Will Independent Online Storage Companies Get Squeezed Out of the Market?


As the price of online storage plummets, can independents like Dropbox and Box survive?

If history repeats itself, then all those smaller companies are about to get squeezed by some very powerful market forces.

Over the past year, the per-gigabyte price tag for online storage has been driven down by a handful of slashing moves from the biggest platform players around:

Those prices make independent cloud storage services like Dropbox and Box look like terrible deals.

Dropbox is still asking $20 a month or $199.00 per year for its 200 GB package, which is five times what the competition is now charging. And if you want a terabyte of data you have to move to the Dropbox for Business platform, which costs $15 per user per month, with a five-user minimum.

Box is also overdue for a price cut, with its price list still showing the $15-per-month (five-user minimum) Business plan as the “recommended” option. Personal account holders have to pay $10 a month if they want more than the basic 10 GB of free storage, and then they’re capped at 100 GB, a rate that’s five times higher than what Google/Apple/Microsoft charge.

If you were around at the pre-dawn of the Internet, this story should be eerily familiar.

Click here to continue reading…

ZD Net / The Ed Bott Report 

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