ScalePad’s Eric Torres: Compliance As A Service Is The Next Wave

‘The compliance landscape can be a bit scary. There’s so many different rules, regulations and frameworks that are out there… and we have a plan in place. ... You boost your security posture, you stay current with the laws and regulations, and this will allow you to move upmarket,’ says Eric Torres, vice president of channel at ScalePad.

Cyber warranties and security compliance can be a hard sell, according to Eric Torres, vice president of channel at Canada-based software vendor ScalePad. But the company is working to resolve MSPs’ most critical challenges through its offerings to better protect them and their customers.

Torres spoke at the XChange August 2023 conference, being hosted by CRN parent The Channel Company in Nashville, Tenn., this week. He said 64 percent of the servers MSPs manage today are at risk due to age and lack of warranty. To help mitigate that, ScalePad offers cyber warranties with Torres explaining how to best sell it to end customers.

“It can feel like you’re bothering your customers,” he said. “But as far as the business that server is running, that’s the lifeblood of the company.”

Warranties can promote financial predictability and cost savings, reduce downtime, enhance technical support, maintain business continuity and reputation, and offer life-cycle management and upgrade planning.

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“[With cyber warranty] you’re telling your clients, ‘I’ve got your best interests in mind and we’re in this for the long haul,’” he said.

In 2022, $10 million was sold, a 62 percent margin, in warranties last year through ScalePad, Torres said.

And with warranties come security compliance, according to Torres, who noted that data breaches are up 68 percent year over year. Compliancy standards are coming down the pipeline fast, and ScalePad is ready to help MSPs on their compliance journey.

“The compliance landscape can be a bit scary,” he said. “There’s so many different rules, regulations and frameworks that are out there… and we have a plan in place. Compliance is saying, ‘Now you have to do that.’

“You boost your security posture, you stay current with the laws and regulations, and this will allow you to move upmarket,” he added.

To help with this, ScalePad acquired governance, risk, and compliance platform ControlMap that integrates with more than 30 systems and automatically performs hundreds of compliance checks to reduce the manual work associated with cybersecurity compliance.

“Being able to offer Compliance as a Service, that’s the next wave of this,” he said. “It’s happening. It’s taking place right now where we need to capitalize on this. We need to protect ourselves. We need to protect our customers and we need to make money doing it.”

David DeCamillis, senior vice president of sales and marketing at Madison, Wis.-based Applied Tech, a ScalePad customer, said ScalePad offering Compliance as a Service is critical.

He said he is interested in auditing, enhancing his company’s offering, and capturing new revenue as he believes Compliance as a Service will be an easier sell to customers.

“That’s an awesome add-on, and we’re definitely going to look at it,” he said.