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As far as I understand Dropbox is still using Amazon S3. S3 according to their pricing calculator is roughly $26/month per TB (not including outbound traffic).
by kjaspal 12y ago
As far as I understand Dropbox is still using Amazon S3. S3 according to their pricing calculator is roughly $26/month per TB (not including outbound traffic). I'm sure because of Dropbox's multi-PetaByte scale they have negotiated better prices with AWS. I wouldn't be surprised if they are paying $20/month per TB. The amount Amazon charges for data-transfer is quite crazy roughly $120/month per TB. If about 10% of data on dropbox is transferred out on a monthly basis than Dropbox total cost for storage is roughly $20 + 0.1 * $120 = $32/month per TB. Thus in order to break-even they are probably expecting the average paying user to use less than 30% of the 1 TB space. (In reality that is less since Dropbox has a free-tier they need to amortize along with marketing expenses, employee costs etc ..)
- ksec 12y agoI think that is the reason why they dont do other smaller plans. And adding data dedup along with some heavy discount to your equation they may break even with the pricing. But that still dont include other expenses you listed. While some would argue dropbox to built their own DC. I still dont see it as a viable solution. Google, Apple, and May be Amazon dont need to make money from these Storage. And all 3 gets to leverage their existing infrastructure.