How xSPs can use data backup to develop a new profit center

Computer Technology Review, April, 2004 by Peter Means

* Provide secure encryption algorithms and compression ratios for fast, totally secure backups.

* Offer binary patching--updating files in small patches that only contain data not found in older files

* Configure instant notification of errors and warnings (including e-mail notification) so you can fix problems quickly

On the client side, backup software should:

* Download quickly and easily

* Include some kind of installation wizard to make it easy for subscribers to begin backing up files immediately

* Work in the background, so it's invisible to the subscriber

* Support both broadband and dial-up

* Include a firewall, for added security against intruders

* Permit customization that allows subscribers to create their own backup schedules (hourly, daily, weekly, etc.)

* Support multiple languages

Backup Servers

Depending on the size of your operation, data storage can range from a single server in your office, to a co-hosted server off site, to your own data center.

Ideally, your server will be in a secure location that can withstand natural disasters, hackers, power outages and other hazards. For many smaller operations, a co-hosted solution in which you lease space in a secure data center may be most cost effective. Such data centers are normally located in special rooms that are protected against natural disasters like fires and earthquakes, and international hazards like hackers and thieves. They offer the advantages of a data center at a fraction of the cost. They also offer compliance with laws and regulations that require companies to keep data in a secure, offsite location.

Customer Service

If something goes wrong, your subscribers will come to you to resolve the problems--not the software developer, server manufacturer or data center. Therefore, when selecting these vendors, make sure their service representatives are highly responsive--because your reputation is riding on it.

Selling Remote Backup as a Premium Service

You would think that after hundreds of articles have appeared in every type of publication from local newspapers to highly vertical trade magazines to the Internet, computer users would understand the importance of backing up their files.

Unfortunately, as statistics demonstrate, this is not necessarily true. All too often, the point is not driven home until users suffer a hard disk crash, lose all of their data, and discover it's irretrievably lost.

When you decide to sell automated backup to your subscribers, a two-prong approach may work best.

First, cite the statistics that appear in the beginning of this article, as well as others you may glean from industry reports and your own reading.

Second, emphasize how easy it is to back up data regularly using your own premium service. After downloading and installing the software, subscribers can determine what should be backed up and how often. The rest should be automatic--a no-brainer.

Think of it as selling "data insurance."

www.novastor.com

Peter Means is CEO at NovaStor Corporation (Simi Valley, CA)