Dropbox Caught Between Warring Giants Amazon and Google
An anonymous reader writes: Google and Amazon are both aggressively pursuing the cloud storage market, constantly increasing available storage space and constantly dropping prices. On its face, this looks great for the consumer — competition is a wonderful thing. Unfortunately, many smaller companies like Box, Dropbox, and Hightail simply aren't able to run their services at a loss like the giants can. Dropbox's Aaron Levie said, "These guys will drive prices to zero. You do not want to wait for Google or Amazon to keep cutting prices on you. 'Free' is not a business model."
The result is that the smaller companies are pivoting to win market share, relying on specific submarkets or stronger feature sets rather than available space or price. "Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide." It's going to be tough for them to hold out, and even tougher for new storage startups to break in. But that might be the only thing keeping us from choosing between the Wal-Mart-A and Wal-Mart-B of online storage.
The result is that the smaller companies are pivoting to win market share, relying on specific submarkets or stronger feature sets rather than available space or price. "Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide." It's going to be tough for them to hold out, and even tougher for new storage startups to break in. But that might be the only thing keeping us from choosing between the Wal-Mart-A and Wal-Mart-B of online storage.
A while ago some big company offered to buy out dropbox and they declined. Surely it was a sign of the times that the big guns were going to enter the market, and when they get in, they don't muck around. Fair competition isn't something the big companies enjoy doing, as their whole business model tends to revolve around destroying competition then bleeding the market for what it's worth.
I used dropbox for cloud storage, I liked it for collaborative work. Would be a shame to see it get destroyed through aggressive anti-competitive practices.
They want corporate clients. As long as Dropbox keeps working for the average joe they're not going anywhere.
A few year ago, I got an HTC storage bonus, when it expired I checked with dropbox what plan I could get, the only plan that was available was a 100GB at $10 + per month, why can't they offer a $2.50 per month 25 gig, if they had they would have a customer... I didn't study as much as their marketing guru but I can tell you that they will have hard time to get me to this pricing page again in the same mood as I was at that point...
There's plenty of option available and with object storage becoming the norm they will have hard time bringing back customer they ignore with their greedy plan...
Amazon have never chased the consumer business, they don't want that. Their focus is fixed on supplying IT services which companies can then build their solutions on. Dropbox is powered by AWS, they are the wholesale provider.
Amazon reducing their prices should only be a good thing for them as that will reduce the operating costs of Dropbox.
(\(\
(^.^)
(")")
*This is the cute bunny virus, please copy this into your sig so it can spread
Anyone who doesn't think we need stronger antitrust enforcement is crazy.
A drive-by Dropbox installation turned me off.
Prove anything by multiplying Huge Number times Tiny Number
"Here's a ton of free space that's really hard to use!"
It's nice that all these huge companies are so interested in control of everyone's data.
I think I'll stick with my OwnCloud server for syncing files across devices for the time being, thanks.
"Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
Having worked in this "file sharing" industry, this result is no surprise to me. The platformers, especially those with heavy investments in content suites (Microsoft Office, Adobe Photoshop/PDF, Google Docs, etc.) are tired of letting the middlemen make money off of cloud storage and collaboration. Furthermore, they understand the danger of allowing their customers to congregate around "platform independent" technologies too long. Worse, companies with just a dozen or two people can crank out everything Box, etc. can do in less than a year and sell it as either an on-premise or cloud solution. (There are dozens of clones now.) The result is that companies like DropBox aren't worth anything for their technology anymore - instead, it's a race to see if they can "run out the clock" and sell their customer base to one of the platformers before they dwindle down to nothing.
doesn't mean someone else can't.
Just because amazon and google can undercut you doesn't mean they're doing it at a loss.
'Free' is not a business model." - Aaron Levie (Dropbox)
Yes, something music artists know all to well...
It's a bummer when your on the wrong side of supply and demand aint it?!
One day Slashdot is fellating Amazon and Google for their Cloudiness, the next they're accused of corporate evil for being Walmart-A or Walmart-B.
