Latest IDC Research Reveals Good News For Backup-As-A-Service Providers


Jun, 13

Latest IDC Research Reveals Good News For Backup-As-A-Service Providers

I saw an article in the CompTIA SmartBrief newsletter the other day that caught my attention; it was titled: “IDC: Storage investment growth remains robust.”  Here are a couple of highlights from the news report that I found noteworthy:

  1. IDC estimates more than 102 exabytes of external and 36 exabytes of internal storage system capacity will be sold in 2017, up from just 20 exabytes of external and 8 exabytes of internal capacity in 2012.
  2. Over the next four years the average amount of storage space companies acquire will grow by an average of 35% to 40% per year for external storage and 33% to 38% for internal.

This massive growth in storage consumption is especially good news for resellers that sell hybrid backup solutions (including on-site and cloud backup) as a service. The concept is pretty straightforward: Once you sign up a customer for a data backup as a service program, the customer’s growing data needs will lead to incremental revenue gains over time for your managed services business.

What’s good to know about selling storage as a service that’s different from selling remote monitoring as a service or even software as a service is that the former is less dependent  on your clients’ employee growth. You could have a healthcare client, for example, that implements an EMR (electronic medical record) solution to comply with the latest HIPAA and HITECH mandates. This IT investment might not require the client to hire any additional employees or buy any more PCs, but it almost definitely could lead to a massive upgrade of the client’s BDR (backup and disaster recovery) needs and your monthly backup revenue.

Those not currently offering data backup services or only offering on-site or off-site backups should reconsider their strategy. The world is moving to the as-a-service model and the evidence points to storage as being a prime opportunity that continues to lead the way.

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