Datto Siris: Hardware prices drop after lucrative 2015

After closing out 2015 at over $100 million in revenue, Datto has lowered its hardware pricing for the Siris suite; other IT channel news.

Business continuity company Datto Inc. has reduced the pricing on the hardware components of the Datto Siris product line from 30% to 50%. The price reduction comes after Datto, which sells its data backup, recovery and business continuity offerings through managed services providers (MSPs), experienced a year of strong growth, closing out 2015 at over $100 million in revenue.

"We took a real look at the hardware element of the [Siris hybrid cloud] solution," said Brooks Borcherding, chief revenue officer at Datto. "What we're trying to do holistically is move away from promotions, which was how we discounted hardware in the past, to a much more consistent, competitive and simpler buying model for our partners."

Datto manufactures its hardware for its global sales in Monroe, Conn., near the company's headquarters in Norwalk, Conn. Manufacturing its own hardware allows Datto to tailor each component to specific performance requirements and characteristics of its continuity services, Borcherding said. It also allows the company to control the end-to-end costs.

"What we're trying to do is make it less about the Capex and buy-in of the service and more about the Opex and the on-going value of the service longer term," he said.

In addition to the drop in the list pricing, Datto has introduced service terms so partners can receive another 10%, 20% or 30% reduction beyond the discounted price with one-, three- or five-year-term commitments.

Borcherding, who joined Datto in November, said mainly two factors contributed to Datto's growth in 2015: the success of its MSP partners and the company's global expansion into Australia and the U.K.

Accenture acquires Salesforce specialist

Accenture is continuing its acquisitive ways in the first days of 2016, announcing deals with a Salesforce specialist and a trading platforms consulting firm. On January 4, the company said it acquired CRMWaypoint, a cloud advisory and technology services firm based in the Netherlands.

CRMWaypoint focuses on Salesforce cloud offerings for sales, service and marketing. A spokeswoman for Accenture said CRMWaypoint has 45 employees and has conducted 600 Salesforce projects at 220 companies.

The consulting company's Salesforce personnel are joining Accenture's Cloud First Applications team, which provides cloud services around Salesforce, Workday, ServiceNow, Google and other cloud technologies.

In October, Accenture completed its purchase of Cloud Sherpas, a cloud advisory and technology services company with expertise in Salesforce, ServiceNow and Google. Industry analysts say Accenture's merger and acquisition strategy with respect to cloud computing is to rapidly amass talent to meet increasing customer demand.

On January 7, Accenture followed its CRMWaypoint announcement with an agreement to acquire Formicary, a company that provides consulting and systems integration services for trading platforms in North America and the United Kingdom. The pending acquisition, subject to customary closing requirements, complements Accenture's December purchase of Beacon Consulting in the capital markets sector, according to Accenture.

More IT channel news

Highlights from the week of Jan. 4:

  • Distributor Avnet Inc. significantly bolstered its partner training resources by acquiring ExitCertified, a provider of certified IT training in North America. ExitCertified is authorized by Amazon Web Services, Brocade, Cloudera, ForgeRock, Oracle, Pivotal, Red Hat, Symantec and Veritas.
  • Cloud analytics company CloudPhysics signed a distribution agreement with Ingram Micro Inc. Under the agreement, Ingram Micro will market, sell and support CloudPhysic's software as a service offering, which aims to eliminate operational disruptions in VMware environments.
  • Distributor Tech Data Corp. signed a deal with KoolSpan, a communication security provider that specializes in mobile devices and desktop phones. The agreement allows Tech Data to offer KoolSpan's suite of products to U.S. resellers through its Mobile Solutions and Retail division.
  • Business continuity vendor Carbonite named Chris Doggett as its new senior vice president of global sales. Doggett previously served as managing director of Kaspersky North America at Kaspersky Labs.

Additional reporting by John Moore.

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