The managed services space continues to be one of the hottest in tech, as MSPs continue to seek ways to expand their value to customers, and other resellers and traditional vendors evolve their models to build MRR-based businesses. The growth of the MSP market has also led to a carousel of M&A activity as MSPs and investors look to take advantage of the demand for managed services.
The reason is simple: Businesses don’t have the resources or time to manage all their technology, especially in a rapidly-evolving environment, where constant updates and upgrades require a full-time commitment. At the same time, cloud-based services have become a proven value, allowing IT teams to outsource much of their technology management to third parties. MSPs, in particular, have a tremendous opportunity by becoming a single source for their IT needs.
Sverica Capital Management has taken note of the potential in the MSP space and has made a majority investment in UCaaS provider Cytracom, which evolved its pure hosted VoIP solution into a full UCaaS offering to meet the evolving needs of the SMB market.
Cytracom built its business for the MSP market and sells strictly through the channel, avoiding any conflict with its partners and allowing it to focus explicitly on its MSP partners. It currently works with more than 2,000 MSPs across North America. The investment from Sverica will be used to accelerate its growth and enhance the solutions and tools it provides its partners.
“Our focus has always been on enabling MSPs to deliver best-of-breed voice and messaging solutions,” said Zane Conkle, co-founder and CEO, Cytracom, who will continue to lead to company into its new growth stage. “This investment from Sverica allows us to accelerate our growth and empower more partners with UC solution for their portfolios.”
That includes new purpose-built integrations, features and offerings the company has planned for 2020, to further simplify UCaaS delivery to end-users. The company’s channel-only mentality is underscored by its theme for the year: “Empower the Partner.”
Last year, Cytracom added a new mobile app, desktop app, SMS messaging, and custom a deskphone to its portfolio, along with Office 365 integration, creating a more robust solution for end users. The company also works seamlessly with Kaseya’s business management solution, giving MSPs flexibility in managing the solution within their portfolios. In 2018, it developed a VoIP quality monitoring solution to make it easy for its partners to allow MSPs to proactively monitor and manage call quality.
The investment from Sverica positions Cytracom well to take advantage of the continued growth in UCaaS, as companies look to move from their legacy communications to flexible cloud-based solutions. For MSPs, the ability to offer a complete UCaaS solution alongside other IT services increases their value to and relationships with customers, allowing them to grow their businesses.
The growth opportunity for MSPs is the singular focus of MSP Expo, part of the TechSuperShow. The 2020 edition of the event recently concluded in Ft. Lauderdale, Florida, and the 2021 edition will take place at the brand new Miami Beach Convention Center, February 9-10, 2021. The Miami event will focus not only on solution and product offerings, but will heavily feature marketing, customer acquisition, benchmarking and metrics, compliance, and other key areas of business growth for MSPs.
Edited by Erik Linask