Dear ISPs: When Launching Value Added Services, How About Actually Adding Value?

(Mis)Uses of Technology

from the just-a-suggestion dept

At the beginning of January, I thought it was amusing that Verizon was launching its own backup service for a stunning $31/month (with a limit of 50GB of backup storage). That seemed fairly ridiculous, given that you could get an unlimited backup service from Carbonite or Mozy for $5/month, or using JungleDisk with Amazon’s S3 for exceptionally low prices as well (depending on how much you use — but 50GB comes in at way less than $31). Now comes the news that Comcast is also launching its own backup service, with a few different price points, but starting at $5/month for only 10GB and going up from there. It’s not a bad service to offer — and, surely, Verizon and Comcast see these as ways to lock in consumers, since it now has possession of their backup data — but it seems quite odd that these companies would offer “value added services” where the prices are more expensive than rolling your own, which doesn’t come with the lock-in. And, as noted, with Comcast, using the service counts against their new broadband caps, so there isn’t even a benefit there. These ISPs seem to be missing the point of these value added services. If you want to get people to use them, they should actually add value.

Filed Under: backup, isps
Companies: carbonite, comcast, jungledisk, mozy, verizon

Rackspace Wants To Take On Amazon's Cloud Computing Efforts

Web Services

from the interesting-battles dept

Over the past couple of years, Amazon has successfully built up quite a business in commoditizing and renting out its server and process power through its Amazon Web Services efforts, such as S3 and EC2. These days, a lot of startups don’t even bother getting servers in a hosting facility, knowing they can just scale up on Amazon’s machines. That, of course, could represent a threat to the big hosting facilities, such as Rackspace. And while many thought the eventual competitors against Amazon in this space would come from the likes of Google or Microsoft, it looks like Rackspace is trying to be a bit proactive here. It just bought two companies and announced a competing web services platform. The two companies are Slicehost, which does virtualization, and JungleDisk, an online backup service that is built on Amazon’s S3 storage system.

The JungleDisk deal is particularly interesting, as Rackspace knows that JungleDisk users (myself included) are effectively all Amazon S3 customers. If it can offer an easy and convenient way to switch over, then it can take a bunch of customers away from Amazon and move them right over to its own platform. If you’re unfamiliar with JungleDisk, it creates a virtual mounted drive on your computer that connects to Amazon’s S3 platform. So, as long as you have internet access, you have an unlimited size hard drive that you can reach, where you pay based only on what you use. On top of that, it includes backup software (or you can use other backup software) so that you can regularly back up anything on your computer onto this network drive regularly. JungleDisk customers pay for the software, but the ongoing costs are all paid to Amazon. It’s actually quite useful (and crazy cheap compared to some other backup services). It would be interesting to see if Rackspace also allows a service to let you back up to both Rackspace and Amazon, so if one goes down, you still have access to the other. Either way, it looks like the competition in the so-called “cloud computing” space is about to heat up.

Filed Under: cloud computing, online storage, web services
Companies: jungledisk, rackspace, slicehost