I have a competitor in my industry (Let’s call the company "Ashtray.") who has just announced a January 1 price increase of 200% to 300% on most items. In an open letter to their customers, Ashtray also apologized for a recent software release that caused massive, repeatable data loss for many of their Service Providers, and announced that they were "pretty confident" that it should resolve at least 90% of the problem. I guess this means that they are also "pretty confident" that at least 10% of their users will still experience massive data loss.

The RBS News for December 2009 contains the following articles: How to Set Prices & Storage Plans, Predict Profits for your Online Backup Service Letter from the President News and Announcements Sales and Marketing Performance Tips Gautam’s Corner – our Lead Developer Answers Your Questions Service Providers with Premium Maintenance now have a FREE Remote […]

How can any online backup company afford to offer "unlimited" backups? Doesn't "unlimited" mean unlimited? Can't I store as many files as a want, use up as much bandwidth as I like, and eat terabytes of storage space for just $4.95/month?

I do not like to see any company fail. But I've said it before - peer-to-peer online backup is just a bad idea. OK, I'll qualify that - it's a bad idea from a marketing perspective. The general public is just now comfortable sending their data to a reputable and well-protected data center. They will never be as comfortable storing their data on their friends' computers.

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Two of the most common questions I am asked by new Online Backup Service Providers are, "How much should I charge," and "How much storage space should I offer?" The answers have huge impact on profitability and marketability, and have been among the most difficult to answer - until now.