33% of MSPs Can’t Find a Suitable BCDR Platform for Consolidation. This MSP Found the One.
Despite recognizing the economic cost of stack inefficiencies, most MSPs continue to use more than one business continuity and disaster recovery (BCDR) solution and multiple BCDR vendors. Why? Thirty-three percent say that they can’t consolidate on a single BCDR platform because there isn’t one that meets all of their needs.
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In this article…
- Understand the role of the “consolidation conundrum” in creating a barrier between MSPs and stack efficiency.
- Meet a fellow MSP who successfully standardized their BCDR stack using an all-in-one, unified, and scalable platform that meets multiple use cases.
- See how BCDR consolidation grows profits and drives operational maturity by lowering recurring costs and total cost of operations (TCO).
- Get two takeaways to help your MSP solve the consolidation conundrum and move toward a simplified stack.
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Exploring the Consolidation Conundrum Faced by MSPs
In a recent survey of MSPs completed by Axcient and Channelnomics, we discovered an unsettling gap in the channel. MSPs know the benefits of a consolidated stack but can’t find a comprehensive BCDR platform that meets all of their needs. Here are some key findings that illustrate the consolidation conundrum:
MSPs know what they want: 45% of MSPs say a consolidated platform that provides control over multiple tools with a single interface is the most efficient and best technical approach to delivering managed services.
And they know why they want it:
- Nearly one-third of MSPs say inefficient systems create excessive process steps in their service delivery.
- 27% of MSPs say these inefficiencies lead to higher operating costs.
- 31% of MSPs say inefficient, ineffective BCDR systems result in poor customer experience.
- 22% of MSPs attribute higher account attrition to inefficient systems and the poor service delivery that results.
So, they must be consolidating, right? (Wrong.)
- 87% of MSPs use more than one BCDR solution.
- The average MSP uses three different BCDR systems or service providers, and one-quarter (26%) use four or more BCDR systems or service providers.
And how is that working out? (Not great.)
- One-third (36%) of MSPs say their managed service portfolios are simply too inefficient to meet the demands of their service operations.
- Nearly half (46%) of MSPs complain that their BCDR systems are too complex and difficult to operate.
What’s the problem? Thirty-three percent of MSPs say they can’t consolidate on a single BCDR platform because they can’t find one that meets their needs or are unaware of their options.
More importantly, what’s the solution? Let’s see how one MSP solved the riddle…
>> Download the full Channelnomics and Axcient Research Report: MSPs and BCDR Optimization
From 25 Backup Vendors: “It was an all-around snowball, chaotic disaster.”
Since the MSP started in 2006, LANAIR Group’s focus on revenue generation stretched its stack to accommodate incoming customers. They absorbed the vendors and solutions that new customers brought in. Before they knew it, LANAIR was managing 25 different backup vendors – each with its own processes for onboarding and training, billing, support, maintenance, management, recovery, and sales and marketing. Neil Hawkins, COO at LANAIR, says…
- “We were spread too thin. You can focus on any one vendor or product. There are different training plans, different product support, compression is different, retention is different, and they all do different things. We wonder how we did it at 25.”
- “It was an all-around snowball, chaotic disaster.”
- “It doesn’t take a rocket scientist to figure out that you’re not making money when you’re supporting that many vendors. There’s no way to maintain profitability with complexity through the roof.
Down to One: “…we can continue to simplify our product stack in the background and reduce our attack surface…”
To remedy their predicament, LANAIR knew they had to consolidate. Standardizing with one vendor for all their BCDR needs – including Microsoft 365 and Google Workspace backup and secure sync and share – allowed LANAIR to reduce costs, streamline operations, and improve its cybersecurity posture. Armed with a unified portal, a single vendor’s processes, and one BCDR solution for multiple use cases, LANAIR is down from 25 vendors to just one BCDR platform. Neil explains:
- “You don’t see a lot of vendors pulling data protection and security together. I didn’t want to worry about securing my data vendor – that’s senseless. By bringing data protection and security into one piece, we can continue to simplify our product stack in the background and reduce our attack surface from a security standpoint.”
- “We purposely use Axcient as a ‘foot-in-the-door’ product because we’ve found incredible success going to prospects with two products – data protection and security. We can approach prospects working with other MSPs and get their data protection business.”
- “We were also able to take the burden off of us backing up to our own data centers or our client’s data centers. Now, we can throw the risk on our vendor, Axcient, and you guys manage that for us. So, I think that tells it all right there.”
For a Stack That Adds Value: “The more we simplify, the more profitable we get.”
Since standardizing its stack from 25 to one, LANAIR has been able to reduce support tickets and incoming alerts by almost 50% with automated features and self-fixing capabilities. Additionally, employee onboarding has been cut by four days – from 14 days down to 10 – saving additional resources and delighting employees. Neil talks more about the wins LANAIR has accomplished:
- “In reducing our vendor set, we reduced vendor management and developed our partner relationship with Axcient – which has been significant. We substantially reduced our backup cost overall on a per-machine basis because we’re not supporting all of those different vendors. We’ve reduced training overhead at the same time and limited our attack surface to increase security. Fewer vendors, less attack surface, less area of cover, fewer devices or product SKUs to patch, and so forth.”
- “We know that we can win with Axcient. We know the price is competitive. And we can make getting in the door with a prospect more competitive – and then add security after the fact. So, to me, Axcient is our number one entry into new clients.”
- “Since we started standardizing on Axcient, we started seeing profitability. We’ve been able to grow exponentially, and now we’re at a level we never thought possible. The more we simplify, the more profitable we get. The more leverage we get with Axcient as a partner. We can develop our relationship with Axcient and rely on them to help us grow.”
Consolidate and Prosper: Two Takeaways from LANAIR Group’s Success
#1: The ROI on consolidation makes it worth it. Migrating from a multi-vendor stack to a consolidated one is not an overnight project. Yes, it requires an investment from your MSP that includes time, resources, and money. However, the savings potential is significant when you compare costs.
For example, fewer vendors and solutions mean you don’t need as many or as highly skilled technicians. Sales and marketing can focus on selling one product versus juggling campaigns for multiple products. Support requirements go down with automation and innovation like Chain-Free backups and built-in ransomware protection. Simultaneously, your security posture and capacity for rapid and reliable recovery increase. You can meet more competitive SLAs, increase your recovery time objective (RTO), and provide better services to your customers.
See how other MSPs have profited from consolidation:
- Cygnus Systems Saves $12,000 Every Month After Moving from Datto to Axcient
- Standardized Vendor Stack Contributes to MSP Tripling in Size in Two Years
- CTS Picks Axcient Over Datto for Cost, Capabilities, and Support
#2: A single BCDR platform that meets MSP needs does exist. Because x360Recover for BCDR satisfies multiple use cases – including endpoint backup, hardware-free BDR, full-service BDR, and public or private cloud – LANAIR can standardize on a single platform with just one vendor. With automated cybersecurity features, a user-friendly and unified portal, and the ability to scale without limits, that foundation created a clear path toward profitability and stronger data protection for LANAIR and its customers. Now that you know what’s possible with a single BCDR platform, what could your MSP do with less?
Explore your options with a free 1:1 demo or a 14-day trial.
About the Author: Carissa Johnson // Product Marketing Manager, Axcient
Carissa Kohn-Johnson has a background in healthcare technology and information technology, and is now the Product Marketing Manager for Axcient. She has a lot of MSP Channel experience from planning and attending hundreds of conferences and tradeshows, and found her passion in IT. Carissa is also an elected official in Cary NC, a town chock full of technology-forward people. Connect with her on LinkedIn – perhaps you can contribute to the Axcient blog?