5 Reasons to Offer Backup as a Service for VARs and MSPs

Value-added resellers (VARs) worldwide are currently grappling with the strategic decision of whether to add Backup as a Service to their portfolio. This new offering would mark a significant shift for many VARs, as it would be their first foray into managed services. Initially, VARs may be hesitant to embrace this opportunity due to their busy schedules and the challenges of running a successful business.

However, what they fail to realize is that adopting the MSP model can bring unexpected benefits to both their customers and their IT provider organization. Not only does it have the potential to reduce workloads, but it can also exponentially increase profits. Furthermore, customers are increasingly expecting managed services as technology continues to evolve, pushing them to seek more than just the traditional "break-fix" relationship. Will you be the VAR that steps up to meet these evolving needs?

Today we list a few concrete benefits of adding backup as a managed service (learn about NovaBACKUP for MSPs):

1. Increased Profits
   Value-added resellers (VARs) are constantly on the move, installing hardware and software solutions for a limited amount of time. Unfortunately, while they work tirelessly to meet their clients' needs, the profit margins associated with these projects continue to dwindle. To make matters worse, VARs often have to go after their customers for upgrades and maintenance renewals, which can be perceived as a hassle. However, by offering Backup as a Service, VARs can eliminate these obstacles. With automatic payment, upgrades, and renewals, VARs can ensure a seamless experience for their clients. As a result, they can enjoy higher profitability with each installation year after year, without any gaps in maintenance and support. (Learn more about steps to switching revenue models.)
   
   
2. Threat Prevention
   In the ever-evolving landscape of VARs, the significance of a proactive data protection service often goes unnoticed. VARs tend to overlook the value of being able to monitor the success or failure of client backups, which ultimately leads to a reactive approach. However, by embracing the backup as a service model, VARs can ensure that they are at the forefront of utilizing the latest technologies and guarantee that backups are consistently restorable and readily available to their customers. This proactive approach not only mitigates potential points of failure but also sets a new standard for data protection in the industry.
   
   
3. Regulatory Compliance (HIPAA, PCI, CCPA, GDPR)
   In today's complex regulatory landscape, industries such as healthcare, financial services, government, and education face increasingly intricate compliance requirements. Both customers and VARs must demonstrate their commitment to maintaining compliance. However, in a break-fix model, where a client's backup solution may fall into disarray or become neglected, compliance becomes a concern. By offering Backup as a Service, VARs can equip themselves with the necessary tools to ensure end-to-end security certification. This proactive approach not only addresses compliance concerns but also sets a new industry standard for comprehensive data protection.
   
   
4. Stable, Predictable Revenue
   The unpredictable nature of customer needs can often leave VARs overwhelmed or with periods of inactivity, impacting their profitability. However, by offering managed backup services, VARs can establish a consistent and predictable revenue stream, providing them with the opportunity to plan for future growth. Instead of relying on one-off projects, VARs can enjoy the benefits of regular monthly payments, allowing them to better budget for ongoing data security. This not only creates a financially stable model but also opens up possibilities for increased profitability, external investments, and overall business expansion.
   
   
5. Customer Retention
   Customers benefit from the peace of mind that comes with a predictable monthly cost for data protection. This not only fosters loyalty but also creates the opportunity for a deeper, ongoing relationship with customers that can lead to new avenues of growth. Value-added resellers (VARs) that fail to offer a modern Backup as a Service plan may leave their clients questioning why this vital service is not available, potentially causing them to seek alternative solutions from outside providers.

Embracing services such as Backup as a Service will inevitably introduce new technologies, including the implementation of a hybrid-cloud backup platform like NovaBACKUP Managed Backup. However, the true transformation lies in the mindset of the VAR as they move closer to adopting the MSP model. This model offers unparalleled value to end-users, leveraging cutting-edge technologies, continuous monitoring, and swift data accessibility. Meanwhile, the IT provider reaps the benefits of consistent cash flow and a predictable workload. It's a paradigm shift that brings immense rewards for both parties involved.

Take a look at our blog post about, “How Different Clouds Protect Your Data".