three blocks
Datacore Software

News

AOL getting out of cloud storage

posted on 25 July 2008 13:52

Only for the bold, brave and rich - AOL is none of these now

In a letter to staff AOL EVP Kevin Conroy wrote:

"Personal Media: Bluestring, Xdrive and AOL Pictures will be sunset. These consumer storage products haven’t gained sufficient traction in the marketplace or the monetization levels necessary to offset the high cost of their operation. We have found that building media management applications within the context of a social experience is a more rapid and effective way to grow the business. For example, today the Bebo audience is uploading over three million photos per day. To effectively grow the XDrive online storage business we would need to focus on subscription revenues vs. monetizing through advertising revenue, and this business model is not in strategic alignment with our company’s goals. We are exploring plans to migrate our users assets to ensure the best possible transition experience."

AOL has found that its users prefer other suppliers' cloud storage services.

[Martin Edwards, news writer.]
tags:  cloud 

Related Articles