Recovery License Model Aligns Pricing with the True Value of Backup – Data Recovery

Jul 2013

Recovery License Model Aligns Pricing with the True Value of Backup – Data Recovery

Posted by Eran Farajun

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?

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