Native Azure Backup: Hidden costs and how to avoid them

Cloud adoption is soaring. In 2025, end-user spending on public cloud services is projected to hit $723 billion, a  21% year-over-year increase compared to 2024. The wider cloud computing market is expected to maintain this level of compound growth for the next decade.

Hybrid work demands, AI integration, and secure digital transformation are among the factors driving cloud adoption. Microsoft Azure is the second-largest public cloud provider globally, with strong success in the mid-market and enterprise space due to Azure’s deep integration with Microsoft 365.

But when it comes to backup, Azure comes with significant limitations.

Microsoft's Shared Responsibility Model explained

Under the terms of its service agreement, Microsoft secures the physical infrastructure, network, and hypervisor layers. However, data protection, identity management, and backup fall under your responsibility as an MSP or end customer.

If you delete a file, misconfigure a retention policy, or get hit by ransomware, Microsoft won’t restore that data unless you’ve taken extra steps to protect it. Azure Backup isn’t included by default, and its limitations can prove costly.

A growing threat

Cyberattacks on cloud infrastructure are growing fast. According to Checkpoint’s 2024 Cloud Security Report, 61% of organisations experienced at least one cloud-related breach in the previous 12 months.

SMBs are especially vulnerable because they often lack the in-house expertise to spot and fix common misconfigurations that lead to breaches. And yet, many customers mistakenly assume that Microsoft automatically protects all data stored in Azure.

Why is Microsoft's native Azure Backup not enough?

For MSPs looking to deliver value-added cloud services, Microsoft Azure is a key pillar. However, backup is Azure’s fatal flaw. On the surface, Microsoft’s native backup offers a convenient, built-in solution for data protection. But dig a little deeper, and the cracks begin to show:

Hidden fees

Costs vary based on various factors, including backup frequency, retention duration, storage tier, and even daily data churn. For customers using premium storage or geo-redundant backups, costs can balloon rapidly, often without clear visibility upfront. Even worse, egress fees that aren’t included in the initial quote and are only revealed during large-scale restores, often turning disaster recovery into a financial shock.

Unnecessary complexity

Native Azure Backup is not a ‘plug-and-play’ solution. Deployment requires users to configure Recovery Services Vaults, manage snapshot schedules, handle VM guest agent updates, and troubleshoot provisioning issues. Many partners have reported failed backups due to agent conflicts, firewall rules, or VM health issues, especially in hybrid or high-churn environments.

Limited recovery

Azure’s native backup offers limited options for granular recovery. Users are often unable to recover individual files or application data without restoring the entire VM, which increases downtime and complicates compliance. This makes it difficult for MSPs to meet customers’ recovery targets.

Subpar support

Partners that assume Microsoft support is included as standard are in for an unpleasant surprise. Standard Azure support offers slow SLAs (up to five business days for critical cases). Premium Support, which is required for faster response, costs $1,000 per month per customer.

Why MSPs are switching to Redstor’s Azure Backup

Redstor offers a purpose-built alternative to native Azure Backup. Our product is designed to deliver secure, scalable, and simplified data protection for MSPs and their customers.

• Predictable pricing: Redstor's Azure VM backup features a fixed monthly cost with no regional egress fees or complex pricing variables. This enables more accurate quoting and more margin on every deal.
• External backup: Unlike Microsoft’s native Azure Backup, Redstor stores backups outside of the Azure tenant. This adds an extra layer of security and reduces the risk of ransomware.
• Faster recovery: With granular recovery, hourly snapshots, and full-system restore options, Redstor allows MSPs to recover critical data quickly and meet tight RTOs with ease.
• Premium support: Redstor includes premium technical support at no extra cost. We provide MSPs with 24/7 access to expert support via phone, email, and our ticketing system.
• Malware and ransomware detection: Redstor automatically scans your clients’ data to check for anomalies before it’s restored to ensure only clean data is recovered.

Save up to 70% vs Azure Backup

In addition to offering significantly better functionality, Redstor consistently comes out up to 70% cheaper than Azure-native backup in head-to-head cost comparisons. Our Azure Backup combines superior service delivery with improved profit margins.

Improve Microsoft partner status and earn rebates

By helping you deliver more competitive Azure quotes and win more customers, Redstor also supports your Microsoft Partner journey. That includes:

• Boosting performance scores for Microsoft designations.
• Accelerator rebates for Azure projects.
• Access to Microsoft co-op funding for marketing and business development.
• Lead generation from Microsoft’s partner ecosystem.

Get started today

Redstor makes it easy to evaluate, deploy, and deliver better backup for your Microsoft Azure customers. Our MSP-friendly platform offers free trials, live demos, and personalised onboarding to help you take your Azure backup offering from basic to best-in-class.

Don’t let unpredictable pricing and limited support limit your Azure strategy. Take your MSP to the next level by booking a free demo today.