Cutting the cost of online backup
Tuesday, October 21st, 2008Cutting the cost of online backup
Cost cutting is high on the priority list of every adept organisation today. Be the global credit crunch a prelude to worldwide recession or a major correction, cash is king. So, can you cut online backup costs. The short answer is yes. The method of cost cutting defines the likely consequences. Let’s take a look.
Discount demand based on moving business.
This is the most straightforward approach but may result in a no (and subsequent tail between legs departure) from a quality provider or a yes (and subsequent further alignment) in the case of a weak provider. Neither are attractive options so this approach needs to be considered carefully in conjunction with several others.
Essentially you need to gauge the quality of service you are receiving and the amount of input required from you or other people in your organisation in any configuration with a new supplier. If the quality of service you are receiving is poor, then you need to move anyway and increased service should be higher on your shopping list than price.
If however you are receiving a good level of service then you must consider the following. Are you likely to fair as well from a data backup perspective elsewhere? If not, then regardless of any savings, such a move would represent a step down in data protection for your business.
Also ask yourself: Does initial configuration of online backup in your business require significant time investment by you? If your organisations data flow and management are complicated then you will be required to involve yourself in the configuration process. If this is not the case, you should certainly be represented in the selection process as a new outside entity can not know what to backup. No matter which way you look at it your time costs money. Even given certainty of zero quality reduction, the savings of any move would have to exceed the cost of your time.
Two things are clear her.
1. If current service qualities are low, you need to move. No price reduction from an unsatisfactory provider is going to equate to either data security or good value.
2. If current service quality is high you may be better to stay but only if you achieve value for money. Given that any good provider will be keen to keep a service satisfied client, you should be able to negotiate.
If you are in situation one above, you need not read the remainder of this article yet. You need avail of quality and then resume here.
If you are in situation two above, consider this. Talk in terms of what your provider can give you. If you demand cash discount for nothing in return, your provider is limited in what he can do for you. If however you talk in terms of additional space, even faster response, improved SLAs, greater retention and possibly even showing a carrot such as a willingness to sign up for an extended period you will succeed.
There are however some ways in which you can save on your online backup and related costs without even contacting your online backup service provider. Are you backing up too much? Seems like an obvious question. You may be backing up data you do not need. You may through replication be backing up the same data in various locations. You may be using a data backup type which is not efficient from a dedupe perspective. Changes of these types can frighten non technical users. It is important to realise that more does not mean safer. Your backups need to be accurate not extensive. In addition, overly cautious retention can result in compliance problems such as in the case of personally identifiable data which you are only allowed to retain for a period as specified by your regional data protection legislation.
In summary.
You can save money on online backup. This should be approached subsequently to establishing quality of service. Online backup is your providers stock. By logical economics you understand (hope!) It cost him less than it does you. You will therefore fare better requesting data backup than you will requesting cash. Understand that you can be very demanding if you offer something in return. Know that moving (all things being equal) costs money. Any savings therefore need to reflect and ultimately exceed this.




