Want a prime example of managed services, cloud services and virtualization converging? Take a look at Kaseya's business strategy. The company, which makes automation software for corporate IT managers and MSPs, has deployed its SaaS offering in StratoGen's cloud. The system leverages VMware (NYSE: VMW) for virtualization services that apparently have increased Kaseya's capacity and performance by 500 percent. Here are the details.

Kaseya started out as an on-premises software business. The company has a large following among the MSPmentor 100, a list of the world's top 100 managed services providers. By around 2009, Kaseya was starting to publicly discuss its SaaS business. But the strategy involved multiple steps and, like many other companies heading to the cloud, multiple course adjustments. By 2010, Kaseya had launched a SaaS partner program and the company's first cloud-based IT management tools were out in the market.

During those early days, The VAR Guy believes, Kaseya tested a range of cloud services -- including Amazon Web Services (AWS). The VAR Guy isn't sure if Kaseya still leverages AWS for some services. But the company's big bets these days seem to involve StratoGen and VMware.

StragoGen is a VMware hosting provider that has reach across North America, Europe and Asia. The company's solution leverages hardware and software from Cisco, HP, NetApp and Veeam.

In Kaseya's case the company has witnessed:

  • a 500% increase in capacity and performance;
  • an 80% reduction in hardware investments and running costs; and
  • 100% of Kaseya's customer-facing application is now virtualized.

Those factoids, attributed to Max Duncan, head of corporate IT at Kaseya, surfaced on the VMware web site. The VAR Guy has not spoken directly to Duncan. But it sounds like Kaseya's cloud and SaaS strategy has found its home over at StratoGen.