Every day it feels like I am hearing about another cloud computing service that is shutting down. This time it's RSS FWD, a neat tool that let you read RSS feeds in your email account. The site just rolled out an upgraded offering in September.
They won't be the last. Beware, there's a bloodbath in the clouds!
In the months ahead we're going to see a slew of web apps fold. Many won't be spared. I suspect the massacre will claim some high profile sites. This will include apps that are VC backed, ad-supported and/or available only via a paid subscription. The good news is that those that do survive will be players for the long haul.
Years ago I used an awesome time tracking app called Red Gorilla. It went belly up in 2000. Since then I have been very careful about where I keep data that I care about. I even scrutinize tools from big companies.
As we saw with Google this week, you always need to keep an eye on the ball. I feel confident that Gmail is going to be around so I am glad that I have adapted my workflow to make it fit. However, even Gmail is slowing the amount of storage they are adding to its free service. So you never know.
This is exactly why I won't invest time or energy in a lot cloud-based apps today like Remember the Milk or Evernote. Yes, both are awesome and they have income. Evernote got funded and has paying subscribers. Remember the Milk too charges for many of its best services (like its iPhone app). However, I suspect many stick with the free versions - especially nowadays. And that could be problematic in a year or two if things continue. The good news is that these sites make it easy to sync or export your data.
I do think, however, that strong players like Salesforce.com and 37 Signals will be around. Basecamp, for example, has tons of paying customers. Time will tell if 37 Signals can keep some of its weaker services going.
Beyond the bigs, however, you can be sure that if a service is home-spun it will fold, just as co.mments and now RSS FWD did. The founders are wisely focusing on their careers and/or more viable opportunities.
My advice to everyone is look for high ground. Think hard about where you store data that you care about. If you don't care about the information, then you're fine.
