Atrieva offers backups over the Internet

Seattle-based Atrieva Corp. is betting that this kind of paranoia will mean a big market for its Internet-based backup system, which Netscape Communications Corp. (NSCP) recently agreed to distribute through its popular Netcenter Web service.

"Mobile workers who want a virtual office, and SOHO (small office/home office) workers, need a cheap product that makes it inexpensive to have an off-site backup," said analyst Tim Bajarin, president of Creative Strategies. "It's a big market."

To take advantage of that market, Atrieva will have to deal with not only competing companies, but with entirely new technologies aimed at mobile users. But analysts say the company is well-positioned, partly as a result of its recent Netscape deal.

Remote-server storage
The idea behind the main Internet-backup services is the same: Your computer constantly deposits updated copies of all your important files -- and even applications -- on a remote server. Then, whenever you need them, you can access the files using either a Web-based interface or a client application (some services use both) from anywhere in the world.

The offerings of Atrieva and Connected Corp., in Framingham, Mass., are fairly similar, allowing unlimited storage and unlimited access to the backup information, but at $14.95 a month, Atrieva's service is $5 cheaper.

Visto Corp., in Mountain View, modeling its service on 3Com's (COMS) popular PalmPilot, lets users "synch" important files, including contact information and calendar, to a "virtual briefcase" on a Visto Web server. Its service costs $9.95 a month.

All three companies are privately funded.

A market ready to fly?
Analysts say the online backup market might be poised to take off, and Atrieva, with its Netcenter distribution deal, is in the right position to take advantage of demand.

They expect well-known vendors, such as Intuit (INTU) and Symantec (SYMC), to begin offering the services of Atrieva and others as an inexpensive, but necessary, add-on.

"It's a utility that's well worth having," said analyst Mike Schneider, president of Integrated Business Information Systems. "Backing up stuff isn't one of my favorite things in the world -- it probably ranks with seeing the periodontist.

"But for the SOHO user, my guess is that things like contact information ... as well as information from their accounting package, can make or break them. If they have a fire in their office -- and their office is usually their home -- they're up the creek."

Gaining users' confidence
It could take a while for users to get used to the idea of storing their confidential information on someone else's computer, however.

"It's a big psychological thing," said analyst Mike McGuire with Dataquest Inc. "End users have to get over the idea of storing all their stuff on a remote service. People are getting more comfortable with the idea, but it's still a challenge."

Atrieva and Connected both stress that users' information is encrypted before it travels over the wires, and is stored in an encrypted state.

Observers also said that, given that Atrieva allows users to store an unlimited amount of data on its servers, it may be difficult to turn a profit. "There's room for abuse there," said Bajarin.

Challenges to their plan
There's also the possibility that new technologies could do away with much of the need for a third-party system.

For example, many airports now offer kiosks that let users connect to the Internet at very high speeds. With that kind of speed, users could connect to their own servers from the road, instead of relying on another company. If such kiosks become ubiquitous, it could make companies like Atrieva unnecessary.

"They could end up competing with centralized storage," said analyst McGuire.