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Online Storage Options

As more startups and established companies enter the market for online storage, users can reap the numerous free benefits.

Opinions expressed by Entrepreneur contributors are their own.

capabilities are still evolving in the Web 2.0 world. Earlier versions of online storage were somewhat clunky and not many services had gained traction in the marketplace.

There's been more interest in this area recently as people speculate about entering the market more aggressively with a "" and providing more options for virtual storage. Currently, Google is providing at least 5 GBs of storage with its free Google Apps e-mail product. Other online storage vendors start with up to 25 GBs of free storage. This means more tools and free storage for enterprising and cash-strapped entrepreneurs.

Both startups and established companies are trying to stake a claim in the virtual storage area. Established , such as Google, and Microsoft, see online storage as a way to expand their offerings and create a greater lock into their services. They know that the more barriers to exit from their services, the less likely you are to leave. If you store a lot of data on their systems, for instance, it will be more painful for you to switch to a competitor.

Different Models
In general, online storage companies provide solutions focused on one or more of the following areas:

  • Backup/storage solutions;
  • File sharing solutions; and
  • Web services/storage solutions.

I see these companies also adding more Web 2.0 features and creating more collaborative solutions as they compete with each other. Omnidrive, for example, was the leader in allowing users to edit files directly online without having to download the file locally. I believe more features like this will evolve, making the network more like a computer when combined with a local browser.

The Major Players
There are many players in this space, but I'm only going to discuss the larger ones I've seen. Most of these storage services let you try out 1 to 25 GBs for free and then offer two or three other tiers with additional storage and features starting at $2 to $10 per month.

This is a compelling solution if you're starting a new company and don't want to administer local backup solutions. Some of the services have higher-end features such as versioning, personal encryption keys and multiple user log-ins.

The startups:
VCs and startups have seen an opportunity in online storage. Many newer companies like, ElephantDrive and Omnidrive have launched within the past few years with more innovative products than what was originally available in the marketplace.

Box.netadvertises itself as the first online file system, with more than 1.2 million users. It allows users to share, store and access files of any type from anywhere, as well as provides open API for developers.

ElephantDrive.comprovides a desktop application for scheduling backup, restoring, uploading, downloading and sharing, as well as a drive mapping application for easy upload and download of your files.

Data Deposit Boxoffers online backup that allows for an unlimited number of users and . While you're online, the software backs up your data automatically by watching your files and looking for changes. When it detects a change it extracts the file changes and compresses, encrypts and securely transfers them to the online storage.

MediaMaxprovides 25 GBs of free storage, as well as free backup and synchronization software. It gives you a private and secure place to upload, store, access and share your personal videos, photos, movies, music and files.

Omnidriveseems to be ahead of the pack. It goes beyond storage to full read and write of files online, making it easy for users to share files with other users in a collaborative manner.

IBackup, Mofile and Mozy--now owned by EMC--are just a few others that may be worth looking at.

The more established companies:
Amazon S3 Simple Storage Serviceis a web services interface made for developers that provides access to the Amazon data storage infrastructure.

AOL's, started in 1999, was one of the pioneers in online web storage and was bought by AOL in 2005. It provides advanced features for backing up data and sharing files.

GoDaddy Online File Folderprovides a sync tool that lets you automatically sync from multiple computers. You also can use FTP to push files to this storage facility and edit files online. Using WebDAV, you can view and edit online files as if they were in a network drive.

Iomega iStorageallows users to manage, store and share data online.

MicrosoftWindows Live SkyDriveoffers basic online storage and sharing for Windows Live users.

Yahoo! Briefcaseprovides basic capabilities to add and share files as part of Yahoo!'s portal solution.

Looking Ahead
As these vendors compete with each other, I see them adding many more Web 2.0 features. It also would make sense for PC manufacturers to partner with some of these companies to offer backup and storage services to anyone that buys a new PC. And it will be interesting to see how Google enters the fray. Will the company come up with something innovative that outpaces all of the current players? With its sheer size and marketing power, Google could become a force to be reckoned with in the online storage arena. Also look for potential struggles over privacy issues, as well as copyright issues related to sharing data.

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