Maximizing MSP Opportunities: Real-World Use Cases for Cloud Object Storage

Managed Service Providers (MSPs) regularly offer cloud object storage as an integrated component of their core services, and for good reason. The seemingly unstoppable explosion in the growth of unstructured data continues to create massive demand for scalable, cost-effective storage.

Organizations across every industry require object storage for everything from long-term retention and compliance to data backup and disaster recovery. Object storage is ideal for these types of use cases as it is typically considerably less expensive than traditional block and file storage. MSPs can provide their clients with a complete solution by bundling object storage into their portfolios along with backup, disaster recovery, compliance and other data management solutions.

While not entirely greenfield, the market for MSP-provided cloud object storage is robust and evolving. With the rise of AI/ML data management, IoT and edge storage, and vertical-specific solutions for industries such as healthcare, media, and finance, the growth opportunities for MSPs continue to grow unabated.

Here are just a handful of popular and burgeoning use cases for high-demand services requiring secure, accessible, and cost-effective cloud object storage.

Fortifying cyber resilience with cloud backup and recovery

According to the Sophos State of Ransomware 2024 Report, 59 percent of global organizations fell victim to ransomware in the past year, while the average cost to recover from an attack has climbed to $2.73 million—that’s excluding ransom payments. It’s no wonder that cloud backup and disaster recovery services continue to be in high demand.

The cloud has become the de facto standard for replicating or backing up a “golden copy” of your data offsite where it can be quickly accessed in the event of a disaster or ransomware attack. Security features such as Object Lock, which makes data impervious to deletion or alteration (i.e. encryption), or Multi-User Authentication—a feature unique to Wasabi that makes it impossible for any one person to delete your cloud storage account—make cloud storage particularly enticing as a second copy storage target. This shift towards cloud-based backup solutions has resulted in a corresponding surge in demand for MSPs’ expertise in data protection to help facilitate their clients’ transition to cloud and hybrid backup.

Meeting industry-specific compliance and long-term retention needs

A growing number of industry and state and federal government regulations govern how long data must be retained and how it must be protected. In healthcare, for example, many state laws require that medical records of a minor be retained until the patient reaches the age of 18 plus an additional number of years (typically 3-5). Retention of video surveillance footage varies by industry—usually between 30 and 90 days—but could be for an indefinite period when dealing with evidence in criminal cases.

Long-term retention is an ideal use case for cloud object storage, delivering scalable capacity at a price point that is not only affordable for clients, but profitable for service providers. Understanding these requirements along with other industry-specific use cases for data storage, management, and protection, can help MSPs expand their service offerings to clients across a variety of lucrative niches.

Here are just a few examples of common regulations and retention periods across sectors:

Healthcare (HIPAA & FDA)

• HIPAA: Retain patient medical records for 5–10 years after the last visit (varies by state).

• FDA: Retain clinical trial data for 2 years after approval or discontinuation, often extending to 15+ years.

Law Enforcement and Criminal Justice (CJIS)

• Retain criminal justice data for 5–7 years (varies by state), with some records requiring indefinite retention.

Financial Services (FINRA & SEC)

• FINRA: Retain financial records for 6 years, with indefinite retention for litigation-related records.

• SEC Rule 17a-4: Retain broker-dealer records for 6 years, with the first 2 years in an accessible location.

Energy and Utilities (FERC)

• Retain financial and operational records for 6 years, and engineering or asset-related records for 10+ years.

Insurance (NAIC)

• Retain claims-related records for 7 years, and policy/contract records for 6 years post-termination.

Pharmaceuticals (GxP Regulations)

• Retain manufacturing and quality control records for 15 years, and clinical trial data for 5–25 years depending on jurisdiction.

Education (FERPA)

• Retain academic transcripts indefinitely, and disciplinary records for 5 years (varies by institution).

Government Contracts (FAR)

• Retain most records for 3 years after final payment, with some cost data requiring retention for 6–10 years.

Cloud tiering: unlocking value with active archiving

Managing on-premises storage can be expensive and resource-intensive, particularly as data volumes grow. Tiering infrequently accessed data to cloud storage, also known as active archiving, helps organizations reduce on-prem costs while preserving valuable IT capacity. This is a growing trend among large enterprises in data-heavy industries like healthcare and finance, but many small and medium-sized businesses (SMBs) have yet to adopt it due to limited awareness or concerns about migration complexity.

That lack of awareness represents a fantastic opportunity for MSPs, but beware. Not all cloud storage solutions are created equal. Hyperscaler models with multiple tiers, hidden costs like egress and API fees, and performance-for-price tradeoffs can make designing a straightforward, cost-effective solution challenging for MSPs. Offering active archiving services can be a lucrative opportunity, however, especially when leveraging simple, single-tier solutions like Wasabi that avoid the common pitfalls of the hyperscalers.

Leveraging cloud object storage for the AI/ML boom

AI/ML workflows generate and rely on massive datasets, such as training data, model outputs, and real-time analytics, and as such is creating equally massive opportunities for MSPs to offer new value-added services. Cloud object storage is an ideal solution for managing these datasets, as it provides scalable, cost-effective storage that can handle the enormous and growing volumes of unstructured data.

Object storage also supports AI/ML workflows by enabling easy access to data across locations, ensuring that models can retrieve the data they need for processing and training without delays. Its scalability allows businesses to store vast amounts of data without the physical and financial constraints of on-premises systems, making it well-suited for iterative training processes and large-scale analytics projects.

By incorporating cloud object storage into AI/ML pipelines, MSPs can help their clients streamline operations, reduce costs, and accelerate innovation. This positions MSPs to play a crucial role in supporting businesses as they adopt AI and machine learning technologies to stay competitive in a data-driven world.

Harnessing IoT and edge computing with scalable cloud storage

By 2030, IoT-connected devices are projected to reach 29.42 billion according to Statista, creating immense data storage and processing challenges for many organizations. MSPs can capitalize on this trend by offering cloud object storage as a cost-effective and scalable solution for managing IoT data from edge environments.

Centralizing and archiving data in the cloud ensures long-term accessibility while reducing the burden on on-premises systems. MSPs can help clients in sectors like manufacturing and transportation leverage this approach to enable predictive maintenance, real-time tracking, and other IoT-driven innovations efficiently and affordably.

Conclusion: The cloud object storage opportunity for MSPs

The rapid growth of unstructured data, IoT, AI/ML, and industry-specific compliance needs creates unprecedented opportunities for MSPs to expand their offerings with cloud object storage. From streamlining and fortifying backup and disaster recovery to ensuring compliance with long-term retention requirements and enabling innovations in AI and IoT, cloud storage empowers MSPs to deliver high-demand, value-added services.

Choosing the right storage partner is critical to success, and Wasabi is uniquely positioned to support MSPs. With its single tier of affordable, high-performance storage, no hidden fees, and features like immutability for cyber resilience and compliance, Wasabi simplifies service delivery while maximizing profitability. Our Wasabi Account Control Manager provides a single pane of glass for MSPs to efficiently sell, provision, and manage storage accounts across multiple clients—a unique capability that enhances operational efficiency and scalability.

By integrating Wasabi into their portfolios, MSPs can deliver cost-effective, scalable, and secure storage solutions tailored to their clients’ evolving needs while positioning themselves for long-term growth and success in a data-driven world.