Mozy's new plan: "pay more, get less"

Mozy's new plan: "pay more, get less"

Summary: Here on planet Earth, data storage is getting cheaper every month. But in Mozy's parallel BeanCounterEarth, it's getting more expensive. Time to fork over, freeloaders!

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TOPICS: Hardware, Storage
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Here on planet Earth, data storage is getting cheaper every month. But in Mozy's parallel BeanCounterEarth, it's getting more expensive. Time to fork over, freeloaders!

What's the deal? Mozy's excuse for raising prices is that people are storing a lot more information than they did in 2006. Therefore, with much regret, they have to raise prices: 50 GB will now cost $5.99/month, a $1 increase over the old unlimited plan.

Huh?

Back in 2006 the hot SATA drive was the Seagate Barracuda 7200.10, a 750 GB behemoth. Checking in at a mere 79¢/GB - $590 retail - it set a new price-performance metric.

Mozy backstory In late 2006 Mozy - taking advantage of super-cheap disk storage - adopted unlimited storage for a fixed monthly fee. Those were the good old days.

Then in late 2007, the world's largest independent storage company, EMC - who also owns VMware, Iomega and RSA security, among others - bought Mozy. On my own dime I used Mozy for Mac for 2 years before dropping it for non-performance in 2009.

And today? Today you can buy a 2 TB SATA drive online for 3¢ a gig. Volume buyers can do better.

And that drive is not only faster, but more reliable and energy efficient. By any measure the disk drive folks have done an incredible job.

And because of that EMC's Mozy can make even more money than ever just by buying new disks every year. But that isn't enough.

The Storage Bits take Inside a $16 billion company like EMC the Mozy business is hardly worth thinking about. EMC's brass is used to 60% gross margins and revenues measured in billions.

But in consumer-facing businesses 60% gross margins are just not done. Even Apple - often criticized for high prices - gets by on less than 40%.

Consumer businesses get no respect inside most enterprise companies. When the quarterly business review gets to Mozy, it goes like this: Designated stuckee: "Our Mozy revenue is up 7% and margins are up 8%! Score!" CFO: "You still don't amount to squat. Why are you wasting our time? I hate you!"

The technical solution is, of course, to lower infrastructure costs and provide innovative high-margin products to apply Advanced Margin Enhancement Technology: raise prices.

Welcome to the "free" market.

Comments welcome, of course. When asked, I now recommend Backblaze and Crashplan. Use online backup as a supplement to local backup.

Topics: Hardware, Storage

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39 comments
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  • RE: Mozy's new plan:

    You Know What?? Since You Don't Use It Anymore; Your Opinion Is Useless. And Your Slam On Free Markets, Was To Be Expected, You Must Be A Democrat!!
    Macterryh
    • RE: Mozy's new plan:

      @Macterryh
      And you must be an idiot!
      kirovs
    • RE: Mozy's new plan:

      Macterryh --

      I'm as pro-free-market as anyone, and I didn't detect anything political in Mr. Harris's comment about free markets. I read it more as a slam on EMC's bad business decision to raise prices when real storage costs (remote and local) are declining.

      As for your "you don't use it, so your opinion is useless" comment, that's ridiculous. If you have a reasonable understanding of a product, service, business decision, company, etc., etc., then your opinion is valid. As long as someone is arguing from a basis of facts (as Harris is), I'll listen to/read what they have to say.

      You don't have to agree with him, but your disagreement doesn't invalidate his opinion.

      (Rhetoric 101 dismissed.)
      Churlish
    • RE: Mozy's new plan:

      @Macterryh

      Aaaah the free market. That's when the lunatics get to run the asylum.
      tonymcs1
      • That has to be sarcasm, because, nobody in his right mind would propose

        that government controlled or government regulated markets are the way to conduct business.<br><br>When and where have you ever heard of any government directed economy that has ever succeeded or that even began to support its people? All economies based on socialism, whether partially or in whole, eventually fail, some just take more time than others.<br><br>Try to learn the lessons of history.
        adornoe
      • RE: Mozy's new plan:

        @tonymcs@... Funny thing about that Tony, there is a whole field of study about "free market" with carefully mapped out equations. It?s called Economics. But I do like your analogy. People getting PhD's to study such lunacy. I guess they can turn anything into a science.
        jimlonero
    • RE: Mozy's new plan:

      tonymcs --

      As opposed to what? Central planning? Government bureaucrats determining production? I'd prefer a free economy driven by the rational self-interest of so-called "lunatics" (read: everyday people) over a command economy ANY day.
      Churlish
  • RE: Mozy's new plan:

