Carbonite, Inc. Explained

Carbonite, Inc.
Type:Subsidiary
Traded As:NASDAQ:
Predecessors:-->
Successors:-->
Founders:-->
Hq Location City:Boston, Massachusetts
Hq Location Country:U.S.
Areas Served:-->
Owners:-->
Parent:OpenText

Carbonite, Inc. is an American company that offers an online backup service, available to Windows and macOS users. In 2019 it was acquired by Canadian software company OpenText. It backs up documents, e-mails, music, photos, and settings.[1] It is named after carbonite, the fictional substance used to freeze Han Solo in Star Wars: The Empire Strikes Back.[2] Carbonite was the first such service to offer unlimited backup space for a fixed price.[3] Previously, all online backup services were priced by the gigabyte; many other vendors have since changed to an unlimited model.

Carbonite offers two separate lines of products: Carbonite Home and Home Office for individuals, families, and one- or two-person businesses; and Carbonite Small Business for businesses with three or more computers.[4]

At one time in its history, Carbonite was named "Best Windows Backup Tool" by Lifehacker,[5] "Labs Winner" by PC Pro, and "Editor's Choice" by NextAdvisor,[6] but received only "two mice" in a MacWorld review putting it second to last.[7]

Product details

Carbonite Online Backup installs a client software program on the user’s computer that operates continuously in the background. This client software automatically seeks out new and changed files on the user’s computer and backs them up using incremental backup.[8] Each file is compressed and encrypted using a 128-bit Blowfish encryption before it is sent to remote servers at the company's data centers via the Internet. (This of course requires that the user's computer be continually connected to the internet, and the speed of the internet connection will impact system performance.) Data is transmitted to the servers using a secure SSL link.[9] The encrypted files are stored on 15-drive RAID 6 storage arrays.[10]

The program is designed to automatically back up user-generated content including text documents, spreadsheets, financial documents, photos, music, etc. The 2017 PC Magazine review found that a few audio files and photos were omitted from the backup without obvious reason.

Videos and files larger than 4 gb require manual backup in the base-priced version.[11] [12] The terms allow Carbonite to release information to law enforcement upon demand or if Carbonite suspects illegal use.[13] This would help law enforcement if Carbonite can give them the encryption key, which they can for all Mac and most Windows users.[14] Windows users can manage their own key by selecting "Advanced" during installation.[15] Users cannot make the key private later if they initially let Carbonite manage it.

If Carbonite manages the key, users can download files to any computer.[16] If the user manages the key, user can only access files from the backed up computer (File Explorer/This PC/Carbonite Drive),[17] and if that computer is inaccessible, the user must upload and let Carbonite manage the key before accessing the backed up files from another computer.[18]

The Terms let Carbonite delete files with or without notice, but normally they keep the three most recent versions, and one version per day for the past week, one per week for 3 weeks before that, and 1 per month for 2 and 3 months ago.[19] They also delete files which were deleted by the user more than 30 days before, or when payment ends. Carbonite offers telephone support to recover from ransomware viruses.[20] Terms also disclaim any warranties and damages, require arbitration in Boston, and disallow class action suits. Terms require users to pay (indemnify) Carbonite's losses if they relate to improper actions by the user.

On a Windows PC, Carbonite backs up everything in the Documents and Settings folder, including the desktop, favorites, and all other files except for temporary, log and video files. Any file or folder can be added to the default backup[21] if it is on a local (internal) drive formatted with the FAT32 or NTFS file systems. (According to the Carbonite website, the Home version will only backup internal drives whereas the HomePlus and HomePremium versions will also backup external drives.) The backup software integrates with Windows Explorer, adding green dots to the file icons of any backed up file.[22] Adding or removing files from the backup is done using the right mouse button and the Windows context menus. The Windows version of Carbonite will keep multiple versions of backed up files.[23]

Carbonite can recover from some forms of Ransomware[24] but this requires contacting Carbonite customer service.

For Intel-based Macs running Mac OS X 10.4 (Tiger) or 10.5 (Leopard),[25] Carbonite is controlled through System Preferences and using the contextual menu. File systems supported 'by default' on Mac OS X are supported by the Mac client with the exception of FAT.

The program also includes a remote access application that allows individual files to be downloaded to any computer using a web browser.[26]

Company profile

CEO David Friend and CTO Jeff Flowers founded Carbonite in 2005, the fifth joint venture for the pair who also together founded Computer Pictures, Pilot Software, FaxNet and Sonexis.[27] Friend had also been an executive at ARP Instruments, Inc., a pioneering electronic music synthesizer manufacturer, in the 1970s.

