SkyKick, which provides cloud automation software and services to Microsoft partners, has raised a $ 130 million funding round with plans to invest in improving its products and hiring 100 new employees in all departments, including product and partner success.
This is the sixth round led by insiders at the Seattle-based company, according to a statement released Tuesday. Morgan Stanley provided a combination of debt and equity for the cycle. Current investors Navin Thukkaram, Craig Nerenberg, Hawk Equity, Trebuchet Capital, Schechter Private Capital and other tech private investors participated in the round. The company has raised $ 200 million to date.
[RELATED: SkyKick Accelerates Its Office 365 Migration Platform]
“This is an important milestone, if you will, that recognizes the value that MSPs (Managed Service Providers) bring to the market,” said co-founder and co-CEO Todd Schwartz in an interview with CRN.
SkyKick was launched in 2011 with its platform to facilitate migrations from Microsoft Office 365. It then added a backup service and QuantumSync, a feature that speeds up most migrations two to four times while improving security.
The company recently launched Cloud Manager, a code-less, low-code automation, workflow, and management application to administer and secure MSP clients in the cloud with the goal of saving MSPs hours.
Cloud Manager sales have grown more than 1,000% in the past year, according to a company statement on Tuesday.
SkyKick now has 30,000 partners worldwide and 250 employees. Its customers include CDW, GoDaddy and SHI.
Schwartz said he and his co-founders started the company to bring enterprise-grade cloud tools to small and midsize businesses and realized that the best way to reach SMBs was through the channel.
“We looked at the SME market and said, ‘Look, there just aren’t a lot of people helping SMEs,’ he said. “And when we even looked further, the heroes, the unsung heroes of the SME market, were the MSPs. And when we looked at this market, there were even fewer companies serving MSPs, and even fewer that were 100% MSP-focused. So for us, we saw a tremendous opportunity to help the MSP find a set of clients that we felt would need help. “
SkyKick’s offerings include automations for Microsoft 365 migrations from Exchange and Google on-premises, cloud backup for M365 and SharePoint, and unlimited free technical support, according to its website. The SkyKick Basic plan starts at $ 199 per month if partners pay for the year.
Company executives blame the pandemic for attracting more SMEs to the cloud and showing interest in adopting more cloud tools for businesses. The increased adoption of SMBs also means an increased need for solution providers who can train SMBs to choose the right tools and manage cloud services for them.
And, in turn, an increased need for automation software vendors like SkyKick that work with MSPs to save solution providers from having to retrain existing employees or hire new ones, executives told CRN. .
“They just had this wave and this wave of their customers that could have moved a little slower, they thought they had plenty of time,” SkyKick co-founder and co-CEO Evan Richman told CRN in an interview. “And then all of a sudden they moved in. And I think as they make that transition, whether it’s to Teams, collaboration tools, or emails, then you’ve done that first migration to the cloud. And you start to think of other things you can do in the cloud.
“The cloud is just beginning,” Schwartz said. “It’s a $ 100 billion MSP market. There are a lot of deals going on and they are increasing by double digits. And this is accelerating with the proliferation of SaaS. And yet if you look at the penetration, most organizations only have one or two apps, and yet you look at the average business and they have 30 apps. So we can see the trend, and the complexity will increase. And so we think the cloud is still in its infancy in the SMB market. “