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Online Backup Booming

A handful of companies specializing in online disk backup claim the market for their services isn't just growing, it's booming, thanks to companies' burning need to be rid of backup headaches.

This might surprise observers who consigned the storage service provider (SSP) model to the dustbin of industry history a few months back. Indeed, it looks like online backup, wherein companies offer disk-based storage on their own or others' facilities for remote backup of data centers, may be the chief success to come out of the general SSP malaise. Consider the following:

  • AmeriVault Corp. claims to have "upwards of 500" customers, and marketing director Scott Bush says the market has been steady, not erratic. "We've seen no less than 25 percent growth per year in our six-plus-year history," he says.
  • IPR International LLC is about to close $10 million in first-round funding. The online backup service provider also announced in October that ATX Communications Inc., a local exchange carrier in the Mid-Atlantic and Midwest U.S., will be reselling its services.
  • LiveVault Corp. claims revenue grew 226 percent year over year for the third quarter of 2004, and spokesman Jim McManus says the amount of new data the company took on last quarter exceeded what it protected for the first two years it offered the service. LiveVault claims to manage more than one petabyte of data.

These aren't the only online backup providers claiming to be on the move. Arsenal Digital Solutions Worldwide Inc. and EVault Inc., among many others, say business is better than good.

Table 1: Selected Online Backup Service Providers

Company HQ location/Year founded Funding No. employees (approx.) No. customers (approx.) Resellers
AmeriVault Waltham, Mass./1998 $7M 30 500 Compaq, HP, Sungard
Arsenal Digital Cary, N.C./1998
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