Channel Chatter, Aug 28 - Sept 4 2024

This newsletter is in BETA, and feedback is welcomed and encouraged.? Anyone who joins in the beta will be included in the launch offer! ?The intention is to deliver a set of actionable insights into the discussions had by the community for vendors to leverage for execution. Does this deliver??

Channel Chatter is the parsing of the listening posts that the Business of Tech podcast has around the MSP community across discussion forums and groups to bring together insights and discussions that I think are worth considering.?? In considering the needs of MSPs by listening to them for the podcast, there are insights specifically for vendors serving the space to be shared.? That is this newsletter.??

After a long weekend of not thinking about MSPs, I went back to see how their anger would hit. ConnectWise perhaps to buy Axcient? This should be good.

We’re in the process of moving from Datto to Axcient… fuck me harder

Glad I was already moving on from Axcient.

Time to start tweaking with open source stuff before it’s just two companies.

Ugh seriously what is left, I don't want to deal with kaseya, veeam as good as it is, is extra management. Comet? Acronis?

Not really surprising - the reps at CW have been pushing it hard. I have a year left on my current provider, but I like Axcient and the ability to reuse old Datto devices. As long as I can keep getting it month to month through Pax8, I'll stick around

This honestly makes a lot of sense considering our account team recently was pushing to move us from their in-house BCDR solution to Axcient. I was expecting that to be a shift to be a VAR instead of direct producer, but this is just the name of the game in the space. Buy for portfolio value.

Would love to see CW bundle in a backup agent like K is attempting to do with K365. We discussed K365 a few weeks ago and they give 5TB of space for backups and then charge $14 per TB after passing the 5 TB limit. When you break that down you can burn through 5 TB with 10 agents backups. Felt kind of like a bait and switch move.

Interesting... oddly enough it's the one thing I was still using / buying through Connectwise contracts ... Guess that will stick around lol.

Of course, this is all reaction based on reporting of "discussions.” I am confident that the media outlet reporting on this has proper sourcing, but as anyone who has ever done a deal will tell you… the deal isn’t done until it’s done.

So what’s the insight? It’s overly simplistic to assume that every acquisition is toxic or that the platform players are forever cursed. The leadership teams at each of these organizations are savvy business operators, and each of their engagement styles is a choice.

This is why I am so intrigued by the idea of a true vendor-neutral ecosystem this week. What if the true competitive move was to create a fully independent ecosystem?

This feels like an idea worth exploring.

Want to reach the largest audience of MSPs? Https://mspradio.com/engage/

Topics of Interest

This section is a high-level summary of the major topics of discussion within the community during the time period. This gives you a sense of the questions the community is raising and what they are discussing.

1. Conversation on Unifi vs. Enterprise Solutions

Summary: Participants compared Unifi’s wireless and switching products with other enterprise-level vendors like Ruckus, Extreme Networks, and Meraki. While Unifi was praised for its cost-effectiveness and ease of use in SMB environments, users consistently mentioned reliability issues and a lack of enterprise-grade features.

Insights:

• SMBs prioritize cost over features: Unifi is favored by MSPs working with smaller businesses due to its low price point and integrated ecosystem.
• Reliability matters for enterprise growth: MSPs noted that Unifi lacks the reliability and advanced features needed for enterprise deployments, suggesting a market gap for more cost-effective, feature-rich, and stable enterprise solutions.
• Vendor relationships are crucial: MSPs highlighted the importance of strong vendor support, noting that Ruckus and Aruba provided better long-term value due to reliable support and better features, even at higher prices.

2. Microsoft Azure Virtual Desktop (AVD) vs. Other Virtualization Tools

Summary: The conversation discussed the potential of offering Azure Virtual Desktop (AVD) to clients and compared it to Nerdio and Hydra, which offer third-party management tools for AVD. While AVD was praised for its flexibility, MSPs voiced concerns about cost management, particularly when using third-party tools like Nerdio.

Insights:

• Security and mobility are driving AVD adoption: AVD’s value proposition aligns with clients needing secure, remote access solutions, especially for distributed workforces and organizations scaling rapidly.
• Cost concerns are a hurdle: MSPs are wary of additional costs from third-party tools, which can diminish the cost-efficiency of AVD for their clients. This highlights a market opportunity for vendors to streamline cost management solutions.
• Specialization in client needs: The conversation underscores the need to tailor virtualization services to specific client demands, such as running legacy Win32 apps or integrating acquisitions, which could be areas for differentiation.

