Description: How are Backup Service Providers going to compete with the major storage manufacturers?

As an early pioneer for the online, offsite data backup and restore industry, I have seen a shift in the marketplace when it comes to in-sourcing versus out-sourcing. Back in the early days, 2001-2005, companies were more open to outsourcing their data backups to a third party company than they are today. With the falling price of disk storage, connectivity, VTL technology and storage appliances, companies have more options to handle their backups in-house(in-source).

With that said, backup service providers are having to find ways to diversify and add more value to their existing service offerings. One of the ways that DS3 DataVaulting is differentiating its services is by adding second-site hosting services. These second-site hosting services offer companies who’ve purchased an in-house backup solution a second site to which the data can replicate. Other service providers, such as Fortiva, are offering services such as email archiving and compliance services.

The bottom line is: In order to compete with the larger hardware and software manufacturers, service providers are going to have to innovate.