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Datto Signals ASEAN Region Cybersecurity Expansion Ahead of Kaseya-Datto Merger

National flags of countries who are member of AEC (ASEAN economic community) on blue sky background

Datto has released research that tracks cyberattack and data protection issues in the ASEAN region, and associated recommendations for MSP (managed IT service provider) partners. Read between the lines, and Datto essentially is signaling the technology company's continued international expansion amid the pending merger with Kaseya.

ASEAN is short for the Association of Southeast Asian Nations, which formed in 1967 and gradually expanded to include these 10 ASEAN member states:

  1. Brunei Darussalam
  2. Cambodia
  3. Indonesia
  4. Lao PDR
  5. Malaysia
  6. Myanmar
  7. Philippines
  8. Singapore
  9. Thailand
  10. Vietnam

Datto Engages MSPs in ASEAN Countries, Offers Cybersecurity Guidance

With that market in mind, Datto has positioned Mark Clayton as VP of APAC. Next up, the company has released a "special report" describing why MSPs (managed IT service providers) are key to customer data protection in the ASEAN region. Not by coincidence, Datto develops data protection, IT management and business automation software that MSPs leverage to safeguard small and midsize business (SMB) customer assets.

According to the Datto report:

  • Nearly 400 million personal data records were compromised in 63 publicly known breaches in the ASEAN region between 2018 and 2020;
  • Indonesia and Singapore experienced their largest data breaches in 2021, with 279 million and 5.9 million records leaked due to hackers respectively;
  • there are now roughly 14,400 IT providers that offer managed services across IndonesiaSingaporeMalaysia, and the Philippines;
  • revenue growth for MSPs rose 9% in 2021, reported at US$4.21 billion;
  • amid growing supply chain attacks, 55% of ASEAN MSPs are implementing and investing more in cybersecurity.

The report suggests that ASEAN region MSPs should:

  • Proactively conduct cybersecurity training for employees and customers;
  • invest in cybersecurity partner competencies to showcase an MSP’s cybersecurity practice commitment;
  • emphasizes communication between clients;
  • audit remote admin tools to discover potential flaws or weaknesses; and
  • develop end-to-end solutions and services within the customer’s region, if not country.

Datto's ASEAN region research was conducted by Canalys -- a research firm that Forrester veteran Jay McBain joined as chief analyst in April 2022.

Kaseya-Datto M&A: Deal Details

Fred Voccola, CEO, Kaseya
Fred Voccola, CEO, Kaseya

Meanwhile, Kaseya’s pending $6.2 billion acquisition of Datto, funded by private equity firm Insight Partners, is expected to close in the second half of 2022. The deal will create a massive software provider that assists MSPs with business automation, IT management, security and data protection capabilities.

Kaseya CEO Fred Voccola — through multiple media reports and during an appearance at Robin Robins’ conference —  vowed to properly support the Datto partner base once the deal closes.

According to M&A documentation, the Kaseya-Datto deal needs to close by November 11, 2022. However, a variable such as an “order or injunction arising under any Antitrust Law” can extend the deal completion deadline to April 11, 2023, according to a filing with the SEC. Related: See this Kaseya-Datto M&A timeline for ongoing updates.

In the meantime, Datto announced strong quarterly financial results on May 9, 2022. Next up, Kaseya in June 2022 is scheduled to host the Kaseya Connect IT Global 2022 conference for MSPs and IT professionals in Las Vegas. Then, Datto in September scheduled to host the DattoCon 2022 conference for MSPs in Washington, D.C.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.