Feb 26, 2013|
Carbonite CEO David Friend on launching his company
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We're joined now by -- friend. CEO of carbon night dot com symbol for carbonate by the way is CR CA RB excuse me and this is a small cap stock based right here in Boston David good morning and welcome to show more. So David I heard an interesting story about why you started carbon -- open you'd share that story with our audience. Sure. Well my this is partner and I. And do solar previous company and we were sitting revenues patio -- -- Marblehead. Back in 2005 and my daughter called up from college in the hard right partner computer craft and you -- Term papers that she'd been working on for six weeks and we do that Friday. So -- released him to new York and we took a hard drive over to the web two tries to recover data from get hard -- in the church thirteen hundred -- -- still couldn't get the turn paperback. And and you know and I after what you hadn't backed up -- -- to get under an external hard drive. And she said well you know I'm running around with my laptop over time -- -- -- people think about putting in the bunch a wires and trying to include software. And so that -- on them Dolan on me that. You know rightly expect that the computers over the Internet to -- safe and secure data center somewhere. And because it would work we're review our company's connected all the time it would work when you're sitting at Starbucks to control works -- office. To the airport. Or do you figure this out back in 2005. Before the cloud which is the cloud hasn't been around since -- hasn't. -- that army knew it was. At that time it was slower and more expensive. But and the cost of Stewart was a lot higher than it is today but we've figured it would take about a year to develop all of this. And by the with the way storage costs were coming down by the time. We are abrupt product to market it would make economic sense and and it's being straight up ever since. So David -- conceived of the idea back in 2005. When did you actually start funding the company and and getting -- Well we want to we we solar first subscription in May of 2006. And today we have about one point four million. Subscribers. And about a third of those are small business groups and in the small business marketing push really embracing carbonate because. Nobody can afford to lose so their data and things happen and small business people break -- steal your equipment building burns down and have a flood. Any number of things like that and. -- is able to do it at the low priced as I I've I bought it. Does the system and it was like a fraction of what I had been paying previously for that -- same as the same coverage. -- an individual subscription is 59 dollars a year and a business subscription which covers all the computers in your office -- 229 dollars a year. It is very cheap in in the answer the cost of storage has been just been dropping like crazy. And cultivate as proprietary. Back in the architecture that makes very efficient use of disk space and is very secure. So David are you a tech guy by training is this your directory you -- a computer science major college. Yeah have a degree in electrical engineering and but. You know in my first company back in in the seventies. We got a product built in and we look tournaments it was gonna sell it and I I was selected him ever since the -- -- -- I haven't written code. So so comedy companies if you started and sold and you're. -- is my -- company since getting out of college. -- -- you have a problem you you're addicted to to building the building companies. Look the process you know you're starting with a blank sheet of paper more or less and a few years later you have company -- Selling product and you meet people on the street who use your product and yeah took a wonderful experience and you know any small businessperson can identify -- that. Ice I noticed I was looking at the inside and you look like you still -- what about a million shares of the company. Yeah I think in the largest. Still the largest individual shareholder. You know you believe in the product. And evidently. I certainly believe in the product and I believe in the company I mean stressed there. Even though we have one point four million subscribers today -- you know probably. Ten times -- a hundred times that many still left to court using products like carpet making. Yeah isn't it -- -- -- your company via an acquisition candidate though it and I don't -- speak out of turn here but he he he you know I look at it and I say to myself why doesn't Cisco or oracle or IBM. By you guys and and and take yeah take a competitor out of the marketplace. Yep well we have had we have had interest but. You know at this point in time we're really more interest in building the company. You know now they -- congratulations. It's it's a a great company Avnet Samir people they do great work a I think the world department. Well we you know we brought all of our customer export back from India remains so you know we've created a lot of jobs in new England and a you know -- the customers seem to love it is well. -- may ruin your headquartered in Boston right. We are him but we have about 225. People are so up in Lewiston Maine. And you know provide support for our customers. All over the. Let's -- biggest super lawyer for listening -- is our chronically depressed area. Yeah I wouldn't be surprised but the you know the good news stress is that we're people are are very stable workforce up there. And we get a lot of Smart kids out of all the local colleges potentates universe humane and and so forth that are up in that area and they like living there and and we're happy to have the -- police could secure a great job. Is it hard -- to find engineers knew it because I do I talk to other tech guys in his -- One of the biggest problems they have this finding kids from northeastern and MIT that'll that that just come to work in general. Ya know it's always very competitive but carpet make this one a number of best places to work trying to awards in the past few years and you know we're one of the sort of real bright spots on the Boston picked. Scene and so I think you know we've been we've been fortunate in being able to attract. Really popular articulate. What David thank you very much for your time I hope you'll come back arm. All right David friend CEO and founder and a carbon night. And I love stock and entrepreneurs imagine this is a guy right he has created six successful company and I loved the story behind it that his daughter yeah. And I loved he mentioned Maine at colleges Bolden. Days yeah maybe they ivy leagues -- -- evening and. Does gone both are great school they just about like ivy leagues are there more expensive than I'd expect -- -- -- there's a story. Major bank in Boston is for says you wanna buy two. Only a -- back all right Todd Wallach is gonna join us next a bank in Boston is going to be sold we'll talk about that when we --