This week I’m at the Asigra Summit in Toronto, Canada. For those who don’t know, Asigra have been around since the mid 1980’s are a vendor of cloud-based backup solutions and predominantly sell through the channel. Based on this morning’s presentations, it’s clear that Asigra are thinking differently about the way customers should be charged for traditional backup and restore functionality. In the era of cloud, where we pay for that functionality as a service, there’s a lot of sense in looking at the charging model in a different light. However, from the discussion so far, it appears Asigra are thinking about charging for recovery based on value and this may unnerve many customers out there.
As we know, traditional backup/restore charging tends to be based on metrics such as retention, data volumes, platform type and so on. Naturally, there’s a certain amount of value seen to backup products as customers are trusting them to successfully restore their data just when it’s needed. That value translates into the cost customers are prepared to pay for backup and restore solutions.
This relationship was echoed in a presentation by Dan Ariely, a regular TED presenter and author of the book Predictably Irrational. Many of Dan’s observations are things we probably have experienced but not noticed directly in our own lives, such as way our behaviour is influenced by our presented choices, including who we choose to accompany us on nights out! On a more serious note, he touched on the idea of value and how generally, people are more prepared to pay for effort expended rather than value through experience.
This gets us back to the idea of charging for data restore. Does it make sense to charge a lot to restore data of great value, even if the effort expended was low? Does this mean end users may choose to avoid data restores and opt to recreate data where possible and even in some instances if costs are high, simply keep copies of data elsewhere and negate the value of cloud-based backup altogether?
At this stage I’m not saying value pricing is wrong, but as Ariely said, people have a hard time judging what that value figure is for any particular service and if not done correctly, what seemed like good intentions could backfire in a big way. I guess we’ll find out tomorrow morning.
Disclaimer: Asigra paid for flights and accommodation for Chris Evans to attend the Asigra Summit. However this does not imply a requirement to blog about the event and no editorial rights to any published content is provided.
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