New disaster recovery pricing system bases charges on how much data is recovered, not backed up

Asigra offers performance-based pricing model for disaster recovery services

There’s a dirty little secret in the disaster recovery industry, according to Dave Simpson, who tracks the storage market for the 451 Research Group. Usually, customers require less recovery than industry vendors make them believe, he says. But vendors charge customers based on how much data they back up, when in reality it’s rare for an organization to require a complete recovery of all its backed up data.

There’s a dirty little secret in the disaster recovery

industry, according to Dave Simpson, who tracks the storage market for the 451

Research Group. Usually, customers require less recovery than industry vendors

make them believe, he says. But vendors charge customers based on how much data

they back up, when in reality it’s rare for an organization to require a

complete recovery of all its backed up data.

Disaster recovery and backup software maker Asigra

introduced a new pricing system today that changes the traditional model by

charging customers based on how much information is actually recovered

annually, not just how much is backed up.

[CLOUD-BASED DR: Disaster]

recovery in the cloud: Vendors jump in, enterprises wade

The new Recovery Licensing Model (RLM) – which the company

has a patent pending for – introduces a performance-based pricing model for the

DR industry, which other industries have already seen. Instead of buying music

albums, iTunes now lets consumers buy individual songs; some auto insurers charge

customers based on their driving habits using in-car monitors; cloud computing

has ushered in pay-by-the-hour virtual machines for rent.

Asigra’s RLM pricing model works similarly: Customer pay

based on the amount of data they recover. Customers with resilient,

fault-tolerant systems that require less annually recoveries pay less than

customers to have frequent recovery events. The pricing structure is capped at

25% of backup costs and each customer’s single largest annual recovery is

waived.

Each customer is provided a Recovery Performance Score which

dictates their payment. If customers recover less than 5% of their data in a

year, they would pay $0.167 per GB per month; customers recovering 25% or more

of their data annually would pay up to $0.50 per GB per month, according to

Asigra list prices. Asigra sells mostly through channel partners though.

“There is no value in backup up, only in recovering,” says

Enterprise Strategy Group analyst Steve Duplessie. “By charging

based on recovery versus what every else has always done - charge you for

backup - they are aligning the cost with the actual value.”

Simpson, the 451 researcher, says the model has the

potential to be disruptive, if Asigra competitors like Symantec, IBM, BMC adopt

the model as well; otherwise, it will be a market-differentiator for Asigra and

its partners. For most customers, he believes it would likely save them money

compared to the traditional model if they have a lot of data to back up and few

large-scale recoveries.

Network World senior writer Brandon Butler covers cloud computing and social collaboration. He can be reached at BButler@nww.com and found on Twitter at @BButlerNWW.

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