UPDATED 14:19 EDT / JULY 18 2011

High Costs Deter SMBs from Utilizing the Cloud

Everyone knows that to keep a business running smoothly, be it large or small, you need to keep tab of what’s been happening.  There’s expense reports, inventories, sales reports, salary reports, and son on.  And aside from keeping these data on their computers, they usually have information stored in the cloud.  But we all know that hardware is corruptible, and can be physically destroyed.  Data loss can cause many problems for small businesses.  So with cloud storage becoming more and more popular, many businesses, large and small, have begun utilizing cloud services.  More and more businesses and people are moving their data to the cloud, but for a fledgling business, this can become a bit costly.

As we know, cloud services aren’t free, and even if they are, you’ll only have a limited amount of storage to use.  And free storage service is not enough to hold all the data of a small business.   If you opt to pay for cloud storage, it can cost you approximately $9.99/month for 50GB, which can rack up over the course of a year.  For a small business or startup, this is way too much.

Carbonite, one of the leading online backup solution services, decided to help these SMBs move to the cloud by offering Carbonite Business, a low-cost, flat-rate, predictable pricing plan that starts at $229 annually for an unlimited number of computers, and can be significantly cheaper than other services in the industry.

“We know from our experience working with small businesses over the past five years that they need an affordable, flat-fee pricing model,” said Peter Lamson, general manager of small business for Carbonite.

Understanding the current limits of cloud services is also important, as Andre Vrignau soon found out.  His Comcast subscription was suspended due to his overuse of the cloud service, uploading his massive database on Carbonite.  Users should be aware of their ISPs terms and conditions regarding uploads before deciding whether to move all their data to the cloud, like Vrignaud, they might just lose their internet connection because the joined the cloud army.

“Too many online backup providers have priced online backup at a level that is simply not appropriate for the way SMBs budget. At Carbonite, SMB is in our DNA, so we worked diligently to develop a solution that now allows small businesses to enjoy the superior protection of Carbonite’s online backup protection, at a price that makes good business sense.”

Their rate maybe cheaper but it doesn’t mean that everyone will be hooked.  And unfortunately, not everyone knows how the cloud operates or even how to use it for optimal business purposes.  Education and promotion is an important aspect of getting information to today’s consumers, as more innovation circles cloud services, each development looking to increase efficiency.  We have a detailed piece on some preliminary things to consider when it comes to protecting your data in the cloud, starting with backup and recovery.


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