Why SaaS Backup Isn't Optional in 2025 and How MSPs Can Lead the Charge

Small and midsized businesses (SMBs) increasingly rely on Software-as-a-Service (SaaS) apps like Microsoft 365 and Google Workspace to power their daily operations. However, as these tools become more essential, they also attract more attention from cybercriminals. According to Microsoft Digital Defense Report 2024, SaaS data has become a prime target for cybercriminals today, with around 7,000 password attacks blocked per second in Entra ID alone.

As technology providers for SMBs, managed service providers (MSPs) have a critical role to play in securing SaaS environments. Promisingly, businesses are also increasingly waking up to the growing risks, actively seeking solutions to protect their cloud-based data. This shift in mindset is reflected across The State of BCDR Report 2025, which highlights a rising awareness around SaaS data protection and the need for more reliable backup and recovery strategies. By surveying over 3,000 IT professionals, administrators and security leaders worldwide, the report reveals the latest trends, challenges and solutions shaping the future of data resilience.

In this article, we’ll unpack the report’s findings to explore how MSPs can align with these trends to meet evolving client demands and create new opportunities for revenue growth. In the sections ahead, we’ll address key questions such as “What’s the shifting mindset of businesses toward SaaS data protection?” and “How can MSPs turn this growing concern into a strategic advantage?” to discuss how MSPs can lead the charge in this paradigm shift.

Key challenges uncovered: What the survey data reveals

As organizations rely more and more on SaaS apps and the data within them, many are realizing that their current backup and recovery solutions aren’t up to the task. The survey report reveals several recurring challenges that put data integrity, uptime and business continuity at risk.

Trend #1: Backup confidence is shaky

For all the trust businesses place in SaaS platforms, that same level of confidence doesn’t extend to the tools meant to protect them. According to The State of BCDR Report 2025, backup confidence is faltering at an alarming rate:

• Only 40% of respondents say they trust their current backup solutions to perform in a crisis.
• More than 30% admit they’re unsure whether their organization has a reliable backup in place.
• Over 50% of businesses plan to switch their primary backup provider within the next 12 months.

Trend #2: SaaS apps are widely used – but still under-protected

While SaaS adoption is nearly universal, protection for these platforms hasn’t kept pace. The survey data shows that even though businesses depend heavily on these apps, many fail to implement comprehensive backup strategies:

• Around 70% of Microsoft 365 users and about 66% of Google Workspace users report having a backup strategy in place.
• However, only 53% of Salesforce users do, leaving critical customer and sales data exposed.
• The protection gap widens further for other widely used SaaS tools, like Slack (42%), Zendesk (49%) and Zapier (38%), which rank among the least protected.

Trend #3: SaaS data loss is common — and costly

SaaS data loss remains a frequent — and expensive — reality. The survey results make it clear that the causes are varied, but the consequences are consistently disruptive:

• Around 34% of organizations reported losing data due to accidental deletion.
• About 29% fell victim to external threat actors, such as ransomware or phishing attacks.
• Close to 27% experienced data loss caused by malicious insiders, a growing internal threat.
• And over 30% blamed misconfigurations or third-party app integrations, which are often overlooked but risky.

The MSP opportunity: Delivering SaaS protection as a service

With SaaS threats intensifying and confidence in traditional backup tools slipping, MSPs are in a prime position to take advantage of the situation. By helping clients understand the urgency of securing their SaaS environments, MSPs can position themselves as proactive problem-solvers and unlock new, recurring revenue streams. Here are some ways to do it:

1. Educate clients on the shared responsibility model of cloud security

One of the biggest misconceptions among SMBs is that their SaaS provider is fully responsible for data protection. In reality, platforms like Microsoft 365 and Google Workspace operate under a shared responsibility model (SRM) where the provider manages the infrastructure, and the customer is responsible for data protection, access and retention. This is a prime opportunity for MSPs to educate clients and reshape expectations. When SMBs understand that backup and recovery are on their shoulders, they’re far more likely to invest in the right solutions.

