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Carbonite's Friend, on the other hand, is seeing a consolidation in this market because it is getting hard for smaller providers to survive.
"We have over 230 people in customer support alone," he said. "If you are a $2 million or $3 million company like a lot of these guys, I don't know how you can survive no matter how good your technology is."
When a customer signs with a cloud storage provider like Carbonite, they are getting in bed with the company for a long time, Friend said.
"This is mission-critical stuff," he said. "What is really important for customers is, 'Will these guys be around in three years? Will someone be there to pick up the phone when I call?' In the end, you need scale. So, there will be a shake out."
Carbonite currently backs up 300 million new files a day and is adding 1 petabyte of new storage capacity every two weeks.
"We added 1 petabyte total in our first year," he said. "Back then it cost $1 million. Now it costs $100,000. I don't think there is anybody bigger than us."