Carbonite gets personal about backing up PC files

ByABC News
April 2, 2008, 12:08 AM

— -- David Friend knew he was onto something when a computer crash wiped out his daughter's term paper and a friend lost precious baby pictures after her laptop was stolen.

"We clearly had to change the way people back up their data," says Friend, CEO of online backup service Carbonite. The start-up launched in 2006 and now has about 250,000 subscribers.

In an age when more parts of our lives are digitized, Carbonite pitches itself to consumers as a safer alternative to external hard drives and CD and DVD data discs, which can be lost or destroyed in a fire, flood or other natural disaster. If your data are backed up offsite, you can recover it.

Carbonite offers unlimited storage for $49.95 a year. Most competitors charge by the gigabyte. With Carbonite, you download software that automatically searches your hard drive and backs up your data in the background.

Carbonite and competitors including Mozy, Xdrive and ADrive differ from online image sharing and backup sites such as Phanfare and SmugMug in that you can store any kind of file from large uncompressed photo files known as RAW to financial records, music and text documents.

To promote the company, Friend has spent $10 million dollars on a talk-radio ad campaign in the last year. Hosts including Howard Stern, Rush Limbaugh, Bill O'Reilly and techie fave Leo Laporte talk up the virtues of online backup just like Arthur Godfrey used to talk about Lipton tea back in the glory days of radio.

An unusual venue

Analyst Adam Couture at market tracker Gartner says the strategy helps differentiate Carbonite in a cluttered marketplace. "It's unusual to hear tech companies discussed on talk radio," says Couture.

Friend says he chose radio for its personal nature. He knew trust would be a big issue for a start-up data-storage service aimed at consumers. "Who is Carbonite and why should I trust them with my data? The answer to that was getting endorsements."

Friend says the radio campaign is working exactly as he hoped. His hosts offer a special discount and code to enter for Carbonite, so he knows exactly where new sales are coming from.