The only thing I see is a consistent bias towards and demand for free crap. Are there any adults on Slashdot anymore?
I want to delete my account but Slashdot doesn't allow it.
My wife and I just left Dropbox, because paying $20/month for 200 GB of storage (which she just exceeded with our photos from before kids as well as our kids) is crazier than paying $10 for 1 TB of storage. The only feature I miss is the ability to auto-backup our photos to our online storage - Google does some kind of backup to Google+, but that's worthless to me. Dropbox would auto-upload my pictures to a folder, which I really liked. Oh, and IFTTT doesn't seem to work well for us for backing up the photos, seems to take forever and requires tweaking, Dropbox's system Just Worked.
I understand Dropbox is coming out with some email client, ok, yay, Yet Another Email Client. That is so old and tired. Do something innovative. Now, all this said, if there was an EASY way for me to have Dropbox-like functionality against an S3 endpoint where *I*/AWS runs the box, I'd be game. The options out there suck for users and honestly aren't great for power users either.
. Define sqrt(x) as something really evil like (x / rand()), and bury it deep. Watch your coworkers go nuts.
Last year I tried to use dropbox to transfer one of my college textbooks (PDF) from my computer to my iPad for portability. The file was immediately locked on copyright grounds by dropbox. Even though I owned the book, I was unable to transfer it due to Dropbox's proactive copyright scanning.
That was the last time I used their service. Fuck Dropbox.
oh and for the record - I'm not a coward, I just don't have or want a slashdot account
Why is this posted under "Hardware"?
"Somebody has to do something. It's just incredibly pathetic it has to be us."
--- Jerry Garcia
Unlike Google which uses ownership to determine size used, you can run out of space in DropBox by someone sharing you a large folder. DropBox also make is impossible from the web interface to see the sizes or usage of files to make room or clean up. I ended up paying Google for 100gb because their service is simply better.
It's one thing to blame Amazon and Google for a price war. But DropBox's pricing scheme was always overpriced. (And the same goes for Evernote -- even though theirs is a slightly different offering). What should cost a couple bucks a month is priced multiples higher.
Besides, DropBox has entertained MULTIPLE exit opportunities and rejected them all.
If they disappear now, they will have only themselves to blame for not choosing any one of the multiple exits that were on the table.
The landscape changed rapidly around the early leaders. And yet, those leaders did not change their models rapidly to match the changing landscape. Knowing when to quit, and how best to exit are essential parts of management. While we may applaud unbounded grit and unshakeable tenacity -- those qualities in a CEO are more frequently disastrous than beneficial.
------ The best brain training is now totally free : )
"Dropbox's Aaron Levie said" ... Dropbox != Box.net
Not putting up my files where Obama can take a peek.
... or you could, you know, buy two hard drives. (Make one of them your backup.)
It is dropbox for me:
There is no linux client for Google Drive.
I think years ago it was supposed to be 'soon'.
Bram Stolk http://stolk.org/tlctc/
I cannot believe the bitching and complaining from Dropbox. They have never had competitive prices or services. I pay TWO dollars a month for a whole 100gb for Onedrive. Google Drive is the same cost a month.
Even the free, basic offering from Dropbox is laughable. They may have been innovators in the beginning but they are not anymore. You have to compete or die. Microsoft and google get my money.
So DropBox, that's a way to differentiate yourself...hint hint...something that we all want...and will never get.
I cancelled my 100GB account and will likely roll my own with OwnCloud or maybe a VPS. I learned a few things reading through this thread.
This article actually points it out: When the big players drop the prices to below cost, it is possible to still compete, by offering add-ons specific to certain types of customers, or better customer service, or in some other way differentiating yourselves from the big players. This applies both when the big guys are Amazon and Google, or when they are Walmart and Home Depot.
Owncloud and its ilk beat all these guys. Six months now and no regrets. I guess it costs me the electricity of my servers (as I also run an off site backup for it) and its not for the average Joe blow, but whatevs.
