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Will the Recession ReCenter Data Recovery to China?

Editor:- June 4, 2009 - if you stop and think about how the credit crunch may affect the data recovery market - you will see a paradox emerging.

On the one hand - I expect that demand for these services will increase - because users will extend the interval at which they replace their systems - thereby taking them closer to the right hand edge of the bathtub curve.

On the other hand - when a failure does occur - particularly in the SMB / SOHO market - users may shop around more to find lower cost suppliers for these services.

How will these contrary needs be resolved?

Data recovery is a very labor intensive business. As we have already seen in many industries - China has natural competitive advantages because of the lower hourly cost for skilled technicians. This may lead to Chinese based companies eventually displacing US and European service providers in non-sensitive / and non-server markets where it's feasible to ship the disk(s) in a box for the recovery to take place.
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