Loss of data ranks as a “worst nightmare” for businesses of any size, but for players in the SMB space data loss can be especially catastrophic. SMBs often operate on the narrowest of margins and with the tightest of deadlines, meaning that even as little as a few hours spent without access to critical data, or trying to retrieve it, can have a serious negative impact on the bottom line.
According to data collected in April 2011 from online backup solutions provider Carbonite, 48% of American small businesses with between two and 20 employees had experienced data loss, up more than 10% from 42% when Carbonite surveyed small businesses just four months earlier in December 2010. The top causes of small business’ data loss included hardware/software failure (54%), accidental deletion (54%), computer viruses (33%) and theft (10%).
Physical Backup Devices Prevail
Although 31% of small business owners surveyed agreed that backing up their company’s computers is a hassle that takes time away from running their business, Carbonite research indicated that physical devices were the most prominent backup methods used by small businesses. Specifically, external hard drives (41%), CDs/DVDs (36%) and USB/flash memory sticks (36%) were reported as the three most popular ways SMBs back up data.
Fear of newer, online and cloud-based backup systems and procedures is not causing this dependence on physical data backup, either. Survey data indicates that while many SMBs recognize that online backup solutions offer significant advantages to traditional physical-device backups, such as being automatic, continuous, offsite and requiring no extra equipment, those who do not backup to the cloud cited cost as the number one factor in their decision.
Parting the Clouds around SMB Data Backup
The survey data covers the smallest of SMBs, and is used as part of pitch for Carbonite’s automated data backup technology, so naturally MSPs cannot bank on the literal results as a sign of a burgeoning market. However, the data does show a general need for improved data backup for smaller businesses, and any MSP familiar with the SMB market knows that usually even companies at the larger end of the SMB spectrum have more in common with their smaller brethren than their larger competitors. Thus it is logical to assume the SMB market as a whole is threatened by loss of data.
Fortunately, MSPs are in a perfect position to offer SMBs relief from the threat of data loss. MSPs can provide automated, continuously updated, cloud-based data backup as a managed service with reliability, price and convenience SMBs cannot achieve on their own. If close to half of SMBs have already suffered data loss, you can bet they never want to go through the experience again, and that the other half have heard about it and are interested in avoiding their peers’ fate.
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Posted In: Cloud Computing | Managed Storage Services
Tags: Backup and Disaster Recovery | Carbonite | cloud backup | Cloud computing | data backupDisaster Recovery | Disaster Recovery | Managed Services | Managed Storage Services | online backup | SaaS | SMB Backup | SMB Storage
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In my view, the key with SMBs is to bake data backup and data protection into an overall solution. That is, the data backup piece of the solution should not be a la carte or selectable, but should be a mandatory component of a managed server deployment, for instance. Backing up is not an option, but should be mandatory. For MSPs that are the “one throat to choke,” you need a sound backup strategy for every solution, whether the client knows they need it or not.
Ted: Agreed. Managed storage, managed security should both be standard components within a larger per-user or per-site managed services practice… though I’m stealing the guidance from Gary Pica at TruMethods…
Ted has it right. Furthermore, MSPs should consider time to recovery when looking for a complete solution. Automating backups while creating a unified solution that is “baked in” is good. Having complete platform coverage alongside those attributes that addresses risk, cost and time is great. Meaning, on-premise, cloud, private cloud and the ability to manage that complexity through a simple interface. Some vendors are tunneling into this issue by creating appliances, yet that seems to be yet another hardware device that also forces MSPs into the infrastructure play. Storage is cheap and getting cheaper. How much and how you manage it is where the value will come.
I understand common backup methods SMBs use totaling over 100% because companies may be using more than one method of backing up their data; but, why do the top causes of data loss total 151%?
Mike@3: You hit the nail on the head — storage is cheap and getting cheaper. That’s a constant in IT. MSPs need to find their value-add.
Ludavia@4: Say I’m a small business that suffered a virus attack AND a software failure over the past year. That explains why the total for all the various types of setbacks exceeds 100%.
Best
-jp
Does little good if restore time after a *large* data loss stinks.
Check out–meaning verify by a long taste-test–the *actual* restore time of any solution you consider.
I have been very disappointed in the mentioned cloud solution’s restore time. And its Tech Support cannot fix the issue. Restore speed was actually about 25% to 33% of the speed advertised. That means the restore took 3X to 4X the projected “few days.” (And I’m still being charitable here.)
TallyDrinkWater: MSPmentor and TalkinCloud covered that point a bit a few weeks ago. My own hard drive failed and I was surprised that an online restore, from a consumer backup service, would have required 4 days. So I opted for the CD-ROM to be mailed to me. And that also took 4 days… Not exactly rapid recovery.
-jp
At the heart of this issue is that for most SMB’s data protection is seen as an insurance policy that they probably will never use and therefore is not seen as a good investment. Data loss is one of those things that is seen as happening to other people. This is why it is so critical for the MSP to sell data protection as part of an overall service and not an individual service.
Mitchell Cipriano
http://www.demandbydesign.com
Mitchell: Your comment helps to show why MSPs need to leverage the “neighbor” approach… “A restaurant two miles away lost three months of financial data… a realtor down the road lost three laptops and all customer data.”
Instead of talking about cloud outages at Google and Microsoft, MSPs should spend more time talking about the local setbacks that local businesses suffer when they lack proper protection.
In our personal lives, we all feel empathy — and often take action — when a neighbor suffers a setback. It’s similar in the business world…
-jp