Price increase - why did we do it?

I got an email this morning from a long-time user complaining about our recent price increase: "It's great that you've released Remote Access, but why does that justify a price increase?" As you may know, we recently increased our yearly subscription fee by $5, to $54.95. The simple fact is that the size of our average user's backup is growing by about 3% per month. That's 36% more data every year, and consequently we have to buy 36% more disk space and pay for 36% more bandwidth. Luckily the price of disk storage is also coming down, so we can keep our price increase to just 10% after 3 years. There's a new generation of less expensive 2TB drives coming out later this year that should allow us to hold this price for quite a long time — certainly several years. Meanwhile, we're still 10% less expensive on an annual basis than the companies that are hawking $4.95/mo ($59.40/yr).

Dave
CEO, Carbonite

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March 19. 2009 18:52

Haplo

And not only that, Remote Access doesn't show all my backed up folders, and I have obviously submited a ticket a bit more than two days ago... Today I received a reply telling me to wait and "we'll get back to you shortly" or something like that.

So, the price increases and the service drops?

Haplo

March 20. 2009 00:01

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March 20. 2009 12:48

David Friend

Dear Haplo: If Remote Access isn't showing all your backed up folders, we definitely want to find out what's going on. Please send your contact info to Len Pallazola at len.pal@carbonite.com and he'll find out if there is a bug that we're not aware of. Thanks for bringing this to our attention.

Dave Friend, CEO
Carbonite, Inc.

David Friend

April 29. 2009 23:04

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