TechTarget Insights

Apr 12 2018   4:17PM GMT

Deal ScoreCard Observations on Cloud Backup

Jonathan Brown Jonathan Brown Profile: Jonathan Brown

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The latest Deal ScoreCard – Cloud Backup, one of 20 IT storage, cloud, and data center markets we publish,  analyzes over 400 recent deals to tell the story of a market in transition.  While dominated by Amazon (1st in consideration for purchase by buyers, 1st in number of cloud backup transactions, 1st in revenue – as reported by buyers) and Microsoft (2nd in all of the above), we are seeing increased consideration of Veeam, Google, IBM, Commvault, Acronis, RackSpace, HPE, Barracuda, Arcserve, Sungard, and others by buyers entering the funnel today.  Notably Commvault has the fastest increasing consideration rate, meaning that their messaging around cloud backup is turning into new selling opportunities for them in this highly competitive field.  Whatever they are doing seems to be working.

Challengers to Amazon and Microsoft in cloud backup are getting more consideration from buyers

 

What matters to cloud backup storage buyers?

  • Cost – still a big factor here. There is a clear desire for ‘disaster recovery for less’, and cost is top of mind for 60% plus of buyers. This is an indicator of an early stage market.
  • Encryption – 42% care about encryption and this number is rising… BUT, for buyers, this drops to the bottom half, indicating it is a non-differentiating checkbox feature that is important to address early in the buy cycle.
  • Support for VM’s  – being able to restart virtual machines in the cloud is important to 31% of buyers early in their evaluation cycle, and remains high (28%) in late stages.

How to cloud backup storage buyers differentiate between vendors?

Disaster Recovery and Reducing TCO for backup top rationale for Cloud Backup Storage purchases

  • Price – 31% say price is the top way to differentiate between solutions – both before purchase and after purchase.  When we see this, it means that this is being approached as a commodity buy.  As confirmation, buyers who completed purchases were twice as likely to say that price was the determining feature for their cloud backup storage purchase. This trend toward price being the top differentiation attribute is increasing.
  • Brand and reputation – Brand definitely influences who makes the short list early in the cycle. Leaders Amazon & Microsoft, no doubt, get a lift from this.
  • Previous experience with vendor – early in the buy cycle, experience with vendor doesn’t seem to matter much, only registering as a factor in 10% of the deals, BUT when it comes to buy time, previous experience with vendor matters to 20% of buyers. Reasons for this include:
    • Contracting /billing difficulties
    • In-house Employee skills
    • Other workloads being housed with those vendors

What is the state of the market and how does that affect vendors?

Buyers not planning on buying from existing suppliers are more open to competitive messaging and represent the best targets for marketing

  • 58% of buyers are ‘open’ to competition from new vendors.  This group includes 1st time buyers, buyers looking to add a second vendor, and buyers looking to replace their primary vendor.  42% intend to purchase from an existing supplier.  This is relatively wide-open space and one that will respond well to marketing efforts.
  • 37% of buyers of cloud backup storage are first time buyers.  Keep in mind that the information needs of first time buyers (“newbies”) are very different from those looking to replace an existing product (“burn victims”).  The former needs education on what to care about.  The latter needs information on how you and your product are different.

A Closing Question for you

  • Have you seen Deal ScoreCard?  All of the observations above come from Deal ScoreCard.  It is the quarterly research product designed specifically for product management, product marketing, sales leadership, competitive intelligence, and c-level strategists from the media company with the largest audience in the world.  You will learn where you and your competitors are strong, weak, and where the opportunities arise in this changing marketplace… delivered 4x per year from the worlds’ largest IT media audience.
  • Visit our website – https://www.techtarget.com/products/techtarget-research/

 

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