Proper backup should be an essential component of every managed service provider (MSP)’s security strategy—and by extension, a key part of their security offering too. By providing reliable backup services to clients, MSPs can help protect clients’ data, maintain business continuity, and offer a valuable service that sets them apart from competitors.
Why is backup so important?
Sound business decisions are those that preemptively tackle threats so businesses don’t have to suffer unnecessary damages. Backing up critical business data to the cloud—whether by providing backup as a service (BaaS) or a self-service solution—is the perfect example of a sound business decision.
Backup is important for the following reasons:
- Data protection: Protection against data loss, whether caused by human error, accidental deletion, natural disasters, hardware failures, cyberattacks or other security breaches. By providing backup services, MSPs can ensure that their clients’ data is protected and that disaster recovery can be initiated rapidly in the event of a disaster or any other unforeseen event.
- Compliance requirements: Many industries have strict data retention and backup requirements, and failing to comply with these regulations can result in significant fines and/or legal penalties. By offering backup services, MSPs can help their clients meet these compliance requirements, thereby circumventing costly penalties.
- General productivity: Not having to redo work in the event it is lost is huge. In the event of a data loss, clients with backup services can quickly recover their data, reduce downtime and minimize the impact on their operations. In other words, they can more easily maintain business continuity without needless interruption.
Backup: A growing market opportunity for MSPs
Although experts believe economic factors will likely push the US economy into a recession sometime in 2023 ↗, for MSPs, economic uncertainty can actually be an opportunity. After all, they provide the exact data protection services SMBs can’t afford to forego. Tellingly, 95% of MSPs ↗ said their revenue remained stable or rose in 2021, and in 2022, the percentage of MSPs expecting revenue growth to come primarily from net-new business jumped to 62%—up 50% from the year before.
As businesses increasingly prioritize data protection and compliance requirements, backup increasingly becomes a promising market opportunity for MSPs. In the post COVID-19 business landscape, the global market for cloud backup, estimated at $2.9 billion in 2022, is projected to reach $13 billion by 2030. The MSPs that offer reliable and effective backup solutions are those that will provide valuable services to their clients, thereby setting themselves apart in an ever-competitive market.
Main reasons to offer backup services
Other than the palpable opportunity to make more money, there are many reasons to offer backup services to your client base.
Security services are becoming an expectation
Security services are becoming an expectation because as technology advances, the ways in which we are vulnerable to security breaches and attacks multiply. As a result, organizations have come to expect that security services will be provided as a standard part of doing business. If they don’t get it from you, your clients will look to fulfill their baseline security service needs elsewhere.
The threat of cyberattacks is ever increasing
Cybercrime, which includes everything from theft or embezzlement to data hacking and destruction, is up 600% ↗ in the wake of the pandemic. It was rated the fifth highest risk in 2020, and quickly became the norm across public and private sectors alike. IoT cyberattacks alone are expected to double by 2025. What’s worse, the repercussions of losing sensitive data are growing in severity. One study found that 60% of small businesses ↗ fold within six months of a cyberattack. Offering backup services ensures your clients have adequate data protection against data loss.
Backup solutions help facilitate hybrid work
Hybrid work—which combines remote work with in-office work—is growing in popularity among SMBs, allowing them to access a wider, more diverse pool of talent and hire the best people faster. Consistent with prior quarters, 60% of SME CEOs ↗ are offering remote work options in order to attract and retain top talent, while 5% plan to do so in 2023. Offering backup solutions can help facilitate hybrid work for your clients by ensuring that important data and applications are seamlessly accessible to employees, regardless of their location or device, without the added worry of data loss or corruption.
Access a cloud marketplace with leading backup solutions your clients want
Sherweb offers a range of different backup products and solutions designed to meet client needs. We also pride ourselves on our wellspring of relevant expertise geared toward helping MSPs deliver these solutions like true pros. Join our partner program today to get started, or explore our partner guide for more information on how Sherweb can help your MSP business grow and thrive.