> So do you think they are just wasting R&D money and it isn’t an engine to keep the company a going concern? Yes and no. They are trying to grow the product b

> So do you think they are just wasting R&D money and it isn’t an engine to keep the company a going concern? Yes and no. They are trying to grow the product breadth (collaboration for example) so they can upsell enterprise businesses. That's where most of the R&D is going. > Do you also think that the rest of the tech industry could cut their R&D and stay relevant? Yes - easily. I've personally worked with over a hundred of them and you'd be shocked to understand how sticky software is once it's been implemented. This is the dirty little secret you never heard about when discussing software valuations. > Servers breakdown, while we don’t have any statistics of how often Dropbox needs to replace hardware, we do know how often hard drives fail at scale from Backblaze’s frequent reports. As I understand it, this is where Dropbox's major capital expenses are going right now. I don't have any information on where it hits the P&L and if it's calculated in the CF statement. However, having worked with similar businesses before and calculated pro formas, there is very clearly an ROI (similar to AWS, Google and Facebook all building out their own data centers).