Datto Whitepaper: Give Small Business What It Needs. Give Small Business What It Needs. Simple Steps to Break the Barrier

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1 Give Small Business What It Needs Simple Steps to Break the Barrier

2 VALUE OF DATA AMOUNT OF DATA SMBs RISK OF LOSING DATA Managed Service Providers (MSPs) are doing small businesses a disservice if they sell them a backup only product. Small businesses, just like their enterprise counterparts, must have the ability to recover data and keep their business running in the event of a disaster. Until recently, business continuity options for small businesses have been limited. In April 2013 the first enterprise grade business continuity solution was introduced to the Channel Datto ALTO. For the first time, small businesses with local storage needs ranging from 500GB to 1TB, had the opportunity to implement a solution that delivered image-based backup with instant full system recovery and Hybrid Virtualization. That wasn t enough for Datto, the Channel, and small businesses. Datto ALTO 2 builds on the success of ALTO with a significant increase in performance and reliability. ALTO 2 breaks barriers for MSPs and Value Added Resellers (VARs) to break into the lucrative small business market. Growth in the backup, disaster recovery (BDR) and business continuity space will be led by adoption. With nearly 4.5 million small businesses in the U.S. alone, this represents a significant market segment; a segment that MSPs should target to grow their business and create new recurring revenue streams. 1 The current market size for small business in the BDR/BC market is $1.5 billion, with future growth expected to remain robust at 20% per year, over the next five years. 2 To break into the small business market, outlined below are simple steps that will break the previous barrier to market, for MSPs to sell, and small business to buy a robust business continuity solution Ease of Use 2. Superior Functionality 3. Unsurpassed Support 4. Price is Right 5. Scalable 1 U.S. Small Business Administration, Small business based on 1-19 employees. 2 IGS for Datto, June

3 1. Easy to Install, Use and Manage A robust product does not always mean a complicated interface. And don t assume that because a solution is hybrid in nature, uniting both local and cloud, that it s more complex. Not only will you look like a hero based on the quick installation and management of the ALTO 2 solution, but your business customers will feel comfortable that they can manage it too. Datto intentionally designed an easy to use interface for the benefit of both the business user and MSP. The Datto ALTO 2 interface reduces setup, configuration, and maintenance time, which in turn reduces total cost of ownership (TCO). Management of a business continuity solution should include a visual confirmation of backups. With automated backup testing and Screenshot Backup Verification, the MSP, and client if so requested, will receive an showing a picture of the actual image-based backup. The ALTO 2 spins up as a virtual machine and takes a screen capture of the actual VM login page to prove that the backup works and will be there when needed. 3

4 2. Superior Functionality Not all small business BDR/business continuity solutions are created equal. When creating a solution specifically for the small business market Datto did deep analysis on exactly what the needs are from a speeds and feeds side. The most shocking part of this investigation was that the solution required was just about as comprehensive as an enterprise company would require. This resulted in the need to develop a full continuity solution on a much lower price point. Below is a list of product features that deliver a price efficient robust continuity solution. Follow this checklist as you evaluate solutions: Datto ALTO 2 4 Local Hardware 4 Off-Site Virtualization Benefit New CPU that runs two times as fast and a new motherboard that offers cooler operating temperatures and more reliability Full business failover with the ability to recreate networks and connect remote users 4 Hybrid Virtualization Local virtualization feel using the resources of the cloud. Unique to Datto. 4 Screenshot Backup Verification Necessary to prove legitimate backup has occurred. Unique to Datto. 4 Inverse Chain Technology Nondependent backups that are more efficient and functional than traditional backup chains. Unique to Datto. 4 USB 3.0 Ports Faster drive seeding 4 Dual Network Ports Bonded performance enhancement and redundancy 4

