Network Backup | Why Build a Backup Business?

Five Reasons for a Backup Business

1. Market Demand

2. Revenue Opportunities

3. Competitive Threats

4. Existing Relationships

5. New Technologies

Backup is a profitable business. In mid-2009, managed and dedicated hosting companies can sell backup services for more than $1/GB/month of hosted storage. For hosting companies that already sell Arkeia backup services, between 55% and 90% of end-customers have bought backup services. Backup services are high margin, incremental revenue and will increase customer lock-in. Backup is an ideal product to sell into your installed base and to offer to differentiate your solutions.

Market Demand

Companies have a growing need for backup and recovery solutions due to increasing legal, regulatory and business continuity pressures. Furthermore the sheer volume of data means automated and simplified backups are need now more than ever.

Revenue Opportunities

Companies have demonstrated a new willingness to pay for quality backup services. Services such as EMC Mozy and Amazon S3 have helped educate the market so customers are beginning to understand the value of reliable backup.

Competitive Threats

Your competitors are investing in backup businesses, and they are targeting your customers.

Existing Relationships

You already have a relationship built on trust and an existing revenue relationship with your customer, so extending backup services can be an easy cross-sell.

New Technologies

New technologies such as virtual appliances, hardware appliances and backup replication make it easier than ever to build a profitable backup business.