2. Offer Backup-as-a-Service for SaaS apps

As demand grows, so does the opportunity. According to The State of the MSP Industry 2025 Look Ahead Report, around 46% of MSPs now offer data backup and protection as a core service. Expanding this to include SaaS-specific backup enables MSPs to address one of the most urgent client needs while building a predictable, recurring revenue stream. For SMBs, having a reliable SaaS backup solution means greater IT peace of mind — knowing their critical business data is secure, accessible and recoverable at any time.

3. Differentiate with speed, confidence and compliance

Survey results show that only 14% of organizations can recover lost SaaS data within minutes. More than 35% of organizations need days or even weeks to recover their business-critical data. That kind of delay can stall operations and damage customer trust. MSPs can stand out by delivering solutions that offer faster recovery times and greater data resilience for their clients.

Compliance is another growing concern. The report found that most organizations lack a formal strategy for handling ex-employee data, exposing them to non-compliance risks. Nearly 14% rely on third-party archiving and another 14% keep licenses active just to preserve access, inviting operational risks with unmanaged credentials. Shockingly, less than 10% of organizations maintain no process at all for preserving ex-employee data. For MSPs, this is a clear value-add opportunity: deliver a compliant, streamlined retention strategy that reduces both risk and costs for clients.

Why Datto SaaS Protection can be your ideal solution

For MSPs looking to deliver reliable, efficient and revenue-generating SaaS backup services, Datto SaaS Protection checks all the right boxes. It’s a solution purpose-built for MSPs to take control of their clients’ SaaS data and offer protection that goes far beyond native tools.

Here’s how Datto SaaS Protection helps MSPs tackle today’s biggest SaaS backup challenges:

• Purpose-built for Microsoft 365 and Google Workspace: Datto SaaS Protection is designed specifically to support the most widely used platforms by SMBs — Microsoft 365 and Google Workspace. That means no patchwork integrations or forced compatibility — just seamless protection for the tools businesses depend on every day.
• Granular recovery for targeted restores: Accidents happen, but recovery shouldn’t be a hassle. Datto enables granular restores, allowing MSPs to recover individual emails, files or folders without having to restore entire accounts. It’s precise, efficient and built to minimize disruption.
• Multitenant management built for MSPs: Managing multiple clients? No problem. Datto SaaS Protection features a multitenant dashboard that gives MSPs a single, streamlined view of all accounts. This helps improve visibility, simplify administration and save valuable time across the board.
• Automated alerts, compliance archiving and flexible retention: Datto’s platform includes automated backup alerts, customizable retention options and compliance archiving to meet a variety of client needs. Whether the goal is long-term storage, regulatory readiness or just better peace of mind, MSPs can tailor services to fit.
• Streamlined user lifecycle management: When employees leave, their data shouldn’t become a liability. Datto SaaS Protection makes it easy to archive ex-user data, convert mailboxes to shared accounts and retain critical information without keeping unused licenses active, ensuring both security and cost efficiency.

Final thoughts: Turn the SaaS protection gap into a growth opportunity

Despite the rising adoption of SaaS tools, SaaS data protection remains a major blind spot for many SMBs. Too many still rely on the false assumption that their cloud providers are responsible for data recovery, leaving critical business information vulnerable to ransomware, human errors and other threats.

By stepping in to fill this gap, MSPs have a clear path to not only protect their clients but also boost profitability and unlock new streams of monthly recurring revenue (MRR). Those who take the lead, by educating clients on the risks and leveraging purpose-built solutions like Datto SaaS Protection, stand to gain a lasting competitive edge and long-term customer loyalty.

Want deeper insights into what’s driving change in SaaS security and data protection in general? Download The SaaS Protection Buyers Guide to explore how to use SaaS backup to protect clients, build margin and grow your business.

 

About the author: Angela Chang is a Product Marketing Specialist at Kaseya, where she oversees the SaaS Backup modules, including Datto SaaS Protection and Spanning. Since joining Kaseya in 2022, Angela has built a strong foundation in client success and business growth, beginning as an Associate Account Manager, advancing to Senior Account Manager of Key Accounts, and ultimately transitioning into Product Marketing. Prior to joining Kaseya, Angela worked as a trusted Personal Banking Associate at TD Bank, where she leveraged her customer-first mindset and financial acumen to help clients meet their personal and business goals. She holds a Bachelor of Commerce in Marketing from the University of British Columbia.