Intermedia, which specializes in hosted Exchange, has unveiled a 100 percent data protection guarantee. But what exactly does the guarantee mean and will rival SaaS (software as a service) providers follow suit? Here are some fast facts and potential implications for managed service providers.
First, Intermedia’s claims. A spokesman for the New York-based SaaS provider says:
“Any data or e-mail stored in Exchange is guaranteed to always be available. Intermedia is the first SaaS vendor to offer this level of data protection guarantee. Typical cloud vendors, such as salesforce.com, offer limited compensation for data loss in their SLA fine print.”
Intermedia is quick to note the following research points:
- 93% of companies that lost their data center for 10 days or more due to a disaster filed for bankruptcy within one year of the disaster. 50% of businesses that found themselves without data management for this same time period filed for bankruptcy immediately. (Source: National Archives & Records Administration in Washington)
- According to a survey commissioned by Intermedia: 70% of respondents said data protection is “extremely important” when choose a SaaS vendors, yet 36.6% don’t know if they have a data protection guarantee of any kind (even a partial guarantee).
The MSP Pitch
So what’s the heart of the matter here? For most MSPs and their small business customers, SaaS decisions come down to issues such as price, data availability and data privacy guarantees. Sure, many customers are willing to pay a flat monthly fee for online applications. But those same customers also want to know that their data will be secure and available.
Assuming Intermedia makes good on its 100 percent Data Protection Guarantee, MSPs may have an easier time re-branding and pitching Intermedia’s hosted services to end-customers.
Also of note: Intermedia and its channel partners will likely use the 100 percent guarantee to differentiate from Microsoft’s own BPOS (Business Productivity Online Suite) efforts, which include hosted Exchange. Microsoft recently cut BPOS and SaaS prices, in a move that was largely considered a competitive reaction to Google Apps.
If you’ve spotted similar 100 percent SaaS guarantees let us know. I’m wondering if this is a single, isolated move by Intermedia or if similar market efforts are underway.
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Posted In: Software as a Service and Hardware as a Service
Tags: Data Protection Guarantee | Hosted Exchange | Intermedia | SaaS | Software as a Service and Hardware as a Service
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Define ‘Guarantee’. Neither their website nor the press release defines it except to make it sound like a point-of-difference.
Many places already guarantee 100% data retention. If they fail, you get your month’s fees back. You’ve lost your data, but at least you didn’t have to pay to lose it!
Tell me when some company guarantees your data against potential lost business when they lose it or are just unavailable for a period.
Seriously: When a company provides $M+ insurance against losing their client’s data I’ll be impressed.
Hi Rick, I expect to be speaking with Intermedia about a few things over the next 48 hours. I will ask for a better definition. Thanks for reading.
-jp
Salesforce is a poor example in this case because you can easily backup/export the data from Salesforce on a recurring basis. Most other SaaS systems don’t have such functionality.
In terms of 100% Exchange stuff – there are others doing it. Rackspace, ServePath (GoGrid), Apptix, Navisite. Oddly enough – not MSFT.
It is important to ask about the availability of the mailbox (or mail) and not just the network. In any event, the compensation on the SLA payout doesn’t cover the frustration of downtime.