Retention is the new growth, especially if you’re an MSP selling BaaS or DRaaS.
DPM’s latest research shows just how sticky Data Protection relationships really are, and the two things that actually make a customer walk (or stay).
video transcript
Last fall, DPM surveyed 502 BC/DR leaders, all of whom were business continuity, crisis management, emergency management, disaster recovery, and cyber security pros, meaning that resilience was their full-time job. When asked what third parties their orgs rely on as part of their resilience strategy, the top answer (with 68%) are using backup-as-a-service or backup to a cloud provider. Let me say that again, two-thirds of BC/DR leaders say that their orgs are already using cloud-powered solutions as part of their resilience strategy.
So, this spring, DPM did a different survey, this time to 440 IT leaders who were already using cloud-powered resilience solutions, to find out what they wanted out of their MSP’s tech stacks and service delivery. One of the more interesting reveals out of that BaaS, DRaaS, and CRaaS research: the affinity organizations have to the MSP that’s delivering their data protection.
For over half of the respondents, their current MSP for data protection is the only MSP they’d ever used for data protection. This is huge when you think about:
- Retention is the new growth.
- The whole business model of an MSP is based on recurring revenue.
In fact, only 8% of the respondents had used two or more MSPs for their data protection. If you’re selling cloud-based services, this means that your customer is yours to lose.
There are probably only two reasons you’re going to lose your current customer:
1. They went through something like a cyber event and you weren’t able to recover their data. That is the whole thing: they’re buying an outcome.
OR
2. They want to protect workloads that your software vendors don’t support. That’s likely a SaaS other than M365 … maybe it’s endpoints … or your tech stack is not AI-capable enough … or your data protection doesn’t integrate with their cybersecurity. But it usually comes down to workloads.
There’s more in the survey data for MSPs and ISVs … and some good learnings on what IT decision makers will be looking for in 2027 … but those are blogs for a different day. Until then, leave your thoughts below.
Leave your thoughts on the LinkedIn article.
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