Is M&A among MSP tools vendors sparking uncertainty for the channel>
Channel Partner Insight – Jessica Meek
Pennsylvania MSP talks the impact of channel M&A on his business

Consolidation among MSP tools vendors is sparking pricing concerns among its customer base, according to the CEO of PA-based firm Bardissi Enterprises. Kaseya’s September 2018 acquisition of RapidFire Tools, and the merger between Autotask and Datto last year, are just two examples of consolidation in the volatile MSP tools space.

MSPs are also joining forces, or being snapped up by larger players. For example, Clifton, NJ-headquartered MSP NuMSP announced its seventh acquisition of a fellow MSP when it bought out Sacramento, CA-based peer Salient at the end of January. These acquisitions offers challenges and opportunities for a regional player like Bardissi Enterprises. Elsewhere, Bardissi Enterprises is feeling the impact of wider market disruptions, such as the US-China trade war, that has seen a number of technology components subject to tariffs of varying percentages, and may see even higher tariffs brought into effect in March if an agreement between the two nations can’t be reached before then. This has led to cost uncertainty and supply chain questions, according to Bardissi. Alongside these external factors, internal factors that this year will have an impact on business at the MSP include adopting an “all in or all out mentality”, which means no one-off projects and no higher or lower levels of service for one customer versus another. This impacts business because there are not quick sales in this context, Bardissi pointed out. With these internal and external factors as a backdrop in 2019, Bardissi said, the firm is looking to build its customer base by between 12 and 18 percent, while growing the company “across the board”, particularly in security, cloud and managed services.
Link: https://www.channelpartnerinsight.com/channel-partner-insight/news/3071118/is-m-a-among-msp-tools-vendors-breeding-uncertainty-for-the-channel