Mozy Online Backup Acquired by EMC; What Does This Mean?

EMC, a large storage products company with about $12B per year in sales has agreed to acquire Mozy, an online backup service for about $76m. At first this seems like a natural fit, EMC makes storage products and Mozy provides backup data storage to customers. But in another way this is a strange marriage. EMC is known for it's high-end storage systems. Mozy is a no-frills online backup service. EMC has traditionally been one of the higher-priced storage providers. Mozy provides cheap and free backup services. EMC has traditionally targeted the corporate and enterprise markets. Mozy is popular among consumers, home users, and people who are willing to have a few ads shoved in their faces in exchange for free or cheap services. I can't see EMC's existing corporate customers using an ad supported service.

This acquisition may be EMC's first move into the home and small business market. Some things will certainly change for Mozy. As a startup with VC backing, their motives were to gain as many customers as possible and find a buyer, nevermind making money. EMC will certainly be more interested in the bottom line. It is interesting to note that the $76m is pocket change for EMC; this story broke 3 days ago and it has not even made the news on EMC's own website.

This acquisiton along with Seagate's $185m purchase of EVault and Microsoft's Window Live SkyDrive Beta, and Googles Gdrive (rumor or not), further validates the rapidly expanding market for online backup and storage. Backing up data to tapes, DVD's, and other portable media is becoming obsolete fast. Online backup is more reliable, more secure, and less expensive for consumers and small businesses. I think we can expect to see more consolidation in the online storage market in the next few months.

Caution: Online Backup Startups

I am a big fan of online backup. I have used it for few years now and I recommend it to small and medium businesses (SMB) and home computer users alike. The advantages are numerous and there are few disadvantages to online backup. One important point is that all online backup services are not equal. When you look at the plethora of service offerings, you will find a wide variation in capabilities, capacities, price, and security. The task of selecting the service that best fits your needs and budget can be daunting. Furthermore, there are new services appearing every month. Selecting the optimal service for your situation is beyond the scope of this article, but some services should not be considered by anyone.

One of the reasons why online backup has become so popular is the availability of cheap bandwidth to the home and small office. Almost every small business and home office worker has enough available bandwidth to use online backup. This abundance of cheap bandwidth to the home and small office has had another effect. A relatively novice computer owner with a cable modem and fixed IP address can buy a terabyte disk drive and some software and call himself an online backup service. Imagine your backup data that you thought was safe and secure at an online vault is actually stored on someone's Dell home computer in the bonus room above their garage. Another common startup mode, is for a small IT services or consulting business to add a server and some storage in the server room in their office suite. In additon to the obvious issues of data security and availability, cable modems and DSL Internet connections often provide good bandwidth for data inbound to the server, but a fraction of the bandwidth for data travelling outbound from the server. This means that the backup service using a cable modem or DSL connection will be able to handle the backing up of data much better that the restoring of data to clients.

When selecting an online backup service for your SMB or home office, don't just look at the price and capabilities. It is essential to make sure that your data is being stored in a professionally managed data center with security, redundancy, environmental controls, and fire protection. The office server room with battery backup is not good enough.

DRM, A Slow And Painful Death To Your Music

DRM is supposed to stand for Digital Rights Management, however, the music industry seems to think it stands for Digital Restrictions Mandate. Pay careful attention to this because it radically changes basic concepts of purchasing and playing music. I am sorry if my words seem a little crude, but I just can't candy-coat this. We are all being screwed by the music business, AGAIN, and most people don't even realize what is going on. If you buy digital music from iTunes, or any download service that uses any form of DRM, then the music that you think you bought will not be yours for long. I can almost guarantee that you will not be able to play that music in a few years.

