AOL shutting 3 storage services to cut costs

[Noreen]

AOL is shutting three data-storage services, including one of the Internet's earliest photo-sharing sites, as it seeks to cut costs and focus resources on its advertising opportunities.

AOL Pictures, the year-old media-sharing site BlueString and the online backup service Xdrive will likely shut down by year's end, though the company is looking to sell at least Xdrive, which AOL bought in 2005 for an undisclosed fee..................

http://www.newsday.com/business/ats-ap-aol-services-closedjul25,0,6224023.story?track=rss

[Rik]

It does have a hint of 'beginning of the end' about it, doesn't it Noreen. I wonder if BT and others will also be seeking to cut their costs.

[Noreen]

Hard times all round I suppose, Rik.

[madasahatter]

I suppose it all comes down to how many of their customer base actually use these "extras", and how many they will lose by doing this.

[Rik]

Hard times all round I suppose, Rik.

I suspect so, Noreen. I've always distrusted free services to an extent, because if they don't actually make enough revenue they do get chopped. I prefer to pay for what I want/need.

[Rik]

I suppose it all comes down to how many of their customer base actually use these "extras", and how many they will lose by doing this.

Not enough to worry about is probably the answer, Mad.

[madasahatter]

Not enough to worry about is probably the answer, Mad.

I would imagine so. Otoh, I would have thought that with all the competition between the "pile it high sell it cheap" ISPs, it's the extras they can offer their potential customers that could influence their choice. At the end of the day, I wouldn't think that this kind of thing can cost the ISP that much to offer.

[Rik]

I suspect it indicates a more fundamental problem within the business, Mad.

[madasahatter]

I suspect it indicates a more fundamental problem within the business, Mad.

like, their business model is unsustainable? 

[Sebby]

Absolutely!

[Rik]

like, their business model is unsustainable? 

It has been for some time, they half admitted as much by off-loading the UK operation to CPW.

[Gary]

Its the years of coasters through the letterbox and free laptops they are giving away. That cost them a fair bit I bet, and I think it failed miserably as no one jumped on board obviously in the numbers they were hoping, and unless they patch their DNS flaw soon, the customers will all be spending cash to get £30,000,000 from a guy in Nigeria who inherited it from uncle pie in the sky, and wants to put in your bank account, well that's what the new direct to the homepage will offer I'm sure

[madasahatter]

the customers will all be spending cash to get £30,000,000 from a guy in Nigeria who inherited it from uncle pie in the sky, and wants to put in your bank account, well that's what the new direct to the homepage will offer I'm sure

You mean I'm not the only one that nice gentleman has mailed? 

[Rik]

It's amazing how generous they are, isn't it?

[madasahatter]

It's amazing how generous they are, isn't it?

It is indeed - their kindness obviously knows no bounds 

[Sebby]

It's amazing how generous they are, isn't it?