Tag Archives: Small

DattoCon 2018: Focus on MSPs poised for SMB growth

AUSTIN, Texas — Managed service providers stand on the cusp of explosive growth in the small and medium-sized business market, but they must focus their sales and look for points of differentiation to cash in.

That’s one takeaway from this week’s DattoCon, Datto Inc.’s annual partner conference. The three-day event attracted about 1,650 service providers, a record for the Norwalk, Conn., data protection, networking and managed service provider (MSP) business management vendor. The event concluded June 20.

“The SMB spend rate is climbing really fast,” said Austin McChord, CEO and founder of Datto. “The opportunity is absolutely massive.”

Austin McChord, founder and CEO, DattoAustin McChord

Citing research from MarketsandMarkets, McChord said SMB IT spend will grow from about $40 billion in 2017 to nearly $72 billion in 2022. He estimated half of SMB transactions currently involve MSPs — so while the SMB market is already large, there is still room for the MSP industry to capture more business.

“Small businesses will be scrambling to rethink their IT infrastructure [and will] need to turn to managed service providers,” McChord said during his DattoCon keynote address.

Valuations climb

While demand expands, MSP market valuations are also growing.

Paul Dippell, CEO of Service Leadership, a company that benchmarks the financial performance and operational maturity of solution providers, said the arrival of private equity investment firms is one force driving valuations. IT services companies, such as Reliam, are partnering with private equity firms to do deals.

“Private equity groups have found the MSP industry,” Dippell said during a DattoCon presentation.

The equity investor’s typical target — MSPs with $5 million or more in annual profit — are rare, which makes those companies more valuable. Meanwhile, MSP owners looking to sell to such buyers may need to acquire another MSP to boost the bottom line and be deemed desirable, Dippell noted. An MSP with $3 million in profit, for example, may look to acquire an MSP with $2 million in profit. But even MSPs at the $2 million profit mark are unusual.

Deals have been rampant in the MSP and cloud consulting sectors of late, including Green House Data’s merger with Infront Consulting Group in May.

Chart showing recent mergers and acquisitions in the IT services industry
New buyers in the MSP market, such as private equity groups, are driving up service provider valuations.

MSP industry execs: Focus is key

High growth and ample valuations, of course, are not guaranteed. Industry executives suggested several factors that could improve a service provider’s ability to make the most of these trends. Among those factors is focus: Pick a target market and stick to it. That target can then become a point of differentiation.

“They have got to differentiate themselves — just figure out what they are best at and sell that,” McChord said.

That approach could mean only selling services to dental practices or biomedical research companies, he said. The idea is to understand an industry and its lingo, cultivate vendor partners to serve that space, and develop a differentiated business model. Indiscriminate and opportunistic selling, on the other hand, may backfire, McChord suggested.

Work in a fishbowl, not an ocean.
David Pencefounder and CEO, Acumen IT

“Just taking any revenue that shows up almost always puts you in a bad spot,” he said.

David Pence, founder and CEO at service provider Acumen IT, based in Greenville, S.C., echoed McChord’s sentiments.

“Work in a fishbowl, not an ocean,” he told attendees during a DattoCon presentation on MSP selling strategies.

He suggested MSPs create a dream 100 list of customers to pursue rather than buy a mailing list and trigger an email blast to 100,000 companies. And when service providers call on their dream list, they should focus on delivering a superior customer experience rather than providing technology.

“It’s not technology and blinking lights,” Pence said. “When you are talking to customers, be consultative. Don’t be a tech engineer.”

Key attributes

Dippell cited focused selling as one of five key attributes of the top performing service providers. Companies that have a well-defined target customer profile tend to outperform their peers who don’t.

The other attributes, he said, are whether the service provider charges for technology assessments, drives technology standards across customers, conducts quarterly business reviews and cross-sells the breadth of its service portfolio to all customers.

A yes on those counts can help service providers join the ranks of best-in-class companies.

For Sale – Lenovo think center m73 baseunit £70.00

Hi, i purchased a couple of these a few months ago with the intention of making a couple of small gaming /media boxes, in the end I’ve just used the one (which works great).
So this one is up for sale, its got an i3-4130 cpu, 4gb ram and a 500gb hdd. I’ve given it a good clean and applied new thermal paste so it’s ready to go. It’s got windows 10 (digital licence).

Looking for £70.00 Inc delivery.

