Welcome!

Containers Expo Blog Authors: AppDynamics Blog, Pat Romanski, Gregor Petri, Dana Gardner, Liz McMillan

Blog Feed Post

Dropbox, Google Drive, Apple iCloud, Microsoft SkyDrive; maybe they’re not apples after all?

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.

Growth in Dropbox registered users (numbers from Dropbox)

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.

Read the original blog entry...

More Stories By Paul Miller

Paul Miller works at the interface between the worlds of Cloud Computing and the Semantic Web, providing the insights that enable you to exploit the next wave as we approach the World Wide Database.

He blogs at www.cloudofdata.com.

@ThingsExpo Stories
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.
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...