Apropos of nothing, I'll share one of the reasons why I've been a loyal customer since 2010. In 2013 I booted up a dormant 2006 Macbook to prep for lending to a friend. Shortly thereafter I received the following email: === Hi Robbie (first name guessed from email address)- This is NOT an automated email, I'm typing this live. You have the very very last computer on earth running an ancient version of Backblaze (vers…
Backblaze IPO
131–140 of 300 posts
Re: Backblaze IPO
#132Earlier quoted context omitted.
> They said "yeah, we lose a ton of money on every user like you." Such an interesting statement. It's like they really think they can get away with offering "unlimited" storage without people taking full advantage of it. Like ISPs with their "unlimited" plans, they market that stuff and then they get mad if you actually saturate their link 24/7. I actually emailed backblaze about this years ago. I asked them if they…
It's like they really think they can get away with offering "unlimited" storage without people taking full advantage of it. Well, yes, it's like a all-you-can-eat buffet restaurant that nonetheless isn't going to let you bring in a giant cooler and fill it up to take home.
Re: Backblaze IPO
#133Apropos of nothing, I'll share one of the reasons why I've been a loyal customer since 2010. In 2013 I booted up a dormant 2006 Macbook to prep for lending to a friend. Shortly thereafter I received the following email: === Hi Robbie (first name guessed from email address)- This is NOT an automated email, I'm typing this live. You have the very very last computer on earth running an ancient version of Backblaze (vers…
I'm confused here. How does a threat of deleting your data in less than 7 days and not even canceling your billing makes you a loyal customer? That seems quite awful, miss the email and your data is gone, and you end up paying without them even storing any data.
Yes, they could have proactively canceled my bill. Maybe they would have! We'll never know, because I responded to this email right away.
He responded to my questions in a lengthy email, which I'll paste again here because I had the foresight to ask in advance for future permission to post publicly.
===
Hi Robbie, thanks for getting back to me! It's hard getting through the email marketing overload. :-)
> Would you be amenable to holding off on deleting the backup > for two weeks (instead of one)
No worries, the most important part is that you are aware the computer is no longer actually performing fresh backups of new data. We can wait a while.
> would you mind if I published your email publicly?
Go ahead, and one of our marketing guys (Yev) already saw your tweet go by, it made everybody in our office laugh too. I'm off in my corner watching logs and emailing the random old customer, they didn't know I do this. :-)
One of the things I've been amazed at doing backup software is how many assumptions I made at the start that aren't true and the MODERN Backblaze software works around:
1) assumption: your disk on your laptop will reliably store bytes or fail. Wrong, it can throw random bits, undetected unless Backblaze keeps its own parallel check sums.
2) assumption: laptop RAM works reliably. Wrong, I think there is a reason servers run ECC RAM, and I'm confused why many laptops choose not to. I guess saving $5 is more important than data Integrity?
3) assumption: the HTTP posts either work or fail. Wrong: WAY MORE OFTEN than the file system are undetected silent data corruption. Solution: client end to end SHA hashes.
4) assumption: customers are sane and won't "edit" the Backblaze internal data structures sitting on the customer's laptop. Nope! If customers are computer beginners they tend to behave nicely, and the most advanced customers are very careful, but there is this crazy middle ground who know enough to be dangerous to themselves. :-)
I really really think that the most modern version of Backblaze (2.3.1 and later) is quite stable and might run flawlessly for a decade on a computer, but some of those early versions like anything starting with a 1.0 or 1.5 scare me because there are too many assumptions in them, not paranoid enough. Yes, the old versions WILL WORK for 99 percent of customers, but at our customer numbers that means every day we have to explain why a restore failed to some poor guy who chose to edit his Backblaze data structures corrupting his own backup and we didn't detect it soon enough.
Our most recent client versions are deeply, profoundly paranoid software that basically assumes your laptop is right smack dab in the middle of melting down, throwing disk and RAM errors as an insane laptop owner not only ignores the warning signs of impending data Armageddon, but fights with Backblaze trying to defeat it from backing up because the customer is worried Backblaze is "wasting his bandwidth". I feel good about this, it's like my whole career was training up to write this incredibly important piece of software.
-- Brian Wilson. CTO Backblaze brianw@backblaze.com
Re: Backblaze IPO
#134Earlier quoted context omitted.
""Fickle"? I've been a subscriber to the unlimited tier since seemingly forever, and I didn't realize it was now $7/mo instead of $5/mo. I think in the aggregate, subscriptions are pretty sticky due to inertia, etc." I wish that were the case and I wish that all customers were like you. However, I have been tracking - and discussing - these rates with this target market for longer than Backblaze has existed and this…
I think you may be overfitting to the backup enthusiast community which is likely a small fraction of their userbase. Most users: 1. Realize they should back up their stuff. 2. Hunt around for a backup solution provider. At this moment, they are probably very highly price sensitive. 3. Pick one and set it up. 4. Forget about forever, or until the house burns down. You will never ever see or hear these people on forum…
Re: Backblaze IPO
#135Earlier quoted context omitted.
I think the hope is that 420,000 of those users are Grandmas who installed backblaze because their son told them it's a good idea to make sure she doesn't lose all her important documents, and she's backing up a couple PDFs. And then the other 10,000 are data hoarders like me with Terabytes of data. I used to be a Crashplan customer - tried them and Backblaze, and liked Crashplan more. They eventually pivoted to Busi…
> They said "yeah, we lose a ton of money on every user like you." Such an interesting statement. It's like they really think they can get away with offering "unlimited" storage without people taking full advantage of it. Like ISPs with their "unlimited" plans, they market that stuff and then they get mad if you actually saturate their link 24/7. I actually emailed backblaze about this years ago. I asked them if they…
They now have a service that ships your data to you on a hard disk, and the cost is refunded when you return the disk.
Re: Backblaze IPO
#136Earlier quoted context omitted.
I'm confused here. How does a threat of deleting your data in less than 7 days and not even canceling your billing makes you a loyal customer? That seems quite awful, miss the email and your data is gone, and you end up paying without them even storing any data.
I already had other (newer) computers being backed up, and this was a courtesy email to tell me I had failed to stop paying for monthly backups for a computer I had not opened (and thus synced) for years. He emailed me because the version running on that computer was considered so unstable as to be unreliable. Yes, they could have proactively canceled my bill. Maybe they would have! We'll never know, because I respon…
Re: Backblaze IPO
#137Re: Backblaze IPO
#138I pay BackBlaze $7/mo to store 10TB. I feel bad about it, because they definitely don't make any money off me, and I imagine that's true for a lot of their top 5% users.
Re: Backblaze IPO
#139I find this part interesting - of the ~500,000 customers, 70,000 are B2 customers and 430,000 are "backup" customers ... which are flat-rate "unlimited" users. These flat-rate users are very fickle and price-sensitive. If you peruse subreddits related to cloud storage or online backup, etc., they are filled with very picky users who expect the product to be free - or close to free. It's a fools errand to pursue this…
They could double their prices tomorrow, and their customers (myself included) would likely complain loudly, but ultimately very few of them would actually cancel because there is no real alternative to switch to since every one of their former competitors have given up on this model and either introduced caps/usage-based pricing or pivoted to businesses.
I certainly would keep paying my subscription at double the price because I'm backing up more than enough data to justify the cost. In fact I currently also subscribe to Crashplan's "Business" backup product at $10/month in addition to Backblaze in order to get an extra level of redundancy in my backups. (Crashplan markets to businesses but there's not much stopping any individual from signing up and using it the last time I checked).
Re: Backblaze IPO
#140> We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future. Fundamentals seem solid, gotta get me some of those shares!