WillItSurvive
Cybersecurity companies · subsidiary of Kaseya · United States

Datto

Backup, disaster recovery, and cybersecurity tools for MSPs, now a Kaseya brand.

Losing its protection
Assessed 21 July 2026 · Evidence as of 21 July 2026
The structural protection is eroding.
On the recordSince 21 July 2026 · Checkable from June 2027 · Every call on the record Checkpoint: Delaware Chancery trial in Datto v. Slide trade-secret and patent case
The call

Datto's customer base and integrations still hold, but four layoff rounds, PE debt, and a founder-led rival suing back make its position more contested than its market share suggests.

Datto makes backup software and IT management tools that thousands of tech support companies use to run their businesses. The company is hard to replace because it has 40,000 customers, deep connections to their workflow through tools like Autotask, and stores massive amounts of data they depend on. But ConnectWise dominates the market with stronger market share, Ninja One is growing fast and just bought a backup competitor, a new startup called Slide founded by Datto's old leader is suing them in court, and artificial intelligence could let tech support companies automate many of the tasks Datto's tools help with. The biggest wildcard is whether Kaseya, the private equity-owned parent company, will successfully take Datto public, since four rounds of layoffs in ten months despite growing revenue suggest the owners are cutting costs before trying to sell.

Why
01
AI pressure: AI agents inside MSP stacks (Kaseya's own Copilot Cowork/Claude integration, plus rivals automating Tier-1 tasks). AI agents could shrink the labor Datto's tools support, but Kaseya is racing to own that layer itself, not lose it to an outsider yet. Could AI do the core job? Only partly.
02
Bigger players: ConnectWise. ConnectWise holds roughly 24% of RMM share versus Datto's smaller slice, and N-able and NinjaOne are both growing faster in backup and RMM. Could a giant copy it? Probably.
03
What protects it. 40,000+ MSPs locked into Autotask, IT Glue, and Datto's backup workflows, plus patents now used against copycat rival Slide.
What would change this call
Delaware Chancery trial (Datto v. Slide) outcome, currently set for June 2027. Would show whether Datto can legally block its ex-founder's rival backup product.
Kaseya files IPO registration or confirms listing decision. Would show whether PE owners are moving toward a liquidity exit or delaying further.
Canalys or similar RMM/BDR market share reports for 2026-2027 vs ConnectWise and NinjaOne. Would show whether Datto/Kaseya is gaining or losing ground to named rivals.
Key numbers
  • Kaseya bought Datto for $6.2B in cash (2022-06-23)
  • 40,000+ MSP customers, 3EB+ backup data (2026)
  • $1.5B+ combined ARR at Kaseya (2025)
Named risks
  • Slide litigation could weaken or void Datto's backup patents and trade secret protections. Severity: high
  • Four layoff rounds since April 2024 signal ongoing PE-driven cost extraction ahead of possible exit. Severity: high
  • No IPO filing despite 18+ months of public signaling leaves equity illiquid for employees. Severity: medium
  • End of High Watermark pricing (Dec 2025) risks partner churn amid pricing backlash. Severity: medium
  • $4 billion debt load from the Kaseya acquisition creates refinancing and margin pressure. Severity: medium
Rivals, as read in July 2026
RivalDirectionEvidence
ConnectWisecontestingMarket leader with ~24.2% RMM share vs Datto/Kaseya as of 2026
NinjaOnegaining onAcquired Dropsuite in 2025 to close BCDR gap and compete on backup
Slidelosing toFounder-led spinout since Feb 2025 targeting Datto's BCDR customers directly; active litigation
N-ablecontesting~16.2% RMM share with Cove backup product, named BDR Champion alongside Datto in 2025
MicrosoftcontestingAdjacent threat via Intune and Copilot integrations into MSP workflows, 2026
Questions people ask
Is Datto still an independent company or owned by someone else?
Datto has been a wholly owned subsidiary of Kaseya since June 23, 2022, when Kaseya closed a $6.2 billion all-cash acquisition paying Datto shareholders $35.50 per share; Datto's stock ceased trading on the NYSE and it now operates as a brand, not a standalone public entity.
Is Datto profitable in 2026?
Datto has not reported standalone financials since being absorbed into Kaseya in June 2022. Its last independent results were FY2021: $618 million revenue and $51 million net income. Parent Kaseya claims over $1.5 billion in ARR as of 2025, but this is a company-reported, unaudited figure.
Who is Datto's biggest competitor?
ConnectWise leads the RMM market with roughly 24.2% share as of 2026 per Canalys-adjacent industry comparisons, ahead of N-able (16.2%) and fast-growing NinjaOne. A more direct threat is Slide, founded February 2025 by Datto's own founder Austin McChord to target Datto's BCDR customers.
Could AI replace the MSP jobs Datto tools support?
Kaseya, Datto's parent, launched an agentic 'Kaseya Intelligence' platform in April 2026 with Digital Specialists that the company says cut ticket categorization errors by up to 80%, automating level-1 triage and backup verification tasks that MSP technicians traditionally perform.
Will Kaseya (Datto's parent) go public soon?
Kaseya has publicly signaled IPO preparation since January 2025 when CEO Fred Voccola moved to Vice Chairman, and a 2025 S&P Global Ratings report confirmed it continues weighing a listing. As of mid-2026, no registration filing has been made public.
What is the lawsuit between Datto and Slide about?
Datto sued Slide, a rival founded by ex-Datto founder Austin McChord and former Datto GC Michael Fass in February 2025, alleging trade secret theft of Datto's Hardware Independent Restore tech and patent infringement across four Slide products; Delaware Chancery trial is now set for June 2027.
Timeline
  • 2026-06-23Delaware Chancery trial in Datto v. Slide rescheduled, now reportedly set for June 2027
  • 2026-06Kaseya previews Kaseya Intelligence integration with Claude and Copilot Cowork, GA targeted 2027
  • 2026-04-28Kaseya launches agentic Kaseya Intelligence platform with Digital Specialists for ticket triage
  • 2026-01Kaseya lays off roughly 250 employees (5% of workforce) in go-to-market realignment
  • 2025-12Kaseya ends High Watermark pricing for Datto RMM, SaaS Protection, and Autotask
  • 2025-10DattoCon 2025: new SIRIS 6 appliance unveiled and AI email security firm Inky acquired
  • 2025-06Rania Succar becomes Kaseya CEO
  • 2025-02Slide founded by Datto founder Austin McChord and ex-Datto GC Michael Fass
  • 2025-01-09Fred Voccola moves to Vice Chairman; Kaseya signals IPO preparation
  • 2022-06-23Kaseya closes $6.2 billion acquisition of Datto; Datto delists from NYSE
Revision history
21 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources