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Carbonite backup gets endpoint boost in Datacastle buy

Carbonite endpoint backup grows with the acquisition of Datacastle technology and customers. As a smaller company, Datacastle had been at a critical juncture.

Carbonite backup continues to stay active, veering deeper into endpoints with its latest purchase.

Boston-based Carbonite acquired Datacastle's endpoint backup product portfolio, technology, customers and employees.

The Datacastle RED product has been rebranded to Carbonite Endpoint Backup. The acquisition allows Carbonite backup to make more of a play in the SMB market, said analyst Phil Goodwin.

"They had endpoint before," said Goodwin, IDC research director for data protection. "This gives them greater scalability."

Carbonite seeks scale in 'critical area'

Carbonite is continuing to build out its portfolio of data protection products that can serve a range of customers.

Carbonite's Norman GuadagnoNorman Guadagno

The cloud backup vendor needed a more scalable, flexible endpoint product, and Datacastle can support thousands of endpoints, such as laptops and mobile phones, said Norman Guadagno, senior vice president of marketing at Carbonite. Datacastle technology also gives customers the flexibility to choose where they want to store data: in the public or private cloud, in a hybrid format or on premises.

"It's an absolutely critical area for focus: Those endpoint machines may contain sensitive company data," Guadagno said.

Datacastle did not disclose how many users it had before the acquisition, but they are all now Carbonite backup customers.

Carbonite's biggest competition in the market includes Barracuda, IDrive and Druva, Goodwin said.

The vendor has been busy with deals in the last couple of years. In August, Code42 announced it is shutting down its consumer cloud backup product in 2018 and referring end users to Carbonite. Earlier this year, Carbonite acquired Double-Take Software for $65.25 million for its high-availability technology. In late 2015, Carbonite bought Seagate's EVault cloud backup and disaster-recovery-as-a-service business for $14 million.

It's an absolutely critical area for focus: Those endpoint machines may contain sensitive company data.
Norman Guadagnosenior vice president of marketing, Carbonite

The Datacastle acquisition closed Aug. 14. Carbonite did not release terms of the deal.

Making the transition seamless to the end user is a major challenge after an acquisition, Goodwin said.

"They seem to have done that well with EVault," he said. "That was a significant re-engineering effort."

Generally, acquisitions will take one to two years to bear fruit, Goodwin said.

Carbonite backup has 1.5 million customers and more than 160 PB under management. The vendor's roadmap strategy includes a combination of organic growth and development, as well as merger and acquisition activity, Guadagno said.

Datacastle hit the crossroads

Seattle-based Datacastle, which launched in 2008, had faced a challenge of being a tiny company compared to its competition, said Ron Faith, formerly its CEO and now vice president of sales and marketing for Carbonite Endpoint Backup. It had a choice to raise funding or be part of something larger.

While Datacastle had been approached before about a possible sale, Carbonite was the first great fit, Faith said.

Carbonite's Ron FaithRon Faith

"Overnight we went from being smaller than most of our competition to being larger than most of our competition," he said.

Faith was also concerned about the Carbonite backup transition for customers and partners, but he said the integration has gone better than expected. Carbonite is honoring all the existing Datacastle contracts and service-level agreements, Faith said.

Datacastle customers will get everything they had before, plus new offerings and better support, he said. In addition, pricing stays the same for those customers, at least for now.

The acquisition brings Datacastle's 300 channel partners to Carbonite. There is some overlap between the two vendors, which has eased the transition, Faith said.

Datacastle also has a shared connection with Carbonite in EVault. In 2016, Datacastle bought Seagate's EVault Endpoint Protection.

Carbonite immediately integrated all of Datacastle's approximately 20 employees into its organizational structure.

Carbonite will keep Datacastle’s Seattle office, giving it an important presence in what Faith called "cloud city."

In 2018, Faith said he hopes to provide different services in the data protection platform, including analytics and security.

Next Steps

Evaluate Carbonite and Mozy for cloud backup

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