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Cloud Backup, Storage

Boost MSP Chops




When it comes to making the

transition to being a managed ser-

vice provider, offering cloud backup

services is one way to increase

business revenue opportunities and

customer retention – especially in

compliance-driven verticals, such as

healthcare and financial services. A

recent survey from Asigra shows that

89 percent of MSPs offering cloud

backup services are profitable, and

87 percent expect profit margins to

grow in 2017. About 67 percent of

those profitable MSPs are offering

cloud backup as a bundled service.

In terms of the vertical markets

most commonly served by cloud

backup services, financial services,

professional services, healthcare

and medical, and legal markets

topped the survey. The data reinforc-

es the importance of comprehensive

backup solutions for industry verti-

cals with compliance requirements

such as HIPAA.

“This survey re-affirms that cloud

backup services offer an excellent

path for MSPs to increase revenue

from existing and new customers,

and become trusted advisors by

reliably managing customer’s vital

business data no matter where it

resides,” said Eran Farajun, execu-

tive vice president, Asigra.

The survey also revealed that the

majority of MSPs that offer cloud

backup services today are marketing

this offering as a trailing comple-

mentary service. This go-to-market

strategy positions cloud backup ser-

vices as a component of an overall

portfolio, enabling MSPs to bundle

these services for free or low cost,

increasing customer retention and

wallet share with existing custom-

ers. One area not being fully utilized,

as evidenced in the survey data: few

MSPs perform regularly scheduled

recovery drills for customers. Only

about half of the surveyed MSPs are

performing them at all, and of those,

fewer than 3 percent of customers

are consistently performing sched-

uled drills. MSPs can re-evaluate

this aspect of their cloud backup

service offering to protect customer

data, realize additional revenue and

cross-sell other services.

A perfect example of this is TIG,

an MSP in the U.K., which has put

together a high-performance file and

block storage offering alongside a

cloud backup solution. Cloud ser-

vices are one of the fastest-growing

revenue sources for TIG, and the

company was intrigued by a

new business opportunity:

leveraging cloud-based

multi-tenancy to manage

a number of customers in

segregated environments

on the same server. This

enables TIG’s customers

to receive dedicated storage not

shared with any other users, yielding

high, predictable performance.

It turned to Zadara Storage to

build a storage and backup solu-

tion that TIG could promote to its

customers as a flexible pay-as-you-

go service. In a more traditional

service model, offering storage

services to end customers would

require MSPs like TIG to procure

and support large storage arrays

in their own environment – a major

up-front capital expense invest-

ment. However, in this model, if TIG

weren’t able to sell enough storage

capacity, or if they lost a major stor-

age customer, the company would

run the risk of losing money on that

investment. Creating a storage and

backup solution based on software

and on-demand services allows TIG

to offer aggressive, agile services

that meet changing customer re-

quirements very quickly, for faster

revenue realization.

“For a service provider like TIG,

it’s vitally important to maximize

the resources at hand, and as cli-

ents’ storage needs ebb and flow,

to be able to meet their needs

quickly and without incurring a sig-

nificant infrastructure expense,”

said Nelson Nahum, CEO and co-

founder at Zadara Storage.

It was also important to TIG that

the solution enabled agile manage-

ment, allowing the service provider

to move quickly and strategically in

times of peak usage or unplanned

events, to take advantage of the fact

that storage and backup capacity

can scale in minutes.

“[This allows] us to be extremely

nimble – in combination, they really

align our business around a pure

opex model,” said George Georgiou,

sales director at London-based TIG.

“In the past, if a customer needed

more storage, we would have to order

and build the capacity, and it could

take six to eight weeks to expand the

environment. And if the customer’s

need was only temporary, we were

stuck paying off a big capex invest-

ment. These channel-friendly service-

based models from Asigra and

Zadara give us the ability to scale our

environment on-demand, according to

customer requirements. If you don’t

have this kind of flexibility and agility

in today’s marketplace, you’re not

even in business.”

Top Reasons MSPs Add Cloud Backup

Grow monthly recurring revenue


Expand total addressable market


Increase top line revenue


Increase wallet share from existing customers 42%

Source: Asigra





July - August 2016