Older pricing models force established players to adjust or sell.
David Friend, CEO and co-founder of online data backup company Carbonite, says the recent data backup industry consolidation shows two major trends: online backup has become the preferred backup method and pricing will be the key differentiators for those who survive.
Aresenal Digital announced Dec. 7 it had been purchased by IBM for an undisclosed amount, leaving Carbonite standing as one of the largest of the remaining independent companies in the space. The acquisition of the 100-person backup company in North Carolina continues an industry consolidation trend. Most recently, Mozy was acquired by EMC, while in previous years Connected and LiveVault were acquired by Iron Mountain, and EVault was acquired by Seagate Technologies.
"The acquisition of Arsenal Digital by IBM signals an acceptance by large IT vendors that online backup is here to stay," David Friend, CEO and co-founder of Carbonite said. "Furthermore, it demonstrates online backup is emerging as the best way to do off-site data backup, period. Mass storage devices are dropping in price every month, as is Internet bandwidth. All the economics are moving in the right direction."
"The changing economics of the industry are prompting many of the established backup players with antiquated pricing models to cash in their chips," Friend said. "Businesses aren't going to continue to pay inflated prices that haven't adjusted with the market, especially when consumers are already taking advantage of the low prices. Arsenal, EVault, Connected, and LiveVault are all relatively expensive legacy services in this industry, focused on business customers. New services like Carbonite are selling for a fraction of the price of these older services and employ new technologies that are a fraction of the cost of those used by older companies in this field. When you look at services like Iron Mountain's Connected which sells you 20GB of backup for $50 per month and compare that with Carbonite, which offers unlimited capacity for less than $5 per month, the writing is on the wall."
Carbonite launched its Online PCBackup™ service in May 2006. Carbonite's industry-first offer of unlimited backup space for a flat low price revolutionized the market for consumer and small business backup services. So far the company has backed up more than 2.5 billion files, has restored more than 160 million lost files for its customers and has a large data center where capacity is measured in petabytes. There are Carbonite users in nearly 100 countries.
Founded in 2005, Carbonite believes that computer users should not have to think about backup. The company's mission is to provide an affordable, reliable, secure and easy-to-use solution for the mainstream computer user. Carbonite is available to consumers and small business through numerous channels, including its corporate Web site, major US retailers and international distributors. For more information, please visit www.carbonite.com.