The Case for LocalScaler and the Future of MSP-First Storage

For Managed Service Providers (MSPs), the responsibility of safeguarding customer data has never been heavier. Data volumes are exploding, cyber threats continue to escalate, and the demands placed on MSPs by regulators, insurers, and customers are tightening by the month. At the same time, margins are being squeezed as storage costs rise and hyperscale pricing becomes increasingly difficult to manage.

The reality is simple: MSPs are now operating at the centre of the world’s data resilience ecosystem. More than 300,000 MSPs globally are responsible for managing, protecting, and securing billions of gigabytes of business-critical information every single day. It is a mission that comes with high expectations and even higher stakes. When ransomware strikes, when systems fail, or when human error compromises production data, it is the MSP who carries the burden of restoring trust and restoring operations.

This is why data resilience is no longer a technical decision. It is a business imperative.

The rising tide of data growth

Every report from IDC, Gartner, and backup vendors points to the same trend: data is doubling at an unprecedented rate. Backup data, in particular, is ballooning. Most organisations still rely on the 3-2-1-1-0 principle, which requires multiple verified and immutable copies of critical data to guarantee recoverability. That means more repositories, more retention cycles, and far more capacity than production systems alone.

Recent analysis suggests that between 60 and 80 percent of all stored data is backup data. And that number is growing. For MSPs, this translates into escalating infrastructure demands at the exact moment customers expect storage costs to fall.

This leaves MSPs in an impossible situation: absorb rising cloud bills or pass them on and face tough conversations about cost increases. Neither option builds long-term customer value.

Cyber risk and resilience: the new non-negotiables

The MSP playbook has changed dramatically. Five years ago, performance and uptime dominated customer conversations. Today, resilience and security are the true battlegrounds.

Ransomware is now the leading cause of data loss worldwide. Attackers no longer just encrypt production systems; they actively target backups because they know those backups represent the last line of defence. When backups fail, businesses fail. Insurers know it. Regulators know it. And MSPs feel it more than anyone.

In this climate, resilience is no longer “nice to have”. It is non-negotiable. MSPs need:

• Immutable storage
• Secure, isolated repositories
• Predictable recovery performance
• The ability to maintain multiple backup copies without destroying their margins

This is the heart of the LocalScaler revolution.

The cost problem no one wants to talk about

Hyperscalers have delivered tremendous innovation, but their pricing models were never designed for MSPs. Egress fees, API requests, PUT/GET operations, storage class transitions,  the costs add up fast and unpredictably. The more data MSPs store, the worse the economics become.

And with backup data growing so quickly, MSPs need to scale capacity without scaling cost. This is where Exaba takes a very different position.

LocalScaler: a new model designed for how MSPs really operate

Exaba built LocalScaler data storage because the industry needed a genuine alternative. Not a cheaper option. A better one. A platform with economics that reward growth rather than punish it.

LocalScaler allows MSPs to build their own distributed storage environment using standard hardware, predictable pricing, and a design philosophy built entirely around MSP workflows.

Five key LocalScaler advantages stand out:

1. Ultra-low-cost storage that protects margins

Starting at 2 dollars per terabyte per month or less with no egress/API fees. LocalScaler makes it practical to maintain multiple immutable copies of customer data without watching profit disappear.

2. True multi-tenancy and customer isolation

Built from day one for MSPs, not retrofitted. Each customer can be segmented, isolated, metered, and managed independently.

3. Flexible customer billing

MSPs can bill the way they want, with usage-aligned pricing and white-label identity baked into the platform.

4. Hardware ownership flexibility

Run LocalScaler on standard servers, in your own datacentre, with your choice of vendors. No oversized appliances. No vendor lock-in. No expensive refresh cycles.

5. Simplicity and operability

LocalScaler is engineered to help MSP teams move faster. Deploy quickly, scale linearly, integrate with Veeam, Commvault, and rclone, and recover data with confidence.

Together, these capabilities create a storage foundation built specifically for MSPs, not enterprises. A foundation that recognises just how critical backup data has become to business continuity.

Building a safe haven for MSP backup data

LocalScaler solves a structural problem: MSPs need to store exponentially more data every year while keeping costs reasonable and ensuring resilience. Hyperscalers make that difficult. LocalScaler makes it achievable.

It provides:

• A secure repository for immutable backup
• Predictable cost modelling
• High performance due to proximity
• Compliance and governance clarity
• Premium-grade resilience at an accessible cost point

In other words, a safe haven for MSPs and their customers.

The LocalScaler partner message: The future needs you

Exaba believes MSPs should not be an afterthought in cloud design. MSPs deserve infrastructure built around how they deliver services, build trust, and manage risk for thousands of customers.

Our ambition is bold. We intend to become the number one data services provider for MSPs globally. Not by being bigger. By being closer. By helping MSPs reclaim value, rebuild margin, and deliver storage services that give customers confidence in every backup and every restore.

LocalScaler is not simply a platform. It is a movement toward a smarter, more predictable, more resilient future for MSP data.

Talk to Exaba about becoming a LocalScaler partner today.

The world is changing. Data is growing. Risk is increasing and MSPs deserve a storage model that finally puts them first.