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Intronis, a cloud backup and recovery provider, has ended its per-gigabyte storage pricing model for its IT Channel partners who are starting to feel the brunt of the pricing war between heavyweight cloud providers like Amazon and Google.
Aaron Dun, Intronis’ chief marketing officer, said the company now is offering a flat, per-month storage rate for unlimited cloud and local storage pricing, which they expect will give partners the ability to compete against the major cloud providers that have been driving down costs in what analysts describe as a “land grab” for cloud customers.
Google introduced its more dramatic price reduction in March, slashing pricing for its cloud storage services by as much as 69 percent while it eliminated pricing for tiered services and introduced a flat rate for its Google Cloud Storage standard and Durable Reduced Availability (DRA) storage. Amazon followed with cuts in its Simple Storage Service (S3) by an average of 51%, with cuts varying between 36 percent and 65 percent spread across the different tiers of the service.
Intronis has about 2,000 channel partners that support about 35,000 small-medium sized businesses. Dun said the cloud storage wars have created a challenge for its partners who are finding it harder to justify the cost of their services on top of the per-gigabyte cloud storage cost.
“That’s been an increasingly difficult conversation (for our partners),” said Dun. “They are faced with a market headwind. We are giving our partners some cost certainty and also a way to have a better conversation with their customers.”
Dun said Intronis made this move based on discussions they had with partners who were bundling cloud backup as part of a managed service plan.
“They were having a different conversation with customers, a more strategic discussion,” he said. The Intronis U2 plan allows managed service providers (MSPs) and resellers to address data storage and protection needs with a single solution that is supported with simplified pricing.