Economic Uncertainty Hits Software Prices

OzDollarsCents.jpg I'd barely posted yesterday about Carbonite's Australian launch when I received an apologetic email from the company, noting that because of current US economic conditions, the price of an annual subscription had gone up from $64.95 to $71.95. That's not a huge difference over the course of a year — and full-scale backup is probably never going to be viable as an entirely free service — but it does demonstrate that the online software community isn't immune from the broader economic situation, and we can probably expect more of these in the future. If you've encountered any other recent examples of tech product and service price rises, share them in the comments.


Comments

    being a graphic designer/digital printer I chew through a lot of printer cartridges of various types.
    So, I get an email last week from my toner supplier advising that due to the drop in the dollar the price of cartridges is going up.
    But what I dont understand is two years ago, when the Aust dollar was around 85c I was paying 'x' amount for cartridges. Then, when we hit 97c the price remained the same.
    But now that we drop back to about 95c suddenly I have to pay more.

    No, hold on, I do understand. Its greed.
    I get no savings when the dollar is good, but the instant it drops back to where it normally is I get slugged with a price increase.

    Angus,
    The original article above does not represent what really happened. Carbonite's Australian distributor (trading as Carbonite Australia Pty) decided to raise (by 10.8%) the local Australian Dollar price of the Carbonite Online Backup service , which the distributor buys from Carbonite in US Dollars. It was because of the recent sharp rise in the US Dollar (ie a fall in the US$/A$ exchange rate) that this price change needed to be made, not because of any economic conditions. In the US, Carbonite's low flat price for unlimited backup has not changed since the service was launched in May 2006. Furthermore, Carbonite (a private company based in Boston, MA) has just raised $20 million in new venture capital funding to help fuel its double-digit PER MONTH growth rate.
    Floyd Bradley, EVP International, Carbonite Inc.

    Floyd, to my mind, the change in the exchange rate is a pretty good example of economic conditions!

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