TechCrunch is reporting that AOL will shut down its Internet Storage product XDrive. Kevin Conroy, AOL’s EVP, sent out an email to the employees explaining why XDrive and other products will be killed:
With two quarters behind us, it is fair to say that results across the AOL products team have been mixed. And while I expect 2008 to finish stronger than it started, the current situation is that some of our products are doing very well while some continue to struggle. Being responsible to our company and its financial goals means taking a very hard and honest look at each of our products and making the tough business decisions necessary to ensure the long term viability of AOL.
Mr. Conroy have evaluated and decided what has to go:
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.
I have not found any news yet on the Xdrive website or the AOL press room. This termination comes only three years after the acquisition of Xdrive Inc.
