CloudBerry Lab

Company identification

Address: 207 Sandcastle, Aliso Viejo, CA 92656, USA

URL http://cloudberrylab.com

Email contact@cloudberrylab.com

Founded: August, 2008


Business Model

Business Summary (one line pitch)

CloudBerry Lab is changing the way small and medium business backup their data.

Customer problem

Research indicates that 25% of businesses don’t backup their data and those who do, backup to external hard drives. Needless to say that those media devices are prone to physical damage and you can simply lose it. Disk failures, software issues and user errors all are typical causes for data loss. Data loss is hard to underestimate and consequences could be disastrous. Another key best practice is to keep backup data off-site which is hard to organize.

Product/Service/Solution

CloudBerry Backup automates data backup to online storage powered by Amazon S3, which is designed for very high reliability, security and low cost. Your data is replicated across 5 independent nodes [and should inconsistency occur the data is replicated again] CloudBerry Backup runs automatically in the background. You set up it once and it will identify new and modified files and copy them over to Cloud Storage.


Our customers target and our Sales/Marketing strategies

Our online backup product targets small and medium size businesses and unlike our competitors we reach them through resellers, such as Managed Service Providers.

We are getting our resellers mostly through social media. We do a lot of blog posts, work with the popular bloggers in our domain, use twitter and face book, distribute press releases on a regular basis. Continually looking for relevant communities and trying to work with their owners to attract the audience to our product.

We have also established partnership agreements with cloud storage vendors such as Amazon Web Services and Microsoft Azure that allows us participate in private betas and joint marketing programs.

Our revenues model

We are going to charge an annual subscription fee from the resellers and they will be free to set up their own prices. Our main goal is to sign up as many resellers as we can. Our typical resellers is an existing shop that takes care of IT infrastructure of small businesses and wants to get additional revenue stream by offering an online backup service to its customers.

What is your target market? Who are your primary competitors

Fueled by a combination of factors, including the tremendous growth in digital data generated by individuals and small businesses, the worldwide online backup services market is poised for growth. IDC estimates revenue for this emerging market to reach $715 million by next year. Online backup market is currently very fragmented.
There are a few perceived leaders such as Mozy and Carbonite targeting the consumer backup segment.

Our competitive advantages

1) CloudBerry Backup runs on top of the existing cloud storage infrastructure provided by Amazon and we neither have to invest into our own data center nor worry about data security and reliability
2) Our product target small and medium size businesses and unlike our competitors we reach them through resellers, such as Managed Service Providers. We are offering a full managed platform for resellers.
3) We believe that business continuity planning with data backup being part of that is something that is not being addressed - at all - by small businesses and the bulk of these companies need more hand holding than the Mozy’s and Carbonite’s are able to provide.


2.Financial information:

Describe the source and amount of the external capital you have raised

Currently we are bootstrapping. We have both conservative organic growth plan and more more aggressive plan that involves VC money. We fund our product business by doing software consulting projects. Luckily ever since we started license sales we do less consulting projects and can focus more on strategic project development.

Revenue and profitability for the last 2 years and 3 years in the future projections (please provide revenues, expenses, gross profit, ebitda)

We are already generating some revenue that helps us to cover some of our costs. We are selling licenses for professional version of CloudBerry Explorer and personal version of CloudBerry Backup. We expect the revenue to grow significantly once we start selling through the resellers. Currently we are aggressively signing up resellers.

Revenue 2010: $375K – 2011: $1,1M – 2012: $2,2M