October 15, 2004

WiMax Backup Service

Hey everyone. Sorry about the tardiness as of late. Been busier than ever. This blogosphere is going to be the death of me. I’m hooked. I’ve GOT to read at least 20 blogs before I start my morning. And they wonder why the circulation of all the newspapers around the country are going down. Duh! Haven’t read a newspaper in eons. (Except USA Today which I read on Friday for all the biz opp ads in the classifieds section.)

As you probably know if you’ve read my blog consistenly, I’m a big wireless freak. Love me some no wires.

Been thinking of unusual ways to make money with the new WiMax standard coming out. In case you don’t live and breathe wireless news like yours truly, WiMax is a new standard of delivering wireless information. It’s kind of like WiFi, but the distances are going to be much greater. Up to 20 or 30 miles from the transmission point, without line-of-sight.

So here’s my idea. With the price of data storage coming down, it wouldn’t take much to setup a room of hard drives and hook them all to wireless routers and then use the WiMax spectrum to provide data backup service to area businesses and even individuals. Other than the hard drives, the biggest cost of data backup services is the huge bandwidth they have to maintain. If you eliminate the cost of a T-3 or whatever connection you have to maintain your service, that savings can be passed on to your customers and thereby GET more customers. You could offer 20 GB of back up storage for $5 a month, easily. (At that rate, you’d get business so quick, it’d make your head spin.) With 250 GB hard drives going for $200, you could sell out the space on that one drive for $60 a month. The only overhead is electricity, hardware costs (hard drives, wireless routers and antenna) and the rent on space. Your customer would have to pay for their WiMax access point. At first, this might be a couple hundred dollars but that will come down quickly. Still, there would be plenty of people who would jump at $5 a month backup service, even with the up front one time hardware cost.

Here’s another idea. Sell one to one backup services. In other words, you provide the central place to hook people up with one another. A guy calls up and says, "Yeah, I want to participate. Another guy calls up and says the same thing. You match them up and setup their systems so they talk to one another. Guy #1 hosts Guy #2’s back up hard drive. It’s plugged into the corner somewhere. He never touches it. Guy #2’s back up hard drive is hosted over at Guy #1’s house. Again, it’s in a corner somewhere not being touched. They purchase their own hard drive and WiMax equipment and you just install it and make sure it works.

Admittedly, that option is stretching the realm of possibility, but it’s an idea. That way, they each have back up and neither has to pay a monthly fee. Just the up front costs associated with buying the hard drive and wireless gear and having it all installed and configured by you.

When Guy #1’s house burns down, Guy #2 simply makes sure he gets his stuff backed up again somewhere because his backup is gone (toasted.) But Guy #1’s back up is at Guy #2’s house, so he’s good to go. He just gets another computer setup and restores everything via his WiMax connection.

Of course, the first backup idea above has some nifty add-on possibilities. You can start selling internet access to your customers if you feel so inclined, over the WiMax connection. Of course, then you’d have to get a backbone connection to the internet, but at least you’d have a built-in customer base to start with.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment