XDR security software provider SentinelOne has expanded its partnership with ConnectWise, a major provider of IT management and business automation software for MSPs (managed IT service providers) and TSPs (technology solution providers). The announcement reinforces SentinelOne's growing momentum as an EDR (endpoint detection and response) security software provider to MSPs that want to mitigate ransomware attack risks, MSSP Alert believes.
The SentinelOne-ConnectWise relationship initially involved ConnectWise's SOC (security operations center), which ConnectWise acquired in the Continuum M&A deal of 2019. Dig a little deeper, and you'll see that SentinelOne Control is the current core of ConnectWise’s Fortify Endpoint solution.
The expanded SentinelOne-ConnectWise relationship now involves offering SentinelOne Control and SentinelOne Complete as standalone products in the ConnectWise security product suite, the two companies say. Moreover, the two companies are "actively working on unique integrations within the ConnectWise platform for additional value" to MSPs and technology solutions providers (TSPs), the firms say.
MSPs and TSPs that purchase directly from ConnectWise will also receive onboarding and front-line support directly from the company, and will have access to the ConnectWise Partner Program and other resources for "more successful cybersecurity go-to-market strategies," ConnectWise says.
SentinelOne's MSP Partner Strategy, IPO
SentinelOne's MSP partner strategy involves multiple software companies. For instance, N-able -- a ConnectWise rival -- OEMs SentinelOne's software and positions it as N-able EDR for MSPs. The N-able relationship with SentinelOne has been very successful, according to SolarWinds earnings calls in 2020. (SolarWinds spun off N-able as a publicly held company in July 2021.)
SentinelOne’s two largest channel partners, in terms of revenue flow and influence, are Exclusive Networks and SHI International Corp., according to an SEC filing in mid-2021. Moreover, channel partners generated 96% of SentinelOne’s revenue in fiscal 2021, the SEC filing indicated.
In that SEC filing, SentinelOne summarized its partner strategy this way:
“We have deep partnerships with many of the leading independent software vendors, or ISVs, alliance partners whom we engage with on joint technology and go-to-market strategies; and channel partners, such as distributors, resellers, managed service providers, or MSPs, managed security service providers, or MSSPs, managed detection and response providers, or MDRs, original equipment manufacturers, or OEMs, and incident response firms, or IR firms. As we empower our partners through technology, many of our partners act as force multipliers and broaden our market reach.”
No doubt, SentinelOne has been in growth mode. SentinelOne’s quarterly revenue was $37.4 million for the three months ended April 30, 2021, up 108 percent from $18.0 million in the corresponding quarter last year. The growth led to a successful SentinelOne IPO in June 2021.
Still, SentinelOne faces competition from such rivals as CrowdStrike, Cybereason, VMware's Carbon Black, and BlackBerry's Cylance, among many other companies in the EDR and XDR sectors.
ConnectWise's Cybersecurity Strategy for MSPs
Meanwhile, ConnectWise has taken multiple steps to harden its business management software while also introducing cybersecurity solutions for MSPs. The company's strategy has involved a "shift left' approach to software development, launching the ConnectWise Trust site, introducing cyber training programs and acquiring cyber companies.
For instance, ConnectWise announced the MSP+ Cybersecurity Framework in June 2020 to help MSPs sell and deliver cybersecurity services. Also, ConnectWise acquired Perch Security and StratoZen for SOC and SIEM security services in 2020.
ConnectWise, backed by private equity firm Thoma Bravo, typically competes against such companies as Barracuda Networks, Datto, Kaseya, N-able, NinjaRMM and Pax8 in various MSP software and cloud distribution market segments.
