really interesting presentation !! Still, one question, even thought there are millions of users, does the majority of the profit is made from ads? And also, it must cost a lot to give a couple of gig freely to each new users..? How do you exactly make profit?
Dropbox are charging more for additional space that competitors that also have to have the physical disk space. So I'd image that margin for premium accounts would be higher, they can justify this due to the easy of use and simplicity of their product.
I think they use Amazon S3, so their cost is 5 cents/GB of storage + bandwidth costs. I would assume more referrals = more conversions and any conversion should be very profitable.
I wonder if they will reach a tipping point where it will be cheaper for them to have their own distributed hosting setup. I think Ubuntu One is doing it right now (I haven't used it yet) http://en.wikipedia.org/wiki/Ubuntu_One
Comments
really interesting presentation !! Still, one question, even thought there are millions of users, does the majority of the profit is made from ads? And also, it must cost a lot to give a couple of gig freely to each new users..? How do you exactly make profit?
Thanks
Dropbox are charging more for additional space that competitors that also have to have the physical disk space. So I'd image that margin for premium accounts would be higher, they can justify this due to the easy of use and simplicity of their product.
I think they use Amazon S3, so their cost is 5 cents/GB of storage + bandwidth costs. I would assume more referrals = more conversions and any conversion should be very profitable.
I wonder if they will reach a tipping point where it will be cheaper for them to have their own distributed hosting setup. I think Ubuntu One is doing it right now (I haven't used it yet) http://en.wikipedia.org/wiki/Ubuntu_One
Amazon is amongst the most expensive afaik