November 23, 2016
A DattoCon EMEA Retrospective
In this week’s podcast, Rob Rae, Vice President of Business Development, is joined by Brooks Borcherding, Chief Revenue Officer, and Matt Richards, VP of Product Marketing.
They’re discussing some exciting announcements from the recent DattoCon EMEA. At the conference, we released very exciting product announcements. DattoCon EMEA was attended by more than 300 partners, 250 percent more than the previous year. This conference represented a major milestone for Datto in our global expansion, as well as some very significant updates to our products and technology.
Rob, Brooks, and Matt discuss all this in more in the latest podcast.
Hey everybody, welcome to Datto's partner podcast, this is Rob Rae, Vice President of Business Development. Happy to be, yet again your host for this week's version of our podcast. We had the pleasure of going to DattoCon EMEA, we actually had our European show of DattoCon about a couple weeks ago, late October, where we had a number of announcements that we launched out in the EMEA marketplace. The podcast here is in an effort to bring a lot of those announcements back to the rest of the world. The rest of our Datto partners worldwide, outside of Europe.
Today I have joining me two gentlemen, I have Brooks Borcherding who is our CRO, and I also have Matt Richards who's our VP of Product Marketing. Both of which have got teams built out of Europe and now are going to talk about what we're doing and how we're rolling this out in the rest of the world. Brooks, Matt, thank you for joining me today.
Thrilled to be here.
Awesome, Brooks let's jump right in and we'll start with you. This is the second time that we've actually had ... The third time, your second time going over to Europe to do DattoCon EMEA. 2016 was bigger than last year, a lot flashier than last year. What are some of your experiences in taking a look at how much Datto has grown both in the EMEA market, as well as in particular this event from 2015 over to 2016?
Thanks Rob and it's good to be back on with you. It's really an interesting perspective the change in two years between the DattoCon15 and ‘16 in Europe. ‘15 was really just a DattoCon roadshow that we were sharing the news that we had from New Orleans and the announcements that were shared there. It was assisting to communicate what had already been launched and presented.
What we had this year was something of much more significant scale and much more significant substance in Europe. We really defined the European DattoCon as its own event in its own right. We had more than 300 partners that actually joined us at the event this year which was up more than 200, 250% than the year prior. It had a really significant attendance and engagement from that partner community.
I think we really surprised everybody with the substance that we presented there. It wasn't just a rehash of DattoCon Nashville from back in June. This event two weeks ago was really significant, subsitive event with significant amount of new feature functioning products that we were able to launch. I think we caught a lot of people by surprise, and I think we presented some really interesting and compelling advancements in our product line.
Safe to say that I think we're , from a DattoCon perspective, we've been doing it for, I think it's our fifth year that we're doing it here in the United States and that's become more of our international show. The European one is becoming very focused on other parts of the international market that we're growing into. Is it safe to say now that as the dust settles, as we find our groove here, we're going to be using the DattoCon venue as a way to launch new products, new features moving forward?
Yeah we're really looking at the U.S. event and the international event as two global events that are complementary to each other. They will both be the forms that we'll use for the timing of our more significant product news and announcements. You'll see them staggered in a similar format, maybe four months apart. In each of those, they will be structured as a cadence for us to bring out the product advancements in that cadence.
Now Matt, you're a newer addition to Datto. I think you joined us about six months ago now?
Yeah, just before DattoCon in the U.S., so in early June.
You were at DattoCon here in the United States, and then you also joined us for DattoCon EMEA as VP of Product Marketing. We wanted to bring you on to this podcast to talk specifically about what those releases were in EMEA. Maybe if you could give us some highlights for the Datto partners that weren't at the event. Some highlights as to what was covered there at DattoCon EMEA.
Yeah sure, Rob first, thrilled to be here. I'm looking at this as the first of many, I'm thrilled to be part of the podcast. Second, let's talk about some of the product releases. We'll break it into four categories. We released SIRIS 3 stuff, we released NAS 3 which is an updated and enhanced platform for us, a little bit about partner Portal and then some comments on Backupify, so knocking them off one at a time. SIRIS 3 we released some new hardware, S3 X2, two agent, two terabyte all flash device. Also, 80TB, 100TB and 120TB high-end devices, so new hardware there.
We released enhanced screenshot verifications, so we took what we started in 2011, which is the initial screenshot verification and added a lot to it including script-face verification. So PowerShell or BASH scripts you can write or upload into the SIRIS and those will be run as part of a screenshot verification run. You can see what succeeds and what fails, a pretty exciting way to verify more complex systems are ready to run when and if those backups are ever needed.
