SMBs are the highest risk group for data loss.

SMBs highest risk group for data loss

Stephen Perkins

Small- and medium-sized businesses remain the highest risk group in regard to significant data loss that could potentially put them out of business, according to a new report.

The study, "2013 State of Cloud Backup," surveyed 350 IT service providers regarding how these particular companies are selling cloud backup solutions, including the demand they have seen from their SMB customers. The findings highlighted that a large percentage of SMBs don't purchase or deploy backup and disaster recovery solutions from their IT service providers until after a disaster has occurred.

Further results from the study include:

  • Thirty-four percent of SMBs adopt cloud backup and recovery to enhance data protection and business continuity.
  • Twenty percent expect technology to improve the dependability of their IT systems.
  • Thirty percent of data that's stored in the cloud consists of files for data backup and recovery purposes.

These findings are worrisome for SMB owners, but they also provide third-party vendors with considerable opportunities to expand their business. Additionally, the results showed that providers who capitalize on cloud backup and data recovery solutions are growing at double the rate compared to the industry average.

"Data loss happens every day and can come in all forms, from hardware failures to user error and natural disasters," said Neal Bradbury, vice president of channel development for Intronis. "SMBs and IT service providers should think of cloud [backup and disaster recovery] services as insurance for the company's data - no business should be without it."

Major opportunities for service providers
Another study from earlier this year conducted by Forrester Research noted that only 5 percent {of SMBs} utilize backup as a service, online backups or remote backups from a managed service provider. While these statistics could result in dire consequences for SMBs, Intronis' study did illustrate a silver lining.

More than 50 percent of SMBs are currently working with IT service providers to protect their data with backup and recovery services. Vendors say that the peace of mind that comes along with such solutions has led them to become the top-selling services, as well as improve client relationships. In fact, 56 percent of IT service providers stated backup and recovery services were their best selling. In addition, more than one-third of vendors predicted that their services will grow by 21 percent next year.

"Cloud BDR-as-a-Service is one of the most lucrative and client-friendly managed IT services on the market," noted Intronis CMO Aaron Dun. "The lack of data protection within the SMB market can be easily addressed with cloud-based BDR services."

Categories: Cloud Backup, Data Management, Data Protection, Disaster Recovery, Online Backup