News | November 14, 2013

New Research Shows Small To Midsize Businesses Are Putting Themselves At Risk For Crippling Data Losses

The “2013 State of Cloud Backup” Study Reports Growing Confidence in Cloud Backup Services, Unveils Startling Statistics on SMBs’ Use of Cloud Backup and Disaster Recovery Services

Anew research study released recently finds that small and midsize businesses (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 disaster recovery (BDR) solutions from their IT service providers until after they have experienced a data disaster. The full study can be downloaded here: intronis.com/cloudstudy2013.

The “2013 State of Cloud Backup” study surveyed 350 IT service providers—including managed service providers (MSPs), system integrators and IT solution providers—to learn more about how these firms are selling cloud backup services today as well as the type of demand they are seeing from SMB customers, along with 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 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 business continuity.
  • 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 report1 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 losshappens every day and can come in all forms, from hardware failures to user error and natural disasters,” says Neal Bradbury, co-founder and vice president of channel development for 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 safeguard their data with a BDR solution are relying on cloud-based technologies. The “2013 State of Cloud Backup” 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 percent 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 of The 2112 Group. “BDR is a must for businesses of all sizes. IT service providers are missing substantial opportunities to grow their businesses by waiting for SMBs to ask for cloud BDR solutions. IT service providers need to take a more active sales stance on backup solutions.”

“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.”

The full study from Intronis and The 2112 Group can be downloaded from www.intronis.com/cloudstudy2013.

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 MSPs, 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.

About The 2112 Group
The 2112 Group is a business services firm focused on the strategy, growth and channel development of technology companies. Through a portfolio of forward-thinking products that leverage intelligence, we apply innovative solutions combining proprietary research, consulting, custom content, market analysis and training delivered by industry experts that approach each engagement according to the needs of our clients. By looking at the market from the viewpoint of a vendor as well as a partner, we are uniquely positioned to identify a go-to-market strategy that is mutually beneficial to all parties from both a channel and overall enterprise perspective. For more information, visit www.the2112group.com

About Intronis
Intronis Cloud Backup and Recovery is a world-class cloud backup solution for the IT channel. Intronis provides the industry’s easiest-to-use secure data solution for offsite and local backup, which generates a monthly recurring revenue stream to add to your business. Intronis offers the deepest Exchange and SQL backup on the market, supports virtualized environments with native VMware backup and is integrated to major solutions in the MSP ecosystem. Partners receive expert customer support from our U.S.-based team. The solution has been field-tested by thousands of MSPs, and the company has been named “Best Revenue Generator” seven times and “Best Customer Support” three times by members of ASCII.  In 2013, Intronis was presented with theChannelPro-SMB’s 2013 Readers’ Choice Award in the category of Best Cloud Backup and Disaster Recovery Vendor, earned a 5-Star Rating in CRN’s 2013 Partner Program Guide, and was named one of the Top 20 Coolest Cloud Storage Vendors by CRN. For more information, visit www.intronis.com.

SOURCE: Intronis

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