ConnectWise has an interesting view of the VAR market. It both acts as a solution provider in the Tampa, Fla., area, and it develops and markets software to automate business processes for IT solution providers. The company started out 28 years ago as a solution provider, and along the way developed software to manage its internal business functions. Over time, it realized it could market the software to its peers.
CEO Arnie Bellini says the company has about 2,500 solutions providers as ConnectWise software customers, and he estimates the universe of solutions providers at about 80,000. That means the company has a pretty small chunk of the market, just 3 percent. He said the company’s top competitors have an equal number of customers.
Assuming those numbers are correct (and I don’t have any reason to contradict them), what does that say about the bulk of solution providers? What’s everyone else doing to manage their business? And does IT business automation software – which handles functions such as sales tracking, ordering, service tickets, time sheets, project management – make sense for only the largest of IT solution providers?
Bellini says the company’s hosted offering ($39 per user per month) has really taken off. “It’s become very, very popular, so much so that we’ve recently expanded our data center in Tampa,” he said. The company is also opening two more data centers in London and Sydney, Australia.
So, have you considered IT business automation software? If so, I’m interested in hearing from you about it. Email me at email@example.com.