How VMhosts mastered 3x endpoint growth without tripling its team

Points forts de l'étude de cas

• £21,000 in additional annual profit 

• 3x endpoint growth, less than 2x headcount 

• 20%+ reduction in software stack costs 

From vendor sprawl to a single, scalable platform 

VMhosts is a UK-based MSP supporting small- to mid-market businesses across a wide range of industries, with a team of 22 and over 3,000 endpoints. VMhosts is a trusted technology and security partner for its clients, running its own private cloud infrastructure alongside a fully managed IT and security practice. 

When the business began to outgrow its fragmented tool stack, Technical Services Manager Gary Eastwood and Sales Manager Neil Thomson set out to find a smarter way to scale, without adding cost, complexity, or headcount. 

They found Kaseya 365 Endpoint and the results changed the way VMhosts runs its business. 

Too fragmented to scale 

VMhosts built its service delivery capability step by step over the years, starting with TeamViewer for remote access, adding an RMM, then layering on a separate antivirus solution, backup tools, and various other point products. By the time the business was managing over 1,000 endpoints, the cracks were starting to show. 

Licensing renewals landed at different times across multiple vendors. The admin overhead of tracking expiry dates, managing contracts, and reconciling costs across the stack had become a genuine burden. As Neil Thomson puts it: “It was expiring here, expiring there — all over the shop and really difficult to manage.” 

The technical picture was similarly fragmented. Security alerts from different tools had to be tracked separately. Engineers were toggling between consoles, chasing context, and manually connecting the dots, all of which added friction to every task and made it harder to scale the team’s output efficiently. 

And then there was the cost question. VMhosts was paying for Sophos AV on top of its RMM contract, along with a backup product that was proving more expensive than necessary for many of its clients. Every new contract added to the stack. 

Something had to change. 

Putting value to the test 

Gary Eastwood first looked at Kaseya 365 Endpoint when it launched. The value proposition was immediately appealing, not just from a cost perspective, but because of what the solution could deliver in a single subscription: RMM, antivirus, ransomware detection, EDR, endpoint backup, and the option to add Managed Detection and Response (MDR) with a 24/7 SOC. 

But VMhosts didn’t rush in. The team spent the best part of a month doing thorough analysis before committing. Gary built a detailed cost comparison spreadsheet across all existing vendors. Neil worked through the commercial implications. And critically, Gary tested the security products hands-on before recommending a migration. 

The concern around the antivirus component was real. VMhosts had been a Sophos shop for years and trusted the product. “We didn’t really know much about Datto AV,” Gary explains. “We did our research and tested its engine — and saw the results that could be compared to other enterprise solutions. There was no reason for us not to trust.” 

The MDR component was also put to the test. When Gary integrated EDR and MDR together in their environment, the SOC flagged one of VMhosts’ own engineers running a security reporting tool. Because the application was spawning multiple processes, the SOC identified it as suspicious behavior and isolated the device — fast. “That happened really quickly,” says Gary. “It was one of our guys that got caught. But it proved the product works.” 

With the technical validation done, the commercial case was clear. VMhosts signed up for Kaseya 365 Endpoint, and the migration work began. 

Smooth scaling with a single platform 

Rolling out Kaseya 365 Endpoint gave VMhosts access to a unified platform where every component was designed to work together, and the results were felt quickly. 

Consolidating from Sophos to Datto AV and EDR 

Rather than ripping and replacing all at once, VMhosts migrated clients over to Datto AV in a structured, automated way. Using Datto RMM, Gary’s team built a smart filter that excluded devices with Sophos still installed, then automatically pushed the Datto AV policy the moment Sophos was removed. No manual tracking. No chasing down individual machines. “We were using the product to replace the product,” as Neil puts it. 

The final blocker to migrating fully had been the absence of web filtering in Datto AV, a feature Sophos offered and many clients relied on, particularly for mobile workers who couldn’t depend on an office firewall. When Kaseya released DNS Secure, that blocker disappeared, and VMhosts accelerated the transition. 

Automating the complex: the Oracle deployment story 

One of the best examples of what Datto RMM made possible came during a client project that would have otherwise required weeks of manual work. The client needed Oracle deployed across more than 100 endpoints, along with custom configuration files, ODBC connector registration, and printer setup. 

Instead of manually configuring every machine, Gary’s team created a single automated component that handled the entire deployment process end-to-end. A few hours spent scripting and testing replaced what would have been 20–30 minutes of manual work per endpoint — saving an estimated 40 hours overall. 

The result was a faster, more consistent deployment, a highly satisfied client, and new opportunities to expand managed services. 

“If you think it’s 20 minutes to half an hour per endpoint manually — we did it in a few hours of writing and testing the script, then pushed the button,” says Gary. “Massive time saving.” 

MDR: 24/7 coverage without 24/7 staffing 

Running a round-the-clock security operation in-house with a team of 22 people simply isn’t feasible. MDR, included in Kaseya 365 Endpoint Pro, fills that gap entirely. 

The team deployed Pro licenses to themselves and to clients they identified as higher risk. The SOC monitors continuously, validates alerts to cut out noise, and escalates genuine threats, with full incident reports and remediation documentation included. 

“We don’t have people available 24/7 monitoring screens,” says Neil. “Security is at the top of everybody’s mind right now. Any factor that helps mitigate that risk is absolutely welcome.” 

£21K in additional annual profit — and room to grow 

The commercial outcomes from migrating to Kaseya 365 Endpoint were concrete and measurable. 

Over 20% reduction in software stack costs, driven by consolidating AV, backup, EDR, and MDR into a single subscription that replaced multiple vendors. 

£21,000 (~$28K / €24K) in additional profit per year — a figure that, as Gary is quick to point out, represents margin. “That’s not revenue. If you wanted to generate the same profit, you’d need to bring in £210,000 in new revenue to get there.” 

Tripled the endpoint count without tripling the team. VMhosts went from roughly 1,000 endpoints to over 3,000, while growing the technical team from four to seven people. Automation and deep product integration made the difference. 

Predictable costs. One contract, one vendor, one renewal date. Neil’s admin team could finally plan with certainty. “We know exactly what the price point is going to be for three years. That’s been a game changer.” 

New upsell opportunities unlocked with increased clients trust. Advanced Software Management, which handles automated patching for third-party applications like Chrome, Adobe, and 7-Zip, became a valuable add-on service, helping clients meet ISO 27001 and Cyber Essentials compliance requirements with minimal manual effort. 

Engineering time saved across the board. The biggest ongoing cost saving, according to Neil, isn’t the licensing delta, it’s what the team no longer has to do manually. “The biggest saver of all is the cost of hours spent per engineer. When I walk into the NOC, those guys are under pressure. Anything we can do to reduce their effort is greatly welcome.” 

Looking ahead 

As managed services become more complex and margins come under increasing pressure, VMhosts has already solved both problems at once. By consolidating onto a single subscription, they’ve reduced costs, eliminated operational friction, and tripled their endpoint footprint without tripling their team. The result isn’t just a leaner operation, it’s a model built to continue their scalable growth.