The unique selling proposition (USP) of the Cloud is its pay as you go model.  It is also one of the factors that distinguish one Cloud service provider from another.  Let us look at two significant “pay as you go” models to understand the distinctions between the different offerings in the Cloud.

Storage space usage model: This model is also known as “Capacity based model”. Cloud service providers, who use this model to attract customers’, are focused on the backup component of backup and recovery.  This model is built on the assumption that every subscriber would like to backup a certain volume of data to the Cloud.  So, a “base” volume may provided free of charge as part of the subscription package.  Thereafter, bytes consumed are metered and a pre-defined price is charged for every byte that is used up for storage.

Alternately, storage volumes may be divided into slabs and a price may be charged for each slab of storage consumed irrespective of whether the entire slab is consumed or only a part of the slab is consumed.  Users may be allowed to consume these bytes or slabs automatically or may be required to requisition for additional space as they run out of space for storage.  Usage control mechanisms are built into the software package as “usage reports”.

Recovery based pricing model: Cloud service providers, who use this model, are focused on the recovery component of backup and recovery. The logic that is advanced is that what you backup is not as important as what you recover.  After all, backup is for the purpose of recovery.  If you are unable to recover all that has been backed up, the service has failed to deliver on its promises.

Apart from giving consumers the “feel good” factor that everything backed up will be recovered, this model has greater revenue potential for the service providers too.   Data may be backed up once, but may be recovered to multiple locations.  Every byte recovered to any location can be charged.

Using this model, service providers may opt to bill their customers on the number of “bytes” recovered or on the basis of “slabs” or “volumes” of data recovered to a particular location.  They may fix a “base” price to the subscription and offer “free” a certain volume of recovery, and slab rate any recovery over and above the fixed free slab or they may charge the user on a “byte-to-byte” basis.

Organizations, subscribing to the Cloud must decide which model will suit their organization best and pick the service provider accordingly.

Securstore will be more than happy to sit down with you and explain your options. Please contact us for a free, no obligation consultation.