By now, most of us who use the internet daily have had some interaction with cloud computing. Cloud computing allows users to write documents, create presentations, spreadsheets or store data on a virtual server accessible via the web. The most well known example is Google Docs which allows users to create and collaborate on articles in real time, online. This way, you and I could be working on the same document simultaneously without having to email it back and forth. It allows for many users to be working on the same project at any one instant and automatically backs up the most updated version. It also allows you to store an almost limitless number of documents on the internet for free, thereby allowing one access to files from any computer in the world at any time, without having to lug around the data yourself. This is a tremendous convenience at no cost (for now).
I have been using Google Docs for several years, and it has never inspired me to write a blog post. However, most recently I encountered a new piece of software/service which I found so convenient and useful, that I am rushing to spread the word. I would highly recommend making an account with the service Dropbox which gives you 2GB of webspace for free. So what’s the big deal you say? Dropbox features one of the most user friendly drag-and-drop interfaces I have ever seen. It allows you to toss files directly up onto the cloud from any computer – that has the dropbox application installed. And then download them from any computer. The only drawback of this process is that it requires you to download and install a program on each machine, however it is lightweight, relatively non-intrusive and worth the convenience of being able to store large quantities of files on the fly. What’s really cool, and a great marketing strategy, is that you gain additional storage space when you successfully invite users to sign up for the service.
Dropbox Wiki
When I discovered the service, I was curious as to how they make money. What is their business model? How does a company which provides services for free make any profit? I believe this is a common catch-22 on the web. Everyone wants information, services, and conveniences for free and we are so used to this almost no one is willing to pay for web content or storage space. Dropbox offers additional storage options beyond the 2GB for a fee – 50GB for $9.99/mo or 100GB for $19.99/mo. I questioned why anyone would pay for this or keep that much data on the web? The answer I got from a friend, was that once customers become accustomed to the conveniences of keeping their files on the web, they may eventually reached their storage limit and decide to splurge for an upgraded their account. I am curious how many paying vs. non-paying custiomers Dropbox has and how they plan to increase their paying user base.