Today we announced our decision to no longer offer the consumer version of our product, known as CrashPlan for Home. We will honor all of our existing agreements with consumers, but we will no longer renew any consumer subscriptions, nor will we sign up any new consumers for Crashplan for Home.
This is not an easy course of action for us at Code42 for a couple of reasons. First, we have consumers who love our CrashPlan for Home product and trust us every day to protect their personal files. Second, our number one core value at Code42 is “Put the Customer First” and our announcement today may seem to be at odds with that. But, it is precisely this core value that led us to the strategic decision to focus on business customers. And, in order to serve businesses well, we need to prioritize their needs–which have diverged from the needs of the consumer.
We want you to know that we are doing everything we can to help our consumer customers make the transition with all the support they need. First, we will honor all existing CrashPlan for Home subscriptions and the data we store for consumers will remain protected. Second, we are offering a choice to transition to either our CrashPlan for Small Business product or to our preferred third-party consumer backup provider, Carbonite. All the relevant information consumers need regarding this transition can be found on the Consumer Information Page.
This decision does not impact our existing relationships or technology offerings with enterprise companies, organizations or small businesses. In addition, we are not selling or transitioning any of our proprietary technology, our software platform, the CrashPlan brand or other intellectual property.
Our Exclusive Focus on Business
Our market has evolved in the last few years. We’ve seen that our business customers look at data protection holistically today–it’s vastly different from the days when we backed up servers and added some anti-virus software. Nearly half of all corporate data reside on laptops and desktops, and we play a critical role in securing that data. Business demand for innovations in data protection, real-time recovery and visibility solutions is growing exponentially with the ever-changing threat landscape.
Going forward, we will exclusively serve all businesses large and small, as well as education organizations. Code42’s success has been driven by our growth in this segment with 50% year-over-year recurring revenue for the last three years.
The benefit for our business customers is that we now have a singular focus on solving their complex data protection, security and compliance challenges. In addition, we will be able to accelerate our R&D investments that strengthen our technology foundation and further our data protection innovations. While exiting the consumer market to focus exclusively on the business market was a difficult decision, we know that it will allow us to continually live up to our most important value: Put the Customer First.