Deltec Think About This - Killing Me Microsoftly September 16, 2020 | Page 6

Think About This
INVESTMENT RESEARCH
Dropbox now a feature,
not a product
The cloud storage and file sharing business model
that Dropbox led a decade ago is mature and
becoming increasingly commoditized. Dropbox
registered about 100 million users every year from
2012 and 2015. This growth has now stalled.
Dropbox took a further 2.5 years to grow from
500m to 600m users, where it remains today.
Dropbox doesn’t report figures on user churn or
how active these accounts are, though they do
identify about 350m users as potential high value
targets. Only a fraction of these users pay
subscription fees.
The names of the companies offering cloud
storage should have Dropbox investors quaking
in their boots: Apple, Samsung