We then announced a Windows Agent Beta. This is an entirely Datto developed from the ground up Windows agent. Sort of matching up with our Mac and Linux agents that we already announced this year and last year, respectively, and our Windows agent to it, which gives us a more consistent control over the road map and the ability to make a more consistent look and feel across the platform. Regardless of which operating system you might be on.
Last but not least, or course, is Ransomware Detection. This one was really popular. Essentially the ability to detect in a backup if a ransomware infection has occurred and then provide an alert and rollback capability. We just had a webinar about this one actually a few minutes ago which will go live and on demand if you want to actually take a look at that webinar about this.
Moving on to NAS 3, so that was it for SIRIS 3, moving on to NAS 3. We announced NAS 3 which is the latest upgrade to the NAS platform. Including Infinite Cloud Retention, we added new hardware, and a new feature called NAS Guard which allows you to protect not just what's on the Datto NAS, but also reach out and project any other network attached storage available in the same network. Pretty exciting features there.
Moving on to Portal, two factor authentication there, a much needed security enhancement. As well as the last ten days status updates so you can see at a quick glance the status of the last ten SIRIS backups as well as thresholds. Essentially helping you manage your fleet of Datto devices in a faster, better, easier way.
Last but not least, Backupify, simply bringing seat management and application managements all through the Datto portal to the EMEA crowd. That was the short version of what we announced.
Obviously from my perspective, when I'm out there talking to our community, Office 365 is of huge interest simply because everything is migrating there, keeping the MSP's engaged. Obviously the portal updates make them a lot more efficient, the Windows agent is an interesting move and seeing where that goes. The NAS is probably the most undersold product that we've got, we've simply haven't really talked about it or advertised it but it's become a really solid product over the last number of years. Then of course like you just mentioned, we just did a piece on the Ransomware Detection which is a very prevalent, very hot topic right now.
Out of everything that you've just mentioned there, Matt, which do you think is probably most exciting for partners?
The one that partners seem to be reaching out about the most, and it's frankly the one I find, also, really fascinating. That is the Ransomware Detection piece. We are essentially taking a multi billion dollar problem for businesses around the world and providing a way for a backup system to identify, notify, and resolve a ransomware infection for our MSP's and their customers.
That's been pretty exciting, a lot of questions about how it works and we just did this live webinar about exactly this new solution called the Ransomware Protection and Recovery solution. It takes advantage of some of the new features of SIRIS, NAS, Backupify, and even Datto Drive a little bit, and balls that all up into a solution to give you a lens to look at our portfolio through Ransomware Detection.
Basically, we're identifying a common footprint. The one thing that all ransomware has in common is that it encrypts your files, so what does that mean? That generally means that the files you care about only are getting encrypted. It also means that those files, if you look at them from the outside and you analyze them they're becoming more random. When you put all that together, you can get to a footprint of a ransomware attack that is identifiable and different from how a user normally interacts with their system, which allows us to be able to trigger alerts and let you know that we think something happened. That one's been hugely exciting to the community.
Absolutely, I would agree, and obviously getting a ton of feedback on it to the point to where we did record the actual webinar. If anybody's looking for that webinar, it's available through the Datto.com website in the actual portal because of course we record all our content. It was a really good piece that Matt and I just recorded there going through not just the technical aspect of the new detection, but some of the new tools that we've got for you guys to help you guys go to market and sell more based on the ransomware threat.
Brooks, I'll come back to you with the same questions because you were there in London and you saw all these new enhancements and these new launches here. What do you envision as the most exciting piece for partners, or what would you want to highlight out of that?
First, I agree with both of your observations in the fact that one for Office 365 and the backup service that we offer for Office 365 is the best inbreed offering that's in the marketplace. We're finding a very significant attach rate to the Office 365 deployment, and it's by far the fastest growing part of our business. That's now available globally at a very aggressive price point with the SaaS store, so more of a friction-less way for our partner to acquire and provision that. That's something that's got a very rapid pace of adoption which is why it's spread across our partner community.
With ransomware is, it's so relevant to the user to small business throughout the world. Their peers are being infected, they're being infected, they're being held hostage and having to deal with bitcoins. To be able to show this live, a live infection, and then the remediation to that, it's very powerful. It really does resonate and give us, as Datto, who are the first in the world to deliver an offering that is this alternate backstop that practically detects and remediates the ransomware, is very compelling.
The two things that I took away as well. One is on the NAS side, NAS now is going out in the SIRIS form factor, it's a very powerful platform. It's got some capabilities with NAS Guard to connect and ingest unprotected chairs of any type of data and then replicate them to the cloud. That offers up a whole host of capabilities to our partners to deploy that as a point solution for previously unprotected type of data. It gets to be really interesting when you think about everything that's going on now with different types of data the you may want to protect.
