Browsers' built-in sync, failure to make money lead to demise
By Gregg Keizer
September 28, 2010 06:41 AM ET
http://www.computerworld.com/s/article/9188323/Xmarks_browser_sync_tosse
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Computerworld - The Xmarks browser bookmark sync service will pull the
plug in early 2011, the firm's co-founder announced Monday, citing
competition from Mozilla and Google.

The company supported Internet Explorer, Firefox, Chrome and Safari, and
was one of the few to sync bookmarks between different browsers.

Todd Agulnick, who in 2006 founded what was originally called Foxmarks
with Mitch Kapor of Lotus fame, also said that his company couldn't come
up with a way to turn a profit from its free sync service.

"For four years we have offered the synchronization service for no
charge, predicated on the hypothesis that a business model would emerge
to support the free service," Agulnick said in a lengthy blog post.
"With that investment thesis thwarted, there is no way to pay expenses,
primarily salary and hosting costs. Without the resources to keep the
service going, we must shut it down."

Xmarks will stop synchronizing users' data on Jan. 10, 2011, three
months and two weeks from Monday.

Agulnick said the company explored several ways to monetize the
information it acquired from its two million users -- creating a search
engine from the sites users bookmarked, enhancing Google's results or
even selling ads to ranked sites -- but none panned out.

Xmarks also considered moving to a "freemium" model, where some features
would be given away in the hope that enough users would pony up for a
more robust premium service. "But the prospects there are grim too: With
the emergence of competent sync features built into Mozilla Firefox and
Google Chrome, it's hard to see users paying for a service that they can
now get for free," said Agulnick.

Mozilla has offered a synchronization service since 2007 through a
Firefox add-on, but has baked sync into Firefox 4, the next major
upgrade slated to ship later this year.

Although Microsoft's Internet Explorer (IE) and Apple's Safari lack
built-in sync, the former's bookmarks can be synchronized with other
copies of IE using the free Windows Live Essentials. Safari users can
sync to other machines running the browser via Mobile Me, Apple's $99
per year service.

Xmarks remains a popular Firefox add-on. As of Monday, it was the
25th-most-downloaded add-on in the browser's extensions library.

Users bemoaned Xmarks' death in comments added to Agulnick's blog, with
many piping up that they would have paid for the sync service, if only
someone had asked.

"I actually have to say 'why didn't you say anything sooner?' I too
would have paid for this." said a user identified only as "Josh."

"I would have easily paid money for Xmarks if someone asked," added
someone labeled "Sean."

Xmarks had an answer for those people.

"Our research showed not enough people would be interested in a premium
service, especially when there are free alternatives available, some
built right into the browser," a shutdown FAQ stated. "We didn't want to
charge a few people, then turn around a few months later and shut down
anyway."

After the service is shuttered, Xmarks promised that it will wipe its
servers. The company also said it would not sell any of its data.
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