How To Calculate The Total Cost Of BCDR: Factor In Operating Expenses

August 18, 2016

How To Calculate The Total Cost Of BCDR: Factor In Operating Expenses

By Chris Brunau

Recurring cloud storage and compute costs can be the single largest expense over the lifetime of a BCDR implementation—regardless of whether you work with a BCDR vendor or build your own. Cost structure can vary significantly, since some cloud providers charge by data volume and others by retention period. The volume will almost invariably grow over time as customers accumulate more data. So, you should include cost increases relative to this growth in your profit calculation.

Ongoing software licensing costs are another important consideration if you build your own BCDR solution. Backup software vendors structure their licenses in many different ways. Cost factors can include basic and premium feature sets, installation size (number of servers/CPUs, the volume of data, etc.), and platform support (Windows, Linux, VMware, etc). Licenses typically must be renewed annually.

With either approach, you’ll have labor costs associated with troubleshooting and other client system management. Customers may face a range of issues with their backup— including system failures, changes in the technology environment (such as the addition of new on-premise and cloud applications), and changes in business requirements (such as new RTOs or compliance mandates). Labor costs associated with outages are also important to consider.

To reduce labor costs associated with troubleshooting it’s important to consider technical support. When you build your own BCDR solution, you’ll be dealing with multiple vendors for technical support. When issues arise, this can add a layer of complexity to the situation and lead to finger pointing among the vendors. For this reason, many MSPs prefer to work with a single vendor for BCDR needs. In comparison, when you opt to sign on with a BCDR vendor, you have a single point of contact for support. Working with a single vendor may lessen potential headaches. However, as you know, not all technical support is created equally. It’s important to consider the quality of tech support vendors deliver when evaluating BCDR solutions. For example, is support available 24x7 (not all disasters happen during office hours) or are there additional fees applied for tech support help?

How do you decide between building your own BCDR solution and buying a single, complete solution from one vendor? To help answer that question, we’ve created a profitability checklist which can help you calculate the economics of a build-your-own vs. a complete BCDR offering. Learn more about the total cost of ownership when it comes to BCDR. Learn more about the total cost of ownership when it comes to BCDR. Download today and determine the best backup solution for your business.

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