Asigra is changing its pricing model for its backup and recovery service with a new recovery-based business model.
The gauntlet has been thrown down by Asigra. The cloud backup and recovery space is getting increasingly competitive, with new market entrants joining the fray every month (or so it seems), and according to Asigra, there is a growing problem with "unfair pricing" in the space. To answer that, Asigra has launched a new recovery-based pricing model that decouples backup and recovery licenses to "bring pricing in line with the true value of backup—data recovery."
The gist of the new backup and recovery licensing model is this: Instead of paying one fee that encompasses both backup and recovery, customers pay separately for each. That seems like a more complicated model, but it seems Asigra believes customers will benefit in the end. Each license is sold separately. Backup costs are being based on capacity, so it's a fixed cost on a per-gigabyte pricing model. As for recovery, Asigra is pricing its service based on how much recovery a customer actually does, which is reflected in what the vendor calls a "performance score."
Asigra claims the new pricing model will immediately provide its customers with cost savings of 40 percent, with those rising over time to 60 percent. That's not insignificant, of course, and for cost-conscious businesses, this change in pricing structure could mean the difference for Asigra in winning or losing new customers.
The real question will be what kind of impact this will have on the market. Cloud pricing is being continuously pushed down and down, shrinking margins for cloud providers but giving customers something they want. With Asigra being a pioneer in backup and recovery pricing model changes, will the rest of the industry follow suit or will the vendor be on its own to figure out if its new structure works?
"Across the technology spectrum, more vendors are moving away from established pricing models to alternatives based on performance and overall value," said David Farajun, CEO of Asigra, in a prepared statement. "The backup and recovery market now enters a new era to address the industry value proposition on data recovery ... not backup. The Asigra Recovery License Model introduces a very clear pricing differentiator based on recovery that provides both immediate and long-term value to the customer on a significant scale."