Channel CEOs React to Datto-Autotask Merger

Written by Aldrin Brown
October 26, 2017

Reaction from across the industry was swift today following the announcement that the two channel giants have reached a deal to come together as one company.

Following is the full text of statements from heads of major companies in the IT services provider space in response to news that Datto and Autotask have reached terms on a merger:

Arnie Bellini, CEO, ConnectWise

“Today’s Datto/Autotask merger announcement is exactly what we expect to see in a rapidly expanding ecosystem. ConnectWise’s acquisition strategy is different.

We are focused on building a completely integrated business platform for Technology Solution Providers of all kinds, including MSPs.

We also believe in an open and connected ecosystem of choices.

For example, ConnectWise currently offers our customers six different data protection solutions: Infrascale, Acronis, Storage Craft, Veeam, Centrestack and Storage Guardian. Those choices are important! It seems the new Datto/Autotask merger will offer a single data protection solution. That may not work out well for them.

Regardless, we congratulate them and welcome the competition. It makes all of us better.”

Michael George, CEO, Continuum

“Consolidation of this nature should come as no surprise to anyone in the MSP market. Standalone vendors are finding it increasingly difficult to compete as MSPs move to the few key providers that matter most to them. Today’s news should galvanize MSPs to focus on one or two key platforms, rather than trying to price-optimize with standalone independent vendors.

Today’s merger brings together two critical categories in the channel: RMM and BDR. That’s a clear signal that a unified approach to these services is in demand from MSPs, and that’s why Continuum offers partners these solutions as the cornerstone of our platform.

But, to stay relevant over the next three to five years, the next major play is security.

We anticipate that the next market consolidation will come as MSPs look to acquire the tools and services to secure their clients amid today’s heightened threat landscape. That’s where we’re already moving with our new security offering launched this month, and we can expect that standalone vendors will begin to beef up their capabilities to meet that demand, and MSPs will take notice.“

Matt Nachtrab, CEO, eFolder

“eFolder continues to be a Channel-focused company offering the most powerful suite of data protections solutions to the MSP, and remains dedicated to having the strongest integrations in place with all PSA/RMM vendor partners.

These integrations exist throughout our entire catalog of data protection options covering BDR needs (Replibit and Axcient), File Sync & Share (Anchor), Cloud-to-Cloud backup (Cloudfinder), and the original eFolder solution for file level backup (Backup for Files).

I’m confident in the advantages our eFolder suite has over Datto in every category, and how they enable MSPs to profitably meet their Client’s data protection needs and requirements.

eFolder has always cared about the success of those we work with in the MSP community, and I look forward to working with those Partners who have concerns about the Datto/Autotask acquisition. “

Fred Voccola, CEO, Kaseya

“The merger between Autotask and Datto signifies a major shift in the MSP vendor landscape. Investor-backed companies, like Datto/Autotask and Kaseya, will continue to acquire technologies that will help them bring more comprehensive solutions to benefit the greater MSP community.

On the other hand, those without the necessary financial backing (like ConnectWise, TigerPaw, and others) will steadily lose ground as they are unable to invest in the products to help take their MSPs to the next level of growth.

Kaseya will continue to work harmoniously with Datto/Autotask to deepen the integration between our products and fully support our mutual customers who use VSA by Kaseya, the industry’s leading RMM platform.”

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