Why Business Continuity Is the Growth Engine MSPs Can't Ignore

The conversation is no longer about backups; it’s about business continuity. Downtime has become an existential threat for organizations, especially small and mid-sized businesses (SMBs). Cyberthreats like ransomware are evolving faster than most SMBs can keep up with, and extreme weather events and system outages are hitting more frequently. For an SMB generating $10 million in annual revenue, even a single day of downtime can result in losses of up to $55,000. That’s why more and more SMBs are shifting their focus from backup to business continuity.

According to the State of BCDR Report 2025, over 50% of organizations are planning to switch their primary backup provider, citing limited disaster recovery capabilities as a major concern. As businesses prioritize continuity, managed service providers (MSPs) must respond with a strategic pivot of their own. MSPs that move beyond selling backups and start delivering true business continuity will not only boost client satisfaction and retention but also tap into stronger streams of monthly recurring revenue (MRR).

Businesses are willing to pay a premium for solutions that keep them operational and resilient. That’s why it’s time for MSPs to start treating business continuity and disaster recovery (BCDR) as a growth engine. Let’s explore how MSPs can take advantage of this growing demand and turn BCDR into a powerful driver of long-term profitability.

How MSPs are boosting profit margins with BCDR

MSPs worldwide are increasingly weaving BCDR into their core service offerings. According to the State of the MSP Industry 2025 Look Ahead report, the most profitable MSPs — those generating over $10 million in revenue — are already bundling BCDR with managed security services. Unlike break-fix work or one-off projects, BCDR is delivering stable, recurring revenue streams that help MSPs scale with predictability. It’s also emerging as a top standalone service, with 46% of MSPs offering BCDR as a key part of their portfolio.

Let’s explore different strategies MSPs adopt to leverage BCDR and boost their margins:

1. Offer tailored BCDR packages
   
   Not every client needs the same level of uptime or has the same budget. By offering tiered BCDR packages, MSPs can align service levels with client needs. MSPs can offer basic packages for clients with lower uptime needs and premium packages for those who need instant failover.

2. Bundle BCDR with managed service
   
   BCDR is a natural fit alongside core managed services. According to the State of the MSP Industry 2025 Look Ahead report, 83% of MSPs offering co-managed IT already include BCDR due to its critical role in resilience.
   
   The proven model: Bundle services to drive stronger retention and trust.
   The missed opportunity: Only 46% of MSPs offer BCDR as a standalone service. Elevating it as a core offering can be a key market differentiator.
    
3. Position BCDR as a business insurance
   
   MSPs can shift the conversation by showing clients how a small investment in continuity prevents far greater losses from downtime and compliance failures.
   
   Break down the true cost of downtime for them: Lost revenue + lost productivity + recovery expenses + cost of intangibles (e.g., reputational damage).
   
   You can also use Datto’s Recovery Time & Downtime Cost Calculator to show exactly how much an outage could cost their business. Try it now.
    
4. Leverage exclusive MSP programs to maximize profit
   
   To get the most from BCDR, MSPs should leverage specialized programs that support sales, pricing and packaging. Datto’s Backup Concierge Program is a great example.
   
   What it provides: A free, dedicated backup solution architect to support every Datto partner.
   What it achieves: Acts as an extension of the team to close more deals and grow profits.

Why MSPs trust Datto for guaranteed continuity and resilience

For nearly two decades, Datto has been helping MSPs deliver true business continuity. Its enterprise-grade BCDR platform is purpose-built for MSPs, combining powerful technology with ease of management through a single, intuitive portal.

What sets Datto apart is its hybrid cloud architecture, offering local backups for fast recovery and automated, hourly replication to the immutable Datto Cloud for disaster resilience. Patented 1-Click Disaster Recovery simplifies failover to a single step, enabling MSPs to meet strict recovery time objectives (RTO) with confidence.

 

With ransomware-proof appliances, role-based access controls and features like Cloud Deletion Defense™, MSPs can ensure their clients stay protected against evolving threats. Automated backup verification adds another layer of reliability, allowing MSPs to prove backup integrity and deliver continuity clients can count on.

Discover why Datto is the BCDR choice MSPs rely on — in their own words.

“Datto BCDR has been worth its weight in gold for our business,” — Aaron Garcia, Director of Operations at TekConcierge.

“We’ve been a Datto partner for 10 years – there is no other organization that offers Datto’s level of support,” — Scott Lennon, CEO of Total Communication.

“The client was skeptical that recovery could be achieved without paying the ransom. We stated we were confident it would take nowhere near that time,” — Linda Kuppersmith, CEO of CMIT Solutions Stamford.

Inspired by how other MSPs are scaling with Datto? You can do it too.

For MSPs, BCDR offers a clear path to strengthening client security while unlocking consistent MRR. Turn business continuity into a competitive advantage. Become a Datto partner today and start delivering the resilience your clients expect — and the profitability your business deserves.