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 Channel Futures

Cloud


Bitcasa Ends Infinite Cloud Storage Plans Due to Low Demand

  • Written by Chris Talbot 1
  • October 27, 2014

The company that has aimed to build its reputation partly on its offering of unlimited cloud storage for a flat monthly fee is abandoning its Infinite cloud storage plans. The company noted in a blog post that lack of demand pushed them to end the service, although the blog also hinted at more issues with the unlimited storage service.

The company that has aimed to build its reputation partly on offering unlimited cloud storage for a flat monthly fee is abandoning its Infinite cloud storage subscription plans. Bitcasa noted in a blog post that lack of demand pushed them to end the service, although the blog also hinted at additional issues.

According to the blog, Bitcasa has spent the last year upgrading its infrastructure, and in doing so has discovered only 0.5 percent of accounts require more than 1TB of storage. Even fewer (0.1 percent) require more than 10TB of cloud storage space. So basically, few customers are actually taking advantage of the unlimited cloud storage offered via the Infinite service plans. 

That’s a fair assessment, and it makes good business sense to cut back or cut off cloud services that simply aren’t making enough money. But what’s really going on seems to go a bit deeper.

From the blog: “Also, the reality is while we have tried to make our vision of infinite work, the low demand combined with the growing number of suspected abusers, means that supporting an Infinite plan is not a viable business for us. Our Acceptable Use policy has been a challenge to enforce with our privacy features, as we can only see the amount of of data stored—which for some customers, is at a level that seems impossible for individual usage.”

It’s another casualty in the cloud storage wars. Not a fatality, mind you, but when a business presents a public-facing focus on “unlimited cloud storage,” the nixing of such services can do some damage. In this case, that damage is likely to be minor.

The closing of Bitcasa Infinite, which is scheduled to happen Nov. 15, follows almost a year after the company increased its unlimited cloud storage pricing by a factor of 10. As Charles King, principal analyst at Pund-IT, noted at the time, “I have to wonder if another contributor was a small percentage of clients storing very large volumes of data.” It appears King was right in his thinking, considering the musings by Bitcasa about the “growing number of suspected abusers.”

Customers using the Infinite plans have until Nov. 15 to migrate their data or lose it Nov. 16. Bitcasa is pushing customers toward its 1TB and 10TB cloud storage service plans.

Tags: Agents Cloud Service Providers MSPs VARs/SIs Business Models Channel Research Cloud

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2 comments

  1. Avatar pureabsolute November 22, 2014 @ 1:09 pm
    Reply

    I cannot believe the lack of
    I cannot believe the lack of understanding of business and reality of the average company. In this case, the *obvious* result happened. Didn’t anyone at the company have a plan or a way of dealing with this abuse?

    An unlimited storage plan is *very different* from an unlimited transmission plan you would ask for from a cell company — the transmissions are limited by speed x time. Unlimited storage, on the other hand, have no such limiting parts of their equation. It is all additive. So there will be issues.

    Microsoft is going unlimited. I wasn’t curious because I assume they’d look for patterns of abuse and kabash it. But perhaps they are being naive too — people are getting so excited about unlimited that they no longer live on earth, but only in their imaginations..

  2. Avatar Anonymous November 27, 2014 @ 12:40 am
    Reply

    This company is a fraud. The
    This company is a fraud. The transfer was riddled with error. A lot of people lost their files.

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