Tech Broiler

Jason Perlow and Scott Raymond

Where Are The Affordable Enterprise Online Backups?

By | September 3, 2010, 3:09pm PDT

Summary: Online backups are a great solution to off-shoring your data for security. But what do you do when your company can’t afford it?

The System, By Rosscott

Many years ago when I first started in IT, the common backup solution was the floppy disk. It was considered innovative when backup programs allowed you to simply swap disks without having to press any keys. Mini computers and mainframes used spool tape backups, and large companies could back up data using QIC-40 tapes. None of these are viable these days, with literally terabytes and petabytes of data needing to be backed up.

These days, you can use a high-capacity tape library system, a Storage Area Network (SAN), Network Attached Storage (NAS); or you can use online storage–data storage farmed out to a cloud service such as Amazon S3. In a pinch, there are even portable external drives lke the ones from Lacie that can handle multiple terabytes of data.

For the individual user, there are many online backup services that are very inexpensive, and even free in some cases. For instance, Mozy Home, CrashPlan and Carbonite are three inexpensive online backup solutions that give you unlimited storage.

These companies can afford to provide unlimited storage because they have determined that most customers don’t use that much space, so the return on the investment in hardware and upkeep is much lower than the money they take in.

Here is where the disparity begins. These services provide unlimited storage to individual users, but for business customers, you will be spending 15 to 50 cents per gigabyte monthly, not including bandwidth costs. If that doesn’t sound like a lot, imaging having to back up and store 10 terabytes of data. On Amazon S3, that’s $1500 a month, not including bandwidth costs for uploading and downloading–with regular backups, that cost could easily double. So far, Amazon still has the lowest price for this kind of online storage.

For some companies, this isn’t an issue. A Fortune 500 company could easily absorb that cost as a part of doing business. For a startup company, however, this kind of data security is not affordable. They are forced to resort to other alternatives: single-tape backup systems requiring human hands to change tapes, and external hard drives. Neither of these is 100 percent effective; tapes and portable drives can get easily damaged in transit. Tapes are especially sensitive to magnetic interference.

Perhaps a business might be able to afford hosting a small storage array in a datacenter loated far from the office; that way they at least have their data in the event of a catastrophe where the office building is destroyed. Unfortunately, the major issue comes down to pricing. A startup company that has a lot of data to keep is going to find it very difficult to provide comprehensive backup for that data.

Until the cloud storage companies realize that there is a small business market waiting to be tapped, online storage will be unavailable at an affordable price. For now, it seems that the best a small company can hope for is to invest in redundant local storage and hope their office doesn’t get destroyed by fire, earthquake or flood.

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Topics

Scott Raymond has been a technologist and system administrator for over 25 years.

Disclosure

Scott Raymond

I am the IT Manager for a high end audio and network systems integrator in northern Califronia. My wife works at Adobe Systems, Inc. Whenever I write an article that might involve Adobe or its products, I add a disclaimer at the top of the article to make sure she is not involved in any way. We have a small bit of stock with AT&T and no other major investments that would cause conflict.

Biography

Scott Raymond

Scott Raymond has been a technologist and system administrator for over 25 years. Starting as a hobbyist in his teens, Scott quickly learned that he could translate his passion and knowledge into a full-time career. He currently works as the IT Manager for a high end audio and network systems integrator in northern California. He has written technology articles for various publications in the past and began contributing to ZDnet as a guest blogger on Jason Perlow's Tech Broiler. Scott and Jason met in New York in the 1990s where they co-managed the New York City Palm Pilot Users' Group.

In his spare time, Scott is a trained chef and avid bicycling enthusiast, as well as a voracious reader of historical, science and horror fiction. He is a huge fan of pop culture, with a wide range of interest in TV shows, movies and games.

Talkback Most Recent of 29 Talkback(s)

  • RE: Where Are The Affordable Enterprise Online Backups?
    The author is keen to point out the fact that the "storage is not free", even the most hyped companies don't offer unlimited storage for business. This being said, storage or data backup itself is cheap, and it is not so valuable to justify a high cost. www.drivehq.com thinks it differently. Instead of only offering online storage or online backup service, we offer a complete set of cloud IT solution that includes online storage, backup, remote sharing and collaboration, file versioning, automatic online folder synchronization, FTP server hosting, email server hosting, web hosting and email / contact backup services! Such services are needed by almost all SMBs.

    www.DriveHQ.com is one of the first few companies offering cloud storage, backup and cloud IT services. It is now offering the version 5.0 Solution. It can replace your file server, FTP server, email server, backup system, remote sharing and collaboration system, etc. There are no cons to our service as companies maintain control of their data; employees can continue using existing software, while at the same time be able to remotely access, share, backup and collaborate online.

