Professional Service Automation Gets a Big Boost in MSP Marketplace

By Special Guest
Reece Loftus
  |  April 14, 2022

MSPs are constantly rationalizing operations to remain at the forefront of respective industries. As a result, many have accelerated the adoption of PSA (Professional Services Automation) tools, which enhance the ability of MSPs to effectively organize businesses.

Incorporating PSA integrations overhauls how services are provided by offering comprehensive software that alleviates many issues that MSPs face while also improving efficiencies. Benefits include:


 

  • Full automation of provisioning - Improves productivity, saves money, optimizes transparency across users, can be scaled easily, provides an audit trail that can be tracked, and assures compliance.
  • A holistic view over the business - Allows individuals within the organization to alter the processes and policies of the company to focus on targeted areas to increase profitability.
  • Secure staffing and invoicing workflows - Provides full visibility and control over key financial data while greatly reducing processing time and alleviating the possibility of human error.
  • Consolidated billing processes - Automatically compiles subscriptions and purchases into a single invoice for customers, improving tracking and developing customer service.
     
  • Accurate reporting systems - Increases the ability of an MSP to respond to and repair issues.
     
  • Extensive ticketing systems - Enables workers to be aware of and effectively react to errors in a time-efficient manner.

A company fully embracing and innovating around PSA integration is Colorado-based Pax8, a modern distribution channel for cloud IT service providers, with a goal of simplifying how partners buy, sell, and manage cloud.

Connecting the channel ecosystem to their award-winning cloud marketplace, Pax8 is rapidly expanding on a global scale accelerated by a $185 million funding of new equity capital financed by new investor SoftBank Vision Fund 2, which has increased the company’s valuation to $1.7 billion.

As part of the transaction, Kristin Bannon, Investment Director at SoftBank Investment Advisers, will be named the Pax8 Board of Directors. Existing investors Catalyst Investors, Sageview Capital, Blue Cloud Ventures, and Liberty Global Ventures also subsidized substantial portions of the fund. 

“As we continue to evolve our technology and marketplace to meet the needs of SMBs, the new investment will provide capital to accelerate innovation and continued expansion into new global markets,” said John Street, CEO at Pax8. “This strong funding round reflects the powerful work Pax8 is doing to enable and grow SMBs through our partners, employees, technology, education, and support. Year over year, we continue to experience record-breaking growth, and we look forward to working with SoftBank to continue elevating our performance.”

Alongside 20,000 managed services partners, Pax8 provides over 200,000 businesses with PSA, amongst other solutions, through its award-winning platform. Facilitating a unique approach for organizations, Pax8 simplifies the IT buying experience for companies of varying sizes through the IT channel ecosystem. 

“Through its marketplace, Pax8 is empowering SMBs with technology solutions they would otherwise not have access to while simultaneously granting software vendors distribution capabilities to a hard-to-reach customer segment,” said Kristin Bannon, Investment Director at SoftBank Investment Advisers.  “I am thrilled to join the Pax8 Board and partner with the company on its hyper-growth technology strategy for the platform and cloud marketplace and new opportunities for the company and its ecosystem of partners.”

Managing Partner at SoftBank, Nagraj Kashyap, stated. “Pax8 has disrupted the IT industry, exemplified courage through innovation, and has built the people, processes, and technology to revolutionize the way businesses build and consume technology,” he continued. “Under John’s leadership, Pax8 has shown ongoing success, and we believe its vision for the future will prove to be transformative for B2B markets.”

PSA integration is a major differentiator for Pax8, which also announced collaborations with AWS and Microsoft (News - Alert) over the last few weeks. Rather than simply offering an e-commerce-style marketplace where SMBs and the MSPs who serve them can discover and provision IT products and services, these cloud-based offerings can be sold with professional services – a major plus for MSPs in the fast-growing and highly competitive SMB IT managed services market.




Edited by Maurice Nagle