Online backup, being a technical service normally comes at a premium to include and allow for technical support. Up to now, the only real exception to this was free or nearly free online backup which obviously could not come with premium support but was an option considered by home users for whom commercial online backup didn’t seem a viable option.
Standing in the midst of this are many online backup resellers who can and do provide technical support for their clients. In many cases, for these resellers, the learning curve has been steep. This has left them with a small residual income and significant technical commitment to those clients whereas the online backup provider seemingly sits pretty with the lions share of the income and level 2 support only.
Enter trade only online backup. These online backup dealers (for that is to a point what many of them are) can decide to move their clients to a provider of their choice. One consequence of a bulk move is more competitive pricing. Another is increased margin based on market experience.
Another is often a reduction in the clients data retention archive. This can happen because of the following circumstances.
If a company uses online backup, there will be a software application on their systems or network which controls the backups. If they move from one provider to another with the full co-operation of all parties and the new and old provider use the same software, there is the possibility of everything continuing from were it left off.
It is more likely however that one of the following will be the case and any one can be enough to cause the clients archive to be reduced or lost.
Different online backup software used at new and old provider level.
Client churn for reseller financial gain resulting in a client being persuaded to move from one provider to another in a situation in which this is not in the clients interest but provides financial reward for the reseller.
Old provider not paid up to date and possibly not willing or obliged to assist for this or other reasons.
Technical difficulties during the move causing a reduced level of service for the client.
There is nothing wrong per say with trade only online backup. Indeed, most analysts will agree that trade only online backup is not alone here to stay but set to corner a large portion of the ever growing online backup market.
Backupanytime is a business to business online backup provider and our resellers generally have small client numbers. We (and our resellers) are currently positioned in the retail online backup market. The trade only online backup market is not our focus at present. It is likely however that within the next year or two, most online backup providers (including ourselves) will have entered this market and will offer trade prices(as against retail margin discounts) to resellers with technical capability rather than simply commissions to sales agents. Indeed, many industry analysts believe that a small number of super data centres will become the trade only online backup providers and that online backup companies will take on more of a client advisory and reseller management role. The physical backup costs are set to become a price market whereas professional services, consultancy and configuration on a business to business level is where the money will go.
This should encourage greater client focus and significantly more outsourcing of online backup software and hardware requirements to super data centres with a trade only online backup leaning. Already, web hosts have entered the online backup and are offering very competitive rates. The uptake has been limited because of the obvious disparity between responsibility for a website which is public and highly confidential data which is crucially private and paradoxically can but can not be lost. It is this factor coupled with economies of scale which will see online backup providers team with data centres specialising in online backup.