MSP service economics

Price MSP BCDR for recovery work, capacity, and testing

BCDR profitability depends on protected workload, storage and retention, appliance or cloud capacity, monitoring, test restores, documented recovery objectives, and the labor required when recovery is real. A license markup alone does not price the service obligation.

What the decision depends on

FactorWhat to check

Protected workload

Data volume, servers, SaaS sources, retention, and growth.

Recovery promise

RPO, RTO, testing frequency, priority, and response window.

Delivery labor

Setup, monitoring, failed-job resolution, restore tests, and documentation.

Capacity risk

Hardware, cloud recovery, bandwidth, minimums, and emergency workload.

A package the buyer can understand

What can you restore, how quickly can you restore it, and when was that recovery path last tested?

How to package it

Set a base fee per protected workload for platform capacity and monitoring, then add retention and cloud-recovery bands. Include a scheduled test-restore cadence and price complex recovery exercises or application runbooks as separate work.

Margin stress case

Model rapid data growth, repeated failed jobs, and one full recovery event in the same quarter. Test whether capacity charges and the delivery reserve cover both infrastructure and senior engineer time.

Worked example

Illustration: a $3,200 monthly BCDR package costs $1,900 in platform, capacity, monitoring, and routine restore work, leaving about 41% gross margin. Data growth and repeated failed-job work raise cost to $2,450, reducing margin to about 23% and triggering a capacity-band review.

Questions owners ask

Is a per-device BCDR price enough?

Only when protected volume, retention, recovery capacity, and test labor remain inside a defined band. Price exceptions before they become routine.

Should test restores be included?

Include a stated test frequency and workload. Larger exercises, application validation, and customer-led recovery simulations can carry their own scope.

How do recovery objectives affect price?

Tighter recovery points and times can require more capacity, monitoring, documentation, and response readiness. Tie the promise to the resources needed to keep it credible.

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