BDR: To Build or To Profit?

dattoblog1SMBs are creating more data than ever. Research from Enterprise Strategy Group (ESG) shows that data will continue to grow at rates from 11% to 40% annually. IDC’s Digital Universe study predicts that the amount of data being stored is more than doubling every two years, and could grow by 50 times by 2020. That’s a lot of data to manage, backup, and be at risk for losing. No wonder SMBs are aggressively searching for BDR solutions to insure their valuable data and ensure intelligent business continuity.

It makes sense that MSPs and other service providers have played with the idea of building their own BDR solutions, to maximize their return on investment in this growing market. Other factors that have contributed to providers attempting to build their own BDR are negative experiences with less than stellar BDR vendors (present company excluded) and, of course, the emergence of cloud computing.

However, developing a BDR solution that can deliver intelligent business continuity is not for the faint of heart. One MSP confided in me that his attempt at building a BDR “was a mess, and recovery could take days.” He’s now a happy, successful Datto Partner.

Still enticed by building and owning your own BDR? Have you thought through the total costs associated with it? It’s more expensive than you might think. In addition to managing multiple secure data centers, you must develop the solution (hardware, software, code, etc), maintain the solution (experienced tech support), and always be in constant development. Another cost issue is purchasing cloud storage. When a vendor like Datto is purchasing its 6,000,001st GB of data, it’s much more cost effective than an MSP adding their 5th GB.

There’s also the headache of liability and regulations—unless you want another reason to pay your corporate attorney. When you build your own cloud, you assume 100% responsibility for the data. You must also become an expert on key compliance issues, including HIPAA, SOX, PCI, etc. With many medical offices looking to implement BDR and intelligent business continuity, many are in fact required to have it, being HIPAA compliant is key to getting their business. You may learn how Datto achieves HIPAA compliance here.

End-users, particularly SMBs, would be lost without the guidance, consultation, and IT services provided by their MSPs. They want MSPs to find, offer and support the best products in the market, not make them too. Even if you build your own BDR, can you offer intelligent business continuity?

As an MSP, when you get the call that a client’s server has gone down, do you want the added responsibility of guaranteeing that YOUR BDR will guarantee screenshot verification, offer both local and off-site virtualization, and be supported by an award-winning vendor and support team? Another Datto Partner may have put it best, “…since you can make a ton of money for little time and no investment….and let the big headache fall on support’s shoulders…why not?”

So, when you are evaluating a backup and disaster recovery solution to offer your SMB clients, you need to ask yourself—do I want to build it, or profit from it?

February 19, 2013     •     , , , , ,