Datto vs. Zenith Infotech: Both Sides Weigh In

Datto, in a quest to potentially take market share from Zenith Infotech, has launched a special April 2013 trade-in program. The promotion comes as Zenith Infotech continues to navigate a bond default in India. Zenith Infotech CEO Akash Saraf claims rivals are spreading FUD (fear, uncertainty and doubt) in the market, and also points to a growing installed base of TigerCloud -- his company's private cloud solution for MSPs. Here's the update.

The Datto offer allows MSPs to trade in a Zenith BDR device to receive up to 50 percent off a new Datto SIRIS purchase (I think discounts vary by model). Without mentioning it directly, Datto is taking aim at Zenith Infotech's current business standing, which includes key questions raised by the Securities and Exchange Board of India (Sebi).

Zenith Infotech defaulted on a bond payment in 2011. The company continues to promote its TigerCloud and BDR-G12 data protection offerings. CEO Akash Saraf declined to comment about the current legal case as the matter is sub-judice ("under judgment"). But Saraf is calling on MSPs to keep the faith in his company. In an email to MSPmentor, he wrote:

"This entire issue started in October 2011. Even at that time our competitors sent out FUD e-mail and a lot press stories "predicted" the demise of Zenith Infotech while we maintained we were solvent and will continue to service our partners, ship product and come out with new products.

[To] date (nearly 18 months later) Zenith Infotech continues to service our partners, continues to ship product as well as continues to innovate by releasing new products to the marketplace. TigerCloud, the private cloud product that we released, has over 600 customer installs which is very impressive for a product of its scale, and partners who have implemented the product at their customer sites have had positive feedback on it. A company that is insolvent or close to insolvency, honestly would not be able to do what we've done in the past 18 months."
MSPmentor's View

I'm not a legal expert. I've got readers -- some of them true market experts -- on both sides of the table... Some of those sources suggest partners should be concerned about Zenith Infotech at this point. Others suggest Saraf and his family still have the financial muscle to resolve the current financial dispute that's navigating India's court system.

But ultimately, Zenith Infotech's MSPs need the court case wrapped up. They need clarity.
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