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The Big Hand-Off: Options for Outsourcing Data Backup

by Matt Villano

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The process still usually revolves around trusted third-party vendors that specialize in keeping the information safe. The goal: to make the data hand-off and backup process automatic. The reasons to go this route are compelling; a 2006 report by Gartner Inc. indicates that 60% to 65% of all data recovery efforts involving tape backups fail, mainly because of tape malfunctions or corrupt files. SSPs usually back up to disk, which is easier and faster to restore.

There are three distinct flavors to data backup today:

  1. On-site backup. CIOs facilitate scheduled backups with on-site, standalone storage servers that are attached to the network and automatically back up files over a local area or wide area network. Companies that offer solutions to facilitate the first approach include Iron Mountain, SunGard and Seagate Technology, which recently acquired the longtime backup juggernaut EVault.


  2. Software as a Service (SaaS)-based backup. CIOs sign up with storage service providers (SSPs), which use software delivered over the Internet to encrypt the data and transmit it to a secure server off site. Those that sell on-demand backup software include Asigra Inc., Carbonite Inc., SOS Online Backup, IBackup and Berkeley Data Systems Inc., makers of the consumer-friendly software Mozy.


  3. Full-service backup. A third group of vendors, companies such as PlumChoice Online PC Services and Adexis (now a division of Cranel Inc.), bundle SaaS products and network-attached devices for a "full service" approach.

Though research firms don't generate figures on the number of midsized companies that outsource data backup, Lauren Whitehouse, an analyst at Milford, Mass.-based consulting firm Enterprise Strategy Group, says the strategy has become increasingly popular because many CIOs lack the budget and wherewithal to invest in elaborate backup plans.

"When you don't have the resources to build out an elaborate and bleeding-edge backup strategy, this is a great alternative," she says. "It's affordable, it's safe, it's trustworthy and, most importantly, it works."

Still, outsourcing data backup is not perfect. Like any solution, it has benefits and downsides, pros and cons. Before you decide that outsourcing your backup is the way to go, there are some important issues to consider.

Evaluating SSPs
Storage service providers (SSPs) are nothing new. They have been around in one form or another for the past few decades. Back in the days when storage was one of several services these companies offered, they were known as managed service providers (MSPs). As the need for data backup increased, however, a number of MSPs branched out and developed specialties in providing storage.

When evaluating SSPs, there are several factors to consider. In a 2006 report titled "Storage Service Providers Rise From the Ashes," Stephanie Balaouras, a senior analyst at Forrester Research Inc., provided a few:


Stability and financial viability. Make sure your SSP will be around for a while. The cost of migrating data to another provider can be immense, especially if you have to re-absorb a large data archive.

Core expertise. Select an SSP that has experience with companies in your industry using computing environments similar to yours. This will mitigate support issues that are specific to your industry down the road.

Geographic reach. For companies with more than one location, be sure your SSP can provide the local and regional service you require for all your remote offices.

Technology fit. Make sure the SSP's technology is best of breed for your computing environment; some backup applications have deeper integration with certain databases and business applications.

Service portfolio. Your need for additional services may change over time. Select an SSP that offers backup, storage management and archiving.

Performance guarantees. Ensure that you're receiving appropriate and specific service-level guarantees; all SSPs should guarantee a certain recovery point and recovery-time objective.

-- M.V.

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