End-user weigh in on data archiving outsourcing

A journalist recently asked me what I think about outsourcing, specifically for backup. How viable an option is it? How big is it among end-users?

I think it's fair to say that end-user interest in this type of service remains small but for those who do it, it is often an invaluable resource -- especially when you consider the alternative of not adequately protecting your data.

Consider these two graphics from our freshly published report "Digital Archiving: Market Trends and Forecast 2006-2010." (Click on the thumbnails to open full-sized versions.) While ESG is not aware of any current outsourced options for on-line archiving of historical database tables (there are several vendors who do backup outsourcing), 15% of the end-users we surveyed would consider using an outsourced service to manage this process.

My guess is that this number would be slightly higher for backup outsourcing (probably in the 20-25% range) and the bulk of the interest would come from SMBs that lack the internal resources (e.g., capital and operational) to do backup effectively -- and efficiently -- themselves. The following figure lists some of the other benefits end-users see in database archiving outsourcing.

Interestingly, security concerns are still the primary reason end-users hesitate to outsource. True, outsourcing requires end-users to relinquish some aspects of "control" of their backup or digital archiving processes -- whatever the case may be -- but ESG believes these threats are more "perceived" risks than "real" risks.