Since its launch in 2006, Carbonite has backed up more than 100 billion files and has restored more than 7 billion lost files for its customers.[28]

Carbonite introduced their Macintosh version for Intel-based Macs with OS 10.4 or 10.5 in March 2009.[29]

In 2017, Carbonite acquired Mozy, a cloud-based backup solution from Dell Technologies for $145.8 million.[30]

In 2019, Carbonite acquired Webroot, which delivers multi-vector Cybersecurity protection for endpoints and networks, as well as threat intelligence services to protect businesses and individuals for $618.5 million.[31]

On November 11, 2019, Open Text Corporation announced it had signed a definitive agreement to acquire Carbonite Inc. for $23.00 per share USD in cash.[32] [33] Open Text said that it plans to initiate the tender offer within 10 business days, take up any untendered shares through mandatory take up provisions in applicable legislation, expects the transaction to close within 90 days, and that the purchase price of $1.42 billion is inclusive of debt and equity.

History

The product debuted at Staples in 2006 when it focused on photo backup and offered a free six-month subscription with all camera purchases.[34] It partnered with Microsoft in 2006 to include the program with purchase of Microsoft Money 2007,[35] and renewed the following year for the 2008 edition.[36]

In 2007 it was named ‘Top Private Company’ by AlwaysOn in 2007.[37]

It has partnered with several other backup, storage, and file transfer companies: with Ipswitch, Inc. in 2007 to provide the service to purchasers of their FTP client,[38] OLBEX in 2007 to offer the service to U.S. cable companies,[39] Sonic Solutions in 2008 to provide core technologies for their digital media storage solution,[40] and with TDS Telecom in 2008 to provide core technologies for their online backup service,[41] and with LaCie in 2008, to power their online backup.[42] It partnered with Lifeboat Distribution in 2008, to enhance distribution coverage within North America.[43]

It partnered with Packard Bell in 2008, the first partnership between an independent online backup company and major PC manufacturer, providing all purchasers of their desktop and notepad computers in Europe a free four-month subscription.[44] It subsequently partnered also with Lenovo in 2008, to have the service pre-loaded on their PCs,[45] and with Acer to have their online backup service pre-installed on select PCs. Acer signed on for a similar arrangement in 2009.

In 2009, it admitted loss of backups of "over 7,500 customers" in a lawsuit filed against Promise Technology, a hardware provider.[46]

On June 6, 2011, Carbonite acquired Phanfare. Carbonite declined to honor Phanfare lifetime memberships, instead granting lifetime members $299 in Phanfare credit which would expire after three years if unused.[47] Two days later, Phanfare founder and CEO, Andrew Erlichson notified lifetime subscribers that customers requesting a refund will be paid not by Carbonite, but what remains of Phanfare, Inc.[48]

Funding

In 2006, it secured $2.5 million in series A financing from 3i, Keiretsu Forum and CommonAngels;[49] in 2007 it completed $15 million series B financing led by Menlo Ventures.[50] in 2008 it secured additional $5 million in series B-2 funding[39] and completed C round financing with approximately $20 million of new capital, led by Performance Equity of Stamford, Connecticut;[51] in 2010 it closed a mezzanine round of funding with the total financing raised to $67 million.[52] Carbonite made its IPO in August 2011, raising $62.5 million in its offering.[53]

On 4 Feb 2013, Carbonite announced that its net loss for the full year 2012 was ($18.9) million, compared to ($23.5) million in 2011. Since its inception in 2005, NASDAQ:CARB has lost in excess of ($120,000,000) of public and private investment. The company's SEC financial reports state: "We expect to continue to incur GAAP operating losses on an annual basis for the foreseeable future".[54]

Amazon review controversy

Carbonite reviews on Amazon were a subject of controversy in early 2009. Apparently, employees of the company posted favorable testimonial-style ads on Amazon in 2006, including those by senior members of the management team.[55] Additionally, the New York Times reported that the CEO was made aware of the situation in September 2008 but did nothing to remove the false postings until the NY Times blog appeared in January 2009.[56]

Misleading advertising controversy

The Advertising Standards Authority (ASA) in the United Kingdom ruled on August 1, 2012, that Carbonite had misled consumers by describing its online backup as unlimited.[57] [58] Following a complaint, the ASA investigated and found that due to bandwidth restrictions for uploading data, which limit upload to 2 Mbit/s for the first 200 GB but then to only 100 kbit/s once 200 GB had been exceeded, the backup was not unlimited. Therefore, the advert was "likely to mislead consumers".

