Choosing the Right Data Backup Solutions for Your MSP

Modern MSPs and their clients run on computers, making data one of the most important pieces of an organization’s infrastructure. Unfortunately, working in the modern world also means confronting potential threats from a variety of fronts, including malware attacks, natural disasters, physical damage to machines, and accidental deletion, all of which are capable of causing devastating data loss.

As the volume of data grows and threats become increasingly sophisticated, organizations require robust backup solutions that not only safeguard against potential losses but also align with their specific operational needs.

For MSPs, understanding the nuances of the backup services available—appliance-based, hybrid, or direct-to-cloud—is essential. Read on to learn more about the different types of backup tools, their pros and cons, and which ones are right for your business and clients.

Table of Contents

Understanding the Need for Data Backup

Data loss is a significant threat to businesses of all sizes. And with average recovery costs coming in at over $1 million, small businesses are especially vulnerable.

A massive loss of critical data not only has the capability to cripple an organization financially, but can also impair normal business operations, lead to a loss of trust from customers, and threaten the organization’s overall competitiveness.

Fortunately, there is a way to protect against the ramifications of data loss: regular data backups. Restoring from a backup is a quick and cost-effective way to recover important data that has been lost or become corrupted. MSPs that perform automated backups with a top disaster recovery solution are often able to restore their data within a week, at about half the cost of the those who do not.

The MSP’s Role in Data Backup

MSPs play a vital role in safeguarding their clients from the risks of data loss. More than 70% of small businesses in the United States are not investing in cybersecurity measures. This lack of prioritization by the small business is where the MSP shines.

While individual small businesses may not be able to place the proper priority on cybersecurity, MSPs can, ensure their clients benefit from the best tools and security practices. An MSP can also provide their clients with continuous, proactive monitoring, prompt issue resolution, and robust disaster recovery that just isn’t possible for the normal small business to achieve on their own.

On-Premise/Appliance-Based Backup – A Traditional Approach

What is On-Premise Backup?

On-premise backup, also referred to as on-prem or appliance-based, is an option that uses physical hardware to store, manage, and facilitate data backup. An on-prem solution comes as a standalone device with software pre-installed, optimized for performance, and ready for integration into an existing IT environment.

On-premise appliances often offer a plug-and-play experience so they can quickly be integrated into an environment without the complexities of configuring a separate server and software from scratch. As a company’s data grows, many appliances can be scaled up by adding additional storage capacity or integrating with other appliances or cloud solutions.

Pros of Appliance-Based Backup

Ease of Use – Because many appliance-based solutions are preconfigured, they reduce setup time. Plus, a single user interface typically manages these solutions, which makes monitoring, backup initiation, and recovery straightforward.
Security – Many appliances come with built-in security features, such as encryption, which ensures data is secure both in transit and at rest. Having a physical device on site also gives organizations direct control over their data.
Dedicated Performance – Being purpose-built for reliable backup, these devices are tailored for high-speed data transfer, ensuring fast backup and recovery times.
Reduced Complexity – Combining both hardware and software, on-prem appliances eliminate the need to source separate components and ensure their compatibility.
Scalability – Some appliances allow for easy expansion by simply adding more storage or integrating additional appliances.

Cons of Appliance-Based Backup

Cost – The upfront cost for an appliance can be high, especially compared to software-only or cloud-based options.
Upgrade Constraints – While some appliances can be expanded for extra storage space, there is often a hard limit. Beyond this, organizations may need to purchase additional units, which adds to the upfront expense.
Potential Single Point of Failure – If the appliance fails and there’s no other backup (e.g., cloud or offsite), there’s a risk of data loss.
Maintenance – Over time, hardware can become obsolete or face performance issues. Companies potentially face vendor lock-in since upgrades or replacements often need to come from the original vendor.
Physical Requirement – An appliance requires physical space. Additionally, these devices, especially if multiple are in use, require adequate cooling and power, potentially increasing utility costs.
Less Flexibility – With an on-premise solution, MSPs are constrained by service areas because their techs need to be able to physically go on-site and access the hardware.

Is an On-Premise Backup Solution Right for Your Client?

While there’s an initial investment associated with appliances, it can often be the most economical option in the long run, compared to continuous cloud subscription fees, especially if your MSP works with businesses that have rapidly growing data volumes.

Because enterprises typically have large data sets, they can benefit significantly from an appliance’s swift backup and recovery times. Plus, the customizability and integration features of appliance solutions are often in line with the complex infrastructures of large enterprises.

An on-site appliance can also provide further control for handling sensitive data, ensuring data integrity and security. Regulatory compliance in specific industries mandates strict data storage norms, which on-premise backups can help fulfill.

When considering an appliance-based solution for your client, make sure to gauge their projected data growth to ensure the chosen solution can scale accordingly. The recovery time objectives (RTO) are crucial; if quick data restoration is paramount, on-site appliances might be more efficient than cloud solutions for large datasets. Security features, both in terms of encryption and physical access, should align with organizational priorities.