The music vendors, RIAA, and the rest of the recording industry are spending a lot of money on misinformation campaigns to lead us to believe that there is no problem and we shouldn't be concerned. The fact is that this DRM crap only benefits the people who sell music and it absolutely screws the honest consumers who pay for their music downloads. You might think that the only people who would have a problem with DRM are the people who make illegal copies of music and other digital works. Not so; honest people who pay for their music are finding out that the music that they bought is worthless when they upgrade or replace hardware or get a new music player. DRM has a multitude of problems and the people who are making money off it know it. They aren't doing much about it because they have some expectation that they are going to increase their profits, not only by getting people to pay for downloads as they should, but also by trapping people into paying for the same music multiple times as they get new equipment.

I can understand the music industry's motives. The artist should be paid for their work and downloaders should pay for what they download. However, it is difficult to be sympathetic towards record companies that have been gouging us in numerous ways for many years. A decade long investigation in the 1990's by the US Federal Trade Commission (FTC) into record company price fixing exposed the artificially high price of CDs compared to other media. Then in 2000, it was revealed that the record companies were penalizing big retailers who sold music at a discount. In a May 2000 the FTC said "Music consumers may have overpaid more than a half a billion dollars for new CDs in recent years because of illegal arrangements by five major US record companies." See this May 11, 2000 article from the Chicago Sun-Times for more information. These are just some of the more obvious examples of the sordid history of record company greed. To make matters worse, they only share a small portion of the revenues with the artist.

The record companies are back to their old tricks now. With no concern for people who pay their hard-earned money for music, they are vastly devaluating the products. When you go to the store and buy a CD you can play it at home, in your car, in your boom box, on your walkman or on any other cd player. And further more, you own the CD forever and can play it forever, and then pass it on to your kids and your grandkids. You can even sell the CD if you get tired of it. When you buy a song from an online store you are likely to get a file that has restrictions about which computer and which devices you can play it on. And what's worse, when those devices are replaced you have to pay for the music again. To be fair, some of them do allow a few copies to be made, but you will eventually run out of copies and lose your files. Don't underestimate how much this can cost you over a few years.

I still have my CD collection from the 1980's. I also have a number of unprotected Mp3 files that I have ripped from those CDs. I will probably have those CDs for as long as I live, and my kids may even keep some of them long after I am gone. My Mp3 files are good for as long as I want them, because I keep backup copies just like I keep backup copies of all of my computer files. My daughter has downloaded hundreds of dollars worth of online music that has DRM built in to it. Even though I backup her computer, the music will not play on another computer. So her music is hers for as long as that computer works and she doesn't get a new portable device. At some time she will have to purchase the music again if she wants to keep listening to it. How fair is that!

I ran across a problem with some Windows Media Player files a few months ago. I replaced the motherboard in my computer and all of my DRM licenses became invalid. Fortunately I had backed up my DRM licenses using the utility that came with Windows Media Player 9. Unfortunately the files could not be played on the upgraded computer even after the licenses were restored. Microsoft said I should contact the online store to issue new licenses. The online store said they couldn't issue new licenses without paying for them again. Well, it was only a few files and nothing important, so I dropped it. Not worth the fight. Also, how many people do you think are aware that they need to do a special backup of the DRM licenses? Not many, but it's a moot point now. Windows Media Player 11 does not allow you to backup your licenses. If you lose them or upgrade your computer then Microsoft says the solution is to have the online store issue new licenses. So now we are dependent on the online store's willingness to issue new licenses if you can get in touch with someone who cares.

Why am I writing about online music and DRM in a the Data Backup and Recovery blog? Because I have learned a shocking lesson. There is one type of computer file that you can't protect with good backup procedures. Music and video content that has DRM protection will eventually be lost and as of now there is nothing you can do about. You can't depend on a backup of your hard drive to save you from losing your valuable collections. My advice to you and the course of action than I am taking is to never pay for music or video's with DRM protection of any kind. I will only pay for music if it is in the Mp3 format, which doesn't have this DRM crap.

I am interested in hearing your opinions on this subject so please comment on this post. But don't try to convince me that DRM is not so bad. Anything that prevents me from making copies of files that I own is bad.