    For more info, please visit: http://www.drivehq.com/. DriveHQ basic service is free.
    ZDNet Gravatar
    jacky2000
    3rd Sep 2010
  • ZDNet Gravatar
    lincc275
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    I find it hard to believe that a STARTUP company already has 10 Terabytes of data to back up. I mean, you just don't generate 10 TBs of info in a few months or a year in a small/medium sized company, do you?
    500 GBs or 1 TB sounds more reasonable for a startup company.
    In that case (1 TB of data to back up), I'd choose one of iDrive's business plans. I won't post a link here so as not to be flagged as spam. Just Google it if you're interested. Let's just say that $ 80 per month for 1 TB of data is very inexpensive in my opinion.
    One of the best sources of information about this subject is Backup Review (www.backupreview.info). I encourage anyone interested in finding a remote backup service to take a look at their rankings.
    ZDNet Gravatar
    city_zen
    4th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    @city_zen Depends on the type of data your business uses. If your business just needs to keep a database, then you're probably right. However, if your business does something like recording HD video - then you'll eat up TB pretty quickly.
    ZDNet Gravatar
    CobraA1
    5th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    @CobraA1 I work in the video industry. I don't know of any smaller shops that rely on online backup for footage. We buy boxes of bare 1TB drives and back up footage to paired drives. It's just too much data (can you imagine a restore?).

    I am a fan of using these services for the artwork, metadata, project files, and finished masters. We weigh factors like how available it needs to be, size, and value of the data when deciding what gets backed up with what technique.
    ZDNet Gravatar
    wazungu
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    I still see a few QIC-40 tape drives in back rooms here and there, even if they're near extinction at this point. However QIC-80 Ximat drives are still being tapped by plenty of penny pinching shops. I got a bunch of related cartridges and cassettes - some unopened - lying around if anyone out there would like to make a mini volume purchase. Same goes for DAT 4MMs, 8MMs + Travans by the score.

    Heck I'll even sweeten the deal with some bonus Zips, a few of which still chirp in that uniquely "clicking" language of theirs. Those will be COD of course. wink

    Now if anyone gets on their knees and really begs, that rarely used Colorado Jumbo on a shelf across the room will be considered fair game too.
    ZDNet Gravatar
    klumper
    4th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    The argument made in the blog post is that a small startup with a lot of data needs the unlimited storage paradigm that an individual needs. Of course, there's nothing stopping that small business from using an individual user account.

    The issue for a small business is that they typically aren't storing a song or two but are storing systemic data. Even if they had zero cost for 10TB of cloud storage, and they were spending $800/month on T1, they'd need almost a year to bring the data back.

    For a small business that actually needs their data quickly when they lose it, you're going to have to go with some type of on-premise backup coupled with either rotational archiving (disk or tape) and some type of electronic vaulting/replication. The trade-off of how much data you're going to protect for disaster recovery with disk/tape archiving versus electronic vaulting can be tiered to optimize your bandwidth/storage spend versus your labor and reliability spend.

    Mark Campbell
    http://www.unitrends.com/
    ZDNet Gravatar
    drsw
    5th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    Online backup providers were not offering unlimited storage until very recently. I believe that Crashplan was the first to offer it, and the rest had to follow in order to stay competitive.Their unlimited storage is not so unlimited anyway -- from my experience and experience of my customers, they throttle down your maximum upload speed if you upload too much. The amount of data you can upload is quite limited this way. @Mark Campbell - bringing the data back is usually not a problem. Many web backup companies will shipp your data to you on a hard drive, as an extra cost service.

    Speaking of volume, I worked with startup companies generating more than one Terabyte of data daily. It was backed up to drive arrays and moved off-site weekly. For companies with smaller data volumes, the most cost effective solution seems to be dedicated hosting. Another option is backing up to another geographical location. For a two-person operation, this means copying data to your partner's home.

    I am curious though why the prices are higher for businesses. Amazon S3 pricing page does not distinguish businesses and individuals. And many web backup providers sue Amazon s3 anyway.

    Dan Goldberg
    http://www.ewebbackup.com
    ZDNet Gravatar
    DanGoldberg
    5th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    @DanGoldberg

    Bandwidth Throttling: CrashPlan has never throttled or "capped" the bandwidth of it's customers. We do have a natural "cap" in terms of bandwidth to a given data center, but we're continuously monitoring/upgrading that to keep up with demand.

