Asigra: MSPs Profiting From Cloud Backup Services

A new study praises the potential for profit from the sale of cloud backup services.

Asigra just released the results of a survey of 125 managed service providers about their use of cloud backup. The survey said that nearly eight in 10 (79 percent) MSPs found their cloud backup services to be profitable and another 84 percent expect their sales of cloud backup to grow in 2017.

Asigra's Eran Farajun“Delivering cloud backup services is a growing business. It’s a profitable business,” said Eran Farajun, executive vice president of Asigra. “Luckily a lot of partners are delivering it, and some of them that are delivering it see that element of their business growing very healthily.”

The service didn’t prove profitable for 14 percent of respondents, while 7 percent said they didn’t know.

“That smaller number might be experiencing a situation where customers are not buying it from them. Maybe they don’t have a focus on it or they’re not talking about it with customers,” Farajun said.

Most of the respondents (75 percent) deliver cloud backup as a complementary or add-on service. The top three vertical markets receiving cloud backup are professional services, health care and financial services – industries Asigra said must meet regulatory compliance.{ad}

A major finding Farajun pointed to is that the majority of MSPs perform three or fewer disaster recovery drills with their customers per year. He said partners should seek to monetize disaster recovery drills, which customers are sometimes prone to purchase without even using.

“That’s good from a profitability perspective, but the real objective is to make sure the customers do the drills and can actually recover in the within the timeframe that their business requires them to,” he said.

He said cloud backup services can help partners find new opportunities.

“Use cloud backup as a vehicle to enter into verticals that they’re not participating in today that do need it and are spending money on cloud.”

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