Will Datto succeed in challenging Drop Box?

Datto, the data drive company launched Datto Drive, a file sync and share (FSS) service targeting SMBs (Small-Midsized-Business), with unlimited-user model for a year to the first one million companies that register for the services.

When Box and Dropbox, Citrix, Google, and Microsoft charge companies by the user for their storage and added-on tools, Austin McChord, the founder and CEO of billion-dollar startup Datto says, "We think this file syncing and sharing should be a commodity, but it prices out many smaller players in the market. Anyone who's paying hundreds or thousands of dollars every month for FSS will immediately see Datto Drive as a welcome alternative."

He further added, "Datto Drive is just one of many ways we’re empowering our partners to help small businesses run more efficiently and cost effectively."

Datto is aiming to serve the thousands of small and medium-sized businesses across the country that doesn’t look to startup trends for their data decisions. Datto Drive is based on the company's 200 petabytes private cloud and a global license agreement with open source FSS platform ownCloud, which Datto Drive is built on.

Datto Drive will cost $10 per terabyte, per month for an unlimited number of users in organizations. Brooks Borcherding, Chief Revenue Officer at Datto, said this giveaway is a big part of the initial marketing strategy for Datto Drive, "Once a customer is comfortable using Datto Drive, we give them the ability to seamlessly ingest the data from other FSS providers to consolidate their use onto Datto Drive long term."

Datto often depends on Managed Service Providers (MSPs), to get it in the door with such businesses like a regional bank moving onto cloud computing for the first time. “Datto is constantly looking for opportunities to strengthen the MSP community and enhance the value this essential ecosystem delivers to small and mid-sized businesses. Datto Drive not only delivers a unique opportunity for Datto partners but by protecting data at the file level, also serves as a key component to Datto’s total data protection platform” said Borcherding.

Though the initial goal is to seek widespread adoption in the SMB market, Borcherding said he could see Datto Drive being adopted by larger organizations, especially since many big companies also rely on ownCloud, "We would expect Datto Drive to be of great interest to larger enterprises that recognize the current pricing of file-sync-and-share solutions is incredibly expensive for a commodity service," Borcherding said.

FSS market is squeezed, but Datto Drive could create a niche for itself as a unique open source option for companies that don't need the added products offered by Box or Dropbox.

Quotes are republished as per reports from Forbes and Tech Republic