Additionally, Carbonite breached rule 1.7 of the CAP Code for failing to respond to the ASA's charges.[59]

In 2014, Carbonite stated that they have eliminated bandwidth throttling for all of their customers.[60]

Releases

See also

External links

Notes and References

  1. Web site: Carbonite – Boston MA – Inc 500 Fastest Growing Companies 2011. Inc.. 2011. 2011-10-25.
  2. News: Carbonite Online PCBackup. PC Magazine. 2008-04-04. 2009-04-23. Michael. Muchmore.
  3. Web site: Carbonite Review. Revuezzle. 2013-02-01. https://web.archive.org/web/20141113165349/http://revuezzle.com/carbonite-review/. 2014-11-13. dead.
  4. Web site: Home & Home Office or Small Business: Which is right for you?. Carbonite. 2011-06-29. 2011-10-19. https://web.archive.org/web/20110618210511/http://www.carbonite.com/en/products. 2011-06-18. dead.
  5. Web site: Best of the Best: The Hive Five Winners. Lifehacker. 2008-09-21. 2009-04-23. Adam. Pash.
  6. Web site: Online Backup Service Reviews. NextAdvisor.com. 2009-04-23. https://web.archive.org/web/20090217055215/http://www.nextadvisor.com/online_backup_services/compare.php. 2009-02-17. dead.
  7. Web site: Online backup services. Macworld. 2009-09-07. 2009-09-07. Glenn. Fleishman. https://web.archive.org/web/20120306055152/http://www.macworld.com/article/142606/2009/09/online_backup.html. 2012-03-06. dead.
  8. Web site: It's time to move from a disk-to-tape to a disk-to-cloud backup strategy. ITCloudWorks. 2015-06-24. 2015-06-24. https://web.archive.org/web/20150630020237/http://itcloudworks.com/its-time-to-move-from-a-disk-to-tape-to-a-disk-to-cloud-backup-strategy/. 2015-06-30. dead.
  9. Web site: Carbonite Online backup . PC Authority. 2009-01-20. 2009-04-23.
  10. Web site: Storage Tip: A simple backup for single drives. IT World. 2007-05-25. 2009-04-23. https://web.archive.org/web/20090303090645/http://www.itworld.com/nlsstorage070529. 2009-03-03. dead.
  11. Web site: Carbonite, Editors' Rating: 3.50 GOOD . Muchmore . Michael, and Ben Moore . 2017-11-13 . PC Magazine . 2018-01-14.
  12. Web site: A Full Review of Carbonite, a Cloud Backup Service . Fisher . Tim . 2018-01-03 . Lifewire . en . 2018-01-14.
  13. Web site: Product Terms of Service . www.carbonite.com . en . 2018-01-14.
  14. Web site: DATA SECURITY AND ENCRYPTION . support.carbonite.com . 2018-01-14.
  15. Web site: Managing Your Private Encryption Key for Carbonite Safe . support.carbonite.com . To manage your encryption key, select the Advanced Settings ... during the initial installation . 2018-01-29.
  16. Web site: Anytime Anywhere Access for Carbonite Safe . support.carbonite.com . 2018-01-14.
  17. Web site: Accessing the Carbonite Backup Drive through File/Windows Explorer . support.carbonite.com . 2018-01-29.
  18. Web site: Encryption Keys and Carbonite Features for Carbonite Safe . support.carbonite.com . access your files remotely from any computer with internet access. Carbonite needs to be managing your encryption key to be able to use this feature . 2018-01-29.
  19. Web site: Restoring Previous File Versions . support.carbonite.com . 2018-01-14.
  20. Web site: CryptoLocker / Crypto Virus & Other Ransomware . support.carbonite.com . 2018-01-14.
  21. Web site: Carbonite 3.5 online backup review. PC Advisor. 2008-02-13. 2009-04-23.
  22. Web site: Test and Review of Carbonite Online Backup. PC Backup Review. 2009-04-23.
  23. Web site: Restoring Previous File Versions. Carbonite. 2015-01-28. https://web.archive.org/web/20150129062800/https://carbonite.service-now.com/carbonite/kb_view.do?sysparm_article=KB000325. 2015-01-29. dead.
  24. Web site: CryptoLocker / Crypto Virus. Carbonite. 2016-03-01.
