Channel Chatter, Oct 30 - Nov 13, 2024

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.??

I’ve been considering the idea of MSPs building their own software, even before this discussion.

We have built our own PSA system and we are testing with API intergration.

The technical conversation doesn’t actually matter here, but a snippet for you.

Take a look at VSA X. That product is receiving the most attention by Kaseya right now. It's actually nice, relatively complete, competitive pricing. I'd be on it but nothing else in my stack integrates with it right now.

Broadly, I would caution most MSPs against building their own software. Product-based businesses and service-based businesses are two very different beasts.

That said, there is an ever-growing number of significant MSP players with private equity money who could afford to spin up their own development operations. They likely wouldn’t—I suspect PE would be unhappy with them investing in software rather than growth—but they could.

Even without, the number of MSPs who could do significant coding to link APIs is going to increase significantly. How many vendors are ready for this — and how many can be first (or early) movers to be ready?

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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. Vendor Relationships and Billing Challenges with Kaseya through Techs+Together

• Summary: The discussion highlights challenges with direct Kaseya contracts, such as billing complexities and customer support, driving MSPs to use intermediaries like Techs+Together (TT). TT is praised for streamlining billing and providing flexible contracts, as well as addressing common pain points that MSPs face with Kaseya.
• Insight: This conversation underscores the value MSPs place on simplified billing and customer support. TT’s role as a mediator highlights a potential preference for intermediaries that mitigate complex vendor issues, suggesting opportunities for vendors to streamline administrative processes to retain MSP clients.

2. Insurance Cost and Coverage Issues for Small MSPs

• Summary: Rising insurance costs are a significant concern, with MSPs in Canada noting steep price hikes. Alternatives like Victor Canada and Tech Cyber policies are shared as more affordable solutions. The challenges reflect broader frustrations with insurers’ hesitance to underwrite MSPs due to high cyber risks.
• Insight: The cost of insurance and underwriting hesitancy highlight the unique risk profile of MSPs. There is a growing need for insurance products tailored specifically to the sector, suggesting that vendors who can address this risk through improved security solutions or partner insurance programs could add substantial value.

3. Backups and Long-term Data Access Challenges

• Summary: MSPs discuss backup solutions like Veeam, Datto, and Acronis, focusing on post-contract access for clients in regulated industries. Newer solutions often limit data access after contract termination, whereas legacy solutions like ShadowProtect allow longer-term access.
• Insight: This points to a gap in backup solutions for industries with long-term data retention needs, especially when clients are in highly regulated sectors. MSPs’ interest in accessible backups suggests an opportunity for vendors to develop retention-focused features that maintain data access without ongoing subscription requirements.

4. Challenges with Datto RMM API Security and Permissions

• Summary: MSPs testing Datto RMM report security concerns with API user permissions, finding that these API users have unrestricted access. This has led to reconsideration among MSPs looking for secure RMM platforms.
• Insight: API security and fine-grained permissions are critical. This discussion reflects MSPs’ increased focus on secure API management in response to cyber threats, especially for tools with access to client environments. Vendors addressing these security concerns with improved API security features could better meet MSP needs and retain security-focused customers.

5. Client Offboarding Challenges and Contractual Issues

• Summary: Conversations around offboarding clients from MSPs reveal challenges with contract enforcement and tool removal. Professional offboarding practices and clear contracts are emphasized as critical for both client satisfaction and the MSP’s reputation.
• Insight: Offboarding practices have significant reputational implications, with clients highly valuing a smooth transition process. Vendors can support MSPs by offering offboarding guidelines and tool removal protocols to protect both parties’ interests, enhancing MSP credibility and client trust.

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.?

1. Backup and Data Retention Solutions with Long-term Access Options

• Gap: Many backup solutions require active licenses to access data, which is problematic for industries like healthcare and finance with long-term data retention needs. MSPs noted this limitation with newer solutions compared to legacy systems.
• Opportunity: A backup solution focused on industries with strict compliance requirements could address this gap by offering accessible “archive” modes that enable data retrieval even after contract termination. Including regulatory compliance features for HIPAA, GDPR, or other standards would enhance appeal and differentiate the product in the market.

2. Transparent API Management and Permissions Control

• Gap: Conversations around Datto’s API permissions highlighted a lack of transparency in how permissions are managed, raising security concerns. MSPs need API access to integrate tools but require more granular permission control and visibility into access levels.
• Opportunity: Provide an API management solution focused on transparency, fine-grained permissions, and robust monitoring. An API permissions dashboard that provides real-time visibility, compliance alerts, and reporting for audit purposes would enhance security and empower MSPs to use APIs with confidence.

3. Professional Offboarding Tools for a Smooth Transition Process

• Gap: Offboarding MSPs face challenges in managing tools, credentials, and documentation. Issues like uncooperative MSPs or incomplete handovers lead to client dissatisfaction and reputational risk.
• Opportunity: Develop a professional offboarding tool that automates the checklist for MSP offboarding, covering aspects like data transfer, credential management, and contract finalization. Including a centralized communication platform for coordinating with outgoing MSPs and ensuring seamless transition could set a new standard for professionalism in the industry.

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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.

Acronis – Criticized for its all-in-one approach and poor support, with issues such as resource-heavy agents and interface complexity. Users preferred alternatives like Veeam and Cove by N-able. Sentiment: Negative.

ADP – Mentioned as a payroll and benefits provider used by one business for insurance solutions.

