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http://www.insanely-great.com/news.php?id=668

Apple to expire iTools for pay service
By Michael Flaminio, Insanely Great Mac
July 17th 2002

Apple is doing the unthinkable -- deactivating iTools in favor of subscription service.

Users of Apple''s popular free iTools Internet services have something to be worried 
about. Apple indicated that it will no longer offer iTools for free and will begin 
charging an annual fee for the current and a few added services. What''s worst, on 
September 30, current accounts will be deactivated. This includes email addresses and 
Web sites stuffed with photos, videos and files.

Apple will charge $99.95 per year for the service. Apple is offering a special $49.95 
offer for the first year for current iTools users. Now called .Mac, the new service 
offers current iTools services, in addition to new features.

New/updated features include Virux anti-virus software with free updates, 100 MB of 
online storage, 15 MB of POP/IMAP email storage and access and tools for backing up 
software and Web page editing. Customers will also have access to "members-only" 
discussion boards moderated by Apple.

Apple indicated that it is starting to charge for iTools due to serving and storage 
costs. In a FAQ, which is currently no longer online, Apple estimated that .Mac 
services would cost $250 if purchased individually, compared to Apple''s $100 yearly 
fee. That estimation is probably close, but if you remove anti-virus and backup fees, 
which I personally have no use for, I''d estimate the cost would be between $60 - $180 
per year for email and Web hosting/storage.

Apple launched iTools as an effort to complement its digital hub strategy. Apple 
encouraged users to share pictures and videos editing with its software, in addition 
to free email services. .Mac is clearly a shift in thinking from helping customers use 
Apple''s technology to generating new revenue streams.

But don''t worry. iCards will still be free.

Analysis:

This will not go over well with Apple customers. I don''t use iTools a whole lot, but 
I do use the email account and occasionally post pictures with iPhoto, which I think 
is very cool. Personally if I knew that Apple would charge for iTools access, I never 
would have used it. Granted, this stuff costs money, but this smells a little too much 
of bait and switch for my liking. 

$100 a year is not a deal. For about $80 year you can have 100 MB of storage, email 
and your own domain name, but most importantly, you won''t be at the whims of Apple. 
Apple has been known to block email and close accounts that weren''t to its liking. I 
suspect the only people who will join .Mac are those with too much invested in their 
iTools account or just those who like giving Apple their money.


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