For many managed service providers (MSPs), business continuity and disaster recovery (BCDR) are mutually exclusive concepts. Although it can significantly enhance margins, it can also provide a unique set of difficulties. MSPs frequently must oversee several backup vendors, which can increase the workload for their technical team and divert time away from other important activities like interacting with prospects and clients. Additionally, technologists often dislike the extra Labor that comes with responding to warnings on the weekends and at midnight. However, when the worst-case situation with a customer occurs, BCDR can also emerge as a hero.
Also Read: Managed Service Provider (MSP)
Advantages and Disadvantages of BCDR for MSPs
Pros
The BCDR has excellent margins!
Every time we attach a backup to an M365 license, I increase revenue and margin.
As a last line of protection, BCDR is essential, especially for ransomware
When we restore client data, we become heroes.
Cons
Every time I add a new client, I also get a new BCDR vendor to take care of.
My FTE can spend their time more productively than checking backups and BCDR notifications.
It’s difficult to find and keep talented technical employees!
My FTE dislikes weekends or urgent midnight alerts.
Also Read: What is a Metered Connection?
Challenges with scaling BCDR solutions
It can be difficult to manage all the solutions your clients need, especially for MSPs who work with numerous vendors. Growth can be impacted by each vendor’s ability to raise overhead and costs. However, reducing technological complexity is the key to making your BCDR solution, or offerings, work for business and attaining high-quality growth and flexibility. In addition to facilitating positive customer and employee experiences, retention, and referrals, simplifying your IT stack also boosts sales confidence, better aligns you with your target customer profile (TCP), and enables you to hire fewer, less expensive staff members.
Instead of attempting to integrate technologies from the ground up themselves, high-performing MSPs put standards in place as soon as possible and choose vendors who offer a uniform toolset. Many MSPs want to reach a critical level of revenue before concentrating on how to optimize operations and raise margins. However, this goes against what the majority of prosperous MSPs do.
High-grossing and profitable MSPs typically focus on improving their delivery and product first, after which they devote more resources to expanding without reducing margins. These MSPs also frequently work with fewer vendors and develop closer connections with the select few. Their enhanced scale, efficiency, and flexibility come from the business plans that are evaluated by the company management for each new product or service they add to their portfolio.
How to scale your BCDR offering without tech burnout
Are you having trouble finding the full-time employees (FTEs) you require or preventing the burnout of your current FTEs? If so, you most definitely are not alone. Many MSPs purposefully build their IT stack with expert services because scaling with FTEs may be a time-consuming and expensive process.
ConnectWise has a distinctive stance on professional services. Your level of involvement is entirely up to you and your company; some services are DIY, some are done with you, and others can be done for you. Making an extra strain on yourself and your staff by attempting to do everything yourself can rapidly result in burnout.
End Note How Implementing BCDR is Essential in Your MSP Service Stack
Managed Service and RMM software providers are responsible for ensuring that the IT infrastructure of their clients is running smoothly. As an MSP, you need to protect your clients’ businesses from any potential disruptions. That’s where BCDR comes in. Business Continuity and Disaster Recovery (BCDR) are the processes and procedures put in place to ensure that a business can continue operating in the event of a disaster. In this blog post, we will discuss the importance of implementing a BCDR plan in your MSP service stack and how it can help you protect your clients’ businesses.
Minimize Downtime: Downtime can be catastrophic for businesses, especially if they rely on technology to conduct their daily operations. With BCDR in place, you can minimize downtime and ensure that your clients’ businesses keep running smoothly. You can achieve this by setting up backup systems, redundant servers, and disaster recovery plans to ensure that your clients’ mission-critical data is backed up and readily available. By implementing BCDR in your MSP service stack, you can offer your clients a higher level of service, and they’ll likely view you as a trusted advisor rather than just a vendor.
Provide Data Protection: As an MSP, one of your primary responsibilities is to protect your clients’ data. From financial records to customer databases, data is an integral part of any business. A data breach, regardless of how small, can damage a business’s reputation and cost thousands of dollars. The implementation of BCDR helps you protect your clients’ mission-critical data against various risks, including cyberattacks, natural disasters, and human errors. In the event of data loss, your clients can recover their data and get back to business as usual with minimal disruptions.
Ensure Compliance and Regulations: Many industries are regulated and have specific compliance requirements that require businesses to have BCDR plans in place. For example, healthcare organizations must comply with HIPAA regulations, which require them to have comprehensive BCDR plans in place to protect patient data. As an MSP, it’s essential to stay up to date with the latest regulations and ensure that your clients are compliant. By offering BCDR as part of your service stack, you can help your clients meet regulatory requirements and avoid potential fines.
Improve Overall Business Resilience: Disasters can strike at any time, and no one is immune to them. By implementing BCDR in your MSP service stack, you’re helping your clients’ businesses become more resilient. With a solid BCDR plan, your clients can recover from disasters and minimize their overall impact. They’ll be able to get back to business as usual faster, which is essential to their long-term success. By ensuring your clients can stay afloat during tough times, you’ll be reaffirming your value as an MSP, and likely encourage them to recommend you to other potential clients.
Save Time and Money: Finally, by implementing BCDR in your MSP service stack, you can save your clients’ time and money. With a comprehensive BCDR plan, you can reduce downtime, prevent data loss, improve resilience, and avoid potential fines. For the client, this translates into a better ROI and a lower risk of business disruption. For your MSP, BCDR can help you achieve a higher level of customer satisfaction and potentially lead to more business in the long run.
In conclusion, the implementation of BCDR in your MSP service stack is not only essential, but it’s also a smart business decision. By offering BCDR, you can provide your clients with comprehensive protection against disasters and minimize their overall impact. With a solid BCDR plan, you can also strengthen your relationship with your clients and reaffirm your value as an MSP. So, if you haven’t yet implemented BCDR in your service stack, it’s time to start considering it. Your clients will thank you in the long run.
Author Bio
Fazal Hussain is a digital marketer working in the field since 2015. He has worked in different niches of digital marketing, be it SEO, social media marketing, email marketing, PPC, or content marketing. He loves writing about industry trends in technology and entrepreneurship, evaluating them from the different perspectives of industry leaders in the niches. In his leisure time, he loves to hang out with friends, watch movies, and explore new places.
