I keep waiting for a shakeout in the cloud-based BDR (backup and disaster recovery) market. But the market momentum continues, according to a new research report from Intronis, The 2112 Group and Business Solutions. So what's the upshot for MSPs (managed services providers), VARs and IT services providers?
The answer is pretty compelling: Channel partners that sell cloud services (including BDR) are growing at more than double the industry average, according to the study.
Alas, there's also a market disconnect MSPs must address: Nearly 45% of IT service providers that sell to SMB customers are still "reacting" to their clientele needs -- rather than proactively recommending and selling such a service before disaster strikes.
Generally speaking, cloud BDR services have been hot sellers this year. Providers like Axcient, Datto and Intronis landed on this year's Inc. 5000 list of fastest-growing privately held U.S. companies. Also, Carbonite and Intronis rank among the world's Top 100 Cloud Services Providers, according to Talkin' Cloud.
But over the past 12 to 18 months, it seems like numerous cloud BDR providers have stormed into the MSP market -- and now into the VAR market. MSPmentor continues to wonder if there are enough MSPs in the market to support all of the cloud BDR suppliers for the long haul -- especially as Amazon S3 (Simple Storage Service) starts to attract MSPs as well.
Still, the bigger picture is a good one. The 2112 Group sees healthy growth ahead for MSPs offering cloud-based BDR services. The challenge for MSPs remains familiar: Instead of reacting to customer disasters, MSPs need better strategies to sell such services proactively.