Offering backup and disaster recovery (BDR) services is a must for managed services providers (MSPs) who are looking to stay competitive and grow their business in the years to come. There’s a significant opportunity to provide business continuity services to clients who now require consistent uptime, yet challenges persist that can prevent the kind of success necessary to build and scale a profitable BDR business.
So, what exactly are these common BDR challenges, and how can MSPs overcome them in order to operate more efficiently and maintain a healthy profit margin?
Common BDR Challenges
There are several challenges that can stand in an MSP’s way when looking to build a long-term strategy for BDR growth and success. Actually, we typically see seven common BDR challenges. Some MSPs struggle to fill the growing IT skills gap, while others simply can’t manage their total cost of ownership and the inefficiencies that exist with other BDR platforms. Moreover, some MSPs are concerned with how their BDR offering will be impacted by the cloud or the emerging security landscape. With all the forces that are shaping the BDR business today, shouldn’t there be a better way? Well, we’d like the share the story of one MSP who found it by leveraging Continuity247, Continuum's fully-managed BDR platform.
Frontier Business Products (FBP) has been offering complete business technology solutions for more than 35 years. However, as the company continued to develop its managed IT services offerings, it had trouble finding a platform and partner capable of providing scalable and highly profitable RMM and BDR solutions—until it discovered Continuum.
Today, FBP has standardized on Continuum’s Continuity247 platform in order to develop a highly scalable and profitable BDR business.
“We’re making a killing with Continuity247,” says Scott Oleson, Senior vCIO and Director of IT at FBP. “Our monthly recurring revenue with the platform has increased 100 percent since we first deployed it, and since the platform allows us to bring our own hardware, we can generate upwards of $3500 for a $600 box that we refurbish and upgrade in-house.”
How Continuity247 Works for Frontier
Continuity247 is built to meet the needs of the modern MSP. The platform is managed and supported by Continuum’s Network Operations Center (NOC) technicians, which enables Frontier to significantly reduce the amount of time they spend managing the tool and monitoring backups—a decrease from .5 FTE per week to .05 FTE.
“Our technicians can perform restores in 75 percent less time with Continuity247 than with our previous platform,” Oleson explains. “What’s more, the hardware from our previous vendor was substandard, and restoring files was more difficult than it should’ve been. In one instance, an Active Directory server had failed and we had to actually give up on restoring it and do a rebuild because the process was such a hassle.”
Making the switch to Continuity247 allowed Frontier to establish the long-term, sustainable growth and profitability it desired for its BDR business. In addition to Continuity247, Oleson and the team at FBP were able leverage additional elements of Continuum’s IT management platform to deliver the best possible service to their customers. This includes Continuum’s intelligent Remote Monitoring and Management (RMM) tool which is also backed by the company’s NOC technicians, as well as its white-label Help Desk offering which provides frontline support directly to end users.
“Continuum’s technicians have specialized expertise and knowledge, so we don’t have to hire resources with those same skillsets,” Oleson explains. “Being able to offload work to the NOC and Help Desk enables our team to focus on client relationships and revenue-driving activities. The Help Desk team, for instance, is resolving between 94 and 95 percent of our tickets each month.”
The resolution of those tickets, he adds, has increased the profitability of Frontier’s managed services contracts from a 40 to 60 percent standard margin.
Overall, Continuum empowers FBP to increase their managed IT services margins, expand the scope of the company’s services, operate more efficiently and deliver greater support to its customer base. Looking ahead, Oleson is confident in Frontier’s ability to continue growing and expanding—and knows that Continuum will play an essential role in the long-term success of the company’s managed services offerings.
“We’re very excited about our future and continuing to work with Continuum,” he says. “Since I’ve joined Frontier we’ve nearly tripled in size, and we expect to see continued growth and success as we further-enhance our managed services and onboard additional customers.”