than ever, says Voccola. The challenge MSPs face as a result is SMB customers typically expect MSPs to be full-service IT providers.
“If an SMB can’t provide a capability the customer is going to look for another MSP,” says Voccola. “MSPs that can’t fulfill a customer need are going to find there will be other MSP into their accounts.”
At the same time, MSPs to operate efficiently at a level of scale that enables them to be profitable. Documentation tools from vendors such as IT Glue play a key role in driving profitability because it allows MSPs to efficiently capture configuration information about each customer environment. That’s critical because it allows the MSP to bring new technicians up to speed much faster, says Voccola.
Going forward, Kaseya plans to expose the information it captures from both the cloud services it manages to IT Glue as well as the compliance and security data captured by tools from RapidFire Tools, which Kaseya acquired earlier this year.
It remains to be seen to what degree the quest for efficiency will drive MSPs to standardize their MSP management platform. But the one thing that is apparent is that being able to operate efficiently at scale is becoming a bigger requirements for MSPs focused on the SMB sector as overall demand for IT services continues to expand rapidly.
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