Google, Amazon, Microsoft, Oracle, Walmart, Media Companies, et al have to be broken up into itty bitty little pieces.
If they promised not to 'steal' your contents and sell them to someone else or use them to market 'partner' services, or actually have and supply a real secure site. You know at some point Google will alter their ToS to allow them to use anything in their never-ending quest to track everything and everyone that ever touches the web in any manner.
errr....umm...*whooosh* *whoosh* Is this thing on ?
Avoid them all and get free dropbox capability albeit synced only. No cloud - Bit torrent Sync, and Syncthing.
Kind of like https://Mega.co.nz? Or https://Sync.com ?
I have 8 terabytes on 115 and it's free.
Dropbox had a great claim, originally, that your data was secure not even "dropbox" could see it. Well, it turned out that was a lie.
The bigger issue is privacy protection. If I upload non-public information to one of these services, which one can I trust to keep that private? If there is no clear answer, then price is the only differentiator. Who's going to protect your privacy when presented with an NSL? Answer: no one. After that, who cares?
I believe that if a storage company wants to stand out and charge a premium, it needs to hire lawyers, a lot of them, to defend the rights of its customers. When you store your data on your property, you are protected by the 4th amendment, the warrant requirement, and the legal right to a defense, when you store your data in the cloud, you have little, if any, protection, and the service provider has no duty to protect your data from government requests.
Criminals, lawyers, and the general public have the same needs. If you can't protect criminals, you can't protect the general public. Data storage has never been about the bits. It has always been about the meta requirements: security, longevity, recoverability, and yes, cost. The google/amazon threat is about cost, what about the other requirements?
Free is, indeed, a fine business model when the real purpose of providing cloud storage is to data mine it for targeted advertising, which has always been Google's business model, and is increasingly Amazon's, as well. 95% of Google's revenue is from advertising, and getting you, and me and everyone else, to store all their documents in Google Drive is well worth the cost to increase ad rates. Amazon's business model is a little different, but is getting more and more like Google's lately, with their announcement that they're working on their own ad network to replace Google's.
Everything that both companies have done lately - and that Google has ever done, has been to stuff that profile database as full as possible on everyone human being on the planet.
Never comes up in the discussion of value pricing
Tarsnap offers NSA-proof cloud storage and provides all the source code for all the client programs to back up their claims (in fact the installation is only available in source code form). But it costs way more than the competition.
there is no reason we can't self host these services... we like drop box mostly for the software, not the servers. We can provide the servers ourselves.
And why is it that all these companies are moving to cloud based software? Piracy. Which really underscores the need for more open source software because not only do people not want to pay for this stuff, we really can't. Its too much. If you bought a paid version of everything that you typically just get for free... we're talking thousands of dollars a year. We can't afford it.
So we need an open source, self hosted, appified storage solution.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
Does nobody check the blurb anymore? https://en.wikipedia.org/wiki/...
1729 = 9^3 + 10^3 = 1^3 + 12^3
https://en.wikipedia.org/wiki/...
1729 = 9^3 + 10^3 = 1^3 + 12^3
Bittorrent Sync is already free for unlimited storage and only YOU hold the keys.
...but man, it sucks. Messed up git repositories. Requiring a complete download of all content if you restore to another disk (yes, boys and girls, gdrive actually decided to track files by what fucking inode they were on, instead of doing something rational like checksumming). Self-DOS attack on large uploads, literally sucking up all the bandwidth you have going up, causing all other traffic to stall.
I'm waiting for Yosemite and iCloud Drive - hopefully they'll do a better job with reasonable rates.
