Why Resellers Should Offer Cloud Backup Services
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Why Resellers Should Offer Cloud Backup Services
Resellers can play a key role in small and midsize businesses' migration to the cloud by helping them select the right backup options to meet their needs. -
Gateway to Higher Margins
18% of respondents said cloud backup services are a "gateway" to higher margins and IT services, and 67% said they typically sell cloud backup as an addition to their primary service. -
Rising Demand
79% of respondents expect to see increased demand for managed cloud backup services over the next 12 months. Only 20% expect no change and less than 1% expect a decrease. -
Competitive Offering
51% of respondents said they could not compete without cloud backup services or it would be very difficult to compete without them. -
Profitability Rules
Slightly over 30% of respondents said managed cloud backup services were "extremely" or "very" important to their overall profitability. Another 40% said these services account for a "low but not insignificant" percentage of their revenues. -
Cloud Laggards
About 29% of respondents said managed cloud backup services account for a small percentage of their revenues or not at all. -
Considering the Cloud
Solution reliability and cost are the top two considerations of IT resellers when they select a cloud backup solution, followed by support, the ability to store data at the provider of choice, and degree of manageability. -
Selecting Cloud Providers
Reliability of service and security are the biggest criteria when selecting a cloud provider for customer backup requirements, according to IT resellers. -
Key Criteria
Other top reasons for cloud provider selection include ease of file restore, cost per gigabyte, ability to bundle cloud backup with other cloud services, tech support and partnership benefits. -
Lack of Adoption
The top two reasons customers don't adopt cloud backup, according to IT resellers, are data confidentiality or the need to keep sensitive data on-site, and unavailable/slow backup or recovery due to poor Internet connection. -
Adoption Barriers
Other top reasons for slow customer adoption are an inability to select cloud providers for their backup needs, questions about data ownership (who can access the data in the cloud), cloud storage provider service suspension and security concerns.
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Why Metrics Matter to the Channel IT resellers must re-evaluate their product portfolios as more businesses make their move to cloud computing. In addition to providing managed cloud backup services, IT resellers can play a big role in helping small and midsize businesses (SMBs) make the transition to the cloud by helping them select the right backup solution to meet their requirements, overcoming key barriers to adoption. Many resellers would agree: nearly eight in 10 said they expect demand for managed cloud backup services to increase over the next 12 months, according to a CloudBerry Lab survey of 434 IT solution resellers and managed service providers (MSPs). The survey also finds that the majority of resellers said that without reliable and affordable managed cloud backup solutions with technical support, they would be at a major competitive disadvantage. While cost is still a key factor when selecting cloud providers, despite a continued price war among major cloud providers, said CloudBerry, IT resellers are more concerned with service reliability, security and ease of file restore when selecting a cloud for their customers' data. Here are 10 key takeaways from the survey.