Synology is from my point of view in business model crossroad:
- business model based on all features in the HW price only isn’t sustainable in long term. As we can see there is really short list of licensed features till now. Then it’s a question of a time, when they will change it.
- when they will keep the mentioned business model, they need monetize their brand. And this approach we can see in RAM modules now or in all PCIe extension modules (NIC, cache). But power users with experiences (because power user principle) can find a way how to use non-Syno parts with same or better added value. And everywhere (in this forum also) you can find a way how to do it. What isn’t in line with such branded strategy.
Then how to make a more money from the storage market?
1. Change strategy to conquer the majority of the market (SOHO, SMB), which has no idea it needs a NAS. And I think that this their biggest weakness, because their power channels for such sales performance comes from e-shops. And e-shops will prefer vendors with better profit for them (in search). And big e-shops will ask more money, because they know their market position.
2. Change strategy how to catch an enterprise segment. Synology doesn’t provide maintenance support, but there is bigger weakness - backup of all setup in case of migration to new device.
3. .... and we can continue till next morning
Then we can see next “fruit” of Syno business brainstorming = Branded SSD.
It’s a kind of monetizing of new NAS purchases:
here they can catch part of their new customers from NAS-newbie segment (and up to 4bay NAS is really large segment) who needs just disk capacity and someone provides for them NAS with SSD during purchase process. But which e-shop will chose Syno SSD, when they have plenty of another vendors listed? Hm.
For a monetizing of the current installed base, it will be even harder, how to argue to existing NAS owners to purchase Syno SSD? Is there a market needs?
My question is - Is it right way to consume market development energy in such full SSD market? How much SSD profit are you expect from such business?
No doubt, this is Synology management decision.