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Data protection company action: Carbonite, Datto make acquisitions

Data protection companies Carbonite and Datto both made purchases to improve their standing in a needed area: high availability and networking, respectively.

Backup and recovery vendors Carbonite and Datto expanded their capabilities through acquisitions to keep up with a growing market.

Carbonite, a data protection company that has primarily focused on cloud backup for consumers and small businesses, bought Double-Take Software to improve its high availability technology. Datto, which supplies business continuity and disaster recovery to managed service providers (MSPs), purchased cloud-based networking provider Open Mesh.

Carbonite fills 'open space'

Carbonite bought the Double-Take business from Vision Solutions for $65.25 million, including $59.75 million in cash and $5.5 million in Carbonite common stock. The deal closed Jan. 31. Vision Solutions paid $242 million for Double-Take in 2010.

The move follows Carbonite's 2015 purchase of Seagate's EVault cloud backup and disaster-recovery-as-a-service business for $14 million, which advanced its standing in the midsize market.

The Double-Take acquisition improves recovery times for customers, said Norman Guadagno, chief evangelist at Carbonite.

The high availability scenario was an open space on the board.
Norman Guadagnochief evangelist, Carbonite

"The high availability scenario was an open space on the board," Guadagno said.

Double-Take products, available for Windows and Linux, include:

  • Double-Take High Availability: Replication of applications and data, in real time, from physical, virtual and cloud servers;
  • Double-Take Disaster Recovery: Failover between a primary and secondary or cloud location;
  • Double-Take Move: Scheduled move of systems from one location to another;
  • Double-Take Cloud Migration: Planned migration from MS Windows to Amazon, Azure or Google clouds; and
  • SQL migration.

Guadagno said Carbonite is working on how best to integrate Double-Take products. The deal may lead to cross-selling opportunities between EVault and Double-Take. For example, EVault customers had asked Carbonite for high availability, Guadagno said.

Carbonite, based in Boston, plans to keep Double-Take's offices in Indianapolis, Chicago, Paris and outside London. Carbonite adds Double-Take's approximately 140 employees, bringing its total workforce to more than 1,000, Guadagno said.

The data protection company anticipates some hiring.

"We see it as an opportunity to grow," Guadagno said.

Double-Take claims more than 5,000 customers and 500 partners.

Carbonite is reimagining itself, said Jason Buffington, a principal analyst at Enterprise Strategy Group who focuses on data protection. The data protection company now has a breadth of technologies over three platforms: its own endpoint backup, EVault DRaaS and Double-Take high availability.

Carbonite is touting the Double-Take addition's effect on data protection needs and uptime requirements of small and midsize businesses (SMBs), but Buffington said he thinks the impact is larger.

"Double-Take has as much enterprise relevance and appeal as SMB," Buffington said.

Buffington said he thinks EVault and Double-Take may have both lost their way under former management.

"Both of these technologies have significant market relevance in 2017," Buffington said of the EVault and Double-Take product lines.

Datto adds networking technology

Datto's purchase of Open Mesh wireless access point and Ethernet switching technologies has led to the creation of the Datto Networking line of products. Managed in the cloud, Datto Networking features network continuity, scalability and redundancy, with WiFi, fully integrated 4G LTE failover and unified threat management services.

Datto Networking, optimized for SMBs and delivered through Datto's global network of MSP partners, includes:

  • Datto Networking Appliance: Previously existing product used to deploy and manage a high-performance wired or wireless network;
  • Datto Networking Switches: Network switches created by Open Mesh include Layer 2 management features; and
  • Datto Networking WiFi: Mesh-enabled WiFi access points created by Open Mesh.

In looking at the market, Datto decided networking products were not well-suited for MSPs, said Scott West, senior product marketing manager for the data protection company based in Norwalk, Conn. And Open Mesh technology fills a need in Datto's product set.

"It's going to be the most MSP-centric networking product line out there," West said. "It's priced for deployment at the SMB level, but built for MSPs."

Open Mesh, with headquarters in Oregon, has 28 employees and Datto has over 700.

The Open Mesh team joins Datto as a subsidiary company. Open Mesh will retain its channel partnerships and customers. It claims to manage more than 90,000 networks and serve millions of wireless users monthly.

"We're taking what Open Mesh built and we're rebranding it for Datto," West said.

Datto did not disclose terms of the deal, which closed at the end of 2016. The data protection company landed a $75 million funding round in 2015.

The Datto Networking suite is available in the United States. The full line will be available globally by the end of 2017.

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