Datto vendor profile Tom Rebbeck Datto vendor profile
Datto: vendor profile Tom Rebbeck
Datto: vendor profile 2 Datto: strategy overview Datto has a unique strategy among MSP vendors; alongside selling tools such as RMM, PSA and business continuity and disaster recovery, it also sells a series of hardware products. The inclusion of these products makes it simpler for Datto’s MSP clients to manage the different parts of the solutions that they sell to their own customers. Business continuity is core to Datto’s proposition. Indeed, many of its products support these type of services (for example, back-up, storage and protection). Datto works hard to provide support for its MSPs as well as products, and as such, it produces marketing documents and holds conferences and events. It has large annual events in the USA and Europe, and smaller events in other key markets (such as Australia, Benelux, Germany and Singapore). Datto also provides consulting services and has a partners programme. According to Aaron Dun, VP Product and Growth Marketing, Datto’s customers “come to us for things that are remarkably not product”. Datto Figure 1: Key data Company details • 1600 employees • Owned by Vista Equity Partners (who bought Datto for a reported USD 1. 5 billion) • 22 offices in 9 countries across North America, Europe, Asia and Australia Financial performance Information not publicly available MSP product and product details • Its Business Management product portfolio consists of tools for supporting MSPs (for example, Autotask professional services automation (PSA) and Datto RMM). • It also offers products that are provided by MSPs to their customers, such as data backup, business continuity and disaster recovery and networking hardware (Wi-Fi access points, switches and edge routers). Other products None. The focus is on MSPs. 100% of its sales are through the MSP channel. Acquisitions Datto, in its current form, was created by the merger of Datto with Autotask. Prior to this, Datto acquired Open. Mesh, which developed wireless access points and Ethernet switching technologies. Also prior to the Datto merger, Autotask bought Centrastage (RMM, 2014) and Soonr (file sync, 2015). Other notes 15 000 MSP partners
Datto: vendor profile 3 Datto: analysis Datto provides many, but not all, of the tools that an MSP will need to run its business. In particular, its suite of hardware and software will make it easier for MSPs that want to offer customers a set of business continuity services that are proven to work together. Integration with other tools, such as PSA and RMM, should also be simple. The bundling strategy pursued by Datto may be unappealing to some MSPs that are unwilling to commit to hardware and services from the same provider for fear of lock-in. There also notable gaps in Datto’s portfolio, particularly around security. Datto’s competitors are increasingly offering MSP tools (for example, RMM) in conjunction with security solutions. Datto’s evident commitment to the MSP market works in its favour. It puts significant emphasis on elements that surround the core products, such as marketing and other business support, which are appreciated by MSPs. Datto Figure 2: Key strengths and weaknesses + Strength Description Portfolio The inclusion of hardware is a strong differentiator against competitors, most of which only focus on software. The wide range of business continuation tools, plus RMM and PSA, gives MSPs a strong set of pre-integrated tools. Support for MSPs Datto provides a strong range of support services for MSPs. Financial support Datto is larger and enjoys stronger financial backing than many other vendors to MSPs. Weakness Description Security Datto makes no claims to be a ‘one stop shop’, and this may be a disadvantage compared to other providers, especially in security. However, Datto does integrate with 13 different anti-virus solutions used by MSPs. Hardware is not a differentiator for all MSPs. Many will have customers with legacy networks and no reason to switch. Datto’s hardware is not as cheap as that of some suppliers, and the brand is not as strong as for more-expensive names (such as Cisco). –
Datto: vendor profile 4 About the author Tom Rebbeck (Research Director) leads Analysys Mason’s Operator business services and Io. T research practice drawing on more than 16 years of experience in the telecoms sector. He is based in our London office, but works for clients worldwide. Tom is a specialist on the Internet of Things (Io. T) and other enterprise services and has written widely on the role for operators as telecoms markets develop. As well as published research, he has worked on projects for a range of clients – including operators, regulators, industry bodies and vendors. Many of these projects have been supported by original research, such as expert interviews and customer surveys.
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Datto: vendor profile OCTOBER 2019 PUBLISHED BY ANALYSYS MASON LIMITED IN Bush House • North West Wing • Aldwych • London • WC 2 B 4 PJ • UK Tel: +44 (0)20 7395 9000 • Email: research@analysysmason. com • www. analysysmason. com/research • Registered in England Wales No. 5177472 © Analysys Mason Limited 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.
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