Utilizing a BCDR vendor that offers a bring your own device (BYOD) option in transferring service can save your MSP thousands of dollars up front and for your overall competitive pricing for client growth.

Cloud-Based/Direct-to-Cloud Backup Solutions – The Modern Approach

What is Cloud-Based (Direct-to-Cloud) Backup?

As the name suggests, direct-to-cloud solutions eliminate traditional on-site hardware and send data directly to a cloud-based storage platform. This approach reduces the need for extensive on-premise infrastructure, such as physical servers or storage arrays. Instead, MSPs configure and deploy thei client instances through backup software that captures and transmits data to a secure cloud repository. The data is usually encrypted both in transit and at rest, safeguarding sensitive information against potential breaches and unauthorized access.

From a cybersecurity standpoint, cloud backups offer a robust defense against local disasters or hardware failures, as full backups of critical systems reside off-site in a secure, geographically separate location. These solutions simplify the backup process by eliminating the intermediary step of local storage. However, the effectiveness of cloud-based solutions relies heavily on a good internet connection, network stability, adequate bandwidth, and the security measures implemented by the cloud provider.

Pros of Cloud-Based Backup

Lower Initial Investment – Without significant on-premise hardware, businesses save on upfront infrastructure costs.
Off-Site Protection – Data is inherently protected from local threats such as disasters (such as fire, earthquakes, hurricanes, etc.), theft, or hardware malfunctions.
Automated Backups – Once set up, backups can be automated, reducing manual oversight.
Flexible Storage Options – As a business’ needs for storage space grow, cloud storage can quickly scale up without requiring additional hardware or overhaul.

Cons of Cloud-Based Backup

Ongoing Subscription Fees – While initial costs might be lower, businesses will have recurring subscription fees, which can become costly over time.
Dependency on Provider’s Security – The safety of the data is in the hands of the cloud provider. If they suffer a security breach, your data might be at risk.
Complexity of Full Restorations – Retrieving large amounts of data from the cloud can be time-consuming, especially if internet connection is limited.
Hidden Costs – While scaling up storage is, it often comes with additional costs, especially if data retrieval becomes more frequent.

Is a Cloud Backup Solution Right for Your Client?

For clients with budgetary constraints, cloud-based solutions offer an affordable and efficient way to safeguard data without hefty upfront hardware costs. Larger enterprises with diversified locations will benefit from the geographical distribution and redundancy inherent in an cloud-based backup, but they must ensure their chosen solution meets compliance and data sovereignty requirements.

MSPs catering to a varied clientele can leverage cloud-based solutions to offer scalable, easy-to-deploy solutions but should provide robust connectivity and a transparent pricing model to avoid hidden retrieval costs and maintain client trust.

Hybrid Backup Solutions: A Dual Approach to Data Protection

What is Hybrid Backup Solution?

Hybrid solutions combine the strengths of both on-premise and cloud-based methods, offering a flexible and comprehensive data protection strategy. By utilizing a dual approach, hybrid solutions allow businesses to ensure immediate recoverability with local backups while benefiting from the redundancy and geographical dispersion of a cloud-based solution.

A hybrid solution provides on of the most resilient options. On-prem appliances allow for rapid recovery in case of system failures or minor data losses. At the same time, a cloud-based solution provides a safety net against catastrophic events that might compromise local backups. This double-pronged approach ensures that data is not only safeguarded but also quickly retrievable, maximizing business continuity in various adverse situations.

Pros of a Hybrid Backup Solution

Cost – Hybrid solutions balance costs by allowing on-site backup for immediate and frequent needs (which would be expensive if constantly uploaded to the cloud) and off site backup for redundancy and data recovery.
Security – Businesses have vital redundancy with data stored both on-prem and in the cloud. Even if local backups are compromised, the backup in the cloud remains intact.
Ease of Use – Most hybrid solution providers offer a unified platform or dashboard, simplifying the management of both types of backups.
Scalability – As data storage needs grow, cloud components can scale up without significant infrastructure changes on-site. MSPs can also adjust clients’ on-premise and cloud storage ratios as their needs evolve.
Ultimate Flexibility – A hybrid approach allows an MSP to deploy a BCDR solution in the way that makes the most sense for the client, without having to implement new infrastructure for an individual business.

Cons of a Hybrid Backup Solution

Recurring Cloud Costs – While the cloud offers scalability, it comes with recurring costs. As data accumulates, these costs can rise.
Potential Vulnerabilities – Managing two environments (on-premise and cloud) introduces more points of potential vulnerability.
Complex Initial Setup – Setting up a hybrid environment might be more complex initially than choosing purely on-site or cloud solutions.
On-Site Limitations – While the cloud component is easily scalable, the on-site hardware might have limitations and require upgrades or replacements over time.

