Kaseya takeover of Datto could cause 'unrest', says rival

N-Able said it will remain 'laser focussed' on their customers and partners

Kaseya's $6.2bn acquisition of Datto could cause "unrest" among MSPs with the deal likely to "drive change and add some uncertainty".

That is according to N-able CEO John Pagliuca, who said the company will remain "laser focussed" on their customers and partners while Kaseya and Datto "sort their house".

Kaseya acquired MSP service provider Datto earlier this month, with the deal expected to close in the second half of 2022, subject to customary closing conditions and regulatory approval.

Pagliuca said the deal shows there is a "tremendous amount of value in the MSP industry" but felt it will "force change" on some companies, management teams and MSPs.

He told CRN: "I think where there's that change and when there's going to be that uncertainty as to what's next, that's going to unsettle people.

"I'm sure there are a lot of MSPs out there not really as comfortable as they might have been prior to the announcement because this does drive some change and add some uncertainty.

"And so, with that uncertainty, there's some unrest and that's what I believe the industry and the community is probably feeling right now."

He added that two businesses getting together in such a way could mean that inward focus is a "top priority" for Kaseya and Datto as opposed to being outwardly focussed.

Pagliuca said: "So the inward focus there is on integrating the teams, integrating the roadmaps, integrating the customers, integrating their systems. And that I would imagine would be their top priority."

As a result, he said he feels this presents an opportunity to make sure N-able are focussing outward.

Pagliuca said: "When you're focusing inward, and that's your top priority, then by definition you're not focusing outward as your top priority which does present an opportunity for us to make sure that we continue to focus outward on our partners, what their needs are and the ever changing needs of the SME.

"Technology's changing faster today than it ever has in our past. So it's up to us to make sure that we're basically providing this guidance to these MSPs to help them with their digital evolution."

He added: "I think for us, we are going to stay laser focused at the task at hand. And that's to really empower MSPs.

"Our goal and our mission is to make sure we're empowering the most profitable MSPs on the planet and we do so by giving them technology and some business solutions to let them do that."

Other competitors have also responsed to the Kaseya-Datto deal. In a statement, ConnectWise said the acquisition "changes nothing" about the company's plan or focus.

Jason Magee, CEO, said: "We intend to support our partners by staying laser-focused on previously communicated plans and commitments to TSPs. With our Asio platform coming to life at hyperscale speed, the momentum for our new ConnectWise RMM solution, and the many other advancements on the horizon for the TSP community—from product to partner experience to business transformation offerings—we couldn't be more bullish about the ConnectWise value proposition and our trajectory as a leader in this space.

"Kaseya and Datto are just beginning a lengthy integration journey. We are here to help the community in any way we can and look forward to seeing everyone at IT Nation Secure in June."