Is the Data Backup and Recovery Business Declining?

One of the worst fears of every business owner is reaching a saturation phase. As it has been a long time since the first comprehensive Backup and Data Recovery solution was introduced, IT businesses, especially, Managed Service Providers (MSPs) are wondering if the BDR industry has reached a point where it’s no longer profitable. The answer is a resounding “no”.
The Rightscale 2016 State of the Cloud Report [1] on latest cloud computing trends, sheds light on some important results that show that there is still a considerable gap in the IT industry that can only be filled by MSPs.
Here are some of the report’s most notable points to consider:

  • 32% of the respondents cited the lack of proper resources and expertise as their biggest challenge for not migrating to the cloud.
  • 17 percent of IT companies have 1,000+ VMs in public cloud, a jump from 13 percent in 2015.
  • Hybrid cloud usage also showed growth, and went up from 58% to 71%.
  • 29% cite security issues as a hindrance to moving to the cloud.

The facts state the obvious — IT companies still need quality cloud service providers, which not only can provide the bare essentials, but also a comprehensive toolset that can provide full virtualisation, data mobility, disaster recovery, business continuity, and more.
Since companies find it very difficult to find experts in the cloud computing space, they don’t get to use their private cloud services to their full capacity.
IT companies are also struggling with keeping their costs down, which is evident from the published report. This problem, however, can be easily solved by making use of managed service provider, who has the expertise and can distribute and deploy the available resources in the best way possible.

Disaster Recovery Marketing is to Grow

According to a study by MarketsAndMarkets [2], the Disaster Recovery as a Service (DRaaS) market is estimated at $12 Billion industry by 2020. MSPs specialising in Backup and Disaster Recovery solutions can scale their businesses focusing on that, and grow their business. Most small scale businesses and startups are not prepared for disasters, and since they can’t afford to build a standard recovery system themselves, an MSP is their best option.
According to another report, published by MarketsAndMarkets [3], the cloud storage market size is to grow from about USD 24 Billion in 2016 to about USD 75 Billion by 2021. Such reports are written based on a number of assumptions and as a result, the growth rates might be different depending on who wrote the report. However, one thing that’s certain is that BDR market is here to grow.
In order to keep pace with the growing demand and stay on top of the developments, a competitive MSP must ensure that they are clear in communicating their messages to their customers. All parties involved — the vendor, the MSP, and the customers — need to put an effort in understanding why MSP services can benefit their businesses.

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