Focus on 2015: You need to ask for “the keys, please”
What should MSPs know about online backup in 2015? The final post in a four-part series offers insight from Chris Groot. The vice president of sales and business development for MAX Backup tells Marc Thaler there are three critical items to consider in the year ahead.
2015 is the year you, too, can drive a luxury car. In fact, if you aren’t behind the wheel of one, you need to ask yourself a simple question.
Before going any further, let’s pump the brakes to clarify. You’re not reading a game show transcript. You’re reading about your reality: Managed service providers (MSPs) are operating in a space where backup and disaster recovery (BDR) is providing a competitive advantage to those who use it.
And the keys, according to the vice president of sales business development for MAX Backup, are within your grasp.
“Much like the BMW is the ultimate driving machine, businesses want the ultimate BDR machine,” Chris Groot says of backup and disaster recovery, or BDR. “But the reality is that many in the SMB market feel they can’t afford it.”
Historically, the widespread approach to rapid recovery had a hefty price tag. The method was typically hardware-driven; servers loaded with business data required a physical or proprietary appliance from the vendor. Without it, overcoming software deficiencies was otherwise futile.
This cost-prohibitive conundrum remained widespread just a short time ago.
According to a 2013 Spiceworks survey of IT pros, many companies “are using on-premise hardware that leaves them vulnerable to data loss from device failure, performing manual backups infrequently or on-premise problems that affect both the original copy and backups, such as power surges, natural disasters or theft.”
Talk about backup-related road blocks. The good news, according to Groot, is BDR no longer functions as a status symbol for the big-budget businesses. Delivering full server recovery in just minutes is now a viable option for businesses of all sizes.
“In the software business, true innovation makes really hard problems look easy to solve,” Groot says of the new possibilities in BDR. “And we are making that the competitive advantage for MSPs looking to deliver this as a service.”
The question is how quickly this advantage becomes a baseline need for doing business. MSPs in 2015 need to assess whether they can serve their customers efficiently and effectively without a hosted BDR service. At best, it may be difficult.
Groot identifies three key issues MSPs need to consider this year:
Customers’ increased expectations for high availability
According to a survey by the Ponemon Institute, 75% of respondents said they were “more concerned today about maintaining availability uptime than 12 months ago.” It’s a safe bet the percentage has increased since the findings were published in September 2013.
The rising cost of network uptime
The price tag for uptime is considerable. If you’re looking for an amount, calculate the amount of money you stand to lose. Midway through last year, Gartner Research estimated the average cost of network downtime was $5,600 per minute.
Over 60 minutes, you’re looking at an average loss of $336,000.
The shift toward a predictable pricing model
Groot says customers want cost certainty. Data grows fast, which means a per-gigabyte licensing model for BDR creates financial uncertainty or risk. Therefore, Groot predicts a movement away from tying licensing fees to usage or volume, and instead delivering the service for a fixed monthly rate. This makes BDR easier for MSPs to sell, and easier for their customers to buy.
All roads are leading to one destination: a broader adoption of BDR.
“Every business should have a full-fledged backup and disaster recovery solution in place,” Groot says. “There’s no longer an excuse."