Why MSPs Should Help SMBs Prioritize NAS Backup and Recovery in 2025

For small and medium-sized businesses (SMBs), reliable data protection is no longer just a best practice - it's a requirement. Due to the increasing number of ransomware attacks, strict data privacy laws, and insurance policies requiring proof of backup and recovery procedures, SMBs are turning to managed service providers (MSPs) to keep their data safe and recoverable.

One of the most practical ways MSPs can deliver this protection is by leveraging Network Attached Storage (NAS) as part of a broader backup and disaster recovery (BDR) strategy. Modern NAS systems go well beyond centralized storage. They support hybrid backups, offer ransomware-resistant features, and easily integrate with cloud and off-site backup targets.

Top Reasons to Backup to NAS

Here’s why NAS remains a cornerstone of resilient data protection for SMBs in 2025.

1.  Centralized, Scalable, and MSP-Friendly

A NAS provides a centralized backup target for local servers, workstations, and virtual environments. This consolidates backup workflows in one place, simplifying management for MSPs, especially in multi-site deployments or remote office scenarios.

As SMBs grow or add new systems, NAS storage can scale without the need for major infrastructure changes. Many devices now support hot-swappable drives and expansion chassis, which reduces friction for MSPs when managing their clients' evolving needs.

2.  Cost-Effective, Yet Powerful

While cloud-only strategies are attractive, depending entirely on the cloud for backup can be costly, particularly with regard to egress fees and long-term retention. NAS offers a cost-efficient, high-performance local tier for short-term backups and fast recovery.

For MSPs supporting budget-conscious clients, NAS enables a hybrid architecture with fast local restoration from NAS and longer-term, redundant cloud storage. This balances performance with affordability.

3.  Supports Hybrid and 3-2-1 Backup Strategies

Most modern NAS devices now integrate directly with public cloud providers or S3-compatible storage, making them ideal for hybrid backup strategies. Even if the NAS itself doesn’t integrate directly with cloud storage, backup solutions like NovaBACKUP enable SMBs and MSPs to set up a hybrid backup strategy by first sending data to the NAS and then to cloud backup storage. And some NAS vendors even support replication between NAS devices, enabling air-gapped, site-to-site redundancy.

Either option enables MSPs to easily adhere to the 3-2-1 rule:

• Create 3 copies of your data

• Store it on 2 different media types (e.g., NAS + cloud)

• And store 1 copy off-site

With NAS serving as the local repository, MSPs can automate the replication process to off-site or cloud backup targets, eliminating the need for manual intervention.

4.  Defense Against Ransomware

Security isn’t just an enterprise concern anymore. According to the 2025 Verizon Data Breach Investigations Report, SMBs are now being targeted nearly four times more often than large organizations. This shift underscores the need for stronger, more consistent protection at the small business level, and a reliable NAS system can play a significant role in achieving it.

NAS devices offer built-in safeguards like:

• Data encryption, during transit and at rest

• Immutable snapshots, which prevent alteration or deletion for a defined period

• Role-based access controls to limit who can modify backup data

• Network segmentation and non-domain-joined NAS appliances to isolate backup targets

All to help keep sensitive data out of the wrong hands. 

These protections, paired with frequent local and cloud snapshots, provide MSPs with the tools necessary to offer quick and clean restores, even after a ransomware attack. Additionally, for MSPs supporting regulated industries, this level of transparency and control simplifies the process of meeting security and compliance requirements without adding operational overhead.

5.  Fast, Flexible Restore Options

Recovery speed is crucial during a data outage or ransomware attack. A NAS allows MSPs to quickly restore entire systems or individual files from local storage, eliminating the need to wait for cloud downloads or tape retrievals. Many NAS units support virtualization integration, providing MSPs with the ability to spin up VMs directly from the backup image or use it for test restores.

This capability is especially useful for meeting cyber insurance policy requirements, which often include proof of recovery testing and realistic RTOs (recovery time objectives).

6.  Alignment with Compliance Mandates

With SMBs facing greater scrutiny from regulations such as HIPAA, GDPR, and NIS2, as well as stricter requirements from their cyber insurance providers, backup compliance is no longer optional. NAS systems:

• Enable audit logging and backup reporting

• Support encrypted storage and transmission

• Provide retention policies that align with industry mandates

MSPs can leverage these features to help their clients demonstrate due diligence and reduce their exposure during audits or breach investigations. This reduces the time needed to prepare for an audit and helps MSPs avoid stress with their clients.

7.  More Reliable Than USB and Tape

Although USB drives and tapes are still used in some backup routines, they have serious limitations, particularly with regard to automation and reliability.

With tape or USB, someone on the client side must remember to swap out the drive or insert a new tape. If this step is missed (or if the media is damaged), you won't know until a data loss incident reveals the problem.

NAS, on the other hand, doesn’t rely on human memory to do its job. It can run backups automatically and send alerts when something goes wrong. For example, it will notify you if a disk breaks or if it detects a suspicious access attempt. USBs and tapes won't notify you when they fail; they just fail.

Many NAS devices also support RAID configurations, which add redundancy and protect against hardware failure.

For SMBs without a dedicated IT team and for MSPs trying to deliver consistent protection across multiple clients, NAS offers peace of mind. It's always on and always watching, and it's much less prone to human error.

8.  Designed for Manageability

Modern NAS systems are designed with the user in mind, offering easy-to-use interfaces that make it simple to set up, monitor, and maintain backup routines, even for users without a technical background. This is a significant benefit for small and medium-sized businesses (SMBs) without in-house IT teams. For MSPs, this simplicity translates to faster onboarding, fewer support tickets, and smoother client handoffs.

Many NAS devices include built-in features such as email alerts, detailed logging, and integration with popular RMM tools. These features allow you to stay ahead of potential issues, such as failed backups or hardware degradation.

For instance, NAS devices by Buffalo (a NovaBACKUP technology partner) come with a complimentary central monitoring tool that provides visibility into backup activity, hardware health, and device status across your entire deployment. This is a practical way to stay ahead of issues like hardware failures without adding cost or complexity.

These options reduce the time needed to manage backup environments, especially when combined with backup software that coordinates with the NAS and cloud or other off-site backup targets.

Final Thoughts

For MSPs helping SMBs navigate today’s threat landscape, NAS remains a smart, flexible, and efficient foundation for data protection. Whether used as a local tier in a hybrid architecture, an immutable backup target, or as part of a compliance-ready disaster recovery plan, NAS provides MSPs with the necessary tools to deliver results - and peace of mind - to their clients.

In the face of ransomware attacks, insurance policies, and regulators all demanding proof of robust backup, “just having a copy” is no longer enough. Backup strategies must be resilient, verifiable, and restorable, and NAS devices help make that possible. Want to learn more about implementing a NAS into your backup strategy? Check out Essential Guide to NAS as Backup Storage for SMBs.

And if you’d like help building a NAS-based backup strategy that checks all the boxes,  book a free consultation with one of our data protection experts. We'll walk you through designing a scalable, hybrid backup plan tailored to your clients' needs.