Kaseya Doubles Down on MSP Profitability with AI and Security Focus
Kaseya is making a significant push to empower Managed Service Providers (MSPs) with tools designed to boost profitability and address the escalating cybersecurity threats facing slight and medium-sized businesses (SMBs). The vendor’s recent moves, including the acquisition of Inky and adjustments to its pricing models, signal a commitment to supporting the “superheroes of the global economy,” as described by Kaseya’s channel development manager, Miles Walker.
The Growing Cybersecurity Gap for SMBs
A recent Kaseya security report revealed a concerning statistic: only 14% of SMBs have a cybersecurity plan in place. 70% of those businesses fear they couldn’t survive a ransomware attack. This vulnerability is driving a surge in cybercrime, which Walker stated is now the third-largest economy globally, behind only the U.S. And China. The threat landscape has shifted, with SMBs now squarely in the crosshairs of cybercriminals.
“When I first started, enterprises were the main target. That’s flipped. Small and medium businesses are now in the crosshairs,” Walker explained at The Channel Company’s XChange March conference in Orlando.
Latest Pricing and Policies to Increase MSP Margins
Recognizing that MSP margins often lag behind other professional services, Kaseya has implemented changes aimed at improving financial outcomes for its partners. These include ending high-watermark billing, enabling flexible spending across products, restoring month-to-month Datto business continuity/disaster recovery contracts, updating loss protection, and improving one-year pricing. Walker highlighted the disparity in margins, noting that legal firms average 40%, financial firms 37%, marketing 25%, while MSPs typically operate on just 10%.
AI-Powered Workflows and the Digital Workforce
Kaseya is heavily investing in AI-powered workflows to address both the profitability and efficiency challenges faced by MSPs. The company believes AI can unlock revenue opportunities and differentiate MSPs in an increasingly competitive market. According to Kaseya, 24% of MSPs cite increased competition as a growth challenge, and 10% struggle to quickly demonstrate value to clients.
The acquisition of Inky, an email security company, is a key component of this strategy. Kaseya is focused on building a digital workforce that automates tasks and streamlines operations, allowing MSPs to focus on higher-value activities.
What SMBs Demand: The Playbook for 2027
Walker outlined the key security services SMBs are actively seeking: endpoint detection and response (EDR), patch management, managed detection and response (MDR), zero-day protection, and advanced email security. He emphasized that aligning service offerings with these demands is crucial for MSPs looking to succeed.
“This is the playbook going into 2027,” he said. “This is what your customers are asking for.”
Real-World Impact: ITPartners+ Sees Improvements
Kevin Damghani, founder and CEO of ITPartners+, reported positive results from Kaseya’s upgrades. “They have directly improved efficiency, reduced tool sprawl and strengthened our security posture across our partner base,” Damghani told CRN. “Being a Kaseya partner has allowed us to scale with confidence, drive stronger margins and deliver a more secure, streamlined experience.”
Frequently Asked Questions
Q: What is Kaseya’s primary focus for MSPs?
A: Increasing MSP profitability and strengthening their ability to protect SMBs from cybersecurity threats.
Q: What changes has Kaseya made to its pricing?
A: Kaseya has ended high-watermark billing, enabled flexible spending, restored month-to-month contracts, updated loss protection, and improved one-year pricing.
Q: What security services are SMBs most interested in?
A: Endpoint detection and response, patch management, managed detection and response, zero-day protection, and advanced email security.
Q: What is the role of AI in Kaseya’s strategy?
A: AI is being used to automate tasks, streamline workflows, and unlock new revenue opportunities for MSPs.
Did you know? Cybercrime is now the third-largest economy in the world, surpassing many nation-states in economic output.
Pro Tip: Regularly assess your clients’ cybersecurity posture and proactively offer solutions that address their specific needs. Demonstrating value through proactive security measures can significantly improve client retention and attract new business.
Want to learn more about how Kaseya is supporting MSPs? Explore additional resources on CRN and The Channel Company’s XChange.
