With Fred Voccola at the helm, Kaseya has evolved into a major player in the IT channel. Its growth trajectory is stunning, rising from $65 million in revenue when Voccola took over in 2015 to more than $1.3 billion today. There are two reasons for that success. First, Voccola’s personal advocacy for the MSP community. Second, his organization’s focus on helping MSPs increase profitability, efficiency, and growth.
Voccola sat down with ChannelPro during this year’s Kaseya DattoCon event, when the company made several major announcements. One was the launch of Kaseya 365 User, which protects against identity and security threats, adding comprehensive monitoring for user-level security. The cost, at just $2.79 per user per month, will drive improved efficiency and profitability for MSPs. Additionally, Kaseya’s acquisition of SaaS Alerts, a popular threat detection and response platform, brings advanced security functionality to Kaseya 365 Endpoint customers at no additional charge.
Voccola’s passion for the MSP community is evident, and his plans for Kaseya signal a bright future for IT service providers. By addressing real challenges and focusing on tangible results, Kaseya is empowering MSPs to not only survive but thrive in an increasingly competitive industry. Here, he shares his thoughts on the challenges MSPs face, the role of technology in enabling their success, and Kaseya’s ambitious plans for 2025 and beyond.
>> UPCOMING: Attend our Deep Dive online event: Doubling MRR With Artificial Intelligence to ask Fred Voccola your questions <<
ChannelPro: Kaseya has had a lot of big announcements recently. What excites you the most about the company’s current direction?
Voccola: What excites me is when they [MSPs] get excited. We’ve finally stated our true mission: to empower MSPs to get the financial recognition they deserve for the immense value they provide. MSPs are arguably the most important cog keeping global economic growth going.
Yet many struggle to reap the rewards they’re due. What’s super cool is that finally, after $12.5 billion and 10 years, we’ve built a simple playbook or a methodology of how to change the unit economics for the entire industry. We have a complete platform that’s fully integrated with all the automation that we can provide at a fraction of the cost.
The results are tangible: MSPs powered by Kaseya can achieve profit margins of 35% to 40% — and some of the better ones, 50%. That’s a game-changer. And the feedback we’re getting — like a simple “thank you” or seeing an MSP’s life change — is incredibly rewarding.
Kaseya CEO Fred Voccola addresses a captivated audience at DattoCon 2024.
ChannelPro: Can you share an example of how Kaseya is impacting MSPs on a personal level?
Voccola: I recently met an MSP couple with six employees who did about $1.5 million in revenue. They made just $25,000 in profit last year. They were saying they may have to give away their business because they couldn’t figure out how to make money. So, we walked them through our ProfitFuel strategy. They’re now on track to make $300,000 in profit over the next year. The wife cried when she realized they wouldn’t have to give up their dream.
That’s what we do. I’m not a doctor delivering babies or curing cancer. I’m not a soldier sitting in a foxhole fighting terrorists. But being able to change people’s lives like this is great.
ChannelPro: You often talk about helping MSPs focus on their business instead of just surviving. How does Kaseya make that possible?
Voccola: It’s about reducing costs and increasing efficiency. Think of if you plan to build and sell a house. If your materials and labor cost $495,000 but you can only sell it for $500,000, you’re not making any money. Similarly, what we’ve done is we reduced those costs for MSPs. We’ve solved that problem … and we’re just getting started. This will allow MSPs to invest back into their businesses.
>> VIDEO INTERVIEW: Watch Fred Voccola identify the key drivers of MSP profitability and innovation <<
ChannelPro: Why was the SaaS Alerts acquisition important for Kaseya?
Voccola: We bought arguably the hottest, most innovative cybersecurity company in this space. Cloud detection and response (CDR) is needed, and soon, it will be as ubiquitous as EDR. We’ve integrated it and included it for free in Kaseya 365 Endpoint. Think about that; we spent a lot of money, and it’s free for MSPs.
ChannelPro: What’s next for Kaseya as we head into 2025?
Voccola: We’re halfway through our journey, but big things are on the horizon. Early next year, we’ll announce something that could position Kaseya-powered MSPs as the only providers qualified to handle work for significant segments of the U.S. and European economies.
Our goal is to keep advancing the MSP industry, ensuring that small and midsized businesses (SMBs) thrive. SMBs now outperform large companies in productivity thanks to technology, and MSPs are essential in making that happen. This is a golden age for MSPs, and we’re here to ensure they succeed.
ChannelPro: What’s your advice to MSPs for the year ahead?
Voccola: Don’t undervalue yourself. Look at your unit economics, look at what Kaseya can provide to you, and embrace automation. Spend the appropriate amount on a platform from one vendor, not 15. Automation matters and it comes from integrations and the price you pay for it. Once you fix your unit economics and get your profit margins to 35%, your business is completely different. You can breathe, enjoy life, your blood pressure goes down, and you can do a better job of delivering exceptional service to your customers.