    @Macterryh: Well, I'm a current Mozy user, have been for 2+ years, a capitalist who runs a business *for profit*, who believes that Mozy has a right to make as much profit as possible, a staunch conservative Republican Tea-Bagger... and I think Mozy (soon to not be my provider of online backup) is out of their minds for such a price increase!
    RFaircloth
    • RE: Mozy's new plan:

      @RFaircloth
      As a fellow profit-making capitalist: +1

      Robin
      Robin Harris
      • RE: Mozy's new plan:

        @Robin Harris

        I'm a socialist small business owner and even I make a profit ;-)
        tonymcs1
      • RE: Mozy's new plan:

        tonymcs --

        In LOLCat vernacular: "Socialism / Ur doin it wrong." :-)
        Churlish
      • tonymcs: current success is not the same as long-term success

        and with a socialist economy, eventually, your profits will disappear too. Slowly but surely, the government will demand more, and with government taking more, you'll end up with less and less, to the point where it won't be worth your while to continue in business. Like I said, it takes time for socialism to eventually finish off an economy, and that's what has been happening to the U.S. economy. It's just been too gradual for some people to notice how our economy is dying.
        adornoe
      • RE: Mozy's new plan:

        @Robin Harris Lots of thnx for your article, i 've got a bit dissimilar viewpoint at http://edproblemsolver.com
        Cosme
        kollywolly
  • For crying out loud ...

    ... the storage market seems to be crying out for a good -value, well-architected solution. <br><br>Unfortunately the global corporations don't seem to be interested in protecting their customers' data - unless it is at near-criminally extortionate enterprise costs.<br><br>DROBO seem to be trying hard on the SMB front: reaching a meerly extortionate rate for a user-friendly dynamic RAID 5 solution.<br><br>I save my deepest sarcasm for M$ and Ed Bott who thinks M$ Home Server can be 'saved' by going to a single disk workaround in generation 2 of the product.<br><br>Losers.<br><br>Why ANYONE thinks we should trust the global corporates with cloud solutions is beyond me (unless I can write my own penalty clauses and determine the price!).
    jacksonjohn
  • Serious Price Hike

    I just got my renewal email. I'm currently backing up about 350gb with Mozy. Not much changes of that backed up data week to week, but I have a lot entrusted with them. They no longer have an unlimited plan, so to backup 350gb would be the 9.99 play for 125gb, plus $2 for each additional 20gb. That would take me from a $5/mo plan to a $32/mo plan! Whoa! As painful as it may be for the initial backup, looks like I'll be switching to carbonite or a competitor to mozy. Need to do some research.

    Ouch!

    - Daniel Rymer (ZhunZi)
    zhunzi
  • That's it for me

    By my calculation I would pay over $500/yr for 500 GB of backup on Mozy, or, I can buy a couple enterprise class hard drives and park them in my safe (yes I have a media box inside a fire safe) and maybe with a family member or bank vault for the stuff I really want kept, and still save money. Mozy was an affordable solution for a low-likelihood event, it was low cost insurance should my usual measures ALL fail but at the new price forget it.
    oncall
  • Right, because we all know that hard drives operate

    off of pixie dust. Oh. Wait. They don't. They require electricity. Electricity to spin the platters. Electricity to run the servers. Electricity to run the air conditioning. And in case you haven't noticed, energy costs are rising.
    frgough
    • And let's not forget

      added bandwidth costs and added personnel costs (someone has to administer the new hardware).

      And, of course, the white elephant in the room: Inflation. It's coming folks.
      frgough
      • Who can blame them for wanting more money

        @frgough

        I certainly cannot. The take home message for me is it is probably better for me, and maybe the home consumer in general, to come up with ones own backup plan or be left to the whim of the big corporation. Fortunately for me I already do a lot of backing up, like I described above, except the off-site stuff and the better hard drives so maybe I'll take that money I will save and tighten things up. I am not going to look for an alternate online service because I expect price hikes like this to go down like dominoes.
        oncall
    • Doesn't matter

      @frgough

      If Mozy's operating costs are rising, so are everybody else's. As Robin mentioned, a lot of that is offset by technology improvements including lower cost drives that are more power efficient.

      But the most important question is whether or not Mozy is still price-competitive with ALL of the other options available to customers. If they are not, then they will lose business, plain and simple.
      terry flores