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The company acknowledged that it is in a very competitive and fast-changing market. Direct competitors include Prosoftnet, CrashPlan, VMware's Mozy, Symantec’s Norton Online Backup, McAfee Online Backup, SOS Online Backup, and others.
It also competes with current and potential services provided by even larger companies including Apple, Google, Microsoft, Amazon, and others. "With the introduction of new technologies and market entrants, we expect competition to intensify in the future," Carbonite wrote.
The New York Times on Sunday reported that Carbonite also faces higher customer acquisition costs on a per-customer basis than competitors such as Dropbox.
Friend dismissed reports about the high per-customer acquisition cost of the service by saying Carbonite is investing to receive a long-term subscription revenue stream.
"Most people who look at GAAP (Generally Accepted Accounting Principles) accounting statements don't understand how (the subscription model) works," he said.