How to Make M365 Backup
a Valuable Revenue Stream
for Your MSP


Businesses are shifting their operations to SaaS solutions and the cloud, eliminating the need for traditional on-premises solutions. 

But with great power comes great responsibility. Despite its advantages, a cloud work environment can introduce unforeseen threats to your client’s network. 

As usage of SaaS solutions like Microsoft 365 proliferates, companies are increasingly aware of the amount of data stored within these subscriptions – and of the need to backup and protect that data as part of a ransomware prevention strategy.

This guide explores the potential for your MSP to offer M365 backup and recovery solutions and make them a core part of your value proposition.

The Untapped Potential of M365 Backup

Microsoft 365 (M365) is a popular solution for businesses adopting a cloud-first work environment. It offers a ton of useful productivity and collaboration features that can be especially useful for remote or hybrid work teams. 

But did you know that M365 backup is an often-overlooked goldmine for Managed Service Providers (MSPs)? 

Many companies assume that Microsoft’s built-in tools fully protect their data, but that’s only partly true. Microsoft focuses on keeping the infrastructure running, while the responsibility of securing, managing, and recovering data lies with the client.

According to Microsoft’s Shared Responsibility Model, customers should seek a third-party M365 data backup and recovery solution to protect the data residing on Microsoft’s servers. 

The gap presents a huge opportunity for MSPs to offer essential backup solutions for M365. 

Positioning your MSP as a leader in managed M365 backup and recovery solutions, you can provide your clients with peace of mind and guarantee your MSP a steady stream of income.

Why M365 Backup is Essential for Clients

The need to backup M365 isn’t always obvious to clients, so start by explaining the risks of not having a data protection plan in place. 

It’s required because data loss can happen due to any of the following reasons:

Accidental Deletion

Accidental deletion is more prevalent than you think—you’ll easily come across IT leaders who’ve encountered such a problem multiple times throughout their career. 

It could be as simple as an employee accidentally deleting a file, or worse, an entire inbox. 

Microsoft has a limited data storage period, so once that’s over, the data is gone unless there’s a healthy backup to recover data from.

Ransomware Attacks

Ransomware targets businesses of all sizes and it’s getting more frequent and severe than ever. A sleeper ransomware could be residing on your client’s network for months and could go undiscovered for even longer.

In their recent report, Sophos surveyed 5,000 professionals across 15 industries business leaders, and one of the questions was “did you experience any ransomware attacks in the past year?” and the answers were shocking. A whopping 59% responded that they experienced at least one ransomware attack in the past year.

Compliance Needs

In many industries, keeping records of data and making these records accessible is a legal requirement. 

M365 backup makes meeting compliance requirements less of a hassle by making data retrieval reliably faster.

Additionally, in case of legal investigations, having a quick way to access historical data is important. A solid data backup plan enables smooth eDiscovery.

A complete summary of Probax MSP Backup’s regulatory compliance credentials can be found here.

Positioning M365 Backup as a Service

A great way to position your M365 backup solution is to emphasize its proactive protection. Clients want to hear that this service will shield them from data loss and minimize downtime if issues arise. 

You can promote your M365 backup as an “insurance policy” against common, costly risks like accidental deletions, regulatory challenges, and cyber threats. Additionally, it’s important to explain that Microsoft’s built-in options—like recycle bins and limited version history—are helpful but not a complete safety net.

To communicate the value of your solution further, you could showcase backup case studies where clients avoided significant disruption thanks to quick and reliable data restoration.

Creating a Managed Service Offering Around M365 Backup

Now, let’s talk about packaging. To make M365 backup attractive, consider offering a tiered service structure. Each tier could include:

  • Essentials: provides encrypted backups of M365 data with a fixed retention period of 1 year. 
  • Professional: includes all the great features of Essentials and adds Automated Restore Testing and Verification
  • Premium: Professional plus immutable backups, unlimited retention periods, greater RPO/RTO controls and geographical separation

These options are built in to Probax MSP Backup, allowing you to create packages to suit your client’s needs.

Adding M365 backup as part of a bundled package with other cybersecurity services can also make it an easy, no-brainer choice for clients. For example, pairing M365 backup with data recovery, ransomware protection, or email security provides a well-rounded package that covers multiple needs under one roof.

Pricing Strategies to Maximize Profitability

A well-planned pricing strategy can make M365 backup a profitable, recurring revenue source. 

For instance, value-based pricing works well—aligning costs with the client’s specific needs (like data volume or industry-specific regulations). Alternatively, consider a subscription model that bills clients monthly or annually, ensuring predictable, recurring revenue.

Just make sure that your pricing is transparent—clients appreciate knowing exactly what they’re paying for, and the clearer your pricing is, the easier it will be for clients to see the value in a long-term M365 backup plan.

Leveraging Automation to Streamline Backup Management

Automation is an MSP’s best friend when it comes to M365 backup. 

Automated backup tools can take care of regular backups, monitor for any issues, and send alerts if anything needs your attention. With automation, you can reduce the manual workload without sacrificing reliability and efficiency.

Using automated solutions, you can cut down on labor costs while ensuring high-quality service, which also helps you scale your services to accommodate your customers’ growing needs.

Automation options are available in MSP Backup with the Professional package.

Marketing and Selling M365 Backup to Clients

Educating clients on the importance of backup is essential, especially since many still assume Microsoft handles everything. 

Use simple, straightforward messaging to explain why M365 backup is a necessity. Blogs, webinars, and case studies that share real-world examples of data loss (and how backup saves the day) can be highly effective in illustrating its importance.

Also, consider tailoring your marketing approach to specific industries, particularly those that are highly regulated or data-sensitive, like healthcare or finance.

Turning M365 Backup into a Long-term Revenue Stream

Finally, focus on turning M365 backup into a dependable, long-term revenue stream. This starts with delivering ongoing value—consider offering regular backup health reports or annual data recovery drills to show clients that their backup system works when needed.

Additionally, emphasize the scalability of your backup solutions. As clients grow and handle more data, your backup services can grow alongside them, which reinforces the idea of your MSP as a long-term partner.

Ready to Strengthen Your M365 Data Security?

At the end of the day, every business deserves reliable, quick, and hassle-free data recovery when they need it. 

MSP Backup from Probax has been designed from the ground up to enable MSPs to offer that commitment and security to their clients, with our platform handling the busywork freeing you up to focus on other activities.

If you’re ready to help your clients protect their data while boosting your revenue, let’s chat! 

Schedule a call to explore how MSP Backup can bring lasting value to your clients and your business.