As I look into 2008, I’m starting to think that online backup has become a commodity — a managed service that every MSP has to offer as part of a larger suite of services. Thanks to heightened competition, the days of offering online backup as your one and only managed service are over.
Dozens of companies specialize in online backup. Big companies have purchased their way into the online backup game (example: Seagate acquired eVault in December 2006). And established software companies are now moving into the market (example: Symantec Protection Network will likely launch in January 2008). And let’s not forget about CommVault’s new online backup service. And there’s also Asigra, which says its Televaulting software now has 50,000 remote sites under protection.
So how can smaller MSPs compete in this very crowded market? I see two clear opportunities. First, push beyond traditional servers and Windows desktops to support Mac OS X and Linux. This could be a particularly popular approach if you deal with K-12 schools and universities.
Second, I’d drop the “backup” term and lead with “contingency planning” or “disaster recovery” instead. Show customers how you can keep them online — or get them back online fast — in the event of an emergency. Include backup services as part of your broader contingency planning or network protection service.
With so many competitors in the market, the days of selling online backup in a vacuum appear over.
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Joe,
We’ve found that “Disaster Prevention” seems to be better understood by business owners. I like to say, having your business burn down is unfortunate, but not being back in business in 2 days is a disaster.
“Lunch and Learn” are great monthly tools to help educate your customers and prospective customers. For those of you who dislike selling, this is not. But they will call you more often.
I absolutely agree with your assessment. Managed storage services are becoming as essential as managed security services, without the same intense pressures and vulnerabilities. You are also correct that the more explicit “business continuity” and “disaster recovery” terminology can be a more compelling service label than simple back-up services. No matter what you call it, offering managed storage services will not differentiate your business. Instead, it will be how you deliver the service that will set you apart.
There are still a lot of good independents out there. It pays to shop around and test out various options, as assuming that a big player will provide a service that is a good fit for your business could end up being a costly mistake.
I have found that AngelBackup.com have provided a cost effective backup solution for my business data.
Hi Jason: How did you find AngelBackup.com and are you an investor in the company? I ask because I just want to make sure readers have the full story on your association with them. Thanks for the earlier comment/post.