Why data backup services make great sense for VARs, SIs, MSPs, ISPs and other Solution Providers

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1 Why data backup services make great sense for VARs, SIs, MSPs, ISPs and other Solution Providers

2 This document illustrates a typical cost & revenues model for a Service Provider providing online data backup services to his customers with StoreGrid s power packed Service Provider Edition. The term Service Provider (SP) used in this document refers to VARs, SIs, MSPs, ISPs and other Solution Providers offering backup services

3 Assumptions 1. Each SP services / expects to service a certain number of SMB customers (6 in the example in this document) 2. Each SMB customer has a certain number of clients (desktops and laptops) and wishes to backup data on these clients (25 PCs per SMB in the example in this document) 3. The SP will provide the SMB a software based solution using StoreGrid using hardware the SMB already has. 4. The SP will invest in a remote server on to which data from the clients will be finally backed up. This server will be co-located at a reliable location.

4 Assumptions 5. Each client can directly backup to the Service Provider s remote server. However, a better way would be to have each client back up to a local machine on the local network at the customer s site itself! This machine (acting as a StoreGrid client+server) at the customer s site will regularly backup its consolidated data to the Service Provider s remote server. This is ideal for the following reasons: a) Since the PCs will backup locally to another PC (acting as a StoreGrid server) on their LAN, bandwidth is not an issue b) Since only the PC running StoreGrid server has to be backed up to the SP s remote server, manageability is easier for the customer (won t have his internet bandwidth chocked during regular hours) and the SP (can easily manage multiple backups coming into the remote server)

5 Typical Backup Configuration Desktops & Laptops backup their data as they wish, whenever they wish (encrypted & compressed) to the local StoreGrid server 25 PCs that need to be backed up The local StoreGrid server backs up to remote server as per preset schedule (night time, etc) Customer 1 Local StoreGrid server on customer s network a simple desktop with a 150GB hard disk is enough Remote Server Operated by the SP, ideally co-located (1-2 Units in a rack is all that is required)

6 Typical Backup Configuration Customer 1 Customer 2 Customer 3 Customer 4 Remote Server Operated by the SP, ideally co-located (1-2 Units in a rack is all that is required) Customer 5 Customer 6

7 The StoreGrid Advantage in the Typical Backup Configuration Desktops & Laptops can run Windows, Linux, Mac or FreeBSD. Each computer can configure any number of backup schedules with varying frequency of backing up (continuous, daily, hourly, etc). Laptops can even set their backups to run whenever they are on the LAN Customer 1 The remote server can be a simple server running StoreGrid this can even be an easily assembled Linux storage server! Again, no elaborate hardware required! Only, select a good co-location service. The StoreGrid server can be a simple desktop running StoreGrid no elaborate hardware required. Optionally, a USB hard disk can also be connected to this to increase its capacity StoreGrid works with external disks too! Remote Server Operated by the SP, ideally co-located (1-2 Units in a rack is all that is required)

8 The StoreGrid Advantage in the Typical Backup Configuration Some features useful to end users: Incremental backups minimize the load on the CPU Backup data is strongly encrypted and password protected Data is compressed StoreGrid supports restoring deleted files and multiple versions of the same file CPU utilization is configurable Customer 1 Some features relevant to SPs: The StoreGrid server running on the remote server provides customer centric reporting with details for all client machines in a customer s network SPs can connect remotely to customer computers running StoreGrid Some features relevant to administrators & SPs: Data on any machine can be backed up / restored from any other machine (with the correct username & password) User Interface is browser based and looks/feels the same across operating systems / browsers Events can be centrally managed Remote Server Operated by the SP, ideally co-located (1-2 Units in a rack is all that is required)

9 The StoreGrid Advantage in the Typical Backup Configuration Customer 1 Even with the current broadband infrastructure, this first backup can take a long time! 4.5 hours per GB over a 512 Kbps broadband line - at 100% utilization! Remote Server Operated by the SP, ideally co-located (1-2 Units in a rack is all that is required)

10 A real problem? A real solution Even with the current broadband infrastructure, this first backup can take a long time 4.5 hours per GB over a 512 Kbps broadband line (at 100% utilization!) In fact, this single factor prevents some customers from going in for online backups, as much as they need it! Interestingly, future (incremental) backups are typically very easily done since only changed/modified data is backed up with StoreGrid s incremental backup feature. StoreGrid s Data Migration Module (shipped with the SP Edition) allows you to take the 1st online backup data directly at the customer site (to, say, an external HDD) and simply copy this data into the remote server for future incremental backups seamlessly! Enabling Service Providers to provide their customers a valuable service and making online backups possible for them!

11 A flexible feature packed data backup software that enables Service Providers to (and extremely profitable) provide a valuable service to their customers!

12 Ringing in the profits with StoreGrid ANNUAL REVENUES (US$) Software sales $ 4,680 Assumed: selling price of only $ 30 per license/year x 156 licenses (150 PCs plus 6 StoreGrid Servers at client sites) Online Backup services $ 27,000 Assumed service price of only $ 15 per month per PC for backing up approx. 5 GB of data per PC (x 150 PCs) Total Annual Revenues US$ 31,680 Assumption: The SP has 6 customers and 25 PCs per customer are being backed up (in total, 150 PCs)

13 Ringing in the profits with StoreGrid ANNUAL COSTS (US$) Software licenses $ partner price of only $ 20 per license/year x 157 licenses (150 PCs plus 6 StoreGrid Servers at client sites plus 1 StoreGrid Server installation for remote server) Remote Server Cost (Hardware) $ 1,000 Assumed a higher cost of US$ 3,000 for the server (depreciated over 3 years - annual cost = $3000/3) Annual co-location costs $ 720 Assumed: 2Us at $30 per Unit per month Annual Bandwidth Costs $ 1,800 Assumed a full backup in the first month (incremental backups thereafter) Total Annual Costs US$ 6,660 Assumptions: SP time costs are not included in this calculation. Colocation & bandwidth fees are typical and have been sourced from Server costs estimated from

14 Ringing in the profits with StoreGrid SOME KEY METRICS Profit Margin 346% Ratio of Service Revenue to Software Revenue 6:1 Ratio of Service Profits to Software Profits 15:1

15 More on the opportunity Service Providers are in the best position to offer online backups to SMBs since they enjoy the trust of their clients and are a face to the service something that is very important to an SMB planning to backup data online Recent catastrophes have resulted in increased concern over data backup StoreGrid SP Edition was created with Service Providers servicing SMBs in mind This is a ripe opportunity for any Service Provider willing to put in a basic level of time and effort!

16 More information? Please see Contact us at

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