Backup and recovery software provider, Asigra is changing up its business model and pushing the age old backup and recovery market into the cloud era with a new pricing model that it claims is fairer to customers.
Until now, backup and recovery software is priced based on capacity, meaning you pay for the amount of data you wish to protect. But as we store more and more data, the cost of protecting it keeps going up. Asigra’s answer is to separate the backup license from the recovery license. Under the new Recovery License Model, data backup will cost $0.166/GB/month, but data recovery is charged on a sliding scale depending on the recovery behavior or performance of the customer. For example, users that recover 15 per cent of their backed up data are charged $0.333/GB/month.
With this approach, fees are based on a so-called “Recovery Performance Score” that is calculated over a 12-month period (every 6 months in the first year). A waiver is provided for the single largest recovery event in any licensing term and only successful recoveries are included in the calculations. This allows customers who recover less to pay less, and costs are capped so customers never pay to recover more than 25% of their data, keeping costs predictable. Asigra compares its new pricing model to that of the auto insurance industry’s Pay-as-You-Drive (PAYD) performance-based pricing as an alternative to monthly premiums based solely on actuarial statistics.
The firm has a patent-pending on its new pricing scheme, which is becoming more common in the cloud world. Amazon has a patent on its dynamic pricing model for compute utilization.
It won’t be the easiest transition for Asigra, as the company plans to continue selling its old capacity license model as well, which complicates things for its sales force. It’s also unclear if this model lowers the costs for all customers or just those with large backup and recovery requirements. But it’s great to see a company from the traditional world of backup and recovery software pushing the envelope in the cloud era.