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Autotask-Datto Merger Poised to Benefit MSPs, ITSMs

Mergers and Acquisitions

… integration between Datto and Autotask technology, so if you’re using those tool sets, that’s a really positive thing,” noted Weaver.

The Autotask-Datto merger will inevitably be unsettling for partners who do business with one or both companies. But Burns says that their partners won’t see their businesses disrupted, and they can expect business as usual.

“We have very complementary product sets and there won’t be any forced migrations or anything like that. They can carry on using our products and taking advantage of the services and after-market benefits we offer,” he said.

At the same time, neither Burns nor Peter Raulinson, chief marketing officer at Datto, could offer up a road map for what a combined Autotask-Datto business means to MSPs or ITSPs. With the ink still wet on the paper, it’s no surprise that there isn’t a joint plan yet; however, Burns expects to have specifics into the company’s forward-looking plans in about three months.

“We’ve always given our customers choice, and this [deal] doesn’t negate MSPs’ ability to have choice,” Raulinson told us.

How the creation of this new big company may impact other players in the market, such as Kayesa, ConnectWise and SolarWinds, is yet to be seen. In June, Thoma Bravo scooped up RMM vendor Continuum.

“Kayesa and ConnectWise are probably saying, ‘What now?’ and are furiously planning their next strategy, because this is going to mean a big, monstrous company. There [are] a lot of Autotask users out there and a lot of Datto users out there, and more importantly, a lot of those users who also use ConnectWise and Kaseya — and that’s where the vulnerability comes in,” said Weaver, who added that there are a lot of happy ConnectWise and Kaseya customers.

Indeed, ConnectWise is promoting its multi-solution strategy as this news breaks.

“Today’s Datto-Autotask merger announcement is exactly what we expect to see in a rapidly expanding ecosystem,” Arnie Bellini, ConnectWise CEO, told Channel Partners. “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. … 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.”

Is having an integrated Autotask-Datto backup solution enough to draw in new partners? Time will tell.

When the deal closes, Austin McChord, Datto founder and CEO, will head up the new organization, serving as CEO. Mark Cattini, Autotask CEO, will work closely with McChord and the combined team as a strategic adviser to the board of directors.

The deal is expected to close in the fourth quarter.

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