Surprise! The Surprising Cost of Cloud-Based Backup Solutions

I often hear from MSPs that they are happy to start with a cloud backup software vendor as a result of the features and competitive pricing which is great – they think more margin, more profit for me. Backup runs fine without major issues, initial pricing is reasonable and competitive; however, after running the software for just a few months, even as little as a three month *trial*, the MSP receives an invoice with a big jump in price charged for the cloud storage.

Has this ever happened to you?

Most MSPs are aware of price per GB or TB that the vendor charges at beginning, but they fail to predict how fast and how big the backup size can grow. And when that data exponentially grows, faster than anticipated, the cost increase cannot be passed to the customer – not without risk of losing the customers and creating reputational damage. Failure to predict the fast growing cost on storage is fatal, MSP has no choice but either to terminate the contract for a penalty, or lose its own profit in order to continue the backup service. I have seen many an MSP do that.

But, there is an alternative solution…

NAS devices have become more popular than ever as a storage repository for the large capacity, low price per GB and easy setup. Many MSPs can now easily afford to create a self-managed data center within their own facility to offer backup service. In fact, most MSPs already house servers that deliver services to customers, so their facility has met the data center requirement. With a minimal infrastructure investment and the right storage solution, the data center (which could be a mere server closet), can be turned into a powerful private cloud. This is where software-defined storage, storage management solutions, become a very powerful and profitable enabler for MSPs desiring controllable and scalable backup and recovery capability. With software as the control, adding capacity is easy - add another NAS, another disk, virtualize the environment, so on... Plus, with SAAS type fixed pricing, these solutions offer control at multiple levels including budgeting and cost management!

RingStor is this type of solution. A multiplatform data backup and recovery solution that provides a fixed price, no hidden cost, integrative solution that can transform your facility into a high availability real managed backup service. More MSPs are turning to private and hybrid cloud solutions to improve profitability and service to clients. Isn’t it time you did as well?

No Comments Yet.

Leave a comment

You must be Logged in to post a comment.