Value Proposition
The white paper is available as also available as a download:
Online Backup Service Providers: Clarifying the Value Proposition White Paper presented by: Introduction The amount of data used by today’s businesses has increased exponentially from just five years ago. Corporate scandal, international unrest, and glaring security flaws in computer operating systems and software applications have resulted in a much more intense and detailed analysis of data as it enters and leaves the enterprise. Fortune 500 companies have been vilified in the press for reckless data stewardship, and in some cases of outright fabrication of financial and performance reports. In extreme cases, executives are now lounging in Federal facilities, denying to the bitter end that they had any knowledge of the blatant misrepresentation for which they were held accountable. The private information stores of several prestigious organizations, some of them very sensitive and personal in nature, have been lost, misplaced, or accessed by hackers – the details of the events becoming fodder for an indignant news media. Online Backup of computer data is finally gaining mainstream acceptance among business and consumer clients alike. After many years of wait-and-see pessimism, the near-ubiquitous nature of broadband internet connectivity has helped remote data backup finally come into its own. In an effort to capitalize on the newfound popularity of the service, hordes of wholesale online-only backup companies have sprung up, advertising remote backup services at ultra low prices. Data storage and remote data repository companies are also on every virtual corner, hawking wildly varied products that initially confuse even industry veterans. The value of computer data is higher today than ever before, yet many online remote backup companies seem convinced that businesses are interested in a ‘lowest common denominator’ backup solution. Corners are being cut, misinformation rules, and marketing dollars are flying. In a forest-and-trees analogy, price wars are blinding corporate America to the critical data management component they began looking for in the first place – service. A brief History of the Remote Data Backup Universe In the olden days - that is the mid 1980’s - there simply wasn’t any commercially available remote backup software. The microcomputer industry was in a great state of change with modems stalled at 1200 to 2400 baud, making transfers of large amounts of data excruciatingly slow (1 mb = 72 minutes!!). While faster modems and more secure internet protocols were in development, tape backup systems gained in popularity. During that same period the need for an affordable, reliable online backup system was becoming clear. The first commercial remote backup system was deployed in 1987 for a medical group in Memphis, Tennessee – and the age of online backup had begun. Today, natural disasters, terrorism, and power-grid failures have helped terms like “disaster recovery” and “business continuity” enter the boardroom. At the same time, many IT firms are looking to offer services which provide a recurring revenue stream while requiring minimal resource dedication. Given these trends, remote backup looks more attractive than ever. Reseller, Online Service, or Service Provider– Who Has My Data, and Where? When a business decides to add Remote Backup to their data management or disaster recovery plan, the subsequent decision on which type of support services to choose can be equally as critical. To cut through some of the confusion and hype, it can safely be said that there are three main types of remote backup companies available:
Perhaps the most important difference between the types of companies discussed above is the availability and level of service offered. Customer Service can be a major cost center for larger-scale operations, especially considering that the company’s revenues may not be directly tied to the product they are supporting. Support at larger online-only backup companies may be outsourced, so it pays to get a clear understanding of the costs, processes, and quality of general support and restore activity prior to signing up. For example, one prominent discount online provider charges a whopping 20 times the backup cost for restoring the same amount of data. Customer service is a basic business element for most remote backup service providers and typically begins during the sales process. Since a provider has the opportunity to become familiar with an organization’s business processes and network architecture, it is able to tailor the service to fit the specific needs and budget of clients. For small and medium businesses without a dedicated IT staff, this is an especially critical consideration. When researching and contacting backup service providers note the people that answer the phone and what they know or are willing to learn about:
Cost/Benefit Analysis of Remote Backup Services – Don’t Believe the Hype As with most cut-rate professional services, budget data service outfits tend to offer a mass appeal marketing approach and a lower level of service. The ‘get what you pay for’ concept has been proven time and again in many technology sectors. Don’t believe the marketing hype. If it sounds too good to be true, it is. Regrettably, it is difficult to uncover critical shortcomings of a bargain-basement backup service until after a data loss. Many low-cost data service companies actually derive substantial revenue from selling advertising space on their service’s website or product user interface, or by making their clients’ email addresses and contact information available to advertisers and ‘business partners’. Ads + Spam = Revenue! When evaluating backup companies be sure to ask questions about security, automation, and version control. It pays to spend some time examining the technical competencies of both product and staff to ensure that you are getting the service that your organization needs, not just the flavor-of-the-week at a discounted price. Acknowledgements and Sources: Media Contact information: |
