SMB Cloud Backup Demand: An Untapped Revenue Stream for MSPs
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SMB Market Is Hot
73% of IT companies surveyed say they target SMBs with 1 to 250 employees for their BCDR offerings, while 41% focus on SMBs with 25 to 250 employees. -
Resellers' Best Seller: Backup and Recovery
56% of resellers said cloud backup and recovery is their company's best-selling offering, followed by collaboration and file sharing. -
Cloud Services Double Growth Rates
36% of solution providers with BCDR offerings as a top seller expect to grow 21% or more next year; 20% of them forecast growth of 31% or more, compared with the channel's average overall growth rate of 17%. -
What Drives BCDR Adoption?
34% of solution providers said SMB buyers adopt cloud-based BCDR to improve data protection and business continuity. -
Price Is Still a Factor
27% of survey respondents said lowering IT costs is the biggest reason for purchasing cloud BCDR services. -
What SMBs Store in the Cloud?
30% of all data stored in the cloud is for backup and recovery, followed by user files (28%) and line-of-business applications (19%). -
How MSPs Engage Customers
Security breaches, loss of data, downtime or concerns about unprotected data drive discussions with clients about cloud backup services, according to nearly 45% of IT service providers who sell to SMBs. -
SMB Concerns: Cost and Security
29% of respondents said the biggest obstacles MSPs face in cloud backup are recurring costs and total cost of ownership; 25% cited security and data integrity concerns. -
Overcoming Obstacles With Hybrid Solutions
25% of solution providers use hybrid cloud BCDR offerings as a top method to overcome their customers' resistance to cloud BCDR. Another 25% use security and reliability demos to counteract their reluctance. -
Private Cloud or Hybrid Systems Power BCDR
62% of MSPs say they use private cloud or hybrid systems to support their BDCR offerings, compared with 16% with public-infrastructure-based solutions only.
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Why Metrics Matter to the Channel Managed service providers are leaving money on the table by not proactively marketing and selling their cloud-based backup and recovery services to their customers. Solution providers are missing out on big opportunities to protect their customers, particularly small and midsize businesses (SMBs), and grow their revenue with cloud-based backup and recovery services, according to a recent survey commissioned by cloud backup and disaster recovery specialist Intronis. Solution providers wait until their customers have breaches, downtime or concerns about unprotected data, rather than taking a proactive interest in selling cloud backup before problems occur, according to the survey, which is based on feedback from 350 respondents in the IT services industry. This means many SMBs have a high risk of data loss and hold off on purchasing the services until they need them. Even though this is the case in many instances, the survey finds that business continuity and data recovery (BCDR) remains a top seller for the majority of solution providers. It also reveals that the more partners rely on backup and recovery services as a part of their overall practice, the more optimistic they are about future revenue and growth. Here's why this market offers big opportunities for MSPs selling to SMBs.
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