Kaseya Gets Bought Out, Turns Around and Buys Zyrion

Kaseya was just bought out by VC firm Insight Venture Partners. Insight isn’t one to sit still and quickly engineered the Zyrion deal. Zyrion offers IT service monitoring and cloud services.

“Its integrated solution leverages Business Service Management (BSM) technology to provide correlated, service-oriented views of the entire cloud, application and network,’ the companies said. “Managed Service Providers (MSPs) and large enterprises worldwide use Zyrion cloud and network monitoring solutions.”

For Kaseya, the deal shows it is all in on MSPs. “Kaseya is committed to its MSP strategy, which includes serving our current partners and aggressively growing our MSP partner base, as well as our enterprise customers. The Zyrion products are also used extensively by MSPs and enterprises, so this acquisition furthers our strategy to provide the world’s leading IT management solutions to our core markets. We will continue to go to market directly as well as through our partners,” Kaseya officials said.

While Kaseya and Zyrion both offer monitoring, Kaseya sees the tools as more complimentary than competitive.

“The Zyrion product line is a rich business-centric cloud and IT service monitoring solution that complements current monitoring from Kaseya. Our customers have been asking for a complete and sophisticated solution that provides correlated, service-oriented views of the entire cloud, application and network as well as the ability to quickly pinpoint, address and resolve any network infrastructure problem that impacts business services,” Kaseya argued.

Enterprise Management Associates analyst Dennis Drogseth (News – Alert) likes the new pair: “With strong support across the infrastructure, Zyrion has evolved to deliver richly diverse capabilities for application monitoring, and is the industry’s single most pragmatic approach to service modeling bar none. The combined company offers a very compelling solution to organizations looking for business service monitoring and management within a complementary automated IT management platform,” said Drogseth. “Zyrion’s focus on BSM interdependencies strongly complements Kaseya’s unique strengths in systems management and IT service management and will help propel Kaseya into becoming a more fully dimensional service management solution provider.”

One MSP was already working with both companies, and the acquisition just makes things that much easier. “We leverage both Kaseya and Zyrion to offer MSP services to our customers. We recently added Zyrion Traverse to our solutions portfolio due to its strong enterprise level cloud and network monitoring features. Now with the combination of Zyrion and the Kaseya platform, we have a great opportunity to capture the mid-market,” said Brian Miller, president of United Technology Group (UTG), one of the nation’s fastest growing MSPs.

It was just a few shorts weeks ago that Insight announced what it called a “significant” investment in Kaseya, but was really a buyout. In short order, Insight installed its own management team and announced the three top Kaseya execs were “pursuing other opportunities.”

In their place is new CEO Yogesh Gupta. Gupta has an impressive track record, having served as CEO of FatWire and prior to that was Chief Technology Strategist for CA.

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