  25. Web site: Online Backup Providers Add Mac Support. Byte and Switch. 2008-05-01. 2009-04-23. https://web.archive.org/web/20090302195721/http://www.byteandswitch.com/document.asp?doc_id=152645&WT.svl=news2_1. 2009-03-02. dead.
  26. Web site: Carbonite Integrates Remote Access to Online Backup Solution. IT Backbones. 2009-03-30. 2009-04-23. https://web.archive.org/web/20110311114640/http://www.itbinternet.com/pr/25995. 2011-03-11. dead.
  27. Web site: MIT World Speakers. MIT World. 2006-06-07. 2009-04-23. https://web.archive.org/web/20100705192026/http://mitworld.mit.edu/speaker/view/599. 2010-07-05. dead.
  28. News: Carbonite calls for backup: files $100M IPO. Boston Business Journal. 2011-05-12. 2011-10-17. Tim. McLaughlin.
  29. Web site: Online Backup Providers Add Mac Support. PC Magazine. 2008-05-01. 2009-04-23. https://web.archive.org/web/20090302195721/http://www.byteandswitch.com/document.asp?doc_id=152645&WT.svl=news2_1. 2009-03-02. dead.
  30. Web site: Carbonite Announces Fourth Quarter and Full Year 2017 Financial Results, FY 2017 Revenue Growth of 16% with Expanding Profitability, Announces Agreement to Acquire Mozy, Inc. from Dell Technologies Inc.. 2018-02-13. Carbonite. 2018-04-10.
  31. Web site: Carbonite Acquires Webroot for SMB/MSP Security. 2018-02-13. Carbonite. 2018-04-10.
  32. Web site: OpenText to Acquire Carbonite, Inc. . Open Text Corporation . 11 November 2019 . 11 November 2019.
  33. News: Dignan . Larry . OpenText buys Carbonite for $1.42 billion, builds out portfolio . 11 November 2019 . ZDNet . 11 November 2019.
  34. Web site: Startup Gains $2.5M Backup. Red Herring. 2006-02-23. 2009-04-23. https://web.archive.org/web/20140606020933/http://www.cloudbackupmag.com/startup-gains-2-5m-backup/. 2014-06-06. dead.
  35. Web site: Before You Buy Microsoft Money 2007. About.com. 2009-04-23. 2009-03-04. https://web.archive.org/web/20090304005733/http://financialsoft.about.com/od/microsoftmoneyreviews/bb/M07_Review.htm. dead.
  36. Web site: Microsoft Money Plus Premium and Home & Business Features. About.com. 2009-04-23. 2009-01-29. https://web.archive.org/web/20090129202006/http://financialsoft.about.com/od/microsoftmoneyreviews/ig/Microsoft-Money-2008-Features/Microsoft-Money-Plus-Premium.htm. dead.
  37. Web site: AlwaysOn Announces Top 100 Private Companies in Northeast. Business Wire. 2008-04-01. 2009-04-23.
  38. Web site: Carbonite Partners with Ipswitch on Consumer Online Backup. Online Backup Reviews. 2007-08-30. 2009-04-23.
  39. News: Carbonite collects $5M, eyes public offering . https://web.archive.org/web/20210115180810/https://www.bizjournals.com/eastbay/othercities/masshightech/stories/2007/12/31/story8.html?b=1199126207%5E1569169 . dead . 2021-01-15 . San Francisco Business Times . 2007-12-28 . 2009-04-23 .
  40. News: Roxio Launches BackOnTrack Online. Reuters. 2008-01-22. 2009-04-23. 2013-02-01. https://archive.today/20130201081831/http://www.reuters.com/article/idUS121239+22-Jan-2008+PRN20080122. dead.
  41. Web site: Carbonite Announces Agreement With TDSe . Byte and Switch . 2008-05-01 . 2009-04-23 .
  42. Web site: LaCie and Carbonite Partner to Offer Free Online Backup. On Storage. 2008-10-31. 2009-04-23. https://web.archive.org/web/20090122104146/http://www.on-storage.com/50226711/lacie_and_carbonite_partner_to_offer_free_online_backup.php. 2009-01-22. dead.
  43. Web site: Carbonite Announces Virtualization Partnership Agreement with Lifeboat Distribution. Virtualization Journal. 2008-07-18. 2009-04-23.
