EMC's Echo Chamber Will Change the World

• Report this Comment On November 19, 2008, at 8:37 PM, StorageMaven wrote:

  Reality check:

  I think that your $54 million number is extremely questionable for two reasons (one that leads to overestimation, one that leads to underestimation - I do not believe they cancel each other out).

  Subscriber count: Where did you get the 900,000 number for their user base? Are you sure that all 900,000 are paying users? Mozy has a sizable stable of free users

  Pricing: $4.95 is the pricing for Mozy Home. Mozy Pro and Mozy enterprise are different models and actually have much higher average revenue per account. Are you sure that the base you are using is all for Home use?

  Whatever they do, EMC is lightyears away from competing with Amazon Web Services as a cloud computing or cloud storage provider.

  That said, I am often dead wrong. Your thoughts?

• Report this Comment On November 20, 2008, at 10:02 AM, dstathos wrote:

  Cloud computing is too new a technology and business to consider any move as a "smart" move. Look at the unified messaging arena whose technology has been around for decades with various experts calling it the new killer app and it still doesn't have widespread adoption like email has.

  Cloud computing technology has proven its suppliers that it is here to stay, but, a lot more convincing has to occur on the consumer end. Not too many people will feel safe with a for-profit entity holding their important data on their servers--much the same as most companies would rather keep theirs in their own storage as well.

  History shows that consumers always go for the simpler and much easier to understand technology--look at Microsoft vs UNIX vs LINUX. In this case, look at larger hard drives with imbedded mirrroring capabilities within the PC.

  In the end, companies will have to convince that cloud computing is a better business strategy over keeping it in house (SoHo markets) or using existing and proven technologies already in place. I believe it is a tougher "sell" than this article predicts.

• Report this Comment On November 21, 2008, at 10:53 AM, darrens897 wrote:

  Faulty logic:

  Even if EMC or its subsidiary Mozy is bringing in a million in revenue a month--likely generous--that’s still only 200,000 paying customers at an average monthly plan of $5. What are the other 700,000 doing? My guess is the vast majority of that 900,000 are free accounts who don’t use or pay for the service at all. To assume a forecast with revenue tied to each and every Tom, Dick, or Harry who signs up is both ludicrous and irresponsible.

  Either EMC’s counting its chickens before they’re hatched or they bought a very expensive email list.

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