Datto Backup & Disaster Recovery Storage Business Grows 300%

Datto Backup & Disaster Recovery Storage Business Grows 300%

Datto Inc., which promotes backup and disaster recovery (BDR) storage solutions to MSPs and channel partners, says annual revenues grew 300 percent in 2011 vs. 2010. It's the third consecutive year Datto has generated a 300-percent growth rate, the company asserts. The big question: Can Datto maintain that momentum amid fierce storage competition in 2012?

While MSPmentor can't pinpoint Datto's profitability -- the company is privately held -- the revenue chatter is the latest evidence that many MSP-centric technology providers enjoy healthy growth. Two examples:  Level Platforms and N-able Technologies, respectively, described their growth milestones earlier this month.

Datto, meanwhile, now has more than 2,500 VARs, MSPs and ISVs as channel partners across North America and Europe, the company said. Many of those partners have embraced SIRIS, Datto's flagship BDR solution for on-premises and off-site data protection. Datto now stores more than five petabytes of data in its bi-coastal data centers, the company added.

Rivals and Partners

Datto targets a fiercely competitive market segment -- where dozens of storage companies now offer on-premises and cloud storage solutions to VARs and MSPs.

That competition intensified in September 2011, when Zenith Infotech sold its Zenith RMM business (now called Continuum). Around the same time, Zenith Infotech defaulted on a bond payment. In response, many rivals launched competitive promotions to target Zenith Infotech's backup, disaster recovery and cloud businesses.

Eager to potentially grab market share, Datto partnered with Continuum in December 2011 to launch Continuum Vault, which offers a close integration between Continuum's RMM (remote monitoring and management) capabilities and Datto's storage expertise.

I suspect some of Datto's success can also be traced to the company's active participation in MSP- and VAR-centric organizations. For instance, Shannon Kohn, marketing and channel relations director, frequently surfaces at conferences hosted by ASCII, ConnectWise (IT Nation) and HTG Peer Groups, among others.

Still, there's no doubting that competition in the BDR market continues to intensify. We'll be watching to see if Datto can continue its growth rates. And we'll be tracking the Datto-Continuum relationship to see if early MSP adopters gain traction with the solution.
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