Apr
12

Is the Data Backup and Recovery Market Saturated?

Is the Data Backup and Recovery Market Saturated?

April 12
By

One of the great privileges of curating the StorageCraft Recovery Zone is the opportunity to work with great authors in our partner community. This guest post was written by Brent Whitfield, CEO of DCG Technical Solutions in Los Angeles. Thanks to Brent for contributing these insights to the recovery zone!


 

It has been nearly a decade since the first data backup and disaster recovery (BDR) solution with virtualization capabilities became available in the market. Since that time several BDR vendors have entered the market and nearly every managed service provider (MSP) sells a version of this critical type of technology.

Has the BDR industry reached a point where it’s no longer profitable?

Many IT providers are starting to believe that this lucrative sector has become saturated. But is there any truth to this pessimistic view? Around the country many managed IT services providers are discussing whether they should be targeting data backup and disaster recovery with their marketing resources. Many have taken the negative position that, indeed, this market is, in fact, saturated. However, I can relate that I have seen the exact opposite as I was also surprised by how many businesses that still do not have this critical technology protecting their all-important data.

How did I get this information?

By simply asking my prospects. When we begin our sales presentation, we normally ask several questions to assess what the prospects have in terms of technology and their current IT services. One of the important questions that I always make sure to ask is: “What type of disaster recovery solution do you have in place?” While many do respond by describing one of the most popular vendor virtualization capabilities, this is not the answer that I usually get from the clear majority.

A larger percentage of respondents have told me, from all over the country, that they STILL do not have the virtualization ability! Now, what I believe is behind this counterintuitive trend is the fact that most computer consultants ‘sell’ the BDR appliance as an add-on and this triggers the need for end users to make a decision. But the problem is; business consumers hate to change and love to procrastinate! Plus, we have to factor in the reality that just about every IT consultant admits to be challenged by sales.

Put two and two together

When you combine the normal business resistance to change, love of procrastination and the lack of sales ability among tech providers, then you can arrive at a safe conclusion that this market is still ripe for the taking! The key to increasing your market share in the BDR industry is to bundle this critical service in your basic managed services offerings. This eliminates the need for your prospects to make a decision, and ensures that all your customers have the right tools to protect their data!

Final words

If you have any questions about the latest data backup appliances, call the clear industry leader StorageCraft, who can also give you plenty of marketing support to help you penetrate the BDR market! To explore opportunities in this market, see the other Recovery Zone blog posts on StorageCraft’s site, or click on this link if you want to know more about how our Los Angeles based IT support firm sells the StorageCraft Recovery Solution. We are absolutely convinced that BDR is still a very lucrative market.

StorageCraft Recovery Zone - Brent Whitfield DCG CEO

Brent Whitfield – DCG CEO

About our guest author

Brent Whitfield is CEO of DCG Technical Solutions, Inc. providing IT Support in the Los Angeles area since 1993. DCG exists to help our clients choose, implement, and manage IT and cloud solutions that are cost effective and reliable. DCG was recognized among the Top 10 Fastest Growing MSPs in North America by MSP mentor. DCG has been installing and supporting the StorageCraft Recovery Solution for over 10 years.  Brent has been featured in Fast Company, CNBC, Network Computing, Reuters, and Yahoo Business.