WatchGuard CEO Joe Smolarski on doubling MSP margins, the Kaseya playbook, and why Canada’s cybersecurity moment is now

ChannelBuzz.ca34mApril 7, 2026

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AI-Generated Summary

In this episode of ChannelBuzz.ca, host Robert Dutt sits down with Joe Smolarski, CEO of WatchGuard Technologies, to discuss the company's bold vision for 2026 as the 'year of the cybersecurity-focused MSP.' Smolarski, who previously served as president and COO at Kaseya, brings a wealth of experience in platform strategy and partner economics to WatchGuard, a 30-year-old, 100% channel-focused security vendor. He argues that the accelerating pace of cyberattacks—particularly the 1500% surge in endpoint malware and the shift from ransomware to data extortion—creates an urgent need for MSPs to evolve. Smolarski emphasizes that the key to survival and growth lies in platform consolidation, AI-powered defense, and dramatically improved unit economics, promising to double MSP margins through operational efficiency and a simplified, integrated security stack. He also addresses concerns around Kaseya's controversial legacy, clarifying that he’s bringing only the best practices—like cost reduction and platform integration—while leaving behind the baggage of bundling and integration friction. With a major partnership with Bell Cyber and a strong focus on data sovereignty, WatchGuard is positioning itself as a trusted, long-term partner for Canadian MSPs at a pivotal moment of regulatory and market maturity. Smolarski concludes with a powerful message: the next few years will define whether MSPs become security leaders or remain commodity IT providers.

Key Takeaways
1

2026 is the year for MSPs to go all-in on cybersecurity due to the explosion in attack velocity and the shift from ransomware to data extortion.

2

WatchGuard promises to double MSP margins through platform consolidation, reduced operational noise, and AI-driven SOC support.

3

The Kaseya playbook is being adapted selectively—focusing on unit economics and platform integration, not aggressive bundling or integration friction.

4

Data sovereignty and local infrastructure are critical for Canadian market penetration, with WatchGuard’s Bell Cyber partnership serving as a major validation.

5

AI is not a buzzword—fighting AI-driven attacks requires AI-powered defense, and WatchGuard’s platform is built around this reality.

…and 3 more takeaways available in PodZeus

Chapters
0:00
5 min

Introducing Joe Smolarski and WatchGuard's 2026 Vision

2026 is the year of the cybersecurity-focused MSP.

Highlight
5:00
5 min

The SMB Cybersecurity Crisis and the Kaseya Experience

The big guys get attention and the small guys don't. And that's become prevalent.

Highlight
10:00
5 min

The Death of Ransomware and Rise of AI-Driven Attacks

You can't fight AI attacks with human-based people. Like you need to fight AI with AI.

Highlight
15:00
5 min

The Kaseya Playbook: What to Bring, What to Leave Behind

Smolarski clarifies which parts of his Kaseya experience he’s applying—platform consolidation and margin improvement—while distancing from controversial practices.

20:00
5 min

Doubling MSP Margins: The Mechanics of Success

It's not solely based on price. This is a world where there is a ton of noise...

Highlight
High-Impact Quotes
You can't fight AI attacks with human-based people. Like you need to fight AI with AI.
Joe Smolarski9:42
Viral: 95.0
Half of AI is bull crap, you know, because so many people claim AI and everybody's taking credit for it.
Joe Smolarski9:19
Viral: 92.0
2026 is the year of the cybersecurity-focused MSP.
Joe Smolarski0:45
Viral: 90.0
Speakers

Host

Robert Dutt

Guest

Joe Smolarski
Topics Discussed
Cybersecurity for MSPs95%MSP Margins and Economics90%Platform Consolidation88%Canadian Cybersecurity Market87%AI in Cybersecurity85%MSP Maturity and Consolidation83%Data Sovereignty80%Kaseya Legacy and Lessons75%
People & Brands

Joe Smolarski

person

45xPositive

WatchGuard Technologies

organization

38xPositive

Kaseya

organization

18xMixed

Robert Dutt

person

15xNeutral

Vector Capital

organization

6xPositive

ChannelBuzz.ca

media

5xNeutral

CrowdStrike

organization

4xNeutral

Bell Cyber

organization

4xPositive

C26

other

3xPositive

SonicWall

organization

2xNeutral

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