Datto vs Veeam for Small Business Backup

Datto and Veeam solve the same problem in different shapes. Datto sells a complete package: an appliance in your office that takes image backups of your servers, replicates them to Datto's cloud, tests that they boot, and can run your servers from the appliance or from the cloud when the originals fail. It is sold only through managed service providers, so it comes with someone whose job is to run it. Veeam sells software: you (or your provider) supply the backup server, the storage and the offsite target, and Veeam handles the backups, the replication and the recovery, with more flexibility and more assembly. For a small business without IT staff, Datto through a good provider is the simpler path to tested recovery. For a business with a capable IT person, existing storage or a cloud strategy already in motion, Veeam is the more adaptable one. The rest of this article explains the trade-offs.

What is the difference between Datto and Veeam?

Datto's core products are appliances. A Datto SIRIS sits in your rack or on a shelf, takes image-based backups of your servers on a schedule, keeps a local copy for fast restores, and replicates to Datto's own cloud for the day the building floods or the server room is encrypted. Because Datto owns the appliance, the software and the cloud, the pieces are designed together, and the provider who sells it to you is expected to manage it. Datto also sells backup for laptops and desktops and for Microsoft 365 and Google Workspace data, all through the same channel.

Veeam's core product is software. Veeam Backup and Replication runs on a Windows server you provide and backs up virtual machines on VMware and Hyper-V, physical servers and workstations through agents, and cloud workloads, to storage you choose. Offsite copies go to a second site, to object storage such as Azure Blob or Amazon S3, to a Veeam-powered service provider, or to Veeam's own hosted vault. The platform is sold in editions with per-workload licensing, as described on Veeam's product page. Veeam also publishes a free community edition for a small number of workloads, which is how many IT people first learn it.

How does recovery work on each?

Recovery is the whole point, and it is where the two shapes matter most. With a Datto appliance, if a server dies on a Tuesday morning, the provider can start that server as a virtual machine on the appliance itself, usually within minutes of the decision, and staff keep working while the hardware is replaced. If the office is unavailable, the same server can be started in Datto's cloud and reached over a VPN. The appliance runs an automated boot test on backups and captures a screenshot of the login screen, so you have daily evidence that the restore would work, which is what an insurer or an auditor wants to see.

With Veeam, recovery is equally fast when the environment is designed for it. Instant Recovery starts a virtual machine directly from the backup file on a host you have available. Replication keeps a warm copy of a server at a second site or in Azure, ready to power on. SureBackup automates boot testing, though you configure it and pick which backups get tested. The difference is that Veeam gives you the tools and you supply the place to recover to; Datto ships with the place. A small business with one server and no second site is exactly the case where that bundled recovery location matters.

Both approaches have carried our clients through real incidents. Over three years we have handled more than 30 ransomware incidents, every one fully recovered, and the clients with a disaster recovery plan in place were back within 24 hours. The plan mattered more than the brand. Our backup and disaster recovery FAQ covers the questions that plan should answer.

How do they handle ransomware and immutability?

Modern ransomware crews look for backups first and delete or encrypt them before triggering the attack. The defense is a copy that cannot be altered or deleted for a set period, called an immutable backup, held somewhere the attacker's stolen credentials do not reach. Datto's cloud copies are held in Datto's infrastructure with immutability and deletion safeguards, and the appliance itself runs a hardened operating system rather than Windows, which removes it from the reach of most Windows-focused attacks. Datto's SaaS Protection product does the same for Microsoft 365 and Google Workspace data.

Veeam supports immutability through hardened Linux repositories and through object storage with lock features, and its design lets you separate the backup server from the storage so a compromised domain account cannot reach both. The caveat is that every one of those protections is a configuration choice. A Veeam installation set up in a hurry, with the backup server joined to the domain and backups on a Windows share, is exactly what attackers hope to find. Done properly, it is as resistant as anything on the market. Our ransomware protection service exists because the setup, on either platform, is where the outcome is decided.

What about Microsoft 365 backup?

Both vendors back up Microsoft 365, and both are needed by more businesses than realize it. Microsoft keeps the service running; retaining your data against deletion, ransomware in OneDrive, or an ex-employee's purge is your responsibility, which we explained in the shared responsibility model. Datto SaaS Protection is a cloud service managed by your provider. Veeam offers Veeam Backup for Microsoft 365 as software you host and as a cloud service, so you can choose between owning the storage and subscribing. Either way, the product should cover Exchange, OneDrive, SharePoint and Teams, and someone should test a restore of a deleted mailbox at least once a year. Our Microsoft 365 backup service covers that testing as part of the agreement.

How do the cost shapes compare?

Datto is a subscription. Your provider bills a monthly amount that covers the appliance, the software, the cloud retention tier you chose (a year, several years, or longer) and, usually, the management. The amount is predictable and it includes the offsite destination. What you give up is the ability to shop the pieces separately.

Veeam is a license plus everything around it. You pay per workload for the software, then you buy or repurpose a backup server, buy storage sized for your retention, and pay for a cloud or second-site target and the bandwidth to reach it. Each piece can be chosen to fit, and existing hardware can be reused, which is why Veeam is often the cheaper answer for a business that already owns storage or already pays for Azure. It is also the option where costs can be underestimated, because the cloud storage bill grows with retention and the hardware ages. Compare the two on a three-year total that includes hardware refresh, cloud storage growth and the labor to manage it, and the answer will depend on what you already have.

Which should a small business choose?

Choose Datto if you have no IT staff, one or a few servers, and want a provider to own tested recovery end to end with a bundled offsite location. Choose Veeam if you have an IT person or provider comfortable with it, a mixed or larger environment, existing storage to reuse, an Azure plan that a replica should fit into, or a preference for owning your backup data outright rather than holding it in a vendor's cloud. Whichever platform you choose, insist on three things: an offsite copy that is immutable, a documented recovery procedure with a target time for each system, and a restore test on a calendar. Our disaster recovery checklist is a good place to start on the procedure.

Frequently asked questions

Is Datto better than Veeam for a small business?

For a small business with no IT staff, Datto's bundled appliance, cloud and provider management is usually the simpler route to tested recovery. Veeam is better for businesses with IT capability, mixed environments, existing storage, or a cloud plan, because it adapts to what you have. Both recover businesses reliably when set up properly, and the setup and the recovery plan matter more than the brand.

Can we buy Datto directly?

No. Datto sells its backup and recovery products only through managed service provider partners, who deploy, monitor and manage them for clients. That is part of the design: the appliance is meant to be run by someone whose job is backup. If you want to own and operate the backup platform yourself, Veeam and similar software products are the route.

Does Veeam back up Microsoft 365?

Yes. Veeam Backup for Microsoft 365 covers Exchange Online, OneDrive, SharePoint and Teams, and is available both as software you host on your own storage and as a cloud service. Datto offers the equivalent through its SaaS Protection product, managed by your provider. Either way, back up Microsoft 365: Microsoft keeps the service running, but retaining your data against deletion and ransomware is your responsibility.

How fast can we recover with Datto or Veeam?

Fast enough that the plan is the bottleneck, not the product. Both can start a failed server as a virtual machine from backup in minutes when a recovery location is ready and someone knows the procedure. In our own incident work, clients with a disaster recovery plan in place were back within 24 hours of a ransomware attack. Set a recovery time target for each system, and test it.

If you are not certain your backups would bring the business back, that is the thing to fix before choosing a brand. Our disaster recovery service designs the plan, runs it on Datto or Veeam depending on what fits, and tests recovery on a schedule, with disaster recovery planning included in every managed agreement on month-to-month terms. Request a free assessment and we will tell you how long your current setup would take to restore.