Backup Cost Woes: Making a Case for Recovery-Based Pricing
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Rising Backup Costs Is a Big Issue
90% of IT survey respondents expect the price of backup and recovery to rise over the next five years. -
Price Model Appeal
91% of IT respondents find recovery-based pricing more appealing to their businesses. -
Making the Switch
84% of IT respondents said they would likely or very likely switch to recovery-based pricing if it offers the same technical capabilities as their current software. -
Who the Converts Are
Very large companies (91%) and companies with high data growth rates (94%) are more likely to switch to recovery-based pricing. -
Recovery Usage Drives Conversion
Companies that recover a lot of data—88% with medium recovery usage and 88% with high recovery usage—are interested in making the switch to recovery-based pricing. -
Tracking Is Knowledge
86% of companies that track recoveries are more interested in switching to a recovery-based pricing model, compared with 78% that either do not track or only "somewhat track" recoveries. -
Cutting Costs
94% of IT respondents believe recovery-based pricing will save them money. -
Fair Pricing
90% of IT respondents say recovery-based pricing is a fair pricing model.
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Why Metrics Matter to the Channel 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.