Canonical throws in the towel on their “UbuntuOne” service, as the Cloud SaaS Market begins to Consolidate

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Canonical will soon be getting out of the cloud storage services business, as it has plans to shut down Ubuntu One in the face of tough competition.

As I predicted in my analysis report entitled “SaaS Predictions for 2014” the SaaS market is beginning to consolidate with the winners and Loosers becoming much more clearly defined. It’s a tough market and only going to get tougher for the early Startups, I think there are some segments where competition is still fierce and even just now being defined such as the security and compliance, wearables, mobile and Medical-Device sectors all of which have barely seen any substantial growth as of yet.

There are also many untouched verticals such as retail, hospitality, medicine, medical, insurance, investment, and all the other “not so sexy” market sectors where Cloud services could be a big boon.

If your thinking of starting a cloud services business look at some of the ones I mentioned above, why target the same crowded verticals everyone else is, when you have a entire economy waiting to realize the benefits of Cloud Service?

Canonical is throwing in the towel when it comes to the cloud storage market. Its leaderwrote in a blog post that the company will be bringing the Ubuntu One cloud file sync and share service to an end as of June 1, although user content will still be available for download until July 31.

The challenges of playing in the cloud storage market that is increasingly dominated by free services including Dropbox and Google Driveare many, and cloud storage has become little more than a commodity. In fact, it’s presented to potential customers as an entry-level cloud service that draws them in, then sold higher value and higher margin services. It’s not easy to compete in such a market.

Last September, cloud storage service provider Nirvanix tanked and pulled the plug on its cloud storage service. Nirvanix’s issue was putting its entire success behind cloud storage, whereas many other cloud services providersaren’t in the same position—including Canonical. But building out a cloud storage system is expensive, and the margins are slim.

According to Silber, Canonical’s main focus is in building out a converged operating system for phones, tablets, desktops and other computing devices.

“Additionally, the free storage wars aren’t a sustainable place for us to be, particularly with other services now regularly offering 25GB-50GB free storage,” she wrote. “If we offer a service, we want it to compete on a global scale, and for Ubuntu One to continue to do that would require more investment than we are willing to make. We choose instead to invest in making the absolute best, open platform and to highlight the best of our partners’ services and content.”

A smart move on behalf of Canonical.

Cloud storage provider woes are plentiful. Canonical is making a good move by exiting the market. But in another segment of the cloud storage market, there are those struggling simply to keep their services up and running.

Storage vendor Western Digital came under fire recently for its weeklong cloud storage outage, putting many of its customers in a tight spot due to them being unable to access their cloud-stored data via Western Digital devices. WD2Go is the service behind many of Western Digital’s cloud storage devices, and the vendor struggled to get it back up and running.

By Jarrett Neil Ridlinghafer 
CTO of the following –
4DHealthware.com
Synapse Synergy Group
EinDrive.com
HTML5Deck.com
PerfectCapacity.com
CSPComply.com
Chief Technology Analyst, Author & Consultant
Compass Solutions, LLC
Atheneum-Partners
Hadoop Magazine
BrainBench.com
Cloud Consulting International

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