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CloudBerry Lab: Majority of IT Resellers Can’t Compete Without Reliable, Secure Cloud Backup Services

Recent Survey Indicates Managed Cloud Backup Services Key to Profitability; 79% of Resellers Surveyed Expect Increased Demand Next Year

NEWPORT BEACH, Calif. – May 13, 2015: CloudBerry Lab™, a vendor of backup and management solutions for public cloud storage services, today announced results from a recently completed survey of 434 IT Solution Resellers and Managed Service Providers (MSPs). Respondents revealed that without the availability of reliable, affordable managed cloud backup solutions accompanied by first-rate technical support, they would be at a major competitive disadvantage. This is especially significant considering that a high number of respondents predict the demand for managed cloud backup services will increase and that these services are extremely important to their overall profitability.

In March 2015, CloudBerry Lab randomly surveyed 434 US-based IT resellers and MSPs to determine the impact cloud backup solutions have on their businesses. Respondents were asked questions related to their requirements regarding these solutions, as well as the major trends and factors impacting the decisions small and mid-sized businesses make when choosing the cloud for backup.

Key survey findings include:

  • Demand for cloud backup shows no signs of slowing: The overwhelming majority of respondents, 79%, indicated that they expect the demand for managed cloud backup services to increase during the next 12 months.
  • Managed cloud backup solutions are vital to profitability: 51% of respondents said that they could not compete, or that it would be very difficult for them to compete, without cloud backup solutions in their portfolios. Just 29% said that cloud backup accounted for a very small or insignificant percentage of revenues.
  • Reliability the key consideration, but cost also important: When asked what they require from backup solutions, resellers said reliability was the most important factor, followed closely by price.
  • Cost not the only determining factor when selecting cloud providers: Despite the fact that major cloud providers are in a price war, resellers and MSPs are more concerned with reliability of service, security and ease of file restore when selecting a cloud for their customers’ data.
  • SMBs concerned with data access in the cloud: For SMBs that still have not adopted cloud backup, location of data backups, or the need to keep certain sensitive data on site, was identified as a major factor, followed closely by unavailable or slow backup due to a poor internet connection.
  • Managed cloud backup a gateway to upselling services: The number of resellers who use managed cloud backup to sell higher margin services outnumbered those who sell cloud backup as a one-off service by a three-to-one margin.

“These findings demonstrate that resellers look beyond price and focus on some very specific requirements when it comes to selecting cloud backup solutions for their customers,” said CloudBerry Lab CTO Alexey Serkov. “This becomes even more interesting considering the current climate of falling prices for cloud storage. Clearly, resellers understand the distinction between full-featured, managed cloud backup solutions and solutions that do not offer much beyond the basic ability to store data in the cloud. Many SMBs may not fully understand the major differences between the two, but resellers and MSPs serving them know exactly what’s required, and they demand backup solutions combining the best features, performance and flexibility while allowing them to grow their market share.”

CloudBerry Backup provides thousands of resellers and MSPs with reliable, powerful and affordable managed cloud backup solutions for the SMB market. In addition to offering real-time and/or scheduled regular backups for simple data backups, local disk image, or bare metal restore, CloudBerry employs block level backup for maximum efficiency and provides best-in -class alerting features allowing resellers to track each backup and restore plan remotely. Data is protected via 256-bit AES encryption with keys controlled only by end-users, while confidentiality is enforced through transparent exchange whereby only end-users have access to the actual data residing on the cloud.

About CloudBerry Lab
Established in 2008 by a group of experienced IT professionals, CloudBerry Lab™ provides cloud-based backup and file management services to small and mid-sized businesses (SMBs). CloudBerry’s offerings include powerful, easy-to-use backup management capabilities and military-grade encryption using customer-controlled keys. Customers can choose to store their backup data with more than 20 online storage providers, including Amazon S3, Microsoft Azure, Google Cloud, HP Cloud, Rackspace, IBM Softlayer and others. CloudBerry also partners with thousands of VARs and MSPs to provide them with turnkey, white-label data protection services. An Amazon Web Services Advanced Technology Partner since 2012, CloudBerry Lab has also achieved Storage Competency Partner status in the AWS Partner Network. For more information please visit Follow us on Twitter at @cloudberrylab.