StorMagic unveils MSP program around key management tech acquired with KeyNexus

StorMagic’s SvKMS encryption key management solution is new to the MSP channel, and is being aimed at MSSPs as well as MSPs.

Brian Grainger, StorMagic’s CRO

Two months ago, hyperconverged infrastructure [HCI] vendor StorMagic made a lateral move into security with the acquisition of Victoria B.C.-based KeyNexus, an encryption key management vendor. Today, StorMagic is announcing a new MSP program, whose focus is on encryption key management through their StorMagic SvKMS offering.

StorMagic SvKMS is FIPS 140-2 certified, and its features include robust advanced key management features and capabilities including KMIP support, cryptographic operators and lifecycle operations.

“The MSP program is really focused solely on encryption and key management,” said Brian Grainger, StorMagic’s CRO. “We may do something with the storage at a later date.”

KeyNexus did not have an MSP program before they were acquired, selling their offering either on-site or as a service. Grainger said that selling through MSPs makes sense because SvKMS is already multi-tenanted for use by enterprise customers.

“We are positioning this to enterprise accounts, and those organization frequently put walls between each of their groups, so they effectively act as an MSP within their own organization,” Grainger noted. “It made sense to roll out a program for MSPs as well, because it wouldn’t require a lot of engineering for them.”

While StorMagic sells through a 100% channel strategy, the MSP component is limited at this point, given the lack of a legacy channel here.

“We are not starting from Ground Zero,” Grainger said. “We do have a limited  number of MSPs selling SvKMS,” Grainger said that while the business model varies somewhat depending on the region – with North America, EMEA, Asia  and LatAm being the key ones for StorMagic – in North America, their MSP strategy is largely verticals-based.”

“We have a handful of MSPs within key verticals,” he stated. “MSPs in finance and the legal sector are the most interested in this. Legal is a big emphasis right now, both in single location and multinational law firms. We have a handful of MSPs focused in manufacturing, mostly in EMEA and we have started to see some success there.”

Given that vertical focus, for now the plan is to be select in the number of MSPs they add.

“Because the strategy is vertical-based, our goal isn’t to sign up 500 MSPs,” Grainger said. “In a couple of years, we will look at that again and perhaps broaden our scope.”

Grainger indicated that they are approaching MSSPs as well as MSPs.

“MSSPs are focused on security as a service, which makes encryption and key management a good fit for them, but MSPs are branching out much wider into security because they realize they are leaving customers and revenue on the table,” he stated. “It’s a perfect fit for MSSPs,  because there is no learning curve. You don’t have to explain the value of the product to them. With the MSPs, there can sometimes be some education required.”

The program itself is not focused on enablement activities, but on being able to resell SvKMS on a usage-based pricing model without any fees or ongoing charges to do so.

“We don’t want to overcomplicate it,” Grainger said. “The way I put this program together, MSSPs and MSPs can resell us with zero upfront cost, and with no ongoing maintenance charges. That’s different from the norm in the security space. When they are successful, we are successful because we get a piece of that.”

Grainger sees the ability of MSPs to white-label SvKMS if they choose to do so as another differentiator.

“Through the multi-tenancy options, they can sell it as a StorMagic key manager or they can white label us within a larger service that they offer,” he said.

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