Business continuity and disaster recovery vendor, Datto, has acquired cloud-based networking company, Open Mesh, for an undisclosed sum.
The entire Open Mesh team will join Datto as a subsidiary company and will maintain its Portland, Oregon headquarters and worldwide distribution networks. Datto CEO and founder, Austin McChord, will run the operations, together with Open Mesh founder, Michael Burmeister-Brown.
No staff are expected to be let go from either businesses.
The announcement comes off the back of a stellar 2016 for Datto, with the vendor increasing revenue by more than 150 per cent and signing on more than 100 partners in 12 months.
Datto A/NZ regional director, James Bergl, told ARN that the acquisition extends the company’s vision to provide technology solutions to MSPs and at the same time, bridges the gap it identified in its offerings tied to continuity, around networking.
“Businesses simply can’t run today without internet connections. When we spoke to our partner base, we discovered that a lot of the networking solutions that are out there are cobbled together by different pieces and vendors, and they’re not designed with an MSP in mind.
“This means it’s a higher cost of ownership in terms of the management. So, it was decided that an acquisition will also play a part in our story around continuity. We found Open Mesh to be a good fit for Datto because it is very MSP centric,” he said.
Bergl said this deal allows the company to establish itself in the managed network market, enabling its channel partners to sell managed network services.
The Open Mesh ethernet switching and access point technologies will join the existing Datto Networking Appliance to create the Datto Networking line of products, optimised for small-to- medium sized businesses and delivered exclusively through Datto’s global network of MSP partners.
“It’s an area we haven’t necessarily competed in before, so it’s a story that ties it all together in a single pane of glass to give our channel partners an opportunity to grow business. The solution, in itself, is enterprise-grade networking and is designed for MSPs.
“It is all managed from a single portal and reduces the cost of ownership. Having Open Mesh in the portfolio will add huge value to our partners in terms of deal reductions and overheads. It goes over and beyond what it offers today for our channel and customers,” he added.
According to McChord, Open Mesh’s team, solutions and commitment to the channel make it a perfect fit for Datto as it continues to expand its offerings to cover the spectrum of data availability and connectivity.
“Companies simply can’t afford downtime. Our acquisition of Open Mesh and our expanded Datto Networking line gives our MSP partners even more opportunity to provide value to their customers,” he mentioned.
Open Mesh founder, Michael Burmeister-Brown, added that the company found a partner with a common vision in Datto, and it embraces the opportunity to bring networking solutions to its shared customer base around the world.
“The most critical aspects of work are moving to online applications and mobile devices, which mean any lapse in connectivity can result in instant negative impact on the business.
“We started our company to build networking solutions that are incredibly easy to install, easy to manage across multiple sites, and robust enough to keep the network up no matter what happens,” he said.