FYI, for those using OSX and gdrive, you can stop it from self-DOSing on large uploads by using ipfw to limit https up bandwidth:
sudo ipfw pipe 1 config bw 400KByte/s
sudo ipfw add 1 pipe 1 ip from me to any dat-port 443
Doesn't dropbox use amazon as it's backend? or did they switch? cause if they are still using s3 under the hood, then what the hell is their complaint? Amazon lowers prices, their costs drop? They will be entirely unaffected still maintain the exact same profit if they are actually value-adding and then only charging for the value-add... me thinks their complaint is they still want a piece of amazon's pie, which they've been getting a taste of essentially as a reward for wholesaling for amazon.
*plays world's smallest violin*
And i never will store data on anybody who tells me that he does it for free. Either he looses money, or he has something else in mind.
I see in Google image storage terms that photos smaller than a certain resolution do not count towards your storage limit. So has anyone stored tons of photos for free there? How much? I tried storing some, but 2000 photos limit per album made it very inconvenient. Appears too good to be true, is it?
I remember seeing Flickr also allows 1 TB photo + video storage. This too sounds unsustainable if people really use this.
Bingo Dictionary - Pragmatist, n. A myopic idealist.
While I broadly agree with your ideal that fair competition is good for customers and specifically with the example you gave, there is more to cheap prices than meets the eye. For example, not that long ago Walmart got into trouble for predatory pricing.
I think most people will agree this kind of competition is bad from the consumer's point of view. The problem is, it is very hard to prove intention. That very same marketing tactic, i.e. selling products at or below their cost price, is also a popular marketing tactic known as loss leading.
From the merchant's point of view, he is willing to take a loss on some items to earn traffic for his other goods. To his competitors selling the same loss leader items however, this is unfair competition. My point is, it is a very thorny issue deciding when certain competitive strategies are fair or unfair and much depends on the facts of each case.
Aaron Levie doesn't work for Dropbox.
SpiderOak was supposed to enforce client-side encryption prior to uploading-- to the point they said that if you lost your key(s), tough shit, they never had them to begin with (which is how it's supposed to work!).
Storage is a commodity.
Now we only need to wake up the telcos and make them realize their product is a commodity too.
If Pandora's box is destined to be opened, *I* want to be the one to open it.
Dropbox's Aaron Levie said, "These guys will drive prices to zero. You do not want to wait for Google or Amazon to keep cutting prices on you. 'Free' is not a business model."
Poor baby. Want a lollipop?
I think spideroak is the only one that really gets it. Storage is either a race to the cheapest or a race to the most secure. Want to make money in this game? Go secure.
> which one can I trust to keep that private?
They're all US companies. Even if you could trust the company in question, they are simply not able to keep your data private thanks to their government.
Never had that happen on any copyrighted books I've loaded into dropbox.
Now, I have had PDFs which were locked by the owner in a way that was unencryptable on the iPad, but that isn't Dropbox's fault.
Is it just my observation, or are there way too many stupid people in the world?
SpiderOak makes Dropbox look bargain basement in pricing.
Is it just my observation, or are there way too many stupid people in the world?
I have a non-profit association which uploaded dozens of videos of repair geeks in several countries on Viddler.com, a "free" video storage back in 2007, 2008. Viddler, like Youtube and Vimeo, was in the video storage space, and had trouble making any money vs. Youtube. First thing they had to do was to drop "source files" in 2010, when all the original quality was lost to make space. Then last April they gave members about a month to either pay up monthly or lose all their videos.
This was really disturbing and it's my main concern about dropbox. If they suddenly change the price, and we have years of space stored, how realistic is it to download? Viddler did not offer any mass-download, we had to do it file by file. They cut us a break in the end but it would have been very appreciated if the EULA agreements allowed for something other than retroactive storage negotiations. At this point we choose where to put files not just based on monthly price, but the future monthly price and the ease of moving out. The latter is the most important, I'd never put material on the cloud again which took 2 minutes per file to get back off.
Gently reply
Fair competition isn't something the big companies enjoy doing, as their whole business model tends to revolve around destroying competition then bleeding the market for what it's worth.