5 3. Unsurpassed Support The better a solution vendor supports their MSP partners, the better the MSP looks in the eyes of their clients. This is incredibly important for the small business category; without having an internal IT staff, they need to have 100 percent confidence in their MSP. To ensure maximum level of support, work with a vendor who invests in their Tech Support team, and makes Support a priority for their business. A few questions to ask a vendor are: Q: What percentage of your full-time staff is in Tech Support? A: A minimum of 25% of a vendor s full-time staff should be with Tech Support. Datto exceeds that with 30%. And never work with a vendor that outsources its Tech Support your time and reputation are on the line. Q: Where is your Tech Support team located? A: Quite simply, Tech Support should be located where you are. If you are a North America-based business, it s to your benefit to have your vendor s Tech Support also based in North America. Just like Datto. In fact, Datto Tech Support is located in the same building, and same floor, as Cloud Ops, Dev Ops, and R&D. Q: Do you invest in your Tech Support team? A: Heavily. Tech Support development and education should be an ongoing process. Datto Tech Support team members get CompTIA certified. Q: What are your hours for Tech Support? A: If Tech Support is not 24/7/365 then they may not be there when you need them at 2am. Datto Tech Support is available LIVE around the clock, every day of every year. Datto is the proud recipient of the 2013 ASCII award for Best Customer Support. Given the nature of our business, dealing with a company s data lifeline in often urgent hours, this award is particularly meaningful to Datto. It exemplifies the commitment Datto has to its Partners, to ensure their customers needs are met, and business continuity is guaranteed. 5

6 The flexibility of Datto ALTO 2 gives providers the ability to sell continuity to any size business. 4. Priced for Even the Smallest Business According to IDC, at least 15 percent of SMBs are doing absolutely no data backup. Another 60 percent only back up data on local, on-site storage devices. And who knows how stable their backup is? When was the last time it successfully backed up? Could they restore systems in the event of a disaster? Traditionally for small businesses to implement a (BDR) solution they had to purchase expensive equipment locally, spending thousands of dollars in one up front investment; making a BDR solution very prohibitive for a small business that didn t have the extra capital to spend. With Datto ALTO 2, MSPs can make the BDR investment much easier for small businesses to manage financially, as payments can be smaller recurring bills, spread out over months, versus one large upfront cost. Lack of money and IT resources are the two main reasons for small businesses not taking their BDR/ business continuity needs seriously. Not to mention less than stellar products that haven t addressed their specific needs. No doubt, lack of funds, resources, and targeted products also contributed to the it won t happen to me syndrome. Small businesses can no longer put their head in the sand when it comes to BDR. Better yet, they don t have to. Small businesses can now afford full insurance against costly downtime, thanks to their MSPs offering ALTO 2. Small businesses no longer need to be threatened with the lengthy, revenue-draining downtimes when their systems inevitably fail. 6

7 5. Scalable The first solution sold to a new managed services client can often be the hardest and most costly, given time and marketing expended. We understand that and now offer a solution that will be a small investment for the business, yet offer the value of a much higher priced solution. This sale will drive value and ultimately recurrent business to the Datto Partner. Gain the trust and appreciation of customers with Datto solutions, then expand your offerings. Getting in the door to a new client can be the hardest part of the business. And once you re in the door, you don t want to get kicked back out. This speaks to the importance of scalability in your solution offerings. Datto solutions are built to grow with your customers, as their data, storage and systems needs evolve. Conclusion Be a hero. You can be the first MSP to offer today s small businesses a BDR/ business continuity solution that is easy to use, delivers a superior feature set, offers 24/7 support, is scalable, and, that they can afford. Be a successful hero. Using Datto ALTO 2 as a cornerstone of your managed service offerings will establish a solid recurring revenue model for your business. Offering a solution that can t be turned down is a reality and it is built from some very simple steps. Robust functionality will drive value to the solution and set you up with an expectation of a high price point. Back the product up with engaged and smart support to fix any problems that may arise, add a simple interface and ease of use, and the building blocks for customer satisfaction are in place. Finally lay on an irresistible price point and scalability and you have a solution the customer literally cannot refuse. 2014, Datto, Inc. All Rights Reserved. Datto Inc. 101 Merritt 7 Norwalk, CT USA: Canada: EMEA: +44 (0)

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