February 18, 2021
Breaking Down the Cost of Datto Unified Continuity Solutions
Bjorn Leenen is a Solutions Engineer at Datto, Inc. He works in our Amsterdam office serving Benelux and EMEA. He is CISSP certified and has worked in IT for over 20 years.
When delivering business continuity and disaster recovery (BCDR) services, first and foremost you need a reliable solution. Second, as a managed service provider (MSP), you want to look at the bigger picture and determine how this offering will impact your bottom line in the long run.
Consider the differences between a software-only BCDR solution and an all-in-one option. If you have a local BCDR solution based on a piece of software and local hardware, there is no cloud component in place. This can be an investment on your own accord, or you can obtain this from a third party. All-in-one solutions include the hardware, and software, as well as cloud compute and storage. Or the vendor might provide software and cloud while giving you the flexibility to choose local hardware. This is important, because the deployment option that is best for your business may vary among clients.
Pricing BCDR for Your Clients
Breaking down the costs for your business can help determine how to price the solution for profit. Let's look at an example. If a device costs $2,399 and the monthly fee is $499, the total cost of ownership (TCO) of the device for a three-year commitment would be roughly $19,820. That looks like a large number at first glance. However, if we break this down to an hourly rate (3 years x 365 days x 24 hours) you end up with approximately $0.75 per hour.
It can be easier to understand if you help your clients see BCDR as business downtime insurance. Here’s a more detailed breakdown. Feel free to copy this into your pitch!
Scenario: The client’s company has 25 people working there, at an average of $3,500 per month. They need to make an average of $27,500 per month per employee.
This is a downtime cost breakdown for the client:
- 25 x 3,500 wages = $ 87,500
- 25 x 27,500 turnover = $ 687,500
- 170 working hours per month
So this company costs $4,558 per hour, based only on turnover and cost of labor, nothing else.
Let's breakdown the cost of the BCDR solution mentioned above:
- $2,400 one-off cost, on 36 month commitment = $67 per month
- $500 service fee per month
Considering the solution is running 24/7, think about what this costs per hour? $567 per month or roughly $19 per day or $ 0.78 per hour.
So, to secure $4,558 per hour, the client only needs to pay $0.78 per hour. Breaking it down like this helps your clients see the value.
As a Datto partner, your BCDR account manager has a useful tool to help MSPs 'plot' costs in a different way and they can do this based on one single device or a fleet. We’re here as a resource to help your clients understand BCDR TCO. You can also use this calculator to show your clients the value of the solution.
To learn more about how Datto’s solutions are poised to help MSPs grow their margins and their markets, schedule a free demo with a Solutions Engineer today.