{"id":38518,"date":"2020-02-20T15:21:23","date_gmt":"2020-02-20T11:21:23","guid":{"rendered":"https:\/\/www.msp360.com\/resources\/?p=38518"},"modified":"2020-12-17T13:05:18","modified_gmt":"2020-12-17T09:05:18","slug":"3-reasons-msps-make-mistakes-with-the-business-of-backups","status":"publish","type":"post","link":"https:\/\/www.msp360.com\/resources\/blog\/3-reasons-msps-make-mistakes-with-the-business-of-backups\/","title":{"rendered":"3 Reasons MSPs Make Mistakes with the Business of Backups"},"content":{"rendered":"

Like any service offering, the practice of providing backups to your customers needs to be organized, well-defined, predictable, and profitable. So, why isn\u2019t yours?<\/p>\n

Unless you\u2019re running a rather large MSP, it\u2019s likely that your skillset is far closer to IT experts than it is a businessperson. You get the idea that every service you offer needs to cover service costs and include a margin of profit. But that\u2019s not a business; if backups are to be a business, it needs to be a well-oiled service machine where you know what\u2019s going to work, how much will it cost, and what the outcome is. In other words, predictable<\/em>.<\/p>\n

So, why do MSPs see backups as a service and not a business?<\/p>\n

You Let Your Customers Dictate Your Service<\/h2>\n

Many MSPs inherit a customer environment, complete with all its existing hardware, software, and idiosyncrasies. It\u2019s conceivable that customers may not see the value in you \u2013 in essence \u2013 ripping out anything backup-related and starting over. And so they force you into using what they already have. Big mistake<\/em>. Your backup service \u2013 as you<\/em> define it \u2013 needs to be the only<\/em> way you provide the service. Otherwise, you\u2019re asking for the responsibility of your customer\u2019s recoverability using tools that aren\u2019t yours with little control over whether you can or can\u2019t.<\/p>\n

You Underestimated the Costs<\/h2>\n

Ask any IT pro what\u2019s needed to backup an IT environment \u2013 the general answer will be software<\/em> and storage<\/em>. Plenty of software and cloud providers offer MSP-centric pricing to simplify the \u201ccost\u201d equation. But there are a lot of other cost factors that aren\u2019t included \u2013 so many that the end result is you\u2019ve priced your offering too low to make any material profit. Technology is only one part of the service cost. And, if you don\u2019t have a handle on the costs, there\u2019s no profit and \u2013 thus \u2013 it\u2019s not a business<\/em>.<\/p>\n

Further reading<\/span> MSP Pricing Guide<\/a><\/p>\n

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FREE WHITEPAPER<\/div>\n
The MSP's Technical Guide to Backup-as-a-Service<\/div>\n
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