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

from the just-a-suggestion dept

Tue, Jan 27th 2009 7:13pm — Mike Masnick

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.

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

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

30 Comments

If you liked this post, you may also be interested in...

Reader Comments

Subscribe: RSS

View by: Time | Thread

thomas, 27 Jan 2009 @ 7:24pm

For the techno-illiterate
$31 a month is $372 per year. For $100-150 you can buy a 500 gb backup disk. Why in the world would you pay Verizon to hold your backup data hostage?
[ link to this | view in thread ]
AMusingFool (profile), 27 Jan 2009 @ 8:04pm

rolling your own...
is pretty much always cheaper than buying someone else's service. But that's a minor quibble. I certainly wouldn't consider paying for either of those "services". Then again, my rsync-fu is pretty strong. :)
[ link to this | view in thread ]
Jesse, 27 Jan 2009 @ 8:30pm

Aren't they offering to keep your backed up stuff online? Say for crossing over borders?
[ link to this | view in thread ]
Anonymous Coward, 27 Jan 2009 @ 8:33pm

might as well use webmail, last I checked yahoo had 10GB storage gmail displays 7.2 GB I think hotmail is at 5GB
[ link to this | view in thread ]
hegemon13, 27 Jan 2009 @ 8:55pm

Re: For the techno-illiterate
Um, because an offsite backup doesn't get destroyed when your home or office burns down, or when a power surge fries everything hooked up, including your backup drive.
[ link to this | view in thread ]
hegemon13, 27 Jan 2009 @ 8:57pm

Re:
Webmail limits attachment size, and backing up all your files by sending them attached to emails is a pretty inconvenient solution. Offsite backup services usually provide a software that automates the backup process.
[ link to this | view in thread ]
Anonymous Coward, 27 Jan 2009 @ 8:58pm

Re: Re: For the techno-illiterate
That is really lame.
There are many alternatives which would cost much less and not put your data in the hands of those who are not to be trusted.
[ link to this | view in thread ]
Inquiring Minds Want to Know, 27 Jan 2009 @ 9:07pm

Just Asking ...
Are these the same ISP dudes that want to sell your clickstream data ?
[ link to this | view in thread ]
Anonymous Coward, 27 Jan 2009 @ 9:45pm

These offerings are especially pathetic considering the size of hard drives these days. Backing up 50GB of a 1TB drive? Gee, which 5% do you choose to back up?
[ link to this | view in thread ]
Michael B, 27 Jan 2009 @ 9:54pm

Even Microsoft Gives Some for Free
Even Microsoft is giving 25GB of free online storage with its SkyDrive service (skydrive.live.com). I haven't tried it yet, and am not endorsing it but, heck, its free.
[ link to this | view in thread ]
Fake MCP, 28 Jan 2009 @ 12:39am

Comcast vs. Verizon
The only real competition between these two giant douchebag companies is which one can pull off the biggest screwjob of its customers while claiming it's a bonus/feature/service.

End of line.
[ link to this | view in thread ]
Keith, 28 Jan 2009 @ 3:39am

Re: Re: For the techno-illiterate
So you make your backup on your drive and take it to the office the next day.
[ link to this | view in thread ]
Spectere, 28 Jan 2009 @ 4:47am

Re: Re: Re: For the techno-illiterate
So that you take a risk of dropping the enclosure? Take a chance that it might get stolen (workplace theft is far from uncommon)? No thanks. Besides, the whole point here is that most online backup services are very affordable and don't try to gouge the customer like Verizon and Comcast are doing.

When you're paying for a data backup service you're paying for a service with various failsafes. Such a service would have redundant disks, possibly an additional backup (on magnetic tape), and data security. The backup data is most likely encrypted. No need to worry about someone just stealing your external hard drive and poking through your files.
[ link to this | view in thread ]
FEDUP, 28 Jan 2009 @ 5:10am

Comcast!
I was notified on my last Comcast bill that my promo rate for the year was ending, So I called them to find out what the new rate was going to be.....Your Kiddng Me I said..so can you offer me another promo rate I asked, then they told me they could only offer me a promo rate that lasted only six months and they couldn't really offer me anything or setup anything until Feb 21....to which I replied...will you have a better promo then.....they replied they didn't think so...so I replied well then, guess I will be going DSL or even back to dial up and putting a antenna on my house, getting two DTV boxes with the government coupons and say goodbye to you Comcast....to which she replied, that was my right, they couldn't discuss or do anything until Feb 21 anyway....to which I replied I won't be calling you back...but will be on your doorstep with my two digital boxes and cable modems in a box to return them Feb 21st.... that's when she wanted to talk turkey....my mind is made up, I have had enough of these ISP's teaser rates, having to call every year to get a new promo rate. I'm done with Comcast as of Feb 21....Hello DSL, Hello rooftop antenna... Bye bye Comcast and your outrageous prices!
[ link to this | view in thread ]
jaffs, 28 Jan 2009 @ 5:56am

Overkill?
DVD + fireproof safe = what else do you need?

Burn a DVD (or 12) with your "important" data.
Who really has 1TB of "critical" data at home?
[ link to this | view in thread ]
Anonymous Coward, 28 Jan 2009 @ 6:11am

Re: For the techno-illiterate
I wonder, how that pairs with Comcast limit on monthly traffic? Are online storage users getting an exception?
[ link to this | view in thread ]
Buzz, 28 Jan 2009 @ 7:28am

*facepalm*
ISPs have always struggled in this area. It is hard to sign up for any ISP without it offering its proprietary email address, $5 per month spam blocker, $5 per month antivirus scanner, $5 per month per addition GB of storage, ... orrrrr I could just use Gmail and get everything I need for free.
[ link to this | view in thread ]
Tony, 28 Jan 2009 @ 8:03am

As usual...
The tech-geeks (that would be pretty much everyone here) are completely missing it.

