Asigra Survey Reports High Profitability Among MSPs Offering Cloud Backup Services

Asigra, cloud data backup service provider which offers public, private and/or hybrid deployments, conducted a  global survey of more than 125 Managed Service Providers (MSPs) of all sizes, and revealed the findings this week.The Survey suggests that cloud backup services lead to increased business revenue opportunities and customer retention.

Asigra’s survey revealed that 89% of MSP respondents who are currently offering cloud backup services today are profitable, and in addition, 87% of those respondents expect profit margins to grow in 2017.

“Ensuring profitability for our MSP partners is a key aspect of our Asigra hybrid partner program. 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, executive vice president, Asigra. “Leveraging Asigra Cloud Backup enables MSPs to seize opportunities in a myriad of vertical markets and position their cloud backup services as a revenue driver to expand their total addressable market and grow monthly recurring revenue.”

Survey Response Highlights

• 89% of MSPs offering cloud backup services are profitable, and 87% expect growth to continue
• Healthcare and financial services are top growth markets for cloud backup services
• 67% of profitable MSPs are offering cloud backup as a bundled service
• 50% of MSPs are recovering less than five percent of customer data in a typical year, and 75% are recovering less than 10 percent

As the cloud backup market continues to expand, even MSPs who are not currently offering cloud backup services have plans to do so within the next 12 months. This survey provides the cloud backup industry added torque to a vehicle that is delivering businesses of all sizes easy, cost effective, and dynamic backup and recovery solutions.

According to the survey, only about half of MSPs conduct regular recovery drills for customers , and even fewer respondents reported following through on this best practice at all. Many of the MSPs surveyed, reported the desire to utilize a cloud backup solution in the near future, which means that in order to support this growing technology, businesses must be responsible about regular recovery drills, and backup and business continuity planning.

To see more results from the survey, check out Asigra’s infographic. Follow me on twitter for continuous backup and recovery news and best practices updates.