As Data Volumes Escalate, Backup Pricing Models Must Innovate

Innovation is a core component of the role IT does, or needs to, play in a contemporary enterprise context. Cloud is all about innovation. Before one innovative new aspect of Cloud is executed another two or three are coming along behind. The sheer pace of innovation in Cloud means that enterprises now have more choice than ever before in how to supplement their own IT organizational delivery capabilities.

Like many other IT professionals I was drawn to VMworld in San Francisco last week. For anyone in the Cloud business this is a superb forum to see first-hand what is new and innovative, both now and in the near-term. While it is sad to see that some technology companies still rely on big-time gimmicks to attract attendees to their booths it is also enlightening to see some familiar faces with brand new value propositions to showcase.

Asigra are the leading light when it comes to Cloud Backup and Recovery technologies. Their solution has enabled enterprises to leverage Clouds for offsite data retention and management for over a decade. From a technology perspective their track record in innovation is unparalleled. I had the pleasure to catch up with Eran Farajun, Executive Vice President of Asigra at VMworld and learn about some innovation that Asigra have created for the Service Provider community that is not technical but can have a significant impact on the way Clouds can provide value to enterprises who want to leverage the technology innovation but with a cost structure that reflects the realities of a contemporary use-case.

Here is what Eran had to say:

“With continued data growth in IT environments, backup professionals are under increasing pressure to manage this information influx while containing costs. The Enterprise Strategy Group (ESG) recently polled IT managers and technical/financial buyers to find out just how much pressure they are experiencing—particularly when it comes to reducing backup and recovery expenditures amidst rising data growth costs.

The research found that three out of four respondents expect to see data growth expand at a rate of up to 20 percent a year. Companies that have over 50TB of data understandably have higher cost estimates for their data growth than companies with less data.

The analysis additionally discovered that the majority of IT professionals surveyed (two-thirds) feel at least “some pressure” to reduce their current IT spend. Larger companies (annual revenue >$500M) report “very strong pressure” more often than their small to mid-sized counterparts.

So what are backup and recovery buyers to do when they are caught in the middle between escalating data volumes and increasing demands that they contain costs? Companies with high data growth rates—where the growth of data exceeds the percentage of data that is recovered over time—require a new metric for pricing. Without a pricing model revision, the price of backup software and services will quickly become out of sync with its derived value.

Asigra, a strategic NetApp partner, has come to the rescue of beleaguered tech buyers everywhere with the recent release of its Recovery License Model® (RLM), a performance-based pricing model for the backup and recovery industry. This cloud computing pay-per-use model represents a change from capacity or agent-based backup software pricing to one based on actual successful data recoveries.

Here’s how it can help control inflated IT costs:

The Asigra Recovery License Model ties the price directly to how the software performs in a data recovery situation by using Asigra Recovery Tracker™, powerful analytics software which shows the percentage of data that a company recovers over time. The Recovery Tracker is a software component that sits within the backup infrastructure to capture recovery events throughout the customer environment.

With the Recovery License Model, the cost of backup licenses is separated, or decoupled, from the cost of recovery licenses. The cost of backup is fixed, and the cost of recovery is variable but never will exceed more than 25 percent of the total protected data volume. This means that even if you ever need to recover more than 25% of your data, you’ll never be paying to do so. The Recovery Tracker monitors these levels and provides real-time feedback to the customer on all recovery activities. The customer is billed based on the volume of data recovered during the year. The savings are sustainable and the costs are predictable because costs are capped at 25% and pricing is decoupled from data growth.

The Asigra Recovery License Model, a performance-based pricing model, will be available to interested NetApp channel partners. For more information about this new model, visit or contact Asigra at 416-736-8111 ext. 1457.

  It is very motivating to see a leader in the Cloud industry recognize that innovation in licensing models is just as important as innovation in the technology value. Asigra has seen their business grow year-on-year due (largely) to a continually innovating technology value proposition but rather than rest on their laurels they have gone where very few others in the industry have ventured and taken a hard look at their business from a completely non-technical perspective. RLM is the result of that reflective analysis and will provide customers with an enhanced Cloud option for their data retention and restoration requirements that marry innovative technology with equally innovative business models.