3. Email Migration and License Management (GoDaddy vs. Microsoft 365)

Summary: MSPs discussed migrating email services from GoDaddy to Microsoft 365 (M365), focusing on complexities around federated identities, license transfers, and support. BitTitan and SkyKick were mentioned as migration tools, with frustrations around GoDaddy’s federated identity complicating the process.

Insights:

• Frustration with vendor restrictions: GoDaddy’s handling of Microsoft 365 licensing led to dissatisfaction, particularly around managing shared mailboxes and the difficulties in migrating licenses.
• Opportunities for streamlined migration tools: MSPs are eager for simpler migration processes, indicating that software vendors providing user-friendly migration services or better support systems for licensing transitions could win favor.
• Support quality is critical: GoDaddy’s perceived lack of support highlights the importance of reliable, easily accessible vendor support, especially in complex migrations.

4. Content Filtering Solutions in Library Settings

Summary: The discussion focused on finding free or affordable content filtering tools for public library networks, with suggestions ranging from Cloudflare, Cisco OpenDNS, and Pi-hole. The conversation emphasized the need for solutions that comply with legal requirements, such as the Children’s Internet Protection Act (CIPA).

Insights:

• Cost constraints lead to creative solutions: MSPs working with organizations like public libraries face strict budget constraints, pushing them towards open-source or freemium filtering solutions. Vendors could consider offering tiered pricing or discounts for public sector clients.
• Compliance is non-negotiable: CIPA compliance was a significant concern, suggesting that vendors emphasizing compliance, particularly in low-budget environments, could capture this market segment.
• Automation and simplicity drive choices: MSPs value solutions that require minimal manual intervention, especially in environments where resources are limited. Automation capabilities are a key selling point.

5. Vendor Frustration: ConnectWise’s Potential Acquisition of Axcient

Summary: The potential acquisition of Axcient by ConnectWise sparked a conversation filled with negative sentiment. MSPs expressed concerns that the acquisition would degrade the quality of Axcient’s services, as they had already seen this happen with other vendors acquired by ConnectWise.

Insights:

• Trust in vendors erodes with acquisitions: MSPs are wary of product degradation and support decline following acquisitions. Vendors must work hard to maintain trust, especially during transitions.
• Consolidation fatigue: There’s growing frustration with market consolidation, with MSPs feeling that fewer, larger vendors lead to declining service quality. This presents opportunities for smaller, independent vendors to position themselves as more responsive and customer-focused.

Product Gaps

This section is intended to highlight “gaps” that appear to exist in the market, where a specific weakness or need is highlighted in terms of product offerings. This can also include potential gaps in the market. If you wondered what MSPs “wish things did”, that’s this section.?

Simplified Cloud Migration Tools with Better Licensing Management

Gap: MSPs are struggling with complex cloud migrations, particularly with Microsoft 365 and GoDaddy environments. Current tools, like BitTitan and SkyKick, are helpful but still result in frustration due to license transfer complications and federated identity issues.

Opportunity: Build a simplified cloud migration platform that automates license management and migration across complex environments like GoDaddy and M365. Key features could include:

• Automated License Conversion: Tools that automatically handle license conversions between vendors and resolve identity management issues.
• Support for SMBs: A user-friendly interface specifically tailored for smaller MSPs that don’t have large teams to dedicate to migration projects.
• Enhanced Support: A robust, always-on support system that helps MSPs resolve migration issues quickly, particularly when dealing with third-party providers.

Cost-Effective and Flexible AVD Management Solutions

Gap: Azure Virtual Desktop (AVD) is valuable for security and scalability but is seen as expensive when paired with third-party tools like Nerdio. MSPs want better cost control and simplified management of virtual environments.

Opportunity: Develop an AVD cost management and automation tool specifically aimed at SMBs. This tool could offer:

• Dynamic Cost Management: Real-time tracking of AVD usage with automatic scaling to control costs.
• Pre-built Automation: Simplified automation for routine tasks like desktop provisioning, scaling, and user management.
• Customizable Virtual Workspaces: MSPs could create tailored virtual desktop environments quickly, saving time and improving client satisfaction.

