Datto wants MSPs to take cloud-based backup and disaster recovery down into small businesses. The company's new Alto appliance looks like the AppleTV box. Alto is sold like a cell phone service, meaning that it delivers recurring revenues to MSPs without big up-front costs to small business customers, according to Datto CEO Austin McChord.

"The little box [Alto] is pretty neat because it's incredibly small, has a powerful processor and plenty of storage," said McChord. "You can back up to Alto and it replicates off-site."

The big twist: Whether information is stored locally or virtualized up in Datto's cloud, the information all feels local to MSPs and their end customers, McChord asserted. There is no up-front cost for the Alto appliance, and the pricing model is similar to a cell phone plan, McChord said. MSPs that prefer to buy the appliance outright can also do so. "We wanted to give MSPs maximum flexibility," he said.

Alto is available now in the U.S., and the anticipated market sweet spot is businesses with 1 to 20 seats. Alto will be available in Canada in about 30 days. McChord also is evaluating broader international availability.

Alto integrates with MSP management tools like Autotask, ConnectWise, Kaseya and Level Platforms.