ConnectWise, LabTech Veteran Matt Nachtrab Joins eFolder
Matt Nachtrab, formerly CEO of LabTech Software and formerly president of ConnectWise, has joined eFolder as chief strategy officer. In an interview with ChannelE2E, Nachtrab said he will work closely with eFolder CEO Kevin Hoffman to set and execute the company’s strategic direction.
Nachtrab arrives at eFolder during a key time for the company and the overall backup and disaster recovery market. Through organic R&D and acquisitions, eFolder now offers a range of cloud business continuity, cloud file sync and collaboration, and cloud-to-cloud backup solutions for MSPs, CSPs, system integrators, and VARs. The company achieved profits in 2016 and grew more than 30 percent during the year, according to an eFolder statement. Actual revenue and profit figures were not disclosed.
Who Is Matt Nachtrab?
Nachtrab is a familiar name to MSPs. He launched Nemsys, an MSP, in 2000 and retains his ownership stake in that company. Frustrated with existing IT management tools, in 2004 he launched LabTech Software — a remote monitoring and management (RMM) software platform for MSPs.
ConnectWise Capital, led by brothers Arnie and David Bellini, invested in LabTech in 2010. The industry race to blend RMM and PSA (professional services automation) was on. For the next several years, ConnectWise disrupted many RMM businesses while some rivals gradually countered the PSA-RMM integration strategy.
By 2015, ConnectWise reorganized LabTech and several other assets into a single business, and Nachtrab rose to president and COO of the combined companies. But by early 2016, Nachtrab was looking to return to his entrepreneurial roots. He exited ConnectWise and quietly studied the MSP software market for potential opportunities.
Several career opportunities at several different technology companies popped up, Nachtrab tells ChannelE2E. But the most intriguing conversations involved eFolder CEO Kevin Hoffman, he adds.
eFolder owns end-to-end intellectual property (IP) in the data protection market, Nachtrab asserts. Key examples include Replibit, a business continuity platform acquired in June 2016. eFolder launched associated appliances shortly thereafter.
Plus, the company has a strong, growing base of MSP engagements, Nachtrab adds. That rare combination of technology and MSP market focus was exactly the type of business Nachtrab wanted to join, he says.
Nachtrab’s interest in the company grew even stronger upon meeting eFolder partners at a recent gathering in Florida. The energy, in some ways, reminds him of LabTech’s journey in the MSP software market.
Nachtrab and eFolder: Opportunities and Challenges
No doubt, eFolder is growing. But Nachtrab arrives at the company during multiple industry transitions.
Strong rivals like Datto and Barracuda Networks are blurring the lines between business continuity and security services, while Continuum blends BDR, NOC and RMM services. In many circles, Datto is perceived to be the SMB market share leader among MSPs that offer BDR, though actual market share figures are hard to come by. The market lines further blur when you blend SMB and midmarket opportunities, where players like Carbonite and SolarWinds MSP are pushing hard.
Of course, eFolder isn’t standing still. The company in October 2016 hired AVG veteran Francois Duamard to drive its channel partner program — which increasingly extends beyond MSPs to support VARs and resellers. And the company has been building out a Denver-based headquarters, though that has triggered some employee transitions.
So what’s next for eFolder? Surely, Hoffman and Nachtrab are already white boarding some strategic ideas…