Autotask Acquires RMM Company CentraStage: Analysis

It started when PSA company ConnectWise invested in RMM technology called LabTech. Now Autotask has its own RMM. But what do these moves mean for the SMB focused MSP?

At first glance it makes perfect sense for these vendors to behave this way. Regardless of statements by both companies that they won't play favorites or discourage use of competitive software, it is hard to believe that ConnectWise doesn't want its users to be also using LabTech; the same is now true of Autotask wanting its users to ultimately use CentraStage. Even if their marketing says otherwise, the technology roadmap and integration will likely tell a different story as these companies become more closely integrated over time.

Lines Have Been Drawn

After analyzing the vendor landscape in light of this recent acquisition, it is clear to me that a line has been drawn for MSPs. The line is not one drawn by any coordinated effort by either Autotask or ConnectWise, but it is a line nevertheless. I speak of the MSP who is servicing predominantly customers of under 100 users. These MSPs, including new entrants to the MSP market who also service this size customer base, will increasingly find these "Swiss Army Knife" enabling vendors very appealing. After all, this is what many MSPs have been longing for since before managed services became popular. Tight integration between the RMM and PSA technologies has been a very important element to the efficiency and profitability of MSPs.

What happens when MSPs mature and start gaining customers above 100 users? In my opinion, you'll start seeing these MSPs identifying the limits of the Swiss army knife approach and will begin to search out point solutions that can be a) integrated with existing solutions, b) provide deeper levels of service capability, and c) scale beyond what a starter MSP platform can offer.

Another interesting side effect to this acquisition will be how other RMM competitors react to this news. I'm speaking of AVG, GFI, N-able, and Kaseya.

Lastly, I am not sure how the MSPs (particularly those who use Autotask) will react to this news. Some may not care but I wonder if they are worried that their PSA vendor may now be urging them to switch RMM platforms.

What do you think?