Michael Cai, director of broadband and gaming research at Parks Associates, a research firm in Dallas, said that Carbonite doesn't face much competition. ''Right now the online storage and backup market is still nascent," he said. ''There aren't that many subscribers yet."

But Cai said Carbonite won't stand much of a chance if major Internet providers like Verizon Communications Inc. offer online backups to their subscribers.

From the article "Hub start-up will back up data files for $5 a month," by Hiawatha Bray.

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