Is a Hybrid Backup Solution Right for Your Client?

A hybrid solution offers the best of both worlds, with both on-premise and cloud-based backups baked in. This double-threat solution caters to those clients that often fall in-between the needs of an on-premise solution and a cloud-based solution. It balances the need to have the scalability and flexibility of a direct-to-cloud solution with the security and rapid recovery options on an on-site appliance.

It might be tempting to jump to the conclusion that all of your clients should be on a hybrid environment, but the decision to adopt a hybrid solution ultimately hinges on the organization’s unique needs and operational complexities.

When choosing a solution, make sure you understand what objectives are most important to you client and layer it with their technology infrastructure. For example, if they have a distributed workforce (which is better served by cloud-based), but they value quick recovery times and increased security (which is more in line with on-prem), a hybrid solution might be the right option.

For MSPs, adopting a hybrid strategy allows you to offer flexible solutions tailored to each client. Critical client data can be backed up on-site for immediate recovery, while redundant backups in the cloud ensure long-term data safety. This dual approach is typically a selling point for MSPs, promising clients quick data access and robust disaster recovery. Plus, centralized management tools, often accompanying hybrid solutions, make it easier to manage backups across various client sites.

Comparing On-Premise, Direct-to-Cloud, and Hybrid Data Backup Solutions

Each solution above offers distinct advantages and challenges. Let’s summarize them in a side-by-side comparison:

Appliance-Based Backup Solutions

Pros: Offers rapid data recovery speeds due to local storage, have high reliability since they’re often designed for specific backup tasks, and are generally straightforward regarding setup and management.

Cons: There’s an upfront cost for the physical appliance, potential scalability concerns as storage needs grow, and limited protection against catastrophic events without an accompanying off-site solution.

Direct-to-Cloud Backup Solutions

Pros: Eliminates the need for significant on-site infrastructure, lowering initial costs. Also provides a streamlined backup process, high scalability, and protection when disaster strikes or systems malfunction since data is stored off-site.

Cons: They depend entirely on internet connectivity, which means backup and recovery can be slow or interrupted if bandwidth is limited. Costs can accumulate over time with ongoing subscription fees, and there is a reliance on the cloud provider’s security measures, potentially leading to data sovereignty or compliance concerns.

Hybrid Backup Solutions

Pros: They combine the best of both on-premises and cloud, offering quick local recoveries with the added security of an off-site cloud backup. Scalability is enhanced as cloud storage expands as needed, and they generally provide a good balance between costs, with a mix of upfront and ongoing expenses.

Cons: The initial setup can be more complex since it integrates two backup environments. There may also be challenges in managing both local and cloud components and ensuring they function seamlessly.

	On-Premise	Direct-to-Cloud	Hybrid
Fixed Costs	✔️
Flexible		✔️	✔️
Easily Scalable		✔️	✔️
Highly Reliable	✔️		✔️
Provides Redundancy		✔️	✔️
Quick Recovery Times	✔️		✔️

Best Backup Solution By Category

Lowest Cost: On-Premise – On-prem backups provide a fixed cost, as the only expense is the upfront purchase of the appliance. There are no recurring costs associated with an appliance.

Most Flexible: Hybrid – A hybrid backup solution is the most flexible option available. It allows the MSP to cater to a variety of clients and scenarios.

Most Scalable: Cloud-Based – Cloud-based backups are the most scalable, as they are not limited by physical devices or storage limitations.

Fastest Recovery Times: On Premise and Hybrid (Tie) – Both on-prem and hybrid backups provide quick recovery times, as they both are able to leverage on site-appliances and aren’t wholly dependent on bandwidth like a fully cloud-based backup.

Tailoring Backup Solutions to Your Business Needs

The ideal data backup solution depends on individual and organizational needs. While appliance-based solutions may suit businesses with high data recovery needs and infrastructure investments, hybrid solutions provide a balanced approach suitable for modern enterprise backup. In contrast, direct-to-cloud solutions are particularly apt for businesses with minimal on-site infrastructure.

As an MSP, you possess the expertise in evaluating, deploying, and managing various backup solutions tailored to specific business contexts. By first conducting a comprehensive assessment of a business’s data volume, recovery objectives, infrastructure, budgetary constraints, and growth projections, you can provide informed recommendations on whether an appliance-based, hybrid, or direct-to-cloud solution would be the best fit.

Conclusion

The security and integrity of business data are more critical than ever. Appliance-based, hybrid, and direct-to-cloud backup solutions offer distinct advantages and challenges tailored to varied organizational needs. With such a diverse landscape of backup options, the importance of making an informed decision cannot be overstated. This choice significantly impacts business continuity, operational efficiency, financial expenditure, and overall data management.

MSPs play an instrumental role in guiding its clients through this decision-making process. Their expertise ensures organizations navigate the complexities of backup solutions to select and implement one that aligns perfectly with their unique needs.

Author

Shelby Verciglio

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