Articles & Guides

Why aren't more Web hosts offering online backup?

Cliff Boodoosingh on May 22, 2009
Why aren't more Web hosts offering online backup?

With data creation so commonplace and data storage so necessary, as our lives gravitate more and more online, it surprises me that more Web hosting companies haven't jumped on the online backup bandwagon. There's lots of room there.

Storage behemoth EMC sponsored a digital universe study in which IDC projected that 988 billion gigabytes of digital information will be created in 2010. Obviously, the demand will be there. The annual data growth rate in the business sector continues to escalate as much as 80 percent by some estimates.

Ashay Systems, an online backup provider, released information recently making the case for online backup citing important data such as government regulations increasing the need to backup, broadband prices dropping and businesses indicating a preference for online backup instead of tape. On top of that the company is offering learning seminars and partnership opportunites.

It's not that Web hosts need that kind of hand holding. After all they are adept in forming vendor relationships, tapping into the reseller channel, cloud computing, technical expertise, infrastructure maintenance/management and most of all running profitable businesses. Maybe that's it. Profits or the lack thereof.

If you listen to CEO David Friend of Carbonite, one of the online backup market leaders, he's doing very well. It's been reported that Carbonite has more than 15 billion files in storage, the company spends about $50 to acquire each new customer, and charges $49.95 per year for his service. So if you keep each customer for 4.5 years you end up paying $50 for $225. Not bad. (This comes from commentary excerpted from Rob Cosgrove, CEO of Remote Backup Systems).

Companies such as Hostway, Verio, Go Daddy and several others obviously don't need convincing as they've made the obvious online play, but what's everyone else waiting for?

Originally published on: Web Hosting Blog


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