Tiny Startup Mozy Nails Multi-Million Dollar GE Storage Contract
Online backup and storage service Mozy has quietly grown to 175,000 customers since launching in April 2006. That’s not bad for the Utah-based company that runs the service, Berkeley Data Systems, which raised just $2 million in venture capital back in 2005. The company went big time today, however, when they announced a multi-million dollar deal with General Electric, which bought MozyPro (the enterprise version of Mozy) for all of its 300,000+ worldwide employees.
MozyPro is similar to the consumer Mozy service but includes server backups, 24/7 support and admin control for the IT department. The service launched last December and 3,200 businesses are now using. GE is now one of those businesses.
Mozy and MozyPro are administered through a desktop client and automatically backs up data on the PC every two hours. Thirty days worth of versions are retained, and users can go back and restore any of those versions.
Rate card pricing for consumers is free for up to 2GB of storage, and $5/month for unlimited storage. Businesses pay $4/month for each employee, plus $0.50/GB/month of stored data. Bandwidth is free.
The company is backed by Wasatch Partners, Tim Draper, and Drew Major. They have 25 employees.
We first mentioned Mozy back in 2006 when we covered the major online storage providers. On the consumer side, Mozy competes with Carbonite and others. At the enterprise level, Iron Mountain and EVault are the entrenched competitors, although Mozy says they have a 10x cost advantage over those services. Google and Microsoft will also have products in this space.
A very large untapped market for online backups are the OEM PC manufacturers, who should be providing a free trial with every PC. Mozy is now positioned nicely to land such a deal. After a grueling due diligence process by GE, the PC guys should be confident that Mozy is as secure as their competitors. And charging 1/10 of what they do is great for the bottom line.