Datto CEO Sees ‘Challenges’ in Merging of eFolder, Axcient

Written by Aldrin Brown
July 28, 2017

Austin McChord said leaders of the new data protection giant will have their hands full managing smooth integrations of disparate technologies and Axcient’s direct sales operation, which could rub some MSPs the wrong way.

A day after eFolder and Axcient announced they were merging to create a new business continuity market leader, one of the best known players in the space, Datto, Inc., issued a statement today that wished the new venture well but hinted at potential challenges with integration and channel sales conflicts that could hurt managed services providers (MSPs).

The merger is evidence of the rapid evolution and strong growth of the data protection market, but managing a smooth integration could be far from a foregone conclusion, Datto said.

eFolder – like Datto – relies exclusively on channel sales. Axcient sells through partners but also maintains a direct sales operation – one of several facts that MSPs should be aware of as they consider partnerships, Datto said.

“It’s an intriguing move for both eFolder and Axcient and surprising in many regards,” Datto CEO Austin McChord said in a statememt.

“eFolder’s past strategy of acquiring additive technologies for the channel was smart, but this move creates overlapping platforms and potentially severe integration challenges,” he added. “It will be interesting to see how they address the conflicting channel and direct models, disparate pricing models and particularly with their plans to converge their different technology platforms.”

The Datto statement points to its commitment to channel sales through MSPs.

“Our exclusive focus on serving the market exclusively through MSPs ensures no channel conflict and makes Datto stand out from most of the players in the space,” the company statement said.

“With a fully integrated product line and pricing models tailored to the MSP, we are well positioned as the leaders in this space,” it went on. “We wish Matt and the merged company’s success in the future as we continue to enable businesses to become more competitive through MSP-enabled technologies and services.”

In an interview with MSPmentor, the CEO of the new combined company explained why he doesn’t anticipate any channel sales conflicts.

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