|By Paul Miller||
|November 21, 2012 09:21 AM EST||
Cloud storage product Dropbox is one of those tools that users tend to rave about. It’s deceptively simple. It’s pretty reliable. The value proposition is immediately apparent. It has paid tiers of usage that bring additional storage but (like other freemium beacons such as Evernote) the free offering is rich enough to be compelling, engaging, and valuable. However, as Apple, Google and Microsoft start bundling very similar capabilities right into their latest operating systems, how can Dropbox (or any of its many peers) manage to keep attracting new customers?
Maybe all the articles and blog posts that lump these products together and label them as ‘just’ alternative cloud storage solutions are missing the point? Maybe they’re addressing fundamentally different problems, and maybe that offers room for differentiation as the market becomes clearer.
The late Steve Jobs once, famously, described Dropbox as ‘a feature, not a product.’ A feature for which he was apparently willing to part with as much as $800 million, but still just a feature. And, from Apple’s perspective, cloud storage is just a feature. It’s a feature that strengthens the Apple product ecosystem. It’s a feature that makes it that little bit harder to seriously consider buying a non-Apple tablet or computer when you already own an Apple phone. All your data is available on all of your devices. All of your music is available on all of your devices. Diary entries made on one device automatically appear on all of the others. It’s magical. It’s genuinely useful. And it’s a concept that is ridiculously easy to sell to prospective customers. Those customers are buying an iPhone or an iPad or an iMac, and they’re loving glass and aluminium, but the (allegedly) seamless cloud stuff going on behind the scenes is a very effective means of dissuading an existing Apple customer from straying toward the latest shiny alternative from Amazon or Google or Microsoft. The latest Lumia has tiles? So what. You’d have to copy your data onto it manually!
Microsoft’s SkyDrive and Google’s Chrome OS incarnation of Drive are essentially the same. They’re convergence plays, intended to make today’s devices as sticky as possible, and to ensure that future devices from the same stable are current customers’ first choice. And, as Jobs said, they’re features. They’re another badge, handed out to members of the tribe of Apple/ Microsoft/ Chrome|Android and worn with pride.
With over 100,000,000 users, a valuation in the billions of dollars, and investment in excess of $250 million, Dropbox remains a force to be reckoned with. It would be easy to suggest that the arrival of iCloud et al has simply removed Dropbox’s market overnight, but the number of registered users doubled in the six months to November of this year. It took over a year for the previous doubling of user numbers, from 25 to 50 million. SkyDrive, Google Drive and iCloud were all available.
Nevertheless, Dropbox does face a challenge. Early adopters and engaged users already consciously opt for services like Dropbox’s. But the vast majority of potential users, when looking for a cloud storage solution, will surely just switch on the one that their device is already configured with. In other words, iCloud, Drive, or SkyDrive. The market of users who will take this easy route must be far larger than the market of users who will go out and download something else when they don’t have to. But — and this may ultimately play to Dropbox’s advantage — the mass market of default-choosing users is probably almost entirely populated by people who will never hit the limit on the free storage that Dropbox offers them. They will take, and they will consume, and they will be a cost, but they’re very unlikely to ever pay Dropbox any money. The customers who care enough to go looking for alternative solutions, on the other hand, probably have the mindset or the storage requirements to part with cash. Dropbox’s conversion rates should rise, leading to slower growth on that overall user graph but a healthier balance sheet.
Ironically, perhaps the biggest potential market for future Dropbox growth is also one that is increasingly being squeezed. iCloud, Drive, and (to a lesser degree) SkyDrive appeal to individuals and small companies with enlightened IT procurement policies. They appeal to people with the power to choose (and the budget to afford) a set of devices that can and will work together seamlessly. But for the great mass of enterprise employees, spending their own money on a tablet or a smartphone and then trying to find a workflow that shares data between them and the bland Windows laptop handed to them by their employer, Dropbox must seem the answer to their prayers.
Except, of course, that enterprise CIOs are (understandably) terrified about data loss and they are cracking down hard on employee use of consumer cloud storage solutions. Dropbox’s fledgling business offering is limited at best, and ‘enterprise Dropbox’ offerings like Oxygen Cloud, Egnyte and GroupLogic are snapping at the company’s heels with a raft of CIO-friendly capabilities around audit, permissions, and more. For the CIO, and the business, these solutions make an awful lot of sense and deliver an awful lot of value.
But for the poor employee with a personal iPad and a company Dell? They probably still want their Dropbox…
Disclosure: I use the premium versions of Dropbox and Evernote every single day. They are invaluable core parts of my workflow across multiple devices. I pay for them, just like the rest of you. I also make some use of the free storage allowance offered by Box, Google’s Drive, Apple’s iCloud and Amazon’s CloudDrive.
- Building a platform for files in the cloud (zdnet.com)
- Dropbox doubles size of Pro accounts for free, intros 500GB plan (venturebeat.com)
- Nobody will win the storage war (filepicker.io)
- Next From Box: Embedding Storage In Your Apps (readwrite.com)
- Dropbox reaches 100 million users, founders not concerned about competing services (theverge.com)
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Mar. 29, 2017 04:00 AM EDT Reads: 15,064
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 29, 2017 03:45 AM EDT Reads: 2,119
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 29, 2017 03:30 AM EDT Reads: 3,200
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Mar. 29, 2017 03:00 AM EDT Reads: 6,056
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 29, 2017 01:15 AM EDT Reads: 2,473
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 29, 2017 01:00 AM EDT Reads: 1,091
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Mar. 28, 2017 11:15 PM EDT Reads: 3,464
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Mar. 28, 2017 09:30 PM EDT Reads: 2,228
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 28, 2017 09:30 PM EDT Reads: 3,849
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 28, 2017 08:15 PM EDT Reads: 2,346
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
Mar. 28, 2017 07:00 PM EDT Reads: 4,513
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 28, 2017 06:00 PM EDT Reads: 861
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Mar. 28, 2017 03:45 PM EDT Reads: 4,188
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 28, 2017 03:00 PM EDT Reads: 2,148
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 28, 2017 03:00 PM EDT Reads: 9,684
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 28, 2017 02:15 PM EDT Reads: 2,223
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Mar. 28, 2017 02:15 PM EDT Reads: 3,723
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Mar. 28, 2017 02:00 PM EDT Reads: 14,290
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 28, 2017 01:15 PM EDT Reads: 1,675
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 28, 2017 12:45 PM EDT Reads: 3,187