What happened to Zenith InfoTech?
Zenith Infotech; once on top in the MSP space for Remote Monitoring and management, backup and disaster recovery, help desk and support, and cloud solutions is on serious life support and the plug may be pulled very soon. It was reported today In a required revaluation of what’s left of the company after selling the RMM division; the cloud business has seen a 27 percent negative growth for the last two quarters as reported by Ernst & Young.
None of this is good news considering the state of the company with bond holders and the Mumbai High Court. For a company that had owned the U.S. MSP space for years, it is unimaginable that just a few years later; the company would be left in this state considering its place in the community.
Looking to the past, I had worked for and with companies that used Zenith Infotech products. Zenith really brought integrated Remote management, help desk, and backup into a single solution, making transitioning to an MSP model easy for break fix providers. Early adopters were prized with good service, easy implementation, and kept promises.
As growth occurred in the space and with the company, customer service levels, ticket resolution times, and product support was affected. This had an impact on many MSP’s and had some looking for other solutions. As the MSP market grew so did competition and many other new and seasoned vendors in the space began nipping at the heels of the company.
This had Zenith looking to new products to sustain its future. The BDR (backup and disaster recovery) solution that Zenith introduced to the MSP community with a huge following and major sales numbers began to see hardware and software failures. For a product based around disaster recovery, the recovery portion was causing frustration and headaches for many users and the product was getting a reputation for not working when needed.
In 2009 Zenith introduced its cloud and virtualization platform which would later be named SmartStyle. The initial entry was a hefty investment, but promises of private cloud infrastructure, on premise virtualization, VDI, and cloud backup all in a single solution, managed by a local MSP owned data center, excited many MSP’s and had them writing the check. After more than a year of delays, partners were frustrated and had yet to see their promised solutions. The delays continued and many dropped out of the program.
In October of 2011 it was reported that Zenith was facing a default on debt of $33M with no signs of the company being able to pay or convert it into equity. Just a month prior in September of 2011 Zenith had sold off the Remote Monitoring and Mangement (RMM) division of its company to Summit Partners, leaving the company as a cloud solutions offering.
Since then the company has been fighting an uphill battle in court, and the latest news may see the final stages coming sooner than expected. This story seems to be a forewarning to other vendors in the community. It is not all about product; instead your product will help drive business, customer support will maintain business, stay on top of growth or lose business, and pay your bills to keep your business…