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Thread: Backup Hosting

  1. #1
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    Backup Hosting

    We are thinking of experimenting with the backup hosting market --- was wondering what people think about it? Is there a market for it?

    I am thinking personal plans can be 50mb and go for $2-3/mo (ie: for people to back up their financial documents, etc..). We can even roll out a windows based app to do the backing up.

    And then at the same time we can do 100gb backup accounts for hosts and such.. $30/mo.

    Would people be interested in such a service? All comments and suggestions would be greatly appreciated.
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  2. #2
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    As this market is pretty focused and your competitors are very big how do you plan on seperating yourself? For example I would say Gnax is a leader in this area with $0.50 / 1GB / month.

    If I were to look into this market I would focus maybe on the end user market. Build a backup tool that allows them to select 1 GB of files on their PC to backup and charge them a monthly fee for it.
    Gary Jones

    BlueFur.com - Canada Web Hosting

  3. #3
    Dont forget to take into consideration 100gb of backing up, is 100gb of bandwidth.

    20clients @ 100gb = 2TB of data, which is more than most servers are capable of holding. So thats 2 servers youd realisticly need, for 20 clients. + 2000gb of transfer. I can see a profit being made, but you'd need a pretty strict set of permissions setup, as how often they can backup etc.

  4. #4
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    Well we have the bandwidth.. and have built machines with over 6TB in the past (our freehosting is currently using over 4TB. I mean 24 * 500GB SATA gets you to 12TB already.

    As far as Gnax goes, I think I should be able to undercut them by a little bit. I was thinking 100gb for 30-40/mo, they charge 45.

    I am just not sure if there is enough demand to invest in the expensive hardware? The issue is that we have some hardware and BW avaliable... just not sure what the best way to *use* it would be (outside of regular virtual hosting and free hosting that we do). Any ideas/comments/suggestions?
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  5. #5
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    Don't just look at trying to undercut them in pricing. BQInternet offers 100GB for $20, 1TB for $150. Look at how you can provide additional value to your service, maybe something the others don't offer.

    There will always be the group of consumers that will sacrifice everything to get the lowest price. Rise above that, and compete at a different level and go after the audience looking for great support, automated backup tools, etc.

    Good luck with your venture.

  6. #6
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    Thats the problem... its hard to offer the extra value that allows you to take the competition off price.

    I wonder how many customers BQ is getting for the back up plans.. hmm
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  7. #7
    Its a competetive market, but if you focus on the right industries (not WHT) you could do quite well. If you do a google on remote offsite backups you will see that many of the companies charge quite a lot, if you can break into that market you could do quite well.
    crucialparadigm - Affordable, Reliable, Professional :
    Web Hosting
    24/7 Support Web Hosting Reseller Hosting Cloud/VPS Plans Dedicated Servers

  8. #8
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    Yeh.. only if i ignore WHT pricing.. I can't compete on the virtual hosting , dedicated hosting or even the backup hosting.. (on price). The hosting we sell for $14.99/mo people are selling here for under $2
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  9. #9
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    Originally posted by amelen
    I wonder how many customers BQ is getting for the back up plans.. hmm


    I'll have to agree with the others here about competing on price. Until you're able to get the volume required to sell at low prices, you need to focus on providing a service that justifies a higher price.

    The current standard seems to be $0.50/GB. Can you find a way to justify charging $1/GB, or even more? These are the customers you'll want while you grow your service.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  10. #10
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    I can defintly do 50 cents per GB.. the problem is that I have seen a lot of others doing as low as 10 cents per GB...
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  11. #11
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    We sell a remote backup service under a different brand to the local market and charge quite alot for it, about $10 per month per PC + $15 per month per gb.

    We have been quite succesful selling on the local market, as alot of small businesses that want backup also want the person selling it at the end of a phone and not too far away in case they need to get them in for an emergancy data restore.

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