Xdrive

Xdrive pioneered the concept of online file storage, operating as a key player in the early days of cloud services. Founded in 1999 by Brett O'Brien, the Santa Monica-based company offered a virtual hard drive for both individuals and businesses to store, access, and back up their digital files online. The service allowed users to manage and share various digital assets, such as documents, music, and photos, from any internet-connected location.

The company's business model included a freemium approach, attracting a large user base by offering a certain amount of free storage, with revenue generated from advertising and paid subscriptions for increased capacity and enhanced features. For instance, Xdrive provided a free 5 GB account to anyone with an AOL screen name, while a premium plan offered 50 GB of storage for a monthly fee. The company also targeted corporate clients with an enterprise-level service that provided tighter security and network administration for a per-user monthly fee.

Xdrive secured significant venture capital, with early funding rounds in 1999 totaling $20 million from prominent investors including David Bohnett, founder of GeoCities, and Paul Orfalea, founder of Kinko's, as well as firms like Goldman Sachs. This investment fueled rapid growth, and by May 2000, the user base had expanded to 2.5 million. The company's trajectory led to its acquisition by AOL on August 4, 2005, for an undisclosed amount. Following the acquisition, Xdrive operated as a wholly-owned subsidiary under AOL's Digital Services unit. However, due to shifting market dynamics and high operational costs, AOL announced the closure of Xdrive in July 2008, and the service was officially shut down on December 31, 2008.

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