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Synology Discontinues Services: What Does This Mean for Your SMB?

By Assist2go8 June 2026

Source: Tweakers

Introduction

Synology, a well-known name in storage solutions and network equipment, has recently announced a revision of its free cloud services. Specifically, two popular services, C2 Password and C2 Transfer, will be completely discontinued. Additionally, the 15GB of free storage will be limited, and free versions of C2 Identity and Active Insight will also be removed.

For many small and medium-sized businesses (SMBs) that used these services free of charge, this news marks a significant turning point. It is crucial to understand the impact of these changes and how you can adapt your business processes accordingly. This article explains what exactly is changing and the implications for your daily business operations.

What Exactly is Changing?

Synology is adjusting its 'Cloud 2. 0' (C2) strategy, leading to the discontinuation of certain free services. This modification directly affects how you might manage your passwords, share files, and administer your network.

The focus at Synology is clearly shifting towards paid subscriptions, emphasizing enhanced functionality and reliability for business users. This is a trend we often see in the tech industry, where companies evaluate and adjust their free offerings to strengthen their revenue model. Let's look closer at the specific adjustments.

C2 Password and C2 Transfer Discontinued

The direct reason for this news is the discontinuation of the C2 Password and C2 Transfer services. C2 Password was a convenient tool for securely storing and synchronizing passwords across different devices. C2 Transfer offered an accessible way to securely share large files with external parties, such as clients or partners.

Both services provided a free option that was a lifesaver for many SMBs. The functionality these services offered was essential for streamlining certain work processes and ensuring the security of sensitive information. With their disappearance, companies must seek alternatives to perform these critical tasks.

Limitation of Free Storage and Services

In addition to discontinuing C2 Password and C2 Transfer, the free storage limit of 15GB on the Synology C2 platform is also being adjusted. Although it's unclear whether this limit will disappear entirely or be significantly reduced, it means that companies relying on this free space must revise their storage strategy. This also applies to the free versions of C2 Identity and Active Insight.

C2 Identity is a solution for identity and access management, focused on securely managing user accounts and permissions within an organization. Active Insight is a tool for remotely monitoring and managing Synology systems. The removal of the free versions means that SMBs wishing to continue using this advanced functionality will have to switch to paid subscriptions.

These services typically offer more advanced features, higher limits, and better support.

What Does This Mean for SMB Companies?

Synology's announcement has direct consequences for many SMBs. Free is always attractive, but once a service disappears or becomes paid, new choices must be made. This brings both challenges and opportunities.

It is a moment to reflect on your current IT infrastructure and the data you manage. It can be a catalyst for investing in more professional solutions that better align with your growing needs and the increasing demands for security and flexibility.

Necessity for Alternatives

The discontinuation of C2 Password and C2 Transfer compels companies to look for alternative solutions for password management and secure file transfer. In the realm of password management, commercial password managers are available that often offer more advanced features, such as secure sharing, weak password detection, and integration with various applications. For secure file transfer, various cloud storage services offer this functionality, often with more extensive sharing options and better security protocols.

It is important to identify your specific needs and choose solutions that fit your budget and workflow.

Considering Paid Services

The adjustment of free storage and the phasing out of free versions of C2 Identity and Active Insight invite consideration of paid subscriptions. For many SMBs, it may be worthwhile to invest in the paid versions of Synology's C2 services or explore comparable offerings from other providers. Paid services often provide more storage space, higher speeds, better security, and professional support.

In the long run, this can lead to cost savings through more efficient processes, reduced downtime, and increased data security. Think of solutions for central file management, failure monitoring, and access control.

Risks of Free Services

This news also highlights the inherent risk of relying entirely on free cloud services. While they can be an attractive way to start or perform certain tasks with minimal cost, these services can be changed or discontinued at any time. Companies must be aware of this dependency and always have a backup plan.

Investing in reliable, professional solutions, even if they incur costs, offers greater certainty and continuity for your business operations. It is an investment in stability and growth.

Impact on Business Processes

For small and medium-sized businesses that heavily relied on the free C2 services, this can have a significant impact on existing work processes. The transition to new systems requires time and effort. It necessitates employee training, workflow adjustments, and potential data migration.

Therefore, it is advisable to proactively address these changes and not wait until the free services are completely gone. Careful planning and implementation of new solutions can ensure business continuity and even lead to improved efficiency and security. Ensure that the right people within your organization are involved in this decision-making process.

Conclusion

The adjustments in Synology's C2 offerings send a clear signal: free solutions have their limits. For SMBs, this means it is time to critically review the cloud services they use. The discontinuation of C2 Password, C2 Transfer, and the limitation of free storage require a proactive approach.

Considering paid, professional alternatives is no longer a luxury but a necessity for continuity and growth. By taking action now, you can mitigate the impact on your business, invest in reliable solutions, and elevate your IT infrastructure. This provides your business with the certainty needed in an increasingly digital world.

**Want to know more? ** See how Assist2go can help with the right IT service for your business.

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