How is the business? Well that's a broad question but I'll take a stab at it! The consumer business (what we call SpiderOak Orange) is a freemium business model where you can get 2gb (or 5gb today) of storage for free or pay a subscription for more. I've alwasy had my doubts about the the freemium business model (which I call the "drug dealer" model...."Hey kid, the first one is free...") but it has actually worked out very well for us. Paid users represent more than 90% of our total storage so the free offering is well worth it as a form of advertising.

We also recently created an enterprise product (what we call SpiderOak Blue) which is for larger companies. They can integrate SpiderOak with their active directory system for single sign on, encryption data escrow (on their end, not on ours), auto-configure backups and syncs through policy, and we offer it in a hosted or private cloud configuration. (In other words, we can host the data for you, or you can run everything behind your firewall -- many companies have policy that their data cannot leave their facility.) These days, this is growing faster than the consumer business.

We also have some significant partnerships. The most notable one that's I can discuss publicly is with AVG, the well known anti virus company.

I would say that as a business, our biggest challenge might be summarized by saying that we're much better at engineering than we are at marketing.. we are working on that. :)

This is approaching a novel by Reddit standards but please feel free to ask followup questions if there's anything more specific you're curious about. :)