By Ezra Brook
May 4, 2012

Online Backup Startup ZumoDrive Shutting Down on June 1, 2012

Burlingame, California based ZumoDrive, an online backup provider, started by its parent company Zector, has announced that its services will be shutting down.

The announcement was made on April 16, 2012 and the company promises that it will make users’ data available until June 1, 2012, after which time, the company “will securely delete” all data “along with all account records”. So, if your data is stored in ZumoDrive’s servers, you have less than a month to retrieve it.

If you have paid in advance, the company will issue a pro-rated refund for the unused portion.

Even though we don’t exactly know why ZumoDrive is closing down, chances are it was not profitable. The online backup market is highly competitive. In fact, the online data backup sector is a super saturated market. Many have exited the market for various reasons. A company must differentiate itself to stay afloat and win in this market.

ZumoDrive was built on Amazon’s S3 infrastructure and was charging the users the following rates:

Data —— Cost per month, $ USD
1 GB ———— Free
10 GB ———- $3
25 GB ———- $7
50 GB ———- $10
100 GB ———$20
200 GB ——– $38
500 GB ——– $80

Well, as you can see from ZumoDrive’s pricing plan, the services were more expensive when compared to other similar services. This could be one of the reasons why ZumoDrive did not get many subscribers and hence is shutting down.

When we don’t read any kind of press releases from a particular company, it is one of the indicators that the company is not active and that it might actually be struggling. That seems to be the case with ZumoDrive. Since its launch in 2007, until it announced its closure on April 16, 2012, we were only able to find one press release (when it was acquired). Having said this, there are many companies out there that have not issued many press releases, but doing very well and growing. Yet, others are issuing too many press releases, but still are struggling.

We believe more shut down will come in the data backup industry. We suspect a handful of companies are on the verge of closures; and that will probably happens sooner than we think, but it will not be fair to mention those companies in this article.

In December 2010, Motorola Mobility Acquired Zecter, Parent Company of ZumoDrive. Zecter, Inc. was founded in 2007 and did raise $1 million in 2007, and another $1.5 million in December 2009 from Sherpalo Ventures LLC, Tandem Entrepreneurs and Douglas Bergeron (VeriFone CEO). ZumoDrive was led by CEO David Zhao.

ZumoDrive’s closure is yet another example of how a company could shut down unexpectedly. Before you pick a company to backup your data, do your homework. Read reviews, press releases, and check out the top rated companies.

ZumoDrive has posted the following message on its website:

As part of the transition to MotoCast, Motorola will be shutting down ZumoDrive. After June 1, 2012, ZumoDrive users will no longer be able to use the service. Any content remaining in your ZumoDrive account beyond June 1, 2012 will be securely deleted along with all account records.

If you want to retrieve your data stored on ZumoDrive, we strongly recommend you take action as soon as possible to download it. We have made it easy for you. All you have to do is:

  1. Get the ZumoDrive downloader tool from here:
  2. Log in with your ZumoDrive account within the ZumoDrive downloader
  3. Choose a location on your hard drive to save all of your ZumoDrive files
    • Make sure that you have enough space on your hard drive for everything in your ZumoDrive account.

For more information, see our support article or see our answers to frequently-asked questions.

Note: Users of HP Cloud Drive, HP Web Service Store Bundle Customers, Cruz Sync and Toshiba App Place Bundle subscribers are unaffected by this shutdown and can continue to use their ZumoDrive powered service. ZumoCast service is also unaffected by this shutdown.

We thank you for your support and use of ZumoDrive.

- The ZumoDrive Team

General Tags: data storage, online data backup, compare online backups, software as a service, cloud computing, top rated online backups, online backup, CEO interviews, online file storage, backing up online, online backup reviews, online backup providers directory, online backup services, online file backup, online backup companies, data security, online backup news, SaaS

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