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More revenue, more IT cost cutting pressure: report

Infrastructure

Research conducted by the Enterprise Strategy Group for cloud backup and recovery vendor Asigra Inc. has found that has a company’s revenues increase, so does the pressure on IT to reduce costs.

Based on responses from nearly 500 financial and IT decision makers/influencers about the financial pressure they face to reduce IT costs as data continues to grow, the report found that two out of three felt pressure to reduce IT spending. That’s unsurprising, but what’s interesting is that the pressure tended to increase along with a company’s annual revenue, with respondents from larger companies more likely to report cost-cutting pressure than those from smaller firms.

In other findings, three out of four said they expect their data volumes to grow at 20 per cent or less annually, companies with less data (defined as less than 50TB) have lower cost estimates and are less likely to track the recovery of data, and 52 per cent of respondents said they’d prefer a backup and recovery software license model which charged for backup and recovery separately, rather than on capacity.

“In the backup space, both software and service vendors have competed effectively on price and market position. However these vendors base their pricing on the volume of data protected. For IT users, this means that more data requires more backup servers, more licenses and increasing costs,” said Jason Buffington, senior analyst for the Enterprise Strategy Group, in a statement. “Recovery-based pricing counters agent- or capacity-based pricing models, allowing users to decouple backup pricing from data volumes. In this fair pricing model, IT professionals that manage recovery more efficiently are rewarded with substantial savings over time.”