IST Adds Recurring Revenues Using NovaStor Online Backup Solution; Integrator Becomes Web Service Provider; Gains Account Control, New Leads

Business Wire, Sept 20, 2004

SIMI VALLEY, Calif. -- Using extra space on its servers, an existing high-speed broadband connection and data backup software from NovaStor Corporation, IST Computers has expanded its business model from performing comprehensive systems integration to providing an online data backup service generating recurring revenues. Within months, the company realized return on its initial investment in launching IST Backup, generated new leads and enjoyed an uptake in its traditional business as relationships with small business customers deepened.

"Most small companies know that a major loss of data can devastate their business, but if they have to perform backup manually, many neglect it," says IST president George Volakakis. "Online data backup introduces a simple, low-cost alternative to local tape and disk-based approaches and gives smaller companies the same data continuity insurance that larger firms pay much more for."

IST had been configuring networks since 1991 and considered hosting a data backup service for several years before deciding on NovaStor's NovaNet-WEB(TM) online solution. With NovaStor technology the touchstone of its new service, IST rolled out online backup using broadband connections and extra server space. The offering features capacity tiers in 1-gigabyte increments and, following installation, essentially automates the backup process for a "set and forget" solution.

Volakakis reports that customers put IST Backup (www.istbackup.com) to the test early on. "One customer deleted its email directories accidentally and we were able to remotely go in to the server and pull everything back within minutes," Volakakis says. "With IST Backup, we are literally able to help save customers' businesses while adding new dimensions to our own."

Becoming a Service Provider

According to Volakakis, IST's investment in online backup service paid for itself within a few months. The service quickly attracted a large percentage of the integrator's existing customer base and represents a compelling calling card for gaining new business from both current and first-time customers.

"We called one company that we had worked with occasionally on a project basis to tell them about our backup service, and they not only subscribed but brought us in to work on their email system as well," Volakakis recounts. "Disaster recovery and regulatory issues surrounding data storage are high priorities for many companies right now and having an online backup service definitely opens doors."

Leveraging Leading Technology

Volakakis credits NovaNet-WEB for sound performance and NovaStor for empowering its resellers: "We've had fantastic tech support and other great help every step of the way," he says.

NovaStor Corp. COO/VP Marketing Shaun Walsh says NovaNet-WEB was architected from the ground up to help integrators and traditional Internet Service Providers optimize the launch of online backup. "Our design addresses rapid configuration, ensures excellent encryption and performs data compression for fast, highly secure backups," Walsh says. "We also reduce backup time and bandwidth requirements with our 'FastBIT' technology for incremental backup."

Volakakis summarizes, "We had extra hardware resources running 24 hours a day, and NovaNet-WEB made it very easy to turn that into a new premium service. We're generating recurring revenues with very low overhead, opening new doors and increasing control of our current accounts. In addition, we're providing our customers with a real value-added service that is low-cost and may ultimately save their business."

About IST Computers (www.istcomputers.com)

San Diego-based IST Computers is a full service computer systems integration company founded in 1991. Customers of IST include small to midsize businesses as well as departments of larger enterprises. IST designs, builds, and maintains computer systems and networks for customers in a large number of industries including law, healthcare, manufacturing, real estate, hospitality, finance, engineering, and publishing. IST also specializes in leading-edge technologies such as computer speech recognition and document imaging.

About NovaStor

Based in Simi Valley, CA, NovaStor Corp. had been delivering data backup and recovery solutions since 1987. NovaStor was among the first to help resellers and service providers fulfill the burgeoning demand for online, offsite backup. NovaStor solutions are available worldwide direct and through channel partners. For more information, please visit http://www.novastor.com.