Eran Farajun's blog
The growing problem of unfair pricing in the backup and recovery market is unsustainable. It is time for a fair pricing model, one that is aligned with the true business value of backup – data recovery.
Technology has enabled business model revolutions in many markets that are fair to customers, allowing significant savings and better overall value. This has resulted in pricing overhauls in several markets, including the music industry’s shift from albums to per-song pricing; telecom’s move from per-minute to per-second billing, and the auto insurance industry’s Pay-as-You-Drive (PAYD) performance-based pricing as an alternative to monthly premiums based solely on actuarial statistics.
The Asigra Recovery License Model® gives organizations the option of selecting a fair pricing model based on how little they recover. The model is enabled by technology and follows what many experts agree is an evolving movement toward performance-based pricing that aligns with the value derived by the customer. The Recovery License Model separates the cost of backup and recovery. Backup costs are based on capacity and remain constant; recovery costs are based on how much recovery you actually do and although this number is variable there is a limit to how much you can be charged. And nobody recovers 100% of their data – so why should you be paying to recover 100%?
The Recovery License Model pricing gives IT professionals the ability to better control backup and recovery costs, even as organizational data grows rapidly. With this approach, fees are based on a Recovery Performance Score that is calculated over a 12-month period. A waiver is provided for the single largest recovery event in any licensing term and only successful recoveries are included in the calculations. This allows customers who recover less to pay less.
Hear what Databarracks, one of the UK's first providers of managed backup and disaster recovery services, has to say about the business benefits of the Recovery License Model.
Those who adopt the pricing model will realize immediate savings of approximately 40% and long term savings of 60% to 70% as a result of separating backup and recovery license costs and associating price with recovery performance. The Asigra Recovery Tracker™, proprietary analytics tracking software, generates actionable information that helps to improve IT efficiency, enabling performance-based savings and more user control on how they are billed for backup software/services. The model keeps backup and recovery costs under control over time, despite the trend of rapid data growth showing no signs of slowing down.
The Asigra Recovery License Model follows customer demand for pricing that prioritizes data recovery over the backup of data. This is reinforced by recent Enterprise Strategy Group (ESG) research of IT managers and/or staff who influence backup and recovery purchasing decisions. The research revealed a number of findings related to data recovery, including the fact that most of the respondents attributed higher IT costs to rising volumes of data (data capacity). Survey respondents also indicated that they anticipate an increase in backup and recovery costs over the next five years as these volumes grow.
For more information on how you can effectively control and lower your backup and recovery software costs as data volumes continue to grow, download your complimentary copy of “The Costs of Rapid Data Growth”.
Do you think it is fair that you pay to recover 100% of your data, when you don’t actually recover 100% of your data? Don’t you deserve to pay less since you recover so very little?
One of the main concerns from end users about cloud storage is its security. “I am legally obliged to keep my data inside the country’s boundaries; where would you store it?” “How do I know it’s safe?” “How do I know I’m the only one that can access it?” These are all questions that cloud computing vendors and resellers have been striving to answer, and reassure their customers about since this service delivery model was first introduced.
However, today there is a variety of ways in which cloud solutions providers i.e. vendors, resellers and Managed Service Providers (MSPs), can near-guarantee data security and among the most sophisticated near-guarantee of security is encryption. This is a simple yet effective process that will put many customers’ minds at rest, and is therefore a powerful tool for the channel.
Before data leaves the end user’s datacentre it is encrypted at the source and it stays so while it gets transmitted to the cloud, essentially the data is encrypted at rest and in flight to ensure the data remains secure, where it also remains encrypted. Therefore, anyone trying to intercept this data while it is being transferred would only capture encrypted files; access to confidential content is hence not possible.
In order to access data in its un-encrypted form, it needs to be unlocked and the only key resides with the customer, ensuring that the stored version of the data is as safe and secure in the MSP’s datacentre as if it was in-house. Depending on the required level of security, keys can have between eight and 32 digits. So far, so secure.
Safeguards can be applied at various levels to ensure the security of customers’ data from cradle to grave including encryption key escrow management capability. This allows for an additional security provision to be put in place should a customer lose or forget their encryption key. Measures of security (or lack thereof) will often be a deal breaker so any reseller or cloud service provider looking for that extra element of differentiation should certainly look into having as many of these security measures in their portfolios. Amongst the most important factors is to ensure that the underlying technology vendor has a third-party certification of the encryption elements in its products, like a governmental body. It is not enough that a vendor claims their product is secure and it incorporates some form of cryptology. The real question is whether anyone has actually verified that the encryption was implemented properly so it cannot be defeated. This is the comfort level that a recognised third-party certification provides.
In the cloud data centre itself, the security of the data is protected even from datacentre operations staff due to its encrypted format. Cloud operations personnel do not have unauthorised access to the decryption key, meaning that customers should feel safe in the knowledge that their data is visible only to them. Building a level of trust such as this is “key” (excuse the pun) when establishing channel relationships, as trusted resellers are the ones to whom happy customers will return, and will be recommended to others.
It is details such as this that give good relationships the advantage; in order to provide the best possible service it is necessary to understand the technology being utilised and leverage it to each customer’s advantage. Thus, fears about the security of data in the cloud should be greatly reduced. Customers who feel happy with the level of security, support and flexibility provided are the ones with whom relationships will flourish.