Google doesn't necessarily squeeze out all competitors in any industry they enter, but they do raise awareness. In some sense this is great for Dropbox because

Google doesn't necessarily squeeze out all competitors in any industry they enter, but they do raise awareness. In some sense this is great for Dropbox because I would guess well under 50% of computer users even know cloud storage services like this exist...but many more will if Google enters the market. The problem, of course, is if they all learn about it through gmail and Google captures them all, but I think that underestimates Dropbox's ability to counter. Lastly, don't discount human laziness aiding Dropbox customer retention - time is a switching cost here.