February 2, 2016
Barracuda Networks announced the closure of its two cloud storage services in three months, according to an official post. Copy and CudaDrive offer Customer and Business centered services respectively, and the report by Bloomberg stated that the company may be opting for ownership transfer.
The four year old company made the headlines this week, stating that full deactivation of all accounts (Copy and CudaDrive accounts) will take effect as from May 1, 2016. The announcement became somehow clear through the blog post by Rod Mathews, the vice president & general manager for Barracuda’s cloud storage services. After the said date, none of the accounts will be accessible by customers. The company is advising all its clients to save local copies or seek for another Cloud Storage Server within the three months period. This comes after charges for every monthly subscriber was stopped on Monday.
“As such, we have made the difficult decision to discontinue our Copy and CudaDrive services. We certainly do not take this lightly, and we appreciate the millions of customers who have used the service, as well as the hard work and dedication of our product team over the past 4+ years” the Mathews’ post said.
However, the post by Mathew did not explain in details the core reason as to why Barracuda took a decision to close the two cloud storage services. Even though the company is known to provide efficient cloud solutions, this technology has been highly taken up by many people nowadays. Undoubtedly, cloud storage service providers are severely competing with one another. For instance, Google’s Drive, Office 365, and DropBopx are offering huge storage spaces for free. These companies are not entirely relying on cloud storage to propel their businesses, and therefore a company like Barracuda could have faced a stiff competition that gave birth to the closure decision.
No matter the shuttering decision, Barracuda seems very optimistic to continue in business. The CudaDrive team will be engaged in cloud backup and data protection, which appears to be a viable option for the company to survive in the industry. Since Barracuda has its own engineering backup team, they will merge with that of CudaDrive to unite forces and keep the new plan moving forward. In addition, the partnership between Barracuda and Mover (a data migration company) is seen to help in steering up the new initiative. Cloud storage backup is on high demand nowadays, and that may have motivated Barracuda to focus on efficiency and establishing new features to cater for the customers’ needs.
A company that its major business is cloud storage service, there is a likelihood of gradual failure of its market due to free cloud services offered by those more established companies like Google. A good example is Canonical, Ubuntu One cloud service provider, which later in 2014 decided to be acquired because customers opted for free and enormous storage space provided by its competitors.