Our favorite online backup service Mozy is no longer offering its unlimited backup package, and is introducing a new pricing scheme.

50GB for $5.99 per month (includes backup for 1 computer)
125GB for $9.99 per month (includes backup for up to 3 computers)

You can add another computer for an additional $2.00 per month. And additional storage in 20GB increments for $2.00 per month. Basically, want another computer? Ok, $2.00 more per month. Want 20GB more storage? Ok, $2.00 more per month.

You should have received an email from Mozy which explains the details of the new pricing scheme, and also makes a recommendation for the appropriate plan for you based on how much storage you are currently using. Below is the email I received.

Dear Andrew,

Thanks for being a valued Mozy subscriber. For the first time since 2006, we’re adjusting the price of our MozyHome service and wanted to give you a heads up. As part of this change, we’re replacing our MozyHome Unlimited backup plan and introducing the following tiered storage plans:

50 GB for $5.99 per month (includes backup for 1 computer)
125 GB for $9.99 per month (includes backup for up to 3 computers)

You may add additional computers (up to 5 in total) or 20 GB increments of storage to either of the plans, each for a monthly cost of $2.00.

While this policy takes effect for new MozyHome customers starting today, your MozyHome Unlimited subscription is still valid for the duration of your current monthly term. Your new plan will take effect on your first renewal after March 1, 2011. Based on your current usage of 1 computers and 89.77 gigabytes, your renewal plan will be $9.99 for a monthly term.

As the leader in online backup, we’re committed to continually providing the highest levels of service and protection that you’ve come to expect from us as well as delivering those innovations you’ve been asking for. For more information on the factors that led to this change, please read my note or visit our FAQ.

Be safe,
Harel Kodesh

As you can see in the above email, I am currently using just under 90GBs of storage, which they are recommending that I upgrade to a $9.99 plan, which equates to a $5.99 (50GB) plan + $2.00 (20GB) + $2.00 (20GB) for a total of $9.99 (90GB). And really, $10 per month to backup my files is still reasonable.

Fortunately, Mozy is giving it’s current Unlimited customers some time to digest the new pricing scheme, and continuing unlimited storage until the next subscription renewal term.  As of writing this article, I have 12 more days until my subscription expires, and I am still undecided on what to do – continue with Mozy or move on to another service.

Mozy argues that based on their historical data showing significant growth in the creation of data (pictures, videos, music, etc.) adjusting their pricing scheme would ensure that they would remain viable into the future. Mozy also argues that other companies may offer “unlimited” storage, but will throttle your transfer speed after a certain point, while Mozy will offer the best service possible all the way up to your storage limit. I appreciate this from a user standpoint, and also a business standpoint. It is good that Mozy is taking a realistic approach in its long term business strategy, we will have to wait and see if other services follow suit.

Lifehacker wrote an article covering several online backup alternatives in the wake of Mozy dropping unlimited storage. Some of the suggestions look promising, though we will need some time to test out some of those services ourselves.