  44. Web site: Top 10 Storage Startups to Watch. Byte and Switch. 2008-07-15. 2009-04-23. https://web.archive.org/web/20081003072420/http://www.byteandswitch.com/document.asp?doc_id=158907. 2008-10-03. dead.
  45. Web site: Carbonite Online Backup to be Bundled with Lenovo PCs in Australia/NZ. PC World. 2008-09-15. 2009-04-23.
  46. News: Data backup firm sues 2 hardware suppliers. The Boston Globe. 21 March 2009. 11 October 2009. Robert. Weisman.
  47. Web site: George. Kendall. Newsflash: Phanfare Sucks Again. 6 June 2011.
  48. Web site: George. Kendall. Phanfare Update: Sucking Less, Again. 9 June 2011.
  49. Web site: Startup Gains $2.5M Backup. Red Herring. 2006-02-22. 2009-04-23. https://web.archive.org/web/20090302170207/http://www.redherring.com/Home/15836. 2009-03-02. dead.
  50. Web site: Carbonite Raises $15 Million for Online Backup Service. Converge!. 2007-05-07. 2009-04-23.
  51. News: Carbonite Announces C Round Financing. Reuters. 2008-09-08. 2009-04-23. 2008-10-26. https://web.archive.org/web/20081026115402/http://www.reuters.com/article/pressRelease/idUS167814+08-Sep-2008+PRN20080908. dead.
  52. News: Carbonite announces $20 million in new funding. Boston.com. January 8, 2010. 2010-06-07.
  53. News: No LinkedIn Pop, but Carbonite Still Climbs 23% in Debut. New York Times. 2011-08-11. 2011-10-19. Evelyn M.. Rusli.
  54. Web site: Carbonite, Inc.: Form 10-Q. 2017-08-07. Anthony. Folger. NASDAQ. 2017-08-23.
  55. Web site: These reviews are pretty fishy.... Amazon. 2007-02-01. 2009-06-13.
  56. News: Carbonite Stacks the Deck on Amazon. New York Times. 2009-01-29. 2009-06-13. David. Pogue.
  57. Web site: Cloud storage provider rapped by ASA for "misleading" ads. www.ITPro.co.uk. 2012-08-02. 2012-10-18.
  58. Web site: Carbonite disputes ASA censure of cloud storage ads. www.theregister.co.uk. 2012-08-02. 2012-10-18.
  59. Web site: ASA Adjudication on Carbonite Inc . www.asa.org.uk/. 2012-08-01. 2012-10-18.
  60. Web site: Bandwidth Allocation. carbonite.com. 2014-08-29. dead. https://web.archive.org/web/20140903053419/https://carbonite.service-now.com/carbonite/kb_view.do?sysparm_article=KB000395. 2014-09-03.
  61. Web site: Online Digital Photo Backup from Carbonite Debuts at Staples . Digital ImageMaker . 2006-01-16 . 2009-04-23 .
  62. Web site: Carbonite Online PC Backup 2.0.193. cnet. 2006-07-05. 2009-04-23.
  63. Web site: Online PCBackup. Soft Sea. 2006-10-04. 2009-04-23. https://web.archive.org/web/20090513141257/http://www.softsea.com/review/Online-PCBackup.html. 2009-05-13. dead.
  64. Web site: Carbonite Upgrades Its Online Storage Service. eWeek. 2007-08-28. 2009-04-23.
  65. Web site: How About Online Backup?. Connected Home Media. 2007-09-19. 2009-04-23. https://web.archive.org/web/20090302163155/http://www.connectedhomemag.com/HomeOffice/Articles/Index.cfm?ArticleID=97099. 2009-03-02. dead.
  66. Web site: Carbonite 3.5 online backup review. PC Advisor. 2008-02-13. 2009-04-23.
  67. News: Carbonite Appoints Draque as Spanish Publisher & Releases Spanish Version of Online.... Reuters. 2008-06-19. 2009-04-23. 2013-02-01. https://archive.today/20130201154246/http://www.reuters.com/article/pressRelease/idUS229085+19-Jun-2008+PRN20080619. dead.
  68. Web site: Carbonite Release 3.7 Features Enhancements Suggested by Carbonite User Base. PC World. 2008-10-15. 2009-04-23.
  69. Web site: Carbonite launches remote access feature. PC Advisor. 2009-03-13. 2009-04-23.
  70. News: Carbonite Releases iPad App, Updates iPhone and BlackBerry Apps. PC Magazine. 2011-03-17. 2011-10-19. Jeffrey L.. Wilson.
  71. Web site: Carbonite Introduces New Small Business Online Backup. Online Backup Deals. 2011-06-15. 2011-10-19.

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