As part of an effort to make the delivery of backup and recovery services more profitable for managed service providers, Asigra today announced it is making available an Unlimited Use Subscription License for its cloud-based backup and recovery service.
The goal is to make it possible for MSPs to generate increased profits because the cost of licensing fees will not increase should they exceed the growth commitment made to Asigra at the beginning of a three-year commitment.
Asigra pricing for MSPs is based on usage from the previous year, plus a jointly agreed upon growth commitment. Asigra is now committing to making sure license fees will not increase above the original amount negotiated regardless of how much the service provider’s usage rises during the term of the licensing agreement, says Eran Farajun, executive vice president for Asigra.
“We’re trying to make pricing easier and more consistent,” says Farajun.
Asigra is also trying to attract additional MSPs partners by providing a unique licensing model that enable the MSPs to increase their profit margins in a services business based on variable costs, adds Farajun.
As the amount of data organizations need to back up and recover has increased, there has been a marked transition to relying on the cloud for data protection. That shift has been further accelerated by the rise of ransomware, which can only be thwarted by having access to a pristine copy of an organization’s data. That’s usually easier to accomplish relying on a cloud service that has copies of an organization’s data that are not only stored remotely, but also regularly tested for malware.
Given all the challenges involving data protection more organizations have begun to rely on MSPs to manage a cumbersome process. The challenge those MSPs face is maintaining profitability at a time when competition from other MSPs is fierce.
It’s too early to say what impact the Asigra licensing option will have on MSP profitability. But at the very least it should increase pressure on other providers of cloud-based data protection services to follow suit.
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