MSPs today face no shortage of challenges. Along with that, many are also struggling with how to scale effectively or adopt AI-driven efficiencies without becoming overwhelmed by new tools and integrations. That’s where N-able, under the leadership of CEO John Pagliuca, has stepped in.
The company offers more than just software. It provides the strategy, support, and business guidance MSPs need to thrive. N-able’s momentum is reflected in its 2024 financial results. The company reported total annual revenue of $466.1 million, up 10.5% year over year. Subscription revenue grew 11.4%, while total annual recurring revenue reached $482.5 million. Those numbers highlight the strength of N-able’s recurring revenue model and its ability to scale profitably alongside its MSP partners.
ChannelPro recently sat down to chat with Pagliuca about the state of the channel, MSP profitability, and why he believes the industry has moved beyond the “golden era” into something even more valuable. Here are some highlights from the conversation, edited for clarity and brevity.
What Is Your Take on the State of the Channel Today?
Pagliuca: It’s very strong. We’ve gone from the days of break/fix and servicing very small businesses. Today, MSPs are playing a role in co-managed models with Fortune 1000 companies. Some of the largest banks, retailers, and restaurant chains in the world all have an MSP in the mix.
The industry is growing up, and we like to think N-able has something to do with that. We’re helping MSPs scale and do their jobs more efficiently. There are a lot of tailwinds right now. A few years ago, people referred to it as the “golden era” of managed services. I think we’re beyond that. We’re in the platinum or even diamond era. MSPs are more trusted than ever, especially by SMBs. These businesses need help with cybersecurity, compliance, AI, and more. That’s where MSPs shine.
What Would You Say to People Who Thought Cloud Computing Meant the End of MSPs?
Pagliuca: It’s all about the verbs. The nouns change, but the verbs don’t. MSPs are managing, securing, backing up, and protecting data. As long as there’s a user behind a screen, MSPs will be the trusted advisor.
SMBs aren’t in the business of tech. They’re running law firms, hospitals, hedge funds. IT isn’t their core focus but it’s essential. MSPs fill that gap.
Prices Are Rising Across the Board. How Can MSPs Manage Pricing and Still Stay Profitable?
Pagliuca: I talk to MSPs around the world, from the U.S. to South Africa to Australia. The ones with the cleanest, most profitable business models are the ones who standardize. They aren’t nickel-and-diming with a la carte pricing. They’re bundling services and presenting outcome-based packages.
Many use a Good/Better/Best model. That might include a basic security offering, a more advanced one, and a compliance-driven tier. It gives MSPs room to add value over time. As they put more into the bundle, they can raise the price and justify it. That’s a best practice.
How Do You See AI Impacting MSP Performance?
Pagliuca: AI is a game changer. It’s like low-code or no-code. MSPs don’t need to be programmers to get the benefits. With tools like our AI-based API portal, you can use natural language to generate scripts and automate integrations. That used to take hours. Now, it takes seconds. That kind of speed and efficiency is powerful. But like any tool, AI brings responsibility, too.
John Pagliuca
Does AI Matter to the End Customer?
Pagliuca: It depends. Most small and midsize businesses care about the outcome — whether their data is backed up, their systems are monitored, and their risks are managed. They may not know N-able by name because the MSP is the one delivering the value.
That said, more sophisticated customers are starting to ask questions about data usage and AI. Transparency matters.
You’ve Spoken About the Importance of Offering End-to-end Solutions, but also Flexibility. Why Is That Balance Important?
Pagliuca: I don’t believe in a one-size-fits-all approach. MSPs are not a commodity. We believe in best-in-class solutions and pliable packaging. We do incentivize MSPs who want to use more of our stack, but we never force them.
If an MSP inherits a customer with a preferred endpoint solution, they should be able to accommodate that. Not every customer has the same needs. Forcing a rigid stack leads to bloat, inefficiency, and less effectiveness.
N-able Offers a Lot More Than Software. How Else Are You Supporting MSPs?
Pagliuca: We do a ton of things for partners that we don’t charge for. One of the best examples is our business transformation events. These are peer-led sessions where we help MSPs focus on operational efficiency, organizational structure, vertical market strategies — real business-building conversations.
We also have our head nerds. Some focus on tech, others on sales and marketing. We’re investing in the business side of MSPs, because when they grow, we grow.
What’s Your Advice to MSPs Trying to Navigate Compliance?
Pagliuca: MSPs can use it as a differentiator. You don’t need to walk through a long checklist of tools. Just show how you can help a client be compliant. That alone sets them apart from competitors who aren’t. I always say, how do planes take off? You turn into the headwind. It’s the same with compliance. Lean into it, and you can take off and grow your security business.
Images: iStock, DALL-E, N-able