And finally, on the X2, Rob you know I have to throw this out there, we did the SIRIS 3 X1 launch in Nashville and that's been wildly successful. The X2 was a request that came specifically from Europe, that they really needed to have the ability to protect two agents but in that small flash form factor. I think that's going to be really interesting in what is proving to be a very large percentage of the environments out there that have two or less agents.
Absolutely, and the X1 has been wildly popular. I think I heard a stat, and Brooks correct me if I'm wrong, that we haven't had a single device failure since we started launching the solid state drives, the SSD's.
We have not. We put that out there as not only the smallest and fastest but, the first flash BDR, but also the most reliable. Of the thousands we've shipped, we've not had one of them returned yet for a hardware issue. That is pretty incredible, we were a little staggered ourselves when we discovered that fact. It just shows the viability of flash as a going forward platform.
Absolutely, and Matt maybe I'll bring it back to you a little bit. If you can talk a little bit of more about the NAS device because I think this is one of the most underserved products that we just really don't talk about, our partners don't talk about it, but those that are using it are really falling in love with it. Maybe you can give us a quick highlight on what you're seeing from a NAS perspective and obviously Datto has been putting a ton of innovation into this lately. Maybe you can give us, from you product marketing perspective, what that looks like?
Sure, and I agree I haven't really talked about the NAS to date much. First thing to remember is that NAS, being a stand alone product in the first part of this whole release, is that it's available on SIRIS hardware. Essentially all new hardware for the NAS is SIRIS hardware or ALTO hardware, it's kind of up to you as to what you want. All new hardware gives it a much higher performance that what was seen before, including even if you wanted to pick up one of these S3 X2's but loaded as a NAS instead you can do that.
The fundamental underlying message is we went from cloud protected network attached storage device to this network attached storage platform. For me, that was a big move forward as I think about our place in the market. We've gone from "Hey, look it's a NAS" to "Hey, it's a NAS that protects data and allows us to do things like Datto Drive local" which was also announced. It's saying Datto Drive that you have in the cloud you can now run off your local NAS and also your local SIRIS 3. NAS 3 and SIRIS 3 both can allow you to run Datto Drive local, which means file sync and share on your local device backed up to the cloud.
We've also got the Infinite Cloud Retention which is a new piece that allows you to stop worrying about trimming and losing files and trimming down backup trees, and instead just save everything forever. That has been very popular on the SIRIS line. I know, Brooks if you want to add anything on that, because I think Infinite Cloud Retention is a pretty big deal.
Yeah it was nice that we just brought that over to NAS as well, the fact that you can basically just store it and forget it is resonating quite well from the SIRIS and ALTO line. We're seeing more than thirty percent of all of our solutions going out with Infinite Cloud now, and I would expect the same type of reception from a NAS platform. The fact that you can protect these previously unprotected data stores and now retain that for life is, I think delivers a great amount of value to the end users. I think we'll see an interesting uptake of that from out partner community.
The other thing worth mentioning on the NAS, just to wrap it up, was dedup. We actually unveiled and released deduplication. So, black level deduplication for the NAS. Also just getting more out of your NAS 3 whether it's additional performance within your hardware, or infinite cloud retention, and then on top of that deduplication to reduce and more efficiently use the storage you do have.
The Infinite Cloud Retention too, we talk about it and it sounds wonderful. There's a couple distinct advantages from an MSP perspective and it actually creates a differentiator for the MSP if they're competing against other MSPs or other services that aren't offering the data solution. There's not many vendors that do what we do which is, first of all, the fact that you can set it, forget it and not worry about going back and printing data and your customer can literally store all of their backups ever, since the beginning of time kind of idea, or since they start working with you. That's a huge selling feature where not having to worry about it, not having to charge additional fees, those kinds of things. For the MSP, it's more even you guys saving time, and it goes back to the total cost of ownership. Which is why we continue to make changes to our portal is to try and make everything faster and better for you so you're not spending time managing this stuff or pruning data or doing all these things. It's two sides of both a differentiator for you as a service, but also the idea that you're going to spend less time on it within your actual offices.
