When you are talking about growth in your products are you seeing that with folks going deeper and wider with you guys, or are you seeing that from new business, that churn in the MSP cloud-based tool market, where maybe some folks are getting frustrated and testing new tools with different vendors? I’m just wondering where the greater adoption is coming from?
We have data for all of this. I’m not at liberty to go through it. We track every transaction. Is it a replacement or is it a greenfield? Things like compliance manager, our IT documentation business with IT Glue, those are all greenfield. We are not replacing anyone because there’s no one to replace. I think you’ll see about 50-50, I’ve seen Datto’s numbers. They’re public. We grew at literally twice their growth rate in the first, second, and third quarter, and our EBIDTA margins are about 12 points higher. That tells me their churn has got to be whacking them a little bit.
A lot of our customers that were not using our backup, are now using our backup. So that takes from people like Datto and Veeam and others. It’s not like Datto’s financials are bad. They had good numbers. I’m not insulting Tim or slapping the business. I think our renewal rates are higher than my competitors, but I can’t prove that. I’m more than happy to. Lets all sign NDAs and go sit in a room.
I think our renewal rates are better. The typical customer of Kaseya adopts another module of IT Complete every month to three months. We don’t recommend people switch everything right away, that’s too risky, but when they see the value of the integration. And we charge 30 percent less than the other folks do. If you are sitting there in 2020 and the world is falling apart and you are spending $100,000 on someone’s back-up solution, well now you can spend $70,000 for a back up solution that is integrated into the automation that runs your entire MSP, yeah, you are going to switch. So we saw a lot of that.