Adobe – Used by MSPs for client e-signatures on contracts.

Auvik – Referenced as a product purchased through Pax8.

Azure (Microsoft) – Cited in a cybersecurity context where attackers use VPS in the same region as their target's Azure setup to avoid detection.

Betterment – Noted as a cost-effective 401k solution for businesses.

Bitdefender – Integrated with Acronis for security but criticized for conflicts with other systems.

Bose Commercial Products – Recommended for smaller business setups, like coffee shops, for sound system needs.

Cisco AnyConnect – Recognized as effective in mobile environments for secure connections.

Clavister – A cybersecurity vendor discussed for its robust security solutions tailored for MSPs.

Cloudflare – Discussed in relation to a user’s difficulty in setting up PTR records, highlighting Cloudflare’s limitations for this task.

Comet Backup – Criticized for restoration reliability issues but recognized as the base for Magnus Box, which users felt had better support.

ConnectWise Manage – Used by MSPs for managing agreements and tickets, with feedback about hidden contract details.

Crowdstrike – Mentioned as a preferred endpoint security option over Kaseya’s offerings.

Cytracom – Praised by users for its features and reliability as a Zero Trust solution in mobile environments.

Datto – Known for backup solutions, with a new offer for disaster recovery appliances. Users expressed skepticism about hidden conditions. Sentiment: Cautious Optimism.

Dell – Frequently criticized for persistent and unsolicited marketing emails. Sentiment: Negative.

Desk365 – Noted as a helpdesk solution integrated with Microsoft 365.

Defensx – Suggested as a potential DNS filtering and browser extension solution for watermarking.

EasyDMARC – Provides DMARC management tools with ConnectWise integration.

Exchange 2013 (Microsoft) – The email service setup used by a client, highlighting client resistance to migrating to newer platforms.

Gradient MSP – Offers a BCDR (business continuity and disaster recovery) marketing kit for MSPs.

Hudu – Used for tracking contract renewals and organizing SOPs, valued for its documentation features.

Impact Health Sharing – Discussed as a non-profit healthcare alternative, noted for affordability.

Insperity, Justworks, MSPBenefits.com – PEOs (Professional Employer Organizations) mentioned for providing insurance solutions.

IT Glue – Used by MSPs for technical documentation, but limited by challenges in achieving organizational buy-in.

Kaseya – Known for low prices and market strategies aimed at competitor displacement. Criticized for billing issues and aggressive tactics. Sentiment: Negative.

Macrium Reflect – Praised for backup reliability, chosen by some over alternatives for consistent performance.

Magnus Box – Considered user-friendly for solo MSPs but with scalability limitations. Built on Comet Backup but noted for better support.

MediShare – Used by businesses as a shared health plan alternative to traditional insurance.

Microsoft 365 – Used extensively by MSPs, with discussions on managing permissions, offboarding, and challenges like the lack of multi-tenancy in Defender.

Mood Media – Provides licensed audio content for business sound systems.

Nerdio – Offers training on Azure Virtual Desktop and Intune Management, aiming to upskill MSP teams.

NinjaOne – Highlighted for support and API management, preferred over Datto by some MSPs. It was also criticized for persistent marketing emails. Sentiment: Negative for email practices.

NovaBACKUP – Known for its backup and recovery solutions, chosen by MSPs for secure data management.

Office 365 (Microsoft) – Mentioned as a widely used cloud-based email service with discussions around transition challenges.

Pax8 – Criticized for introducing credit card fees and poor partner support, with many users considering alternatives. Sentiment: Negative.

Perimeter 81 – A Zero Trust Network Access (ZTNA) solution praised for cloud-based security.

Proofpoint – Purchased through Pax8, mentioned among other security tools.

Rippling – Discussed as a PEO solution for managing insurance costs effectively.

ScreenConnect – Praised for its backstage feature, helpful in troubleshooting SentinelOne issues.

SentinelOne – Main topic in a discussion about offline agent issues, with frustrations over Windows 11 service stoppages. Sentiment: Slightly Negative.

ShadowProtect (Arcserve) – Valued for recovery-focused functionality, especially in sectors with long-term retention needs.

Sherweb – Considered a viable alternative to Pax8 due to its competitive pricing and absence of credit card fees.

SnapAV – Mentioned as a backend system for AV support across multiple clients.

Sonos – Discussed for business sound systems, though criticized for limited documentation and lack of security features in commercial settings.

Sophos – Installed on a domain controller in an MSP case and noted for its security applications.

Techs+Together (TT) – An intermediary for purchasing Kaseya products, lauded for handling billing and contracts. Sentiment: Positive.

TriNet – Recommended as a PEO for better insurance rates.

UVexplorer – Offers network mapping and monitoring, appreciated for enhancing MSP operational efficiency.

Venteur – Referenced in an advertisement context in insurance discussions.

Veeam – Considered a reliable backup alternative to Acronis, known for its storage-intensive but robust backup chains.

Victor Canada – Suggested as a more affordable insurance provider compared to Zen Insurance for Canadian MSPs.

Webroot – Main topic in a case where an MSP struggled to remove it after an unresponsive previous provider left it installed.

WholesaleBackup – Praised for reliability in monthly test restorations, chosen for its cost-effective endpoint licensing.

Zen Insurance – Criticized for high insurance quotes, with users recommending other options. Sentiment: Negative.

ZoneWatcher – Used for DNS audit trails, valued for tracking DNS changes over time.