I’ll always jump at the chance to have a conversation with Fred Voccola, CEO of Kaseya. Not only does he bring an intelligent and thought provoking take on just about any topic one could throw at him, he’s also one of the nicest and most personable executives in the industry.
With a global team of about 5,000 and a reputation as one of the leading software providers for IT and cybersecurity management, Voccola is at the helm of a company positioned at the center of innovation for MSPs and their clients. In this interview I was looking to get his thoughts on the evolving role of MSPs, the impact of artificial intelligence on IT operations, and how Kaseya is tackling key challenges in the industry.
The Pandemic’s Lasting Impact on MSPs and Small to Mid-Sized Businesses
Reflecting on the pandemic, Voccola observed that it fundamentally reshaped how small- and mid-sized businesses (SMBs) view their digital infrastructure. MSPs stepped up to support these companies’ critical needs, offering secure and adaptable IT solutions in an unpredictable environment. Voccola noted that SMBs “realized not only how dependent they were on their systems, but how business and industrial systems would allow them to thrive in a ‘lockdown’ world.”
A particularly impactful example was the rapid adoption of telemedicine. “It took a decade for telemedicine to become mainstream,” Voccola said, “but six months after the pandemic started, insurance companies were reimbursing doctors for telemedicine appointments.” This shift underscores the central role that digital transformation has come to play for SMBs across all industries, from healthcare to architecture, retail, and beyond.
Voccola explained that MSPs emerged as a lifeline for SMBs during this time, a dynamic that cemented the importance of IT and cybersecurity. This demand helped the MSP sector display “true recurring revenue nature,” he said, leading to “an explosion of Tier 1 and Tier 2 private equity money coming into the MSP sector.” Investors, Voccola added, now recognize MSPs as “mission-critical to the largest sector of the economy.”
The Evolving Role of MSPs: More Than Just IT Support
Historically, MSPs were primarily focused on technical support—managing networks and troubleshooting software. Today, the role has broadened significantly. MSPs are now valued business partners who handle everything from streamlining operations to securing data in increasingly complex digital environments. Voccola emphasized that MSPs today are undervalued relative to the essential role they play in their clients’ businesses.
“Most small- to mid-sized businesses,” he pointed out, “have three external service providers they rely on: a law firm, a CPA firm, and an MSP for technology.” Yet MSPs, who manage complex and essential digital systems, often have smaller profit margins than these other firms. “The average profit margin of an MSP in North America is 10%, while law and accounting firms average around 30-35%,” Voccola shared.
This disparity, he argued, does not reflect the true value MSPs deliver. Kaseya, Fred believes, is working to level the playing field by helping them reduce operational costs and improve profitability.
The Role of AI in Driving Efficiency and Automation for MSPs
Kaseya is leveraging AI to help MSPs automate repetitive tasks, thus enhancing operational efficiency and reducing costs. “AI has massive potential to enhance MSP operations,” Voccola said, “by automating repetitive tasks.” The foundation of Kaseya’s AI initiative is an AI engine they’ve named Cooper, after Voccola’s dog (for real!).
Kaseya’s AI suite includes Cooper Insights, a tool that analyzes usage patterns to help MSPs optimize workflows, Cooper Bots, which automate business processes across Kaseya’s products to minimize manual coordination, and Cooper Copilot, a generative AI tool that proactively suggests preventive actions and streamlines service resolutions. Together, these tools enable MSPs to reduce friction, automate repetitive tasks, and improve service quality.
Voccola believes that the value of AI lies in its practical applications. “For MSPs,” he explained, “we’ve built real-world automations that are automating upwards of 60% of what an MSP’s engineers do. That’s tangible, quantifiable ROI.” By cutting the time MSPs spend on repetitive tasks, Kaseya’s AI capabilities empower them to scale revenue without adding more staff.
Building an Integrated IT Solution: Kaseya’s Platform Approach
Kaseya’s approach to software development is not about offering the best standalone product in each category but about building an integrated, comprehensive platform. This approach ensures that MSPs can operate efficiently within a single ecosystem. “For MSPs, ‘best-in-breed’ means delivering the best results with the least effort and cost,” Voccola said. The real advantage, he argues, is in how Kaseya’s products work together, allowing MSPs to streamline workflows and achieve higher profit margins.
“Most MSPs don’t have specialists for each task,” Voccola explained. “Instead of having 17 screens open, they can have one screen open, with all workflows automated.” This integration across Kaseya’s platform means MSPs can deliver better service with less effort, ultimately leading to a higher-quality end result at a lower cost.
He highlighted Kaseya’s recent acquisition of Vonahi Security, a company specializing in automated penetration testing. By integrating Vonahi’s capabilities into its platform, MSPs can perform pen tests in under 30 minutes—a process that would traditionally require hours and cost thousands of dollars.
Another example, announced at this year’s DattoCon event, was the acquisition of SaaS Alerts. Kaseya augmented its new Kaseya 365 User product by folding in Saas Alerts’ popular detection and response functionality to deliver advanced security capabilities at a remarkably low pricepoint.
Current Challenges and Opportunities in the IT Channel
Looking at the current IT landscape, Voccola emphasized the importance of cybersecurity and regulatory compliance, both of which are driving demand for MSP services. The proliferation of small- to mid-sized businesses within the economy means that more companies are relying on MSPs to manage their IT infrastructure.
Voccola sees the MSP market as expanding rapidly. “The market is growing at about four times GDP growth,” he said, adding that the MSP sector’s 14% annual growth rate reflects the increasing reliance of SMBs on external IT providers. But as the demand for MSPs grows, so does the competition, which means MSPs will need to leverage automation and efficiency to stay competitive.
Security threats have also become more sophisticated, particularly with the rise of AI-driven cyberattacks. “It’s like the bad guys just took a bunch of steroids,” Voccola quipped. “They came back much stronger and meaner and more creative.” As cybercriminals increasingly target SMBs, he foresees a surge in compliance regulations, which will add new revenue opportunities for MSPs but also require them to meet higher security standards.
Looking ahead, heenvisions a shift toward more structured industry regulations, driven by the need to secure SMBs and their data. “I think we’re going to see soft regulation,” he said, “meaning if you want to leverage the financial system, you may have to comply with certain security standards.” He added that licensing requirements for IT service providers could follow, similar to professional certifications in fields like accounting or law.
A Bright Future for MSPs Ready to Embrace Change
For MSPs, the path forward will involve strategic adaptation, adopting AI-driven automation, and preparing for regulatory compliance. Kaseya’s commitment to helping MSPs achieve greater profitability and operational efficiency is evident in its integrated platform, which Voccola sees as essential for MSPs to remain competitive in a crowded market.
As the conversation neared its end, Voccola shared his enthusiasm for both the future of Kaseya and the industry as a whole: “We’re just scratching the surface of what can be done. It’s an exciting time to be a software provider for MSPs and an MSP leveraging all that’s available.” For Voccola, Kaseya’s mission is simple: to make MSPs powered by Kaseya the most successful MSPs in the world.
By embracing automation, focusing on their essential value, and preparing for a landscape of increasing cybersecurity demands, Voccola is convinced MSPs can thrive in the years ahead, supported by the innovations that companies like Kaseya bring to the table.
