Yahoo to Shut Down Briefcase Service – Online storage providers reeling under severe stress.

Yahoo, as a part of trimming down excess cost, has decided to shut down its 10-year-old online storage program — the Yahoo Briefcase-which never seemed to got popular among the netizens.

Why does it make sense for Yahoo?

  • The company has cited low usage and popularity of the service when compared to its other services like Flickr and Mail as reasons for pulling the plug.
  • The service was unable to garner popularity like flickr and other yahoo sevices.
  • This comes days after new Yahoo CEO Carol Bartz took charge and is on a mission to save the Internet giant with a series of tough measures that included even more lay-offs, pay cuts and salary freezes.

Users have been provided a march 30 deadline to retrieve their files from yahoo servers after failing to which the files would be deleted.

Few other online storage provide who had to close their shop:

Hp shuts down their online storage service just 2 weeks after launch.

Aol shuts down its infamous xdrive-online storage portal.

What makes online storage business –A loss making proposition?

  • Decreasing online advertising revenues on storage site is the main bone of contention for these companies to fail.The declining revenues is due to the  non-aggressive bidding for advertising space on online storage sites which again is caused by  a hue of illegal activities taking place on the network.
  • Despite storage cost on continues decline the competition from the likes of new-age sites like ziddu, megaupload, 4shared is increasing and the cost of maintaining several backups of server files is the reason for these companies to reel under such severe pain.
  • Most of the online storage sites have turned  to be a warez sites due to the misuse by the members.
  • The suit of claims due to rapid increase in warez activities is also increasing legal cost.
  • Another important thing is that people are accessing online storage sites through variety of softwares thus the decline in page views is further putting pressure on advertising dollars.

Now consumers have to choose a reliable host for online storage as many companies are shutting down and it would become more painful to manage the files once the company shuts and provides a deadline.

2 Responses to “Yahoo to Shut Down Briefcase Service – Online storage providers reeling under severe stress.”

  1. Ronnie
    February 6, 2009 at 7:03 pm #


    A correction to the data that you have used. HP upline has not been shut down! It was taken out of service 2 weeks after its launch in January 2008 and was returned to service by April 17th 2008.

    Its still working! Dont declare it dead!


  2. Cleo Espada
    February 22, 2009 at 3:55 pm #

    That’s just crazy! It’s not about “free-lunch” and you know it!

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