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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

By , Network World
July 10, 2013 11:26 AM ET

Network World - 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.

 

Read more about cloud computing in Network World's Cloud Computing section.

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