Datto CEO: 'This is a great time to clean house a bit'

Tim Weller talks CRN through what MSPs should be considering right now in order to ensure business success post-coronavirus

Now is the time for managed service providers to consider what their business model should look like post-pandemic, according to Datto chief exec Tim Weller.

Weller noted reported cases of COVID-19 across Western Europe appear to have "peaked" and so MSPs should be mulling over the next steps of how to resume business operations.

"We still don't know when we're going back, but I think MSPs really need to get back on offence," he told CRN.

"We've actually had fairly good sales in March and April - not on previous levels but better than I would have expected.

"That tells me MSPs are selling; they're finding hospitals, they're finding companies that are doing well in this crisis and creating opportunities. So it's time to thinking about post-crisis, what's going to be working for MSPs and for SMBs. I'm very optimistic about the industry coming out of this crisis."

Weller, who took over as head of the organisation in January 2019 from founder Austin McChord, advised MSPs to use this time to take stock of what needs to be done in their organisation to ensure they can weather the economic turbulence expected once lockdown restrictions are eased.

"This is a time to really reorganise your business for success. Lots of MSPs are reporting to us that they were crazy busy in that first four weeks, but now they're less so. Take advantage of that," he advised.

"This is a great time to clean house a bit; clean your tech stack, clean up those old receivables, fire a couple of those customers that you've never liked and who are sucking all your time and not paying you very much.

"We're seeing some of our tools actually sell a little better than I thought; we've called a few of the partners and they've said, ‘our techs have a little extra time now, so we're thinking about what's the right tech stack and how should we organise' and that's a big theme."

MSPs should also make sure they are looking at their finances and doing what they can to ensure a healthy balance sheet, he said, adding that he expects a number of MSPs to go to the wall as a result of the crisis.

"Financially, I think most will be fine but we will see some not make it out of the crisis. Maybe they took on too much debt, maybe they weren't minding their accounting," he elaborated.

"MSPs need to makes sure they're really looking at the financials and the business model and use that extra time right now - even if it's weekends - to study which clients are profitable and how you're tracking your time.

"I think it's a chance for everybody to come out as a healthier business, even if you're a smaller company. We can rebuild from here, the opportunity doesn't go away."