    Average Storage: We have users with TB of data stored with us for only $5/month.

    Seed drives: We were the first to offer backup seeding via hard drive - but we bill the service at cost. It's not a profit center for us. We're just trying to help speed things along for users that want full coverage now.
    ZDNet Gravatar
    dornquast
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    @dornquast

    I stand corrected on the traffic throttling. I went back and ran some tests, and there is no indication that CrashPlan.com throttles my traffic in any way. The usefulness of large volume backup is still limited for me because of my limited outbound speed but this is in no way CrashPlan fault.

    Harddrive seeding is a great feature. As a side note, Crashplan allows you to use their software to backup to your own location of choice at no cost, which is an extremely useful and often overlooked feature that is unique to them as far as I know (this is not directly related to the original article so you can read in more details in my blog if you are interested).

    Dan Goldberg
    http://www.ewebbackup.com
    ZDNet Gravatar
    DanGoldberg
    13th Sep 2010
  • Enterprise Online Backup and Losing a Lady Gaga MP3
    Recently there was an interesting blog post over at ZDNet entitled ?Where Are the Affordable Enterprise Online Backups?? I made a comment to it ? to the effect that bandwidth and RTO (Recovery Time Objective) are incompatible. That caused some other comments to be made. I decided to write a bit longer post concerning the entire phenomenon on this blog.

    First of all, the term ?enterprise online backup? is a bit misleading. What the author of the post was complaining about was that there are no unlimited storage options with associated flat-rate pricing of the sort in the consumer space. The reason tends to be that pesky term ?enterprise? and what it means to people. There?s an old joke that when someone mentions ?enterprise? that means ?hold on to your wallets.? It?s actually a bit more complex than that.

    More at http://www.unitrends.com/weblog/index.php/2010/09/06/enterprise-online-backup-and-losing-a-lady-gaga-mp3/
    ZDNet Gravatar
    drsw
    6th Sep 2010
  • Where is the need?
    I don't see my corporate custoemrs even asking for on line back up. Tape is still very cheap.
    ZDNet Gravatar
    NoAxToGrind
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    Most of our clients, SME space, love our remote online backup solution. In fact it's one of our biggest selling services right now. While the pricing is in line with what you mention at volume, it's not apples to apples because they get more than just storage:

    1. Quick backup and restore because of a locally cached copy of the backup which syncs with the server during slow usage periods.
    2. Backups are automatically kept offsite, and we even keep copies of the backups offisite for multiple storage locations.
    3. DR needs are met because we host their backups at data centres far away from their office while still being local (we're in Toronto, Canada area).
    4. They don't have to worry about the backups because they're being managed by a professional IT firm.

    When you factor in the additional benefits then the value of a remote backup solution becomes apparent - and believe me small business owners appreciate value.

    Attilio Commisso
    CG Technologies Corp.
    www.cgtechnologies.com
    ZDNet Gravatar
    Attilio
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    Just a couple of points to consider. First, with Amazon RRS, the cost per GB/Month drops to $0.10. If you are keeping a local disk based backup as well as a remote cloud based backup (you can get both at the same time), the risk of using RRS over the standard service drops considerably.

    Wrt to bandwidth costs, using T1 pricing is a little deceptive as well. For example, in many urban locations you can get Fios lines that are 20mbps down and 50 mbps uplink for less than $100/month. You can move a TB of data a day with a 100mbps link.

    Add deduplication to the mix (available with most modern backup apps) and your 10 TB of data just became less than 1 TB (obviously depends on what you are deduping).

    So with a combination of cheap bandwidth, effective dedupe, local and remote disk based backup copies, and lower cost Cloud Storage, the TCO analysis tips quickly to Cloud backup solutions.
    ZDNet Gravatar
    roodyg
    7th Sep 2010
  • RE: Where Are The Affordable Enterprise Online Backups?
    I was one of the pioneers of this industry. When we started 18 years ago we were backing up DOS based systems using a registered copy of PKZip, remember them, and a ProComPlus for DOS script over telephopne lines.
    This industry started out serving small businesses. There are many options out there.
    This type of protection has only caught on because users have had computers long enough to have experianced the loss of their data. Until that happens its a tough sell. Most of our customers were people who'd told us no after doing our presentation. A year or two later after a data loss they'd almost knock our door down to sign up.
    ZDNet Gravatar
    Eddy-ICUR12
    7th Sep 2010

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