BaaS and DraaS – differences and specific applications

Data protection solutions offered in the cloud model are gaining new followers. Although they simplify backup and recovery operations, they are not always successful everywhere.

Recently, we have heard more and more about the growing role of services such as Backup as a Service (BaaS) and Disaster Recovery as a Service (DRaaS) in data protection processes. Sometimes an equals sign is put between the two, and some customers believe that service providers also offer DRaaS as part of their BaaS package. So what are the differences between these services?

What is Backup as a Service?

BaaS is a cloud data backup run on behalf of the customer following SLAs (Service Level Agreements). The provider is responsible for managing the backup service and data recovery. They also maintain the necessary equipment and applications and ensure that they function properly. In a word, it provides the infrastructure for delivering the service. The customer does not need to invest in servers, backup software, or deduplicators. Only backup agents and sometimes a backup appliance are installed at the customer’s site.

What is Disaster Recovery as a Service?

A different role is played by the DRaaS service, which provides organizations with business continuity for their IT systems. Here it is not only about data protection but also about securing equipment that can be damaged by unpredictable events, such as fire or flooding of the server room. In such situations, even having backups does not mean that the company can get back to work immediately, as it requires costly repairs to the equipment or replacing it with new devices. In addition to the financial outlay, time is also needed. DRaaS is designed to quickly restore full functionality to an IT environment without incurring horrendous expenses and wasting valuable time.

What BaaS and DRaaS have in common is good market prospects. According to Technavio, the global BaaS market was worth $14.29bn in 2020, with a projected annual growth rate of 32 percent between 2020 and 2025. The same analysts estimate that sales of DRaaS services will reach $40.97bn in 2025, with a CAGR of 44.65 percent between 2021 and 2025.

Advantages and disadvantages of BaaS

Two years ago, William Blair & Company specialists announced that the fourth era of backup was coming. Its main features are the creation of all backups in the public cloud and complete independence of the backup from the hardware used. It is worth mentioning that the third era (2015-2020) was characterized by a significant simplification of backup processes and the dynamic development of scale-out systems and backup in both local and cloud environments. Of course, this type of analysis must be treated with caution, but it does not change the fact that it makes the point in a certain direction. If one were to analyze the backup tools used by domestic businesses, it would turn out that most of them remained in the third era of backup. Either way, BaaS is on a rising wave, driven by several factors, including the exponential growth of remote employees. They were scattered over many locations during the pandemic and often used private computers, which greatly complicated data protection. In these cases, BaaS might have been a better option than traditional methods.

Financial aspect of BaaS

The financial aspects must not be forgotten either. Data protection costs consist of infrastructure maintenance and operation, as well as hardware and software costs and the salaries of IT specialists. Another argument in favor of BaaS is the virtually unlimited scalability. Some companies try to look a little further ahead and estimate their needs several years in advance. Traditional solutions, especially age-old ones, have limited scalability. At some point, excessive data volumes make it necessary to expand the infrastructure or face a decline in backup performance. In the case of BaaS, such dilemmas do not occur. Smaller companies often cannot afford to employ IT specialists, so they have no choice but to sign a contract with a service provider. Besides, the most frequent BaaS users are small companies with modest IT budgets. The boom in SaaS applications has had an indisputable impact on the growing popularity of cloud backup services. Microsoft 365, Salesforce, or MS Dynamic require special tools to protect data, and BaaS seems to be a natural choice.

3-2-1 Backup Strategy can be a problem for BaaS

However, not all businesses welcome this service with open arms. One reason for this reluctance is the fear of storing sensitive data off-site in an ‘unspecified location.’ In addition, many organizations have well-established backup tools and processes that full-time IT staff work with. In such cases, migration to the public cloud misses the point. The public cloud can also slow down backup and recovery processes and generate high costs because of various variables in the small print of contracts.

Competition among BaaS providers is quite fierce, with both global players and smaller local providers offering this type of service. There is always the risk of coming across an unprincipled service provider who may not meet the SLA. Therefore, having an in-house data protection infrastructure does not have to be a passé solution, especially as manufacturers offer a wide range of products that can be tailored to an organization’s individual needs.

In summary, when might BaaS be considered?

• small businesses and start-ups with a modest IT budget,
• no IT specialist in the company,
• the company has less restrictive backup policies,
• predictable amount of data, because in the “pay as you grow” model you can easily generate unplanned costs.

The road from DR to DRaaS

Corporations have been using Disaster Recovery (DR) solutions for quite some time. The strategy is that the backup center and the production center should be far enough away so that they are not in the range of a natural disaster, such as a tornado raging in the region. Apart from floods, there has been no other extreme weather for quite a long time in Poland. Hence the two centers are usually located close to each other. However, with the increasing adoption of cloud services, DR has become a solution available to a wide audience. Previously, smaller or medium-sized companies could not afford to invest in backup centers. DRaaS allows small businesses to use Amazon, Microsoft, and smaller providers’ data centers. DRaaS is based on a consumption model, where you pay only for the resources you use, possibly expanding or reducing them at almost any time.

Providers offer three options: self-service, partially managed, and fully managed. A packaged service with SLAs and guarantees is provided in the latter option. The customer does not have to manage storage, replication, or connectivity, and in the managed model, the provider also shoulders the burden of testing and iteration. Savings in capital expenditure and operating costs are readily apparent in this model. Building and maintaining a backup center can cost hundreds of thousands of dollars. A company that decides to take this step pays for leasing space and running servers and storage and replication and security software. Add to this the monthly power and cooling costs and the staff required to monitor and manage the operations on site.

Summary

However, while small and medium-sized businesses are more likely to be doomed to DraaS, large organizations should consider the alternative of an in-house backup center. Verifying the DRaaS provider itself is quite a difficult task. Traps such as unexpected costs or incompatible infrastructure lurk for potential service providers. Some providers like to charge for additional services such as testing. In addition, IT departments cannot always correctly estimate the amount of data to be protected. Sometimes, the originally assumed capacity is less than half of what is required. In theory, service providers take over all Disaster Recovery processes, but in reality, IT departments need to keep their fingers on the pulse. In fact, they remain involved in strategic disaster recovery planning and work closely with DRaaS providers throughout the process. This avoids surprises and ensures your disaster recovery plan aligns with changing business needs.