Vendor offers licensing equity to resellers

Vendor offers licensing equity to resellers

Managed service providers in its sights

Software automation vendor, Kaseya International, is on the hunt for SMB resellers wanting making the shift from the break/fix model to managed services.

Chairman and CEO, Gerald Blackie, was in Australia last week to formally open its Sydney-based office. He said the vendor had already signed up 50 resellers, including Dubbo-based SMB integrator, Axxis Technology.

Kaseya's software allows resellers to manage distributed IT infrastructure from an integrated Web-based platform.

Axxis Technology managing director, Mathew Dickerson, said his business was moving towards a managed services model to enable staff to provide more consultative customer services. It would also allow it to trouble-shoot problems before they arise.

"I recently saw a prospective client 300km away in Cootamundra. He already has an integrator down in Wagga that he's been happy with, but was looking for more proactive business advice," he said. "When I showed him the kind of reports we can generate with the Kaseya software, freeing us up to do the more consultative work, he almost signed on the spot."

Axxis operates the Kaseya software under the brand name 'Axxis Monitoring Software'. Blackie said it would encourage resellers to rebadge its software as a way of furthering their brand.

Kaseya A/NZ country manager, Tim Dickinson, claimed there were up to 9000 businesses locally which could implement its software with their customers.

"If we could get 25 per cent of that number signed up, we'd be happy," he said. "But at the end of the day, it's about how many seats our software ends up managing."

Kaseya's sales model is similar to an ASP model, but with the monthly payments buying equity in the software. As an example, Blackie said 1000 seats could be purchased with an initial down payment of $4500, followed by $1700 per month over 36 months until the software had a permanent license. If the reseller pulled out of making the payments at 12 months, they could keep 250 seats under a permanent license.

"Our pricing model gives all the benefits of an ASP-style plan but the reseller also can build equity in the software," Blackie said. "With an ASP, you rent the software each month and when you stop paying, the software disappears. But when you stop paying for Kaseya, you still get to keep some of it."

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