IMG_20180528_141155.jpg

IMG_20180528_141124.jpg

IMG_20180528_141127.jpg

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Price and currency: 70
Delivery: Delivery cost is included within my country
Payment method: Bacs
Location: Stoke-on-Trent
Advertised elsewhere?: Not advertised elsewhere
Prefer goods collected?: I have no preference

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For Sale – Lenovo think center m73 baseunit £70.00

Hi, i purchased a couple of these a few months ago with the intention of making a couple of small gaming /media boxes, in the end I’ve just used the one (which works great).
So this one is up for sale, its got an i3-4130 cpu, 4gb ram and a 500gb hdd. I’ve given it a good clean and applied new thermal paste so it’s ready to go. It’s got windows 10 (digital licence).

Looking for £70.00 Inc delivery.

IMG_20180528_141155.jpg

IMG_20180528_141124.jpg

IMG_20180528_141127.jpg

IMG_20180528_141029.jpg

Price and currency: 70
Delivery: Delivery cost is included within my country
Payment method: Bacs
Location: Stoke-on-Trent
Advertised elsewhere?: Not advertised elsewhere
Prefer goods collected?: I have no preference

______________________________________________________
This message is automatically inserted in all classifieds forum threads.
By replying to this thread you agree to abide by the trading rules detailed here.
Please be advised, all buyers and sellers should satisfy themselves that the other party is genuine by providing the following via private conversation to each other after negotiations are complete and prior to dispatching goods and making payment:

  • Landline telephone number. Make a call to check out the area code and number are correct, too
  • Name and address including postcode
  • Valid e-mail address

DO NOT proceed with a deal until you are completely satisfied with all details being correct. It’s in your best interest to check out these details yourself.

NUC or other SFF PC

Looking to re-purpose my (noisy) desktop to the loft as a server so I need a quiet small form factor PC to replace it.

Nothing special, i5 would be nice, as would a decent amount of RAM and SSD – but I’m open to whatever is available (quite like the Alienware alpha, but they don’t seem to be available).

Let me know if you have anything.

Location: Stafford

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This message is automatically inserted in all…

NUC or other SFF PC

Early 2011 MacBook Pro 13

Selling on behalf of my friend. She has looked after it. There a couple of small marks and a small ding in the top cover. Please see pics. I’ve wiped it and it is ready to go go with MacOS High Sierra. No box but come with MagSafe and power cable.

She’s looking for £225 please.

Price and currency: £225
Delivery: Delivery cost is not included
Payment method: BT
Location: Bradford
Advertised elsewhere?: Not advertised elsewhere
Prefer goods…

Early 2011 MacBook Pro 13

Early 2011 MacBook Pro 13

Selling on behalf of my friend. She has looked after it. There a couple of small marks and a small ding in the top cover. Please see pics. I’ve wiped it and it is ready to go go with MacOS High Sierra. No box but come with MagSafe and power cable.

She’s looking for £225 please.

Price and currency: £225
Delivery: Delivery cost is not included
Payment method: BT
Location: Bradford
Advertised elsewhere?: Not advertised elsewhere
Prefer goods…

Early 2011 MacBook Pro 13

Early 2011 MacBook Pro 13

Selling on behalf of my friend. She has looked after it. There a couple of small marks and a small ding in the top cover. Please see pics. I’ve wiped it and it is ready to go go with MacOS High Sierra. No box but come with MagSafe and power cable.

She’s looking for £225 please.

Price and currency: £225
Delivery: Delivery cost is not included
Payment method: BT
Location: Bradford
Advertised elsewhere?: Not advertised elsewhere
Prefer goods…

Early 2011 MacBook Pro 13

SATA laptop drives 80-250gb – cheap & cheerful

Looking for a few small drives for a project, need to be laptop sata and hopefully cheap!

Location: Nottm

______________________________________________________
This message is automatically inserted in all classifieds forum threads.
By replying to this thread you agree to abide by the trading rules detailed here.
Please be advised, all buyers and sellers should satisfy themselves that the other party…

SATA laptop drives 80-250gb – cheap & cheerful

SATA laptop drives 80-250gb – cheap & cheerful

Looking for a few small drives for a project, need to be laptop sata and hopefully cheap!

Location: Nottm

______________________________________________________
This message is automatically inserted in all classifieds forum threads.
By replying to this thread you agree to abide by the trading rules detailed here.
Please be advised, all buyers and sellers should satisfy themselves that the other party…

SATA laptop drives 80-250gb – cheap & cheerful

SATA laptop drives 80-250gb – cheap & cheerful

Looking for a few small drives for a project, need to be laptop sata and hopefully cheap!

Location: Nottm

______________________________________________________
This message is automatically inserted in all classifieds forum threads.
By replying to this thread you agree to abide by the trading rules detailed here.
Please be advised, all buyers and sellers should satisfy themselves that the other party…

SATA laptop drives 80-250gb – cheap & cheerful