Datto slashes channel pricing

Decision to cut price of SIRIS suite by up to 50 per cent reflects growth last year, says backup vendor

Backup, recovery and business continuity vendor Datto has kicked off 2016 by slashing hardware prices for its channel partners by up to half.

Reductions of up to 50 per cent on hardware prices for Datto's entire flagship SIRIS suite were announced this week.

The Connecticut-based firm, which bagged $75m (£51.4m) of Series B funding in November, said the move reflects its success in scaling the business in 2015.

"Our partners have helped us grow to a size where we are now gaining significant economies of scale on the hardware production front," said Austin McChord, Datto founder and CEO.

"Our focus is on the bigger picture of helping our partners continue to grow and succeed, so we want to pass these savings along to help them be even more competitive."

Datto said it is also introducing additional discounts linked to longer-term services commitments, which it claimed was a sign of its growing emphasis on services.

Colin Blumenthal, managing director of Datto partner Complete IT, said: "While a number of other factors are usually considered before pricing, we believe that Datto's new hardware pricing will further support growth of our clients protected by Datto's technology."

Datto was not the only vendor in price-slash mode this week, with Amazon Web Services announcing its 51st price cut yesterday.