Yes, it IS cheaper to handle your own backups, or to use a different service. Verizon KNOWS this.

But they also know something that the typical techie tends to forget: MOST PEOPLE DON'T KNOW ANY BETTER.
[ link to this | view in thread ]
wiggins, 28 Jan 2009 @ 8:12am

value pricing
When you are setting a price on a product, you price it for the perceived value for your target market. You don't just stick a markup on your costs. People who are going to pay comcast/verizon for backups probably had never considered a backup strategy before and have never priced one. And comcast/verizon prices are probably acceptable for them.. I don't kknow much about economics but value based pricing seems like a pretty obvious point here
[ link to this | view in thread ]
Yakko Warner, 28 Jan 2009 @ 10:16am

Re: Re: For the techno-illiterate
Read the link. Apparently a Comcast rep confirms that it does count against your cap.

I guess it's so they don't get branded as being anti-competitive (offering preferential treatment to their own service), but it's not like that stops them from doing the same with their VOIP or video-on-demand services. *eyeroll*

Depending on the frequency and size of your backups, you could hit that 250GB limit pretty darn quickly....
[ link to this | view in thread ]
Anonymous Coward, 28 Jan 2009 @ 11:06am

Check out slashdot, Carbonite has been posting fake reviews for years. http://tech.slashdot.org/article.pl?sid=09/01/27/2349217
[ link to this | view in thread ]
Jerkface, 28 Jan 2009 @ 11:17am

Re: Re: For the techno-illiterate
Is it that difficult to put your external HDD in a firesafe box when it's not in use?? You should already own one for all of your important paper documents.
[ link to this | view in thread ]
Anonymous Coward, 28 Jan 2009 @ 12:59pm

Dear ISPs, stop trying to 'add value'.
Sell consumers unfiltered, uncapped fiber-to-home at a reasonable price.
That is all.
[ link to this | view in thread ]
Almost Anonymous, 28 Jan 2009 @ 3:19pm

The suspense would kill me...
wondering what would happen to all of my data after the third strike. Do you think they would send it back to me, or just have a fire sale?
[ link to this | view in thread ]
Yakko Warner, 28 Jan 2009 @ 4:11pm

Re:
Dear ISPs,

What he said.
[ link to this | view in thread ]
teknosapien, 28 Jan 2009 @ 4:55pm

and do we really
trust them with out data ????
[ link to this | view in thread ]
Gene Cavanaugh, 28 Jan 2009 @ 6:03pm

Backup
I use gmail - I just email to myself, and with 7+ gB, I find that in backing up what I really want to save, I am still using only a fraction of the space allotted to me.
AND, it is free.
[ link to this | view in thread ]
David Miron, 29 Jan 2009 @ 8:11am

Beware of Carbonite
If you are considering Carbonite please take note that they have just been caught reviewing their own products on Amazon. What's worse is they've known ths was going on for months and have not bothered to do anything about it. Only now after the New York Times exposed them did they remove the fraudulent reviews but all hell is breaking loose around them. Get a better picture and a nice cartoon here: http://www.pcdisorder.com/2009/01/carbonite-belkin-pc-frustrations.html
[ link to this | view in thread ]
Jerry Leichter, 1 Feb 2009 @ 5:48am

Different values to add
For years, telco's have sold a "value added service" where they charge you a "small fee" for "inside wire insurance" - they'll fix problems with your inside wiring "for free" if you bought the insurance. If you haven't, they'll charge you a very high per-hour rate.

Of course, in many cases you can fix it yourself - or hire some local guy to do the same work for much less.

Still, people buy the service. Why? Because it's simple, convenient, looks trustworthy - and when there's a problem with the phone, it's nice to know that you only need to call the phone company and they'll fix it; you don't have to go search for a local fix-it guy.

Is it "worth it"? That's something that each consumer should decide for himself! For the typical reader of this list, who can probably fix most problems himself, certainly not. For a non-mechanical 75-year-old retiree who depends on his phone service - quite likely.

There are many people who can't "roll their own" backup. I have no problem with ISP's offering such a service. I don't even have a problem with them asking "exorbitant" rates! It's the market that's supposed to determine the *appropriate* costs for things.

That's not to say there can't be problems here. Is Verizon's advertising fraudulent or misleading? Are they abusing their near-monopoly position to gain advantages? (If, for example, the data cap did *not* apply to backups to their servers, I'd say that was an abuse.) Are they charging the advertising and marketing costs for this non-regulated service against their regulated services? All of these things need to be watched for dealt with. Absent that, if you believe in the market - go out there and sell a competing product! (Oh, you think you don't have enough money to get started? How about a service helping people who find "roll your own" too difficult? The world probably doesn't need more backup services - but it certainly has room for easier to use ones!)

-- Jerry
[ link to this | view in thread ]
ChiliPepr, 30 Nov 2009 @ 5:08pm

Mozy
MozyHome works pretty well for me – on both Mac and PC. It is very easy to configure and takes very little resources on modern machines. MozyPro needs a lot work, however – the interface is extremely convoluted and not user friendly at all. Use the following link to get 20% more space on a free MozyHome 2 Gb account: https://mozy.com/?code=D685JF Click the above link, click the "Sign up now" button under the orange "Home Users" banner in the upper right. Fill out the form, download the software and complete one backup to get the extra space.
[ link to this | view in thread ]