“AOL Launches Xdrive”

Users can upload and share all file types such as photos, videos, music and documents from any Web site using Xdrive. Files are stored and accessed from the user’s personal online storage account.

Users of Xdrive will have 5 GB of free storage without limiting file size or bandwidth. Users have the option of upgrading their accounts to 50GB for $9.95 per month.

"Rich media management and online storage increases engagement. Giving consumers the ability to share their media assets help Website owners build awareness and increase their audience," said David Liu, Senior Vice President of AOL Portals.

"By utilizing each consumer’s complimentary 5GB Xdrive account, a Website owner can benefit from these capabilities without incurring the usual infrastructure, operations, and development costs."

The new service announced by AOL provides accessibility from PCs or mobile devices.

User tools enable drag and drop functionality for moving items between the system and the storage service, and can schedule of automatic backup of files and folders or the auto-upload of email attachments to Xdrive.

Xdrive has charged $10 per month for 5GB of storage. In September, that will change to the free model.

Users will be able to upgrade to a 50GB premium service if they require more storage.

All AOL and AIM users will have access to the free Xdrive storage by signing in with a screenname.

They can use the service to store any type of digital content.

People with photos to store can use AOL Pictures to purchase prints or gifts derived from the images they store on Xdrive.

The service has permission-based sharing functions, to permit users to make files or folders available to others on a controlled basis.

It is intended for the lawful sharing of content, and will undoubtedly be under the watchful eye of organizations like the RIAA and the MPAA.

AOL calls this announced change to Xdrive a “disruptive free storage offering.” While other online storage services exist, Xdrive has a substantial base of AOL and AIM users numbering in the millions today.

The 5GB of free space, AOL brand name, and Xdrive backup and security features could be a death knell to startups in the online storage space.

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David Utter is a staff writer for WebProNews covering technology and business.

AOL also said that Xdrive would remain a wholly owned subsidiary of AOL under the digital services business unit. Many industry watchers expect AOL to add this to their own offering to accommodate the needs of its users.

Xdrive runs an online, centralized storage platform that gives subscribers access to and protection of all their digital assets so they can access it anywhere.

“Our mission has always been to help manage, integrate, and protect consumers’ digital assets and enable anytime, anywhere access to files, from any internet connection,” said Brett O’Brien, CEO & Founder, Xdrive. “This is a great marriage of Xdrive’s cutting-edge storage technology with the massive infrastructure, network redundancy and exceptional safety and security reputation of AOL.”

This should make a good addition for AOL users as AOL strives to add more services. This also makes the first acquisition for AOL since they added Mailblocks and Advertising.com last year.

“The digitization of consumer home media is skyrocketing, with consumers and AOL members increasingly looking for easier ways to protect and manage a wide variety of important data files and digital media assets,” Gio Hunt, Senior Vice President of New Business Ventures at AOL Digital Services said. “Xdrive will further enhance AOL’s consumer storage offerings to deliver a more safe and secure digital lifestyle for our members.”

John Stith is a staff writer for WebProNews covering technology and business.

AOL has added a compelling piece to its portal strategy, purchasing Santa Monica-based Xdrive for an undisclosed sum. Xdrive will stay in California but report to AOL Digital Services senior vp of New Business Ventures, Gio Hunt.

According to a press release, Xdrive’s current and future members will have access to the company’s storage and backup services. Xdrive offers its users a central online storage facility, with security features and automatic backups of data.

“The digitization of consumer home media is skyrocketing, with consumers and AOL members increasingly looking for easier ways to protect and manage a wide variety of important data files and digital media assets,” Mr. Hunt said in the statement. “Xdrive will further enhance AOL’s consumer storage offerings to deliver a more safe and secure digital lifestyle for our members.”

That sounds like a hint to AOL’s ongoing portal strategy. AOL has made significant inroads into providing digital entertainment. Its coverage of the Live 8 concerts was widely lauded by critics and fans, and the company is continually adding and updating broadband content.

Xdrive could figure in as a way for AOL users to add value to that content, by providing a method where users could “keep” that performance in storage for future viewing. Xdrive has been a for-pay service, and that could now be an add-on revenue source beyond the portal model of online advertising.

AOL has not yet disclosed how it will offer Xdrive, or any charges for the service. With its name recognition, AOL can definitely market Xdrive more widely than it has been to date. Depending on how AOL integrates Xdrive, they could make some gains on Yahoo, MSN, and perhaps Google to an extent.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.