Most SMBs Do Not Purchase Backup and DR Solutions Until Experiencing Disaster

A new research study finds that SMBs are at high risk for significant and crippling data loss that could leave them out of business.

According to the 2013 State of Cloud Backup study commissioned by Intronis, Inc., and conducted by The 2112 Group, a large percentage of SMBs do not purchase backup and DR (BDR) solutions from their IT service providers until after they have experienced a data disaster.

The study surveyed 350 IT service providers-including MSPs, system integrators, and IT solution providers-to learn more about how these firms were selling cloud backup services today, as well as the type of demand they were seeing from SMB customers, and expectations for business growth. Conducted in September 2013, the inaugural Intronis study revealed a major opportunity for IT service providers to expand their business, and showcased that those providers who take advantage of the cloud opportunity are growing their businesses at more than double the industry average.

Additional findings from the research provide a complete picture of the type of data SMBs are storing.

These findings include:

• 34% of SMBs adopt cloud-based BDR to improve their data protection and BC.
• 20% of SMBs expect the technology to improve the reliability of their IT systems overall.
• 30% of all data stored in the cloud is made up of files used for backup and recovery, followed by user files at 28% and line-of-business applications at 19%.

A separate Forrester Research report notes that only 5% of SMBs employ backup-as-a-service, remote backup or online backup services from an MSP.

“This decision can prove devastating to an SMB business owner,” says Intronis.

“Data losses come in all forms, from hardware failures to user error and natural disasters, and it’s never a good time,” says Neal Bradbury, co-founder and VP of channel development, Intronis. “SMBs and IT service providers should think of cloud BDR services as insurance for the company’s data – no business should be without it.”

On the flip side, more than 50% of those SMBs that are working with an IT service provider to proactively safe-guard their data with a BDR solution are relying on cloud-based technologies.

The study also reports that because of the dire consequences and peace-of-mind associated with BDR, those IT service providers offering BDR-as-a-Service say it’s a top-seller and helps strengthen client relationships:

• 56% of IT service providers polled report backup and recovery is a top selling service.
• More than one third of IT service providers that choose BDR as a top seller predict their growth will be 21% or higher next year, more than double the industry growth average.

The findings speak to the growing confidence IT service providers and SMBs have in cloud-based BDR solutions. The study also makes the case for SMBs to carefully vet their IT service provider to ensure they offer BDR-as-a-Service and include it as part of the overall services engagement.

“The fact that more than 40% of IT service providers who sell to SMBs across North America are still reacting to their clients’ need for cloud-based backup and recovery is astounding – especially in today’s data-driven, technology-reliant marketplace,” says Lawrence Walsh, president and CEO, The 2112 Group. “BDR is a must for businesses of all sizes. SMBs need to ask for it and IT service providers need to take ownership of protecting their clients’ data and make cloud BDR a staple within their IT service contracts.”

“Cloud BDR-as-a-Service is one of the most lucrative and client-friendly managed IT services on the market,” says Intronis CMO Aaron Dun. “The lack of data protection within the SMB market can be easily addressed with cloud-based BDR services. We conducted this study to ignite the conversation between IT service providers and SMBs around BDR-as-a-service and get this market moving toward complete data protection.”

About the Survey
The 2013 State of Cloud Backup study was conducted using an online survey distributed to qualified IT service providers. Respondents represented primarily managed services providers, value-added resellers, systems integrators and IT solutions vendors. The survey was conducted Sept. 5-20, 2013, and has a margin of error of +/- 5.2 percent.

To download full study (registration needed)