The online backup space was made popular by Mozy, which was founded in 2005. Shortly after Mozy launched, Carbonite and Backblaze entered the space and presented significant competition for Mozy. Consumers ultimately preferred Backblaze and Carbonite, resulting in Mozy being acquired by Carbonite.
There are now three top-tier cloud backup services, Carbonite, Backblaze, and iDrive. Backblaze and iDrive continue to operate as private companies, while Carbonite has been a publicly-traded company since 2011. Carbonite is now in the process of being acquired by another publicly-traded company, OpenText ($OTEX), for $1.42 billion.
Steve Munford, Interim Chief Executive Officer and President/Executive Chairman of the Board of Carbonite, stated:
Carbonite has expanded its solutions to become a leader in cyber resiliency. We have grown through both organic and inorganic opportunities over the years, enhancing our routes to market, diversifying our customer base, and assembling a talented workforce, while adding meaningful scale. Joining with OpenText is an exciting next step for Carbonite.
Surprisingly, there was no mention of Carbonite’s online backup service as being part of the reason for the acquisition. While OpenText will get Carbonite’s goodwill and revenue stream from its online backup services, their main interests may be in its security services and intellectual property.
If OpenText is mainly interested in Carbonite’s cyber resiliency solutions, it may further boost Backblaze as the dominant automated cloud backup solution for consumers and businesses.