For me, I do want to talk about the Office 365 piece and I know Brooks talked about it a little bit. I've been spending a lot of time out in the market, I've talked to a lot of MSP's and I think this one's easily overlooked. The SaaS sales and selling Office 365, I think we've all given in to the fact that Microsoft is going to take these over. But by encompassing an Office 365 backup, you're not going to get rich off of doing it, but what you are going to do is maintain control of that customer. By having them, and building it into every Office 365 quote that you've got, it adds value to your managed services offering but it also retains control of the customer. If they are ever in a scenario where they need to recover, it's you that they're calling. It's you that's servicing the account. You're not asking them to call Microsoft. It's going to be a better experience that they have with your service offering, and yet again more value added to it. Plus the archiving piece added to it, we're doing the full suite of it.
I see a lot of our partners automatically adding in the Office 365 backup to every Office 365 quote that they're sending out and they're winning the business. Nine times out of ten the end users not even questioning whether that's something that the solution provider should be offering, or why are they offering it. I would highly recommend that you add it into everything that you're doing, and maintain control of that customer, maintain the customer's data so they are still coming to you. I think that's going to get more vital as time goes on, as we continue to see the migration towards SaaS rather than turning these relationships over. Your MSP is still the main point of contact. That's still the person we want to talk to.
Brooks I want to turn it back over to you, I know we're running out of time here. Let's talk about, this is the first podcast we've done in a little bit and we're starting to gear it up again as we're coming up to the year's end. We have big plans in 2017, obviously there's been some significant growth at Datto and you can see this in the products that we innovate and how we continue to grow these products. Maybe give us a little bit of insight as to what you see heading into 2017 and I know it's kind of a big huge elephant question here but: what do you envision? What do you see as a future for us and for our partners as we head into the new year?
I think we're going to need a separate podcast for that, Rob, it's a pretty broad question. What I'd say is that now that we've in November and I think that we've exhibited this ability to continue on a very rapid pace of innovation, and we're going to continue with that type of cadence as we go forward. We have a lot of really interesting things that are incubating in the lab right now with our R&D group. We've got some really interesting innovations that we'll be bringing out next year, and I think we're going to continue to focus on developing solutions that derive value for an MSP.
That's one thing that I think we do uniquely. Whenever we're thinking about how we evolve our product, the first thing we think about is how does my service provider create value around us? How does that value then be delivered to their customers and making sure that value chain is intact. From our initial thoughts about that through the development, through how they deliver and support it. It's always about delivering great value to the partners, it's about them being able to deliver that value onto their end user and do that very efficiently, in a profitable model that allows us to be an ongoing catalyst for this managed service provider community. Which I think is really becoming an essential part of the IT ecosystem.
I'm super excited about that and about these innovations that are going to come to market. We're going to continue to grow next year, so our ‘17 plan is certainly expecting that continued pace of growth. Much of that to the theme of this, is going to be international and outside of the United States. We have significant expectations for the UK and for the continent next year as we are seeing that momentum really build with Andrew and his team. I think it's going to be a great year for them next year, so I'm looking forward to it.
In the last twelve months we've seen rapid expansion within the Australian marketplace, the Australia New Zealand, and then of course the launch of the Singapore office which I think you would consider successful as we continue to see growth in Southeast Asia, so continued growth in those areas as well I would assume?
Yeah, absolutely. James and Nop are doing incredible jobs, we actually now have an office in Singapore as well as a data center. We've got our flag planted there and both of those areas in Asia are proving to be the fastest growing part of our business overall from a geography and I think that they're up for that next year as well. The partners that we have there seem to be super excited and jazzed about the opportunity and international overall, will continue to be evolved as a much more important part of our business.
Awesome. Thank you Brooks. This is the end of our podcast. I want to thank you guys for tuning in. We've talked about a lot of stuff during the course of this call. If there is anything that you guys would like, any of the reference material that we talked about, if you want access to the webinar we talked about, the Ransomware survey. If you want access to Brooks or Matt, more than happy to provide you guys any of that. Our email address is firstname.lastname@example.org, just fire us off an email. We will get you whatever resources, whatever contacts you actually need.
If you have questions about it, please don't hesitate to do that. If you have any ideas, or things that you'd like to hear on the podcast, if you'd like to join us on the podcast we would love to have you participate. The podcast is designed for the MSP, for the solution provider, to help you guys go to market, make more money, look for opportunities, look for new ways to spin stuff. If you have an idea or would like something we would love to hear it. We have a fantastic partner base that we can leverage so we can focus on verticalization and positioning and size, we can pretty much find any partner that can do anything and then we can leverage that experience and communicate it here.
Open ideas as we continue to head into 2017, please don't hesitate to share any of those ideas. Again, that's email@example.com. On behalf of Brooks, on behalf of Matt, on behalf of myself and everybody here at Datto, I want to thank you again for tuning in and be sure to tune in to next week's podcast. Thank you again for joining us, have a good day.