Consolidation-Resistant Vendor Model

Gap: There is significant frustration among MSPs about the consolidation in the IT services market, particularly around acquisitions by vendors like ConnectWise and Kaseya. MSPs feel that service quality deteriorates post-acquisition.

Opportunity: Develop a "vendor-neutral" ecosystem or service platform that supports multiple software and hardware integrations without forcing MSPs to lock into a single vendor post-acquisition. Features might include:

• API-First Approach: Support for a wide range of integrations so MSPs can pick the best-of-breed tools without being tied to a specific vendor ecosystem.
• Emphasis on Independence: Build a business model that champions smaller, more flexible vendors, positioning the platform as an alternative to consolidation-heavy giants like ConnectWise and Kaseya.
• Long-Term Support and Innovation Commitment: Provide guarantees for continued innovation and support to build trust with MSPs weary of acquisitions impacting service quality.

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Vendor Discussion

This section is designed to give you insights into who was “discussed” this week. These are vendors that were mentioned or commented upon, and not necessarily a specific set of complaints about the vendor. This may be a good opportunity to learn about a new name, or get a sense of who is in the zeitgeist.?It’s long. It’s intentionally long, to give you the firehose.

Aruba: Mentioned for its reliability and balance of features, particularly with its Instant On line, which caters to SMBs.

Aruba Instant On: Praised for being a cost-effective and reliable option for small businesses.

AutoElevate: Discussed as a tool for eliminating certain types of tickets, such as software update requests, helping improve efficiency.

Avanan: Experienced issues with email delays and phishing email management. There was significant user frustration about the disruptions in their email security services.

Axcient: Recent acquisition by ConnectWise, sparking concerns among users about potential service degradation. Sentiment was highly negative due to fears of decreased quality.

Azure: Used in cloud service discussions, particularly for recovery-ready servers and scalability.

Barracuda: Mentioned as a solution for email security and M365 backups.

Bitdefender: Noted for issues with API access when purchased through a reseller, though praised for its full stack EDR capabilities.

Cisco OpenDNS: Suggested as a solution for DNS-based content filtering to block adult and malicious sites.

Cloudflare: Recommended for its DNS filtering services, blocking malware and adult content through their free offerings.

ConnectWise: Criticized heavily for product development issues and its acquisition of Axcient. Many users expressed dissatisfaction with its sales tactics, poor support, and integration challenges.

Datto: Discussed for its patch management capabilities, though its acquisition by Kaseya generated negative sentiment among users.

Diladele Web Safety: Suggested for its educational discounts and robust web content filtering capabilities.

Extreme Networks: Highlighted for its reliability and robust features but noted for being more expensive.

Fortigate: Strongly recommended for firewalls, with positive sentiment around its performance.

GoDaddy: Criticized for its mailbox and licensing management, particularly in how it handles federated identity with M365. Sentiment was negative due to complications in managing licenses.

Huntress: Praised as a security alternative after users experienced issues with other vendors' EDR solutions.

Ingram Micro: Received negative feedback for poor support, particularly in managing Microsoft and Adobe-related services.

Juniper Mist: Considered a promising wireless solution for certain environments.

Kaseya: Mentioned frequently in a negative light due to its acquisition of Datto, sparking concerns about product support and quality.

MailJerry: Mentioned as a migration tool for email services, particularly for its affordability.

Meraki: Praised for its features but criticized for high costs and complex business practices.

Microsoft: Frequently mentioned across multiple contexts, from M365 licensing to Azure services. Sentiment varied, with praise for cloud services but criticism over complexities in licensing management.

N-able: Discussed for its backup solutions, with mixed reviews about its product quality and previous integrations. Some users expressed dissatisfaction with past experiences.

Nerdio: Suggested for helping manage Azure Virtual Desktop (AVD), particularly useful for cost management and automation.

Pax8: Praised for being a flexible and reliable platform, especially for managing Microsoft licenses.

Printix: Considered a superior and more cost-effective solution than Universal Print, particularly for managing printer setups.

Ruckus: Mentioned as a reliable but more expensive alternative to Unifi for wireless setups.

TP-Link Omada: Seen as a cost-effective wireless networking solution with good ease of setup.

Unifi: Debated extensively, with mixed sentiment. Praised for cost-effectiveness and ease of use for SMBs, but criticized for reliability and lack of enterprise-grade features.