Data Growth Rates Driving Interest in Recovery-Based Pricing for Backup Software

Asigra Inc. announced results from a study conducted by Winning Research, an emerging market research field services firm.

The study focused on recovery-based pricing for the backup space and revealed several findings including the demand by organizations for software pricing that aligns business value with price.

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 backup volumes indicated they would be more likely than those with small backup volumes to switch to recovery-based pricing.
• Large enterprises were the most likely to switch to recovery-based pricing.

Innovations in technology have facilitated dramatic shifts in the adoption of new business models across markets. Those that gain acceptance have demonstrated a greater level of fairness to customers, delivering monetary advantages and enhanced benefits for greater value. The pricing models that currently dominate the software market have become disconnected in the alignment of cost to business value. IT buyers today are looking to new models such as recovery-based pricing to bring greater commercial flexibility and fairness, but there will need to be a shift in the status quo to increase momentum in this area.

Asigra is a provider of recovery-based pricing options for backup and recovery. In mid-2013, the company introduced the Recovery License Model (RLM), which gives organizations the option of selecting a fair pricing model based on how little data they recover over a 12-month period. The model is enabled by technology and follows what many experts agree is an evolving movement toward performance-based pricing that aligns with the value derived by the customer. With this approach, customers who recover less will pay less, and costs are capped so that recovery costs never exceed more than 25% of their data. The model provides stable and predictable pricing over time regardless of the amount of data backed up.

“Pricing alternatives for technology have evolved 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, EVP, 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.”