The Backup Gap MSPs Cannot Afford to Ignore

While most MSPs have backup in place for their clients, those strategies were built for a time when data lived in one place — and the biggest risks were a failed hard drive or accidental deletion.

That world is gone.

Data now lives everywhere — from endpoints and cloud platforms to SaaS applications and identity systems. The attack surface has expanded and so have the tactics. Cybercriminals know that if recovery remains intact, the attack fails. So, they go after backups first. By the time encryption begins, the lifeline is already gone.

A backup strategy built for yesterday’s environment cannot protect against today’s threat.

The cloud added to the challenge

Just when backup needed to evolve, the cloud added a new layer of complexity.

As users moved to Microsoft 365 and other cloud platforms, many assumed their data was covered. It isn’t. Cloud providers operate under a shared responsibility model — they keep the service running, but data protection, identity security and recovery remain the customer’s responsibility.

At the same time, the way attackers operate has shifted.

Microsoft 365 has become the central access point for most businesses. Email, files, identity and communication all sit behind a single login — making it a high-value target.

This is where backup becomes exposed. Phishing and credential theft now drive the majority of breaches, giving attackers direct access to these environments. With valid credentials, attackers don’t need to break in. They log in, move through the system and locate backup data just like an admin would. From there, backups can be deleted, altered or made unusable before anyone notices.

Meanwhile, the backup stack got messy

As environments grew more complex, most MSPs added tools to keep up. A solution for endpoints, something for Microsoft 365 and another for cloud workloads. None of it was planned fragmentation — it just accumulated. The result is a backup operation that is expensive to run, difficult to monitor and inconsistent in its performance across clients. In 2025, the average cost of a data breach surged by 9% to $10.22 million in the U.S — an all-time high.

That inconsistency has a real cost. Technicians spend time navigating multiple platforms instead of delivering value, onboarding a new client takes longer than it should and recovery processes differ from account to account, which means the quality of response in a crisis depends on which client it happens to be.

For MSPs trying to scale, backup sprawl becomes a quiet margin killer.

What leading MSPs are doing differently

The MSPs pulling ahead have stopped treating backup as a collection of tools and started treating it as a service with a defined outcome: the client’s business keeps running, no matter what happens.

To deliver that, they have standardized:

• A single platform across all client environments
• Repeatable workflows that every technician follows
• Centralized visibility so nothing slips through

The operational payoff is clear: lower cost per client, faster recovery times and a service that scales without adding headcount.

The commercial payoff matters too. There is a significant difference between selling backup licenses and selling business continuity. Clients do not buy backup because they understand retention schedules —  they buy it because they are afraid of losing everything. The MSPs who speak to that fear and back it up with a service that delivers will win more business and keep clients for longer.

What modern backup actually requires

As threats evolve, the bar for what counts as “adequate backup” has risen.

The 3-2-1-1-0 rule sets the standard: three copies of data across two media types, one copy stored offsite, one immutable and zero unverified backups. That last point is where most strategies fail quietly. An untested backup is an assumption, not a guarantee.

Immutable storage means backups cannot be altered or deleted, even if an attacker gains access to backup infrastructure. Isolation from the production environment means a compromised network cannot reach the recovery point and verified recovery means that when a client needs it, the backup works. All three conditions have to be true. Any gap is an opening.

Datto and Kaseya give MSPs the infrastructure to meet that standard across every environment from a single platform.

• Backups isolated from production
• Fast recovery through virtualization
• Cross-tenant restore capabilities
• Centralized reporting across all clients, without adding operational complexity

The result is confidence that recovery will work when it matters most.

The MSPs winning in 2026 are simplifying, not stacking tools

The MSP market is tightening. Growth is harder and more providers are competing for the same clients. In this environment, backup stands out as one of the few services that can drive recurring revenue, support security and build long-term trust.

But that only happens when it is done right.

A fragmented, untested or outdated backup setup does not inspire confidence. It creates risk. The MSPs that will grow are the ones who simplify their stack, standardize how they deliver backup and walk into client conversations with a service they trust.

If you want to build a backup practice that supports growth and wins more deals, start here.

Download Selling BCDR Made MSPeasy to see how to simplify backup, strengthen resilience and close more deals.

Backup isn’t background noise — it’s the foundation of everything an MSP promises about keeping a client’s business safe. It’s worth getting right.