The Tech-pert: Backify Online Storage Becomes a Casualty of the Cloud Computing Wars

^{Unintentionally hilarious photo courtesy of Backify's Web site}

About a month ago I told you about Backify, a new Web service offering a whopping 512 gigabytes of cloud storage absolutely free.

It sounded too good to be true, especially considering that established services like Dropbox and SugarSync limit their freebie accounts to 2GB and 5GB, respectively. Even Microsoft's Windows Live SkyDrive tops out at a comparatively anemic 25GB.

As it turns out, Backify was too good to be true. On Tuesday I received notification that "all free Backify accounts will be closed on November 22." Backify was a reseller of technology and services from Livedrive, and a day later I received this notification from the latter:

"We are writing to inform you that BACKIFY.COM is no longer a Livedrive reseller and the services that they purchased from our company on your behalf have been terminated. If you are using a service provided by BACKIFY.COM and powered by Livedrive then this service will now have stopped working."

The letter also noted that numerous Backify customers had filed complaints with Livedrive, and that now would be a good time to contact your credit card provider and stop all Backify-related activity.

Yikes.

There are, of course, two sides to every story. According to the notice on its home page, Backify encountered problems with Livedrive's services (namely its password-reset API and payment-processing system), and when it complained too loudly, Livedrive terminated its accounts.

Who's right and who's wrong? Doesn't matter. What matters is your data. If you uploaded any that you don't also have stored locally, sign into your account immediately and retrieve it.

What about your credit card info? If you only signed up for a free account, then no worries--no credit card was required. But if you upgraded your account, I don't think the situation is as dire as Livedrive suggests.

Here's the official word from Backify:

"As for the email [Livedrive] sent to our customers, we assure you that you do not have to worry about your credit cards being used fraudulently. We did not store your credit card numbers in our system. And about the payments that you have already made, we will refund all of them over the next few business days. You do not need to file any disputes or chargebacks with PayPal or your bank."

Needless to say, you'll want to monitor your statements closely to make sure Backify makes good on this promise.

In the meantime, let's consider the cautionary tale that has emerged here. As I wrote in my original post, "The big concern with a service like this is stability. I've seen lots of cloud-storage companies come and go, so there's always a risk that Backify will up and vanish." I wish I hadn't been quite so prescient.

The bottom line is that when it comes to your data, you can't be too careful--or too cheap. If you're looking for a straightforward backup solution, it's worth $50-60 annually for a reliable service like Carbonite or Mozy. And if you want cloud-based storage for syncing, sharing, and/or streaming your files, you can't go wrong with Dropbox, SugarSync, or newcomer Pogoplug (which I wrote about just two days ago).

Wait, another cloud-storage newcomer? Shouldn't the whole Backify debacle serve as a warning against getting into bed (data-wise) with an unproven service? Yes and no: Pogoplug's storage service may be new, but the company has been around for years. And it's not promising the sun, moon, and stars all at once: free accounts top out at just 5GB. That sounds like a much safer bet go me.

What are your thoughts on all this?

Self-proclaimed cheapskate Rick Broida has been a technology writer for over 20 years. He has authored over a dozen books, including, most recently, "How to Do Everything: Palm Pre." Currently he writes the Cheapskate blog.