Fabrik of Storage

12 thoughts on “Fabrik of Storage”

  1. I wonder how this will compete with box.net which come in from slightly different angles.

    For these services, my guess is it’ll be like search engines: once a company stablishes dominance, they’ll monetize and create customer stickiness in ways we can’t think of right now.

  2. So, my hat is off to these guys for trying this. At Memora we went for exactly this market back in 2000 which was a bit too early, but here are some of the things we found that I do not think have changed:
    1. This is a very hard value proposition to sell the the regular enduser
    2. The distribution channels for this suck. Margins being what they are, you need to build in a 4x price bump on any HW unless you are selling direct. As as both Memora and Mirra have shown, direct doesn’t scale to any kind of a mainstream market.
    3. The “deals” one can make in the industry can really end up backfiring (or worse yet going nowhere) because what you need to do this right is a lot of well written software (especially around the UE) that is tightly integrated with the hardware. At Memora we were talking to Phillips and Linksys and I can say that neither company was particularly good when it came to understanding how to make software/hardware that works like iTunes/iPod.

    The final thing is that though the demand side is more educated than it was back in 2000, real credible broadband has advanced in enough ways to make me doubt our original plan to have HW in the basement. In my case I have been floored by Verizon’s FIOS which really does deliver on the possibility of centralized services giving me compute and store “dialtone” from an infrastructure perspective.

    Still, I am excited to see where this goes!

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