How well companies that offer something for "free" can do with a subscription option?
When there are so many "free" things on the web, one has to wonder how companies can keep their products up and running (or even if they can manage to get out of beta).
Some companies just don't. They close the service and tell the customers to get out of here:
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.
This is part of the memo AOL sent out to staff explaning the end of some of their services - including Xdrive an on-line storage service that offered 5 GB of storage free to anyone.
There's a reason why people buy external drives for home or buy Windows Home Server or NAS boxes. First broadband speed sucks around the world. Then the services don't work as expected or not as easily (Xdrive is only one that I know that could be mounted as a drive on your OS so you could just copy things from and to instead of having to open a browser window). And even so it was very unstable.
Which leads me to the next one: the on-line service businesses seem to be quite unreliable - unless they are a subscription service with a SLA, not a freebie. But even so sith happens.
When there are lots of free things, some won't last long.
Network Security Surge For McAfee - Forbes
Wellington City Council: where the process dies...
On a rainy day I parked on Tory St, Wellington and used the convenience of paying my parking via SMS. That would be $4 for two hours, plus $.50 for the privilege of not having to carry coins. But instead of getting the little piece of paper with the ticket to put in my windshield, I got an error message:
"Transaction rejected"
Interesting. But I immediately got a SMS back from Telecom saying "thanks, we debited your account for $4.50".
Bummer. So instead I decided to use a credit card. Again I got an error message:
"Transaction rejected"
Hmmm. It looks like the machine may be out of paper, but the developer for this company decided to stupidly save some bytes instead of providing a meaningful message - and a transaction rollback.
So I walk to the next machine, pay and display the ticket in the windshield.
But I wouldn't be short of $9 today, right? I called the Wellington City Council, explained what happened, and was assured someone would call me back to arrange the refund.
You guessed right. No one ever called me back.
Like so many other New Zealand businesses, getting you off the phone is what they want to do. The Wellington City Council is quick to slap a fine on your car if you are over five minutes in the parking lot, but they don't want to move a finger to refund you money that they took without providing the service.
By the way I am looking at my credit card statement. This was on 17 June. More than enough time for the Wellington City Council to come back to me.
End of rant of the day.
Attending the IBM Forum 2008 in Wellington
Cool, it's that time of the year again when the IBM Forum is on. I've attended previous events and it's always an interesting day.
Here's a bit about this event:
IBM Forum 2008 focuses on Sustainable Innovation, starting with the keynote, Ray Avery, a kiwi scientist and entrepreneur; founder CEO of Medicine Mondiale. Ray is developing sustainable products and technologies for world markets, such as his latest invention “Proteinforte”. Ray will be talking about global opportunities for high tech innovation in healthcare, education and infrastructure.
Also on the agenda, Edward Orange, Director of Lotus Software of IBM Asia Pacific, will be talking about Web 2.0 and how it can be leveraged by enterprises of all sizes to help revolutionise the way they conduct business, help employees collaborate more effectively and enhance their client outreach.
The agenda also features a session on 'Co-Web: re-mixing audio and video collaboration in the next generation of the Internet’ and ‘Demystifying SOA - driving business agility with service orientated business applications’, as well as insights into the latest advances in strategy and technology; customer stories and interactive demonstrations.
The full day event is happening in Wellington (11th August, Michael Fowler Centre), Auckland (14th August, Hyatt Hotel) and Christchurch (19th August, Convention Centre).
Registrations are open now.
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