SMB Nation Blog

SMB Nation has been serving the Bainbridge Island area since 2001, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Channel Check-In: Atera’s YTD Report Card

Everyone loves a success story. So hang on fast as Atera, a seasoned start-up, is making fast moves in the SMB channel. You’ll recall we extensively covered it’s “Hello 2016” launch at the start of the year. There is ample evidence suggesting nine out of ten start-ups fail (of course) but I’m more interested in learning what makes the ten percent successful like this Forbes article did. Needless to say I count Atera in this top ten percent. So what’s it’s secret to success as an all-in-one SMB RMM/PSA/Remote Access ISV?

First – the word is out. Atera has enjoyed outsized publicity and coverage because of its market timing to provide a right-sized all-in-one RMM Software, PSA and Remote access SaaS solution for the SMB channel partner. “Our target market are the smaller VARs and MSPs.” Gil Pekelman, Atera CEO, shared during a far reaching interview. aterasept“Our pricing model of $89 per technician is both a fraction of the cost of an existing RMM player (not to mention PSA) and the fact that it is not Agent based pricing makes it totally disruptive.” As a privately-held company, Atera doesn’t release financial information but I can attest that its growth rate is significantly ahead of plan, having reviewed some internal information.

Second – Continuous Innovation. “We launched The Benchmark: This is an industry first – utilizing big data analysis we provide our users with Data (KPI’s) that can guide them if its business is on the right track. For example, we just released within our new billing module a comparison between the contracts the MSP has with his customer and the industry median hourly price.” Pekelman added. In a future contribution about Atera’s SMB channel journey, I will dig much deeper into the analytics topic.

 

Third – Community Feedback. A day doesn’t pass where I’m not promoting the authenticity of the SMB Nation community based on our geek roots dating back to the beginning of time (the release of the Small Business Server product in the late 1990s). Money and time haven’t changed us as we remain a bona fide grass roots community still committed to changing the world. Here’s the good news. Atera thinks like us too! Pekelman proudly “peacocked” his open feedback approach. “It’s an open/transparent/Internet model – You know what we have, what you will pay and what we are working one…. http://ideas.atera.com/?sort=popular” Loosely translated, Pekelman is saying that Atera’s innovation is based on community feedback.

This transparent community paradigm has allowed Atera to gleam insights into its VAR/MSP customers. “For the small guy what did we do? We changed his life.” Pekelman declared. “He can now afford an all-in-one MSP Software platform (or save a lot of money on the system he has). The system is so easy and automated that he can actually use it without hiring PSA/RMM implementation consultants. He has a unique Offering – Unlimited Agents vs. all those MSPs that are stilling using an agent based product. We are giving him a compass to run his business and guide him to a healthy one.”

Finally – design. I can attest to the simplicity of the Atera solution. I reviewed that aspect earlier this year .

Over the next couple of months, I’ll continue to track Atera’s success. It’s one to watch.

PS – If you downloaded and used Atera in a trial several months ago, DO IT AGAIN! It’s rate of innovation is amazing so the version you worked with a few months ago is different today!

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Dazed and Amazed: Atera’s Disruptive PSA and RMM Pricing Model

Once in a great while, disruptive financial models are created. Take derivate trading in the financial markets and how that led to high speed trading an amazing disruption. Atera is out to do the same by essentially offering a futures contract where you lock in your PSA/RMM pricing based on the number of technicians you employ, not the number of device. It’s a brilliant strategy and makes sense with the commoditization of IT at SMB customer sites.

Why the "paying per device" model is killing the growth of your MSP business

If you avoid Atera’s attractive pricing offer, you do so at your own peril. That’s because you subjective you and your family’s financial welfare to the diminishing returns of IT management. Allow me to assert my argument.

  1. Penalized for growing – when you grow, your traditional PSA and RMM supplier grows on your expense, since new customer will require you to spend more money on monitoring of new servers & workstations. Loosely translated, there is no upside financial leverage. Your RMM and PSA costs are essentially variable costs and that makes it tough to increase profitability margins.
  2. Makes you uncompetitive – you need to charge your customer for every PC, laptop and server added. Remember I made mention of the oft accepted theory of IT commoditization? In such a marketplace, it’s essential you control if not lower your costs. A market that is being commoditized doesn’t support a cost-plus inflationary strategy. You can’t pass on your costs easily and thus you become uncompetitive to more efficient operators.
  3. Hurting your customer growth & relationship – when your customer grows (and needs more PC, laptops and servers), you have to charge more, and the customer most likely will not care about the fact that this money isn't going to your pocket at all. It’s going to fat cat PSA ISV owners and RMM executive’s wallets!

Atera to the rescue: per technician pricing

So I’ve saved the best for last. Atera is asserting an optimistic investment approach that reduces risk and increase profitability with maybe a bit of fun thrown in. Atera’s PSA and RMM solution has three pillars.

  1. Predictably – you know how much you pay each month. That’s your hedge strategy facilitated by buying Atera’s solution set. By analogy, think of it this way. Each and every day, corn farmers in Iowa sell futures on the Chicago Board of Trade. Big Ag (large agriculture companies and distributors) buy those futures as part of a financial strategy to lock in its corn commodity prices. Right or wrong, Big Ag knows what it’s be paying.
  2. Competiveness – You can charge less and provide better service because all devices will be monitored. Smart idea in a cloud world and facilitated by Atera, a born-in-the-cloud ISV.
  3. Relationship with customer- you avoid the tension of the whole “I need to charge you more for your growth” conversation. Whereas in the financial community, I’d offer personal friendships are minimized because “they” are not nice people. It’s just the opposite in SMB. MSPs are often personal friends with customers. So expectation management is paramount to a long-term relationship!
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Webinar: SMB Nation State of the Union 2016

Thu, Jan 7, 2016 12:00 PM - 1:00 PM PST

Presented by:  Harry Brelsforf CEO of SMB Nation and Anurag Agrawal Heading Techaisle

Welcome to 2016.

Kick off the year properly with a moment of reflection before the crush begins. SMB channel expert Anurag Agrawal will share important insight into the exact nature of the changing channel and how you can capitalize on the disruption. Learn how partners are pivoting to profitability in an increasingly cloud world where customers are making more IT decisions. Discover how to work more closely with your vendors under the “new rules.” Will the forecasted increase in wages and a seventh year of economic recovery translate into the break-out year we’ve been waiting for? Do national elections really stall decision-making in 4Q? What are the five hot 2016 trends you can immediately capitalize on? And what investment should you make in your MSP practice today to insure success in 2016 (hint: back office operations).

Hear from Atera, the invited guest, how its newly launched MSP solution lowers costs and streamlines back office operations.

349 X 115 MOD REG RND2

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