Please define "unfair" in this context. Exactly what do you think is "unfair" about what Amazon and Google are doing? You think they should have to replicate Dropbox's (probably flawed) business model to be "fair" to Dropbox? Amazon and Google can afford to offer storage space very cheaply because for them it is a by-product of their primary business. By-products can be sold very cheaply because they would otherwise be considered waste. Dropbox is selling a mostly undifferentiated commodity product - specifically data storage capacity. While they've made their product friendly and easy to use, that doesn't change what it is and if someone is willing to offer a similar product for less profit then I think Dropbox and Box and the rest are probably doomed.
I used dropbox for cloud storage, I liked it for collaborative work. Would be a shame to see it get destroyed through aggressive anti-competitive practices.
I use dropbox as well but if they go out of business it isn't terribly hard to replace them. I use Google Drive at work and it is quite easy to use as well. Frankly if I were the owner of Dropbox I would be looking for a deep pocketed company to sell to because unless they can expand beyond their current offerings they are almost certain to go out of business eventually.
I thought Android was a loss leader (and really, only making a pittance, compared to their web/non-mobile search)?
It is sort of but the real purpose of Android is so that Google doesn't get shut out of mobile advertising by Apple, Microsoft or others who own their own mobile platforms. It's not really intended to be a profit center to Google but rather to keep others from shutting off Google from future revenue streams as mobile becomes increasingly important. Don't think for a moment that if Google had to go through Apple or Microsoft or Blackberry that those companies wouldn't take their pound of flesh or even simply keep Google out altogether if they could.
No, operating something at a loss so that it kills the competition is anti-competitive.
Who says they are selling at a loss? Storage space is a by-product for Google, Amazon and Microsoft. They have a lot of storage space that would otherwise go to waste from their primary businesses. They can afford to sell it very cheaply because otherwise it would be nothing but an expense (waste) for them. Also bear in mind that just because they offer it to end consumers (sometimes) for free sometimes doesn't mean it is actually free. As a user of Google Drive I'm not their customer unless I actually pay them - I'm their product. The customer is the one who buys the advertising. Their product is (theoretically) my attention for advertisers and storage space (like email and search) is just another way to get me in front of them.
Dropbox's problem is that when they started being able to store your data in an easy to use cloud service was "a thing." It was novel, sort of unique and they could charge a reasonable price for it.
Now storing stuff in the cloud is worse than a commodity, it's something that others Almost give away for free to get you to use their "thing". Storage in the cloud isn't a business anymore. Unless Dropbox comes up with an actual business then they're toast.
what they are doing is NOT competing, what they are doing is called Predatory pricing which if the DoJ hadn't been bought and sold years ago they would be dropping the hammer on them.
It's not illegal when the company pricing lower has a genuine cost advantage. Google and Amazon and Microsoft have VAST amounts of surplus storage space due to their other businesses and data storage to end users for them is a by-product. By-products are almost by definition extremely cheap because if they don't have any marketable value then they are waste. Google and the others are simply selling something cheaply that would otherwise be nothing but a cost to them. That's not predatory, that's simply smart business.
I use Dropbox but its business model is dumb and they should have sold the company when they had the chance. At the end of the day they are selling megabytes of storage which is an undifferentiated product. Putting an easy to use interface on that isn't all that hard to do and any sufficiently well funded competitor can easily replicate what they've done. Why you think companies like Google should try to replicate a flawed business model like that is a mystery to me.
Using profits from one sector to support selling at a loss in another sector in order to drive competition out of business is ACTUALLY THE DEFINITION OF ANTI-COMPETITIVE.
You are almost certainly mistaken in your presumption that they are selling at a loss. Storage space for a company like Google or Amazon is a by-product. It would otherwise be waste to them so they can sell it profitable very very cheaply. They aren't dumping here because they have a genuine cost advantage.
Frankly, Dropbox has a rather dumb business model that I really don't think has a bright future. I say this as someone who actually uses Dropbox and generally likes the product. But I really don't see them being successful as a stand alone business. They have the same problem Microsoft does when competing against Linux. The costs for the competing products are just genuinely lower.
I think most people will agree this kind of competition is bad from the consumer's point of view. The problem is, it is very hard to prove intention. That very same marketing tactic, i.e. selling products at or below their cost price, is also a popular marketing tactic known as loss leading.
Probably not applicable here because storage space to Google is a by-product, not a loss leader. By-products by definition are generally very very cheap which means that Google's cost for the service is pretty close to zero - at least far closer to zero than it is for Dropbox. Otherwise the unused storage space would be a cost (waste) rather than a revenue stream. Google doesn't have to sell it for a loss because they have a huge cost advantage over Dropbox. They can sell it far below Dropbox's cost and still make money doing so because storage is not their primary business. Storage to Google is a by-product.
This is very similar to the problem Microsoft has in trying to compete with Linux. Companies that develop for linux have their primary line of business elsewhere -services, hardware, etc. For example IBM sells services so they don't actually have to make money on linux. Microsoft on the other hand currently has to make money selling the software so they can't just give it away. This puts certain constraints on Microsoft's business model.
I don't know how long ago you used OwnCloud, but it may be worth another look. OwnCloud has come onto the scene relatively recently and there have been major quality improvements as the version number increased. What may have been lacking a given feature or feeling kludgy in 4.x, could be replaced by a smooth implementation when 5.x rolls around. The latest OwnCloud 7.x highlights many of its most recent improvements here, for instance - https://owncloud.org/seven/ , some of which seem like they may be beneficial to you use cases. Likewise, improvements to the client apps seem to come almost as swiftly.
It may also be worthwhile to consider using other means to connect aside from the official clients - there are many applications that have integrated support for OwnCloud, and if the clients aren't working out to your liking, enabling say.. WebDAV/CardDAV/CalDAV etc.. and then connecting to these services with whatever best suits your users, can also be a worthwhile endeavor.
For enterprise production use, it doesn't seem like you should be reliant on community forums and documentation, as they have what appears to be subscription enterprise variants and support services, similar to many other high-end FOSS projects.
Now admittedly I've never worked with OwnCloud in a business environment as you describe and it may not be for your needs, but these are just a few things to consider as the software matures.
Free services provide almost no additional value. They don't 'do' much of anything. And honestly Googledrive is VERY clunky if you use it for >1 device on a single account. But it free (or nearly free e.g I pay $5/year for an old 40GB account). Dropbox has to do something on top of that if they expect to charge money.
What I want is online storage I can just mount to my filesystem, and move files over without the service wanting to keep the files locally because it want's to sync a local and online directory. Heck, I might even want to un-mount it sometime. Most of the time I don't need syncing or versioning, I don't mind if that exists as long as I can turn it off.
Of course free is a business model! I doubt you're paying Google to use its search engine. I doubt you are paying Facebook, Twitter, Yahoo!, etc.
Cloud services which use client-side encryption can store your private data securely. Mega.co.nz for example offers 50GB of storage space for free and they have support for linux, windows, mac nad android.
Considering that Dropbox has Condi Rice on their Board of Directors, they're in a prime position to target the warmongers market.
Obligatory Bill Gates/Simpsons reference... http://vimeo.com/70498601
I have all my private files in a Boxcryptor folder on Dropbox. It is compatible with EncFS on Linux and there is a compatible client on Android. Sure, it might break file deduplication and search on Dropbox, but isn't that the point. The price was right too: free.
WalMart can offer goods for less money than my local mom & pop store. If mom & pop want to stay in business, they need to offer something WalMart doesn't.
Dropbox, Box and the rest need to offer something the others don't, go under, or get purchased. Just like in the real world.
I use Dropbox for personal things, and it's fine. It's also free, which may not be a permanent business model.
I use Box for work, and I have found their customer service to be slightly better than Comcast. If it was my choice, we'd drop them and find a company that is capable of supporting its paying corporate customers.
Same thing they said about walmart. They can afford to enter a market & sell at a loss for months, years, on end. Then when the competition is gone they do whatever they want more or less because most market share has been controlled.
Free market capitalism!
Corporations are people too, friend.
Box focuses on business users, while dropbox is targeted to home users.
I get 5TB of storage with my Office 365 accounts which is way more than I really need. There's just no point in paying for another service like Dropbox anymore.
It would certainly help if Dropbox didn't hire Condoleezza Rice. I ceased recommending Dropbox as a solution to anyone when they pulled that stunt, and have helped many people migrate away. Yes, I know every (most?) cloud services have an open-door policy for the NSA. Nevertheless, that was a slap in the face.
Seriously? You're going to hire Ms. Torture USA? Please. I'll vote with my wallet...elsewhere.
It was Apple, BTW. They loved how it was integrated into the OS.
It's not the years, honey, it's the mileage. - Colonel Henry Walton Jones, Jr., Ph.D.
A little more detail please? That's the first I have heard of such a thing.
It's not the years, honey, it's the mileage. - Colonel Henry Walton Jones, Jr., Ph.D.
If you really want privacy, do your own encryption and decryption. If it is theoretically possible for a company to get your data out of its storage, it's one court decision or law away from handing it to whatever government has jurisdiction (which can be several governments in practice). Having the company lawyer up and defend its customers is far from complete protection.
IIRC, what Dropbox said is that no employee has access to the customer's files, which was presumably a matter of internal organization and access. Like most accusations on the net, this has been kicked around so much that it's hard to find the truth without a primary source. Heck, I've seen plenty of /. comments that oversimplified from TFS just to hurl an unfounded accusation.
Privacy and price are also not the only criteria somebody might use to evaluate a Dropbox-type service. Dropbox offers other services, like being able to get to previous versions, and very convenient use over multiple OSes. You may not care, but others may well.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
Unless I'm mistaken, Dropbox has never invested in infrastructure. They rely on S3 for storage, which is extremely expensive. If they had invested in their own infrastructure, they wouldn't be in this mess... or at least they wouldn't be quite so deep in it.
BackBlaze faced a similar challenge, and decided to build their own infrastructure, going so far as to build their own custom server chassis. They rely on consumer drives with redundancy to reduce costs. The result? Their one-time up-front storage cost is $0.05 per gigabyte, meaning that it's economically feasible for them to offer their customers unlimited storage for five bucks a month. Amazon, for their part, charges $0.33 per gigabyte per year (in bulk).
Their infrastructure isn't quite exactly what Dropbox would need, but it's not that far off, and their costs drop based on ever-decreasing storage prices, rather than when a cloud provider feels like lowering sky-high storage costs.
Actually, I think what Amazon and Google are doing now is called "Predatory Pricing" -- selling something below cost for the purpose of destroying competitors. It's a monopoly kind of violation of federal law, AFAIK, and it's what the US is constantly accusing China of doing. Any country that subsidizes local products gets complaints from other countries to the WTC and threats of trade sanctions. The other countries don't want to have to match prices with subsidized products, or have their producers compete against producers in other countries that receive govt subsidies. It's called "unfair trade". Heck, the Thai government (and other govts) are even getting heat for subsidizing the crops of their own rice farmers. The govts are buying the crops above market cost, and are being blocked (by some countries) from reselling it on the open market because their internal subsidies are deemed anti-competitive. But who's going to launch an antitrust suit against Amazon or Google. Look how successful the US was last time they tried one against Microsoft. Hope this is helpful.
I carry 2x1TB drives around with me, and synchronise between them. No online storage for me.
Then again, with 1MBPS of public network link shared between 180 people, no online storage for anyone on this job either.
Birds are not dinosaur descendants;birds are dinosaurs, for all useful meanings of "birds", "are" and "dinosaurs"
Aaron Levie is co-founder and CEO of Box not Dropbox..
"Karma can only be portioned out by the cosmos." -Homer Simpson