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Axcient Research Reveals That MSPs Think BCDR Is Key Part of Their Future

MSPs agree that BCDR is a key part of their future to address the growing risks of ransomware and other pitfalls.

Allison Francis

November 10, 2022

3 Min Read
Business Continuity Disaster Recovery, BCDR
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\In tandem with ConnectWise’s IT Nation conference this week, Axcient has released key findings on how MSPs are consolidating their business continuity and disaster recovery (BCDR) solutions. Providers are faced with the challenge to better meet client needs and reduce risk, particularly during precarious economic times. 

The report was produced by Channelnomics, a business strategy and research firm. The findings capture the sentiments of more than 300 MSP respondents. These participants shared their sentiments about the state of the managed services and BCDR markets.

BCDR Key Part of MSP Futures

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Axcient’s Andrew Wittman

“MSPs agree that BCDR is a key part of their future to address the growing risks of ransomware and the criticality of business continuity for the health of their clients’ businesses; however, the uncertain economic climate and inefficiency of many BCDR solutions is driving MSPs to switch to more effective options,” said Andrew Wittman, chief marketing officer at Axcient. “Consolidating on technology that can address multiple use cases while reducing overhead and staffing costs is positioning MSPs to grow despite inflation and recessionary trends. We continue to invest in our partner’s success through work like this research.”

The report is titled “Optimizing BCDR Can Help MSPs Fight Off Recession and Grow.”

Key Insights/Takeaways

  • The average MSP supports 101 to 150 clients with BCDR

  • 96 percent of MSPs say BCDR is important to their businesses

  • BCDR remains a top source of MSP revenue, with more than 30% of MSPs generating more than 40% of revenue from BCDR

  • MSPs are feeling the pinch from economic trends, including recession and inflation, with 41% feeling challenged by rising operating costs

  • MSPs are seeking to consolidate their BCDR to save money and reduce risk with more flexible, efficient BCDR:

    • 45% would like a single platform

    • 46% think their current BCDR solutions are too complex

    • 42% are considering consolidating their existing BCDR solutions for better, more efficient systems

  • Performance is just as important as efficiency when considering consolidation:

    • Nearly one-third of MSPs (31%) seek a BCDR vendor with better recovery time objective/recovery point objective (RTO/RPO) performance

    • 28% want superior ransomware protection and recovery capabilities

    • 16% are looking for simpler management

Insights From Experts

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Axcient’s Rod Mathews

“Headed into a possible recession, 75% of the survey respondents said that they expect BCDR sales to increase in the next 12 months,” Rod Mathews, CEO, Axcient, told Channel Futures. “So, despite a decline, there’s only 4% who said that they expected their BCDR revenue to decline next year. That’s a 75% increase, 21% flat, and a 4% decrease. So, when you look at their book of business, when you look at the BCDR side, a good portion of these people expect to grow.”

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Channelnomics’ Larry Walsh

“BCDR is a significant driver of MSP revenue and growth,” said Larry Walsh, CEO and chief analyst at Channelnomics. “MSPs are responding to economic uncertainty by assessing their operations to optimize processes and costs. They’re looking to get the most out of the BCDR investments to ensure this reliable revenue source remains viable no matter what happens in the broader economy.”

Want to contact the author directly about this story? Have ideas for a follow-up article? Email Allison Francis or connect with her on LinkedIn.

About the Author(s)

Allison Francis

Allison Francis is a writer, public relations and marketing communications professional with experience working with clients in industries such as business technology, telecommunications, health care, education, the trade show and meetings industry, travel/tourism, hospitality, consumer packaged goods and food/beverage. She specializes in working with B2B technology companies involved in hyperconverged infrastructure, managed IT services, business process outsourcing, cloud management and customer experience technologies. Allison holds a bachelor’s degree in public relations and marketing from Drake University. An Iowa native, she resides in Denver, Colorado.

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