In partnership with MSP channel partners, cloud services distributor Pax8 needed a better way to meet the needs of SMB customers looking for end-to-end security and mobility solutions.
By adding the MaaS360 with Watson unified endpoint management (UEM) solution to its portfolio of cloud security and mobility products, Pax8 significantly increased sales revenue and expanded its roster of MSP channel partners.
Over 400 percent growth in sales revenueof cloud-based mobile security solutions sold to MSP partners
3,000 new partners signed up in the past yearjoining a network of over 7,000 MSP channel partners
47 percent reduction in timeneeded to set up end users with the MaaS360 UEM solution
Business challenge story
SMBs no longer under the radar
As criminal hacking activities proliferate, attacks on billion-dollar corporations and huge government entities dominate the headlines. However, cybersecurity threats are growing more rapidly for SMBs. A 2018 report published by the Ponemon Institute revealed that more than two-thirds of businesses have experienced a cyberattack while 58 percent have succumbed to a data breach, signaling the need for SMBs to help secure their networks against phishing, malware, ransomware, and data theft.
The growing demand for security tools to get ahead of these threats is converging with other trends as more SMBs also seek solutions to manage mobile devices and migrate to cloud computing.
Due to limited in-house IT capabilities, many SMBs contract with MSPs to operate their systems and the devices used by employees. As their customers move to the cloud, MSPs seek ways to increase sales by delivering the cloud-based security and mobility solutions their customers want.
As a born in the cloud company, Pax8 was established in 2012. When choosing cloud applications to sell to MSPs, Pax8 evaluated product quality, customer support, ease of provisioning and the commitment of the software vendor to Pax8’s service-oriented philosophy.
Since security is one of the first solutions SMBs choose when moving to the cloud, Pax8 was looking for a comprehensive security package from a vendor that also provided unified endpoint management services. This would enable Pax8 to provide its MSP channel partners with on-demand products for the fastest growing segments in the cloud services marketplace.
“Pax8 is reinventing how software distribution works with the cloud,” says Ryan Walsh, Chief Channel Officer at Pax8. “Our partners asked us how to grow their cloud practice and how to get into mobile security. They cared about their reputation. We looked for a high-quality product for this category and found IBM’s market leading UEM solution.”
Stacking the deck in the customer’s favor
After an extensive evaluation of the foremost cloud security and mobility solutions on the market, Pax8 selected the MaaS360 with Watson platform as a cornerstone offering for its MSP channel partners.
For Pax8, the MaaS360 package stood out as a high-quality, high-reputation product that also offered good margins, enabling resellers to represent the product and provide their customer base with comprehensive support. Pax8 management also appreciated IBM’s “channel centric” commitment to marketing the MaaS360 product line through distribution to MSPs and building long-term relationships with channel partners.
To add an extra dimension to security, the MaaS360 solution is the only platform that delivers an AI approach to UEM. AI insights are delivered through the IBM Watson®-powered MaaS360 Advisor console which alerts administrators about risks, opportunities, and general information related to endpoints, apps, content, and associated data.
For MSPs, insights related to device, app, data, and network-level vulnerabilities are particularly valuable. In the form of risk insights, Advisor delivers mobile threat defense (MTD) capabilities, providing ample context and suggestions to keep devices current with security updates and software upgrades. “It’s unique to have a vendor like IBM providing enterprise-grade security technology to clients on the small end,” says Walsh.
From a functional perspective, Pax8 appreciated that the MaaS360 package is a multi-tenant platform, making more resources available to more users without sacrificing privacy or slowing down performance. The built-in automation capabilities of MaaS360 software also enable Pax8 and MSPs to quickly provision the application and manage product billing. “APIs are critical,” says Walsh. “The market wants to be able to turn products on instantly.”
Pax8 pioneered a cloud distribution strategy to group or “stack” products in different categories to meet the specific business needs of MSPs and their customers. Recognizing that security was a top selling managed service for customers migrating to cloud computing, Pax8 optimized its security-related suite of technology applications by making MaaS360 a lead offering.
“We’re teaching MSPs how to build their cloud stack and if they don’t have UEM in that stack, they need to,” says Walsh. “When they embrace it and add it to their cloud stack, it helps them build their cloud practice. The fact that IBM supports MaaS360 with free trials reduces risk. Our experience is that if you do that, you’re going to stay on that system.”
Growing a business by helping partners grow
Through its commitment to providing innovative technology and in-depth service to its MSP channel partners, Pax8 grew sales revenue by over 400 percent in 2018 and increased its roster of partners from 4,000 to over 7,000 in one year.
As the market for managed services grows to a projected USD 282 billion by 2023, primarily driven by the growth of cloud computing, Pax8 is well-positioned to help many more MSPs participate in this growth by offering the products in most demand from their customers.
By differentiating their product line with a stack of UEM technologies led by MaaS360 software, MSPs offering subscription services through Pax8 have grown their number of accounts, reduced churn and retained customers longer.
“The fastest way to supercharge digitization efforts is stacking technology,” says Walsh. “The progressive MSPs are doing that. They are saying, ‘to round out my security posture, I’ve got to have this category.’ With the help of Pax8, they have IBM’s market-leading unified endpoint management tool, MaaS360 with Watson.”
Founded in 2011 and based in Greenwood Village, Colorado, Pax8 distributes unified cloud services to managed service providers and offers solutions for security, data management, collaboration and communication. With over 350 employees, Pax8 helps channel partners scale cloud practices rapidly by giving access to experts, automating platforms and providing integrations to make billing, provisioning and cross-selling easier. In 2018, Pax8 was ranked the 68th fastest growing company on the Inc. 5000 list, with sales revenue growth of 4,393 percent during the last three years.
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