MSPs boost Microsoft 365 backups amid rising ransomware threats

New data from N-able has highlighted a significant rise in the adoption of Microsoft 365 backups by Managed Service Providers (MSPs) due to the increasing complexity of ransomware attacks. The findings indicate that 1,000 more MSPs are now offering backup services for Microsoft 365, compared to the previous year.

The report reveals a 46% increase in the number of Microsoft users being protected by N-able's solutions. Additionally, the 2024 Horizons Report indicates that 67% of those surveyed expect growth in managed backup services as part of their business strategy.

Stephen Voss, VP Product Management at N-able, noted, "The growing number of threats and attacks has necessitated a more robust backup architecture. MSPs need to be resilient against ransomware, and our data shows an increased reliance on Microsoft 365 backups to address these challenges."

The study from Critical Start's Cyber Research Unit (CRU) reports over 3,400 high and critical cyber alerts recorded in the first half of 2024—an increase of 46.15% compared to 2023. Despite Microsoft 365 providing excellent productivity tools, organisations remain vulnerable to both external and internal threats, accidental deletions, and regional compliance regulations, underscoring the importance of data backup.

Chris Groot, General Manager of Cove Data Protection at N-able, stated, "Backup has been a necessity for 30 years. With cyberattacks increasing and becoming more sophisticated, MSPs need a ransomware-resilient backup architecture. There have been instances where known backup file extensions are targeted, so it is crucial for MSPs to position themselves as trusted advisors to provide the right tools and solutions."

The data from N-able also shows a 56% increase in disaster recovery events related to Microsoft 365 domains. The company now protects over 2.2 million Microsoft 365 end users, marking a 46% increase compared to the previous year. Furthermore, these MSPs are backing up 42 petabytes of Microsoft 365 data, up from 26 petabytes last year.

Simon Beckett, Director at DynaCom IT Support Ltd., commented on the importance of these services: "Ransomware continues to be one of our biggest concerns when it comes to protecting our customers. Effective protection of Microsoft 365 data is crucial, especially given the high risk of attacks and increasing compliance requirements. We've been using Cove for about a decade, and it's essential for ensuring we do backup and disaster recovery right for our customers."

The trends observed in N-able's report reflect a broader industry shift towards enhanced data protection mechanisms. The rise in disaster recovery events and the ramping up of backup services by MSPs underline the critical need for resilient data protection strategies amidst a growing landscape of cyber threats.