In your work as a consultant, are you seeing much use of these types of devices?
I'm actually not. I work with small businesses up through large enterprises and I'm not really seeing a lot of application in this area. I think the reality of it is that so many organizations can't get their arms around data storage, data backup and especially information security. So how can an IT staff struggling with day-to-day IT issues deploy another complex technology, when they don't have the time, effort or money to spend on other aspects of IT.
That being said, there are organizations in which management believes that as long as they have some nice technical controls around backup, then everything will be hunky dory. That could be a driver for the encryption appliance market. But, the reality of it isn't that simple. These technical controls can't just be thrown in place and expected to work without having some sort of overhead.
Encryption is usually one of those things that come out the checklist audits that so many organizations are performing against their systems. Whether or not that's the right way to go about it, that's to be determined by your organization.
There a number of ways you can do encryption today. Is there a way that you can get a similar benefit at a lower cost?
Absolutely. Most current backup applications have built-in backup encryption capabilities. So, it doesn't matter whether you are writing to tape, to disk, whatever. The problem with going that route is the overhead required for backup time and management. Especially with tape, it can become overwhelming trying to figure out what to encrypt and what not to encrypt. It can also create some administrative gaps and potentially even availability issues. There are also tape libraries on the market with built-in encryption.
But really, you have to take a step back and ask yourself what really matters here. Are you worried about a tape going missing? Is price an issue? Is overall business risk management an issue? How does it fit into your environment? That's going to determine whether you need an encryption appliance or if you can do this with something you may already own.