The cost of backing up and recovering data is estimated to increase over the next five years according to a study commissioned by Asigra. The study was conducted by Winning Research. 161 CIOs, IT executives and IT staff participated in a detailed research study. The results provided information on the comprehension of recovery-based pricing, willingness to buy and pricing sensitivity. Findings included the following:
• 90% of survey participants expect the cost for backup and recovery to go up over the next five years. As a result, there is a willingness-to-switch to recovery-based pricing, showing that fear of cost growth is a strong motivator to make the switch.
• 84% of all respondents indicated they would be either “Likely” or “Very Likely” to switch to recovery-based pricing today, if it offered the same technical capabilities as their current software.
• Companies with high data growth rates were more likely to switch to recovery-based pricing.
• Respondents with larger data backup volumes indicated they would be more likely than those with small data backup volumes to switch to recovery-based pricing.
• Large enterprises were the most likely to switch to recovery-based pricing.
Asigra introduced its Recovery License Model® (RLM) earlier this year in an attempt to shake up the stagnant managed storage market segment. The Asigra Recovery License Model gives organizations the option of selecting a pricing model based on how little data they recover over a 12-month period. This stands in contrast to traditional backup pricing models that charged customers (as well as managed service providers) based on the amount of data being backed up and stored. With Asigra’s pricing model, customers who recover less will pay less, and costs are capped so that recovery costs never exceed more than 25% of their data.
“Pricing alternatives for technology have evolved significantly as cloud computing has taken center stage. The need for change in the pricing of software and software-based services has finally come to a point where users are more educated on the topic and demanding that pricing be aligned with business value,” said Eran Farajun, Executive Vice President, Asigra. Asigra’s Recovery License Model is a leap in this direction, providing immediate value that scales as data volumes grow. The Winning Research study highlights the demand for such a model which is in line with feedback we receive from our partners and customers.”