AIStackForSMB

1Password vs Datto

A side-by-side comparison of two security tools for small businesses.

Bottom line

For most small businesses, 1Password edges out Datto on overall SMB fit (9/10 vs 8/10), especially for 1Password fits small businesses where multiple employees share access to cloud…. That said, weigh pricing and the feature breakdown below against your needs.

At a glance

Attribute1PasswordDatto
SMB score9/108/10
CategorySecuritySecurity
Free tierNoNo
Starting priceFrom $3/user/moContact sales
Best for1Password fits small businesses where multiple employees share access to cloud tools—think agencies, e-commerce operations, small dev shops, and professional services firms juggling a dozen or more SaaS subscriptions. It's especially valuable for teams that have experienced even one password-related incident—a terminated employee who still had access, a phishing link clicked because a weak password got reused, or a data breach notice from a vendor. The Teams Starter Pack's flat pricing makes it budget-predictable for companies under 10 people, and the Business tier scales cleanly for growing teams needing audit logs, advanced permissions, and SSO integrations.Datto is the strongest fit for small and mid-sized businesses that have on-premises servers, Windows endpoints, or heavy reliance on Microsoft 365 and Google Workspace—particularly those in industries where downtime has direct financial consequences, like professional services firms, medical practices, legal offices, manufacturers with ERP systems, and retail operations running point-of-sale infrastructure. It also excels for businesses that already work with a managed service provider, since Datto's MSP-centric distribution model means your IT partner handles configuration, monitoring, and testing. Companies in regulated industries needing documented backup chains for HIPAA, SOC 2, or cyber-insurance audits will find the audit trail features especially relevant.

1Password

Secure every team login with a shared vault, strong password generation, and breach alerts built for businesses of any size.

Picture a five-person marketing agency where the owner's Netflix password is saved in a sticky note and three employees share a single login to the client's ad account. That's not just messy—it's a liability waiting to happen. 1Password is the tool that cleans up that situation p…

Key features

  • Encrypted vaults with role-based sharing permissions across team members
  • Watchtower scans for breached passwords, weak credentials, and missing 2FA
  • Browser extensions autofill logins on web apps without exposing raw passwords
  • Admin console lets owners provision, restrict, or revoke access instantly
  • Stores SSH keys, API tokens, secure notes, and documents alongside passwords
  • Travel Mode temporarily removes sensitive vaults from devices crossing borders
  • Guest accounts allow limited vault access for contractors without full licenses
  • Mobile apps for iOS and Android with biometric unlock support

Limitations

The $19.95/month flat rate is only cost-effective up to 10 users; beyond that, the Business plan charges per seat, so verify current pricing on the vendor site before budgeting. Some SMBs find the vault-and-permission model has a small learning curve—employees accustomed to browser-saved passwords may resist the behavioral change for several weeks. 1Password does not offer a permanent free tier for teams; there's a 14-day trial, but ongoing use requires a paid plan. Offline access exists but is limited by design, and a few legacy enterprise integrations may require the more expensive Business or Enterprise tier. Self-hosted deployment is not available.

Datto

Business-grade backup, disaster recovery, and endpoint management built to survive ransomware and keep SMBs operational.

Picture this: it's Monday morning and your office manager calls to say the file server is encrypted and a ransom note is on every screen. For businesses running Datto, that scenario ends not with a wire transfer but with a rollback. Datto is a platform built around the assumption…

Key features

  • Immutable cloud backups that ransomware cannot encrypt or delete remotely
  • Instant cloud virtualization spins up failed servers in minutes, not hours
  • Covers Microsoft 365 and Google Workspace SaaS data with scheduled backups
  • Remote Monitoring and Management (RMM) for patching and endpoint control
  • Screenshot verification automatically tests each backup restore is bootable
  • Centralized multi-site dashboard for MSPs managing multiple SMB clients
  • Configurable retention policies support compliance requirements across industries
  • Network monitoring and management available as an add-on module

Limitations

Datto is not a self-serve product. Pricing is quote-based and varies by appliance size, data volume, retention length, and whether you're buying direct or through an MSP—budget predictability requires a detailed scoping conversation upfront. Smaller businesses without an IT partner may find the onboarding process slow and the ongoing management overhead higher than expected. The RMM and networking modules are separate add-ons, so total cost can climb quickly if you need the full platform. Businesses with exclusively cloud-native infrastructure and no local servers may find the value proposition thinner relative to lighter SaaS backup tools. Verify current pricing and module availability on the vendor site.

We may earn a commission if you buy through links on this page, at no cost to you.

Frequently asked questions

Is 1Password or Datto better for small businesses?
For most small businesses, 1Password edges out Datto on overall SMB fit (9/10 vs 8/10), especially for 1Password fits small businesses where multiple employees share access to cloud…. That said, weigh pricing and the feature breakdown below against your needs.
How does pricing compare between 1Password and Datto?
1Password offers paid plans from about $3/mo. Datto offers custom / contact-sales pricing. Always confirm current plans on each vendor's website before you commit.
When should I choose 1Password over Datto?
1Password is a strong fit for 1Password fits small businesses where multiple employees share access to cloud tools—think agencies, e-commerce operations, small dev…. Lean toward Datto if you need Datto is the strongest fit for small and mid-sized businesses that have on-premises servers, Windows endpoints, or heavy reliance on….

Read the full profiles: 1Password · Datto · All Security tools