SugarSync, app known for its file sharing and synchronization services, has decided to end its free services of file storage. This was announced by the CEO, Mike Grossman himself, stating “we have decided to no longer offer free storage forever.”
Users subscribed to this fading service still have the time to develop a future plan until February 8 next year, when their accounts will automatically be deactivated. They would have to describe, whether if they want to continue with making payments, or shift their files and data. An instruction manual will soon be updated on the servers, which will guide users not wanting to stay connected.
The free customers will not be profoundly impacted apart of certain efforts, those of transferring the data from one free service to the other one, as it is easy to find a cloud storage service without charging any cost. As Grossman says, “SugarSync is unlike other companies in the space because we do a lot more than just offer basic file storage. Instead, we offer a premium service that provides prosumers and small businesses with unprecedented control and flexibility over their data through our unique multisync capabilities,” which means that SugarSync is redefining its targeted audience.
In order to give users a glance of experience before they purchase it, the cloud storage system will offer free trial period of 30 days and 90 days. The storage capacities allocated to the free trial offers are 60GB and 5GB, respectively. Signing up feature for the free trail has already been made available on the official web address.
While the deadline approaches, the company will try to persuade freemium customers to buy services on the following grounds.
- The users flowing from freemium to premium will be offered with discounts, up to 70%. However, the existing customers will stay out of effect, without experiencing any increase in price.
- Once SugarSync goes completely paid, it will not be the storage only, serving the needs of their customers. The company has promised to bring up certain new features and applications to welcome the new batch of customers. Although, no further information was given regarding these new developments, the 30 day free trial encloses an extraordinary remote wipe feature.
SugarSync is not the first one to make the move towards small businesses and enterprises. The well-known competitors, DropBox and Google Drive were approaching in the similar direction but with a very measured speed. However, SugarSync took the diffusion quite unexpectedly.
It seems that the cloud providers are now dejected with free services, and urge to raise up the financials. In the previous month, major players of the industry carried sessions for raising funds from investors making millions of dollars.
As the company changes its course of operation, there would be less opposition with the previous competitors, and a raised rivalry with the others of same kind, like SAP, IBM, Oracle, etc.
Some consider it offensive, while others call it a marketing tactic. This will surely bring down the number of customers served, but elevate the profit ratios. Moreover, many emerging services of similar type will come into limelight as people will be looking for free online storage.