Asigra: Research Supports Recovery-based BDR Pricing Model
Cloud storage data backup and disaster recovery provider Asigra has already disrupted pricing for data backup and disaster recovery (BDR) with a recovery-based model. And now the company points to the results of a new survey to continue to build its case for customers to move to recovery-based pricing.
The Asigra-commssioned survey conducted by the Enterprise Strategy Group (ESG) points out the expected future growth in data volume does not coincide with customer willingness to pay more to back it up.
The Enterprise Strategy Group contacted 500 financial and IT decision makers/influencers for the survey. ESG said that respondents generally agreed that it was unfair to pay for the full backup if they only recovered a portion of that backup. (Asigra didn’t specify what percentage of respondents considered it unfair.) Overall 52 percent of those surveyed said that recovery-based pricing BDR software license models would be more fair than capacity-based pricing models.
Of course this supports the idea of moving to Asigra’s new Recovery Based License Model, announced earlier this summer. Asigra EVP Eran Frajun said in a prepared statement that there is a growing divide between backup expenditures and the value provided in backup and recovery.
“The value of a recovery-based license model will increase as data grows and capacity-based pricing models put an unfair burden on users who recover less,” he said. “The Asigra Recovery License Model has addressed this economic conundrum with a financially innovative approach that closes this gap and directly links recovery to product value.”
We actually made this a
We actually made this a pricing option for a customer in the past. We would charge a low monthly fee (just cover monitoring costs and the hardware purchase spread out over 3 yrs) and then charge per server recovered (I think it was about $500). They didn’t like that they would feel “held hostage” in a disaster. I wasnt a fan either, I make nothing if they don’t recover, which means I’m trying to profit from their problems, the oposite of what MSP should aim for. I don’t understand what isn’t “fair” about capacity based pricing models. Plus, anyone will soon realize that the costs will be higher over time (unless you never have to use the service that is).