Backup Cost Woes: Making a Case for Recovery-Based Pricing

IT leaders are committed to reducing cost while adding value to their organizations, and one of their biggest concerns is backup and recovery cost. Recovery-based pricing is a new software pricing model that separates backup and recovery costs. Historically, backup software companies have sold licenses based on how much data a company backs up, resulting in increased costs as the amount of data increases. Asigra, a cloud backup, recovery and restore software provider, created a recovery license model (RLM) designed to allow users to pay based on how much data they recover, but the cost for backup in the cloud is fixed. So customers who recover less will pay less, and the costs are capped so that they are never higher than 25 percent of their data. With the RLM, enterprises and channel partners get predictable pricing over time, no matter how much data is backed up. Asigra estimates that companies that adopt this pricing model will see an immediate savings of 40 percent and a long-term savings of 60 percent to 70 percent as a result of separating backup and recovery license costs and associating the price with recovery performance. Asigra commissioned Winning Research to conduct a study on recovery-based pricing for the backup space. Here are key takeaways from the study.