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Pretty simple: they pay a gazillion dollars to host everyone's pictures and old resume versions, they get half a gazillion from enterprise customers storing wor
by Moseman23 9y ago
Pretty simple: they pay a gazillion dollars to host everyone's pictures and old resume versions, they get half a gazillion from enterprise customers storing work documents. They reduced a lot of costs by building their own data centers and getting off AWS.
- bdcravens 9y agoI pay $10/mo for the storage bump. Not sure how many there are like me, but I suspect a non-trivial amount of their revenue comes from non-enterprise customers.
- jpalomaki 9y agoFor example BackBlaze sells storage at $0.005/GB [1]. I picked them as an example, because I'm fairly confident their business model is based on making money with this. Based on this I would assume that at Dropbox scale you could do storage at least for the same price, maybe even cheaper. With those prices the free user storage would cost like max 1 cent/month. There's of course some users with more than 2GB, but there's also many who use less and all the de-duplication and shared folders pushing down the per free-user cost. [1] https://www.backblaze.com/b2/cloud-storage-pricing.html https://www.backblaze.com/b2/cloud-storage-pricing.html
- ktamura 9y agoI analyzed Backblaze's business model before. It's quite fascinating. https://twitter.com/kiyototamura/status/934558071019339776 https://twitter.com/kiyototamura/status/934558071019339776 If I had to guess, Dropbox improves their margin by getting people to share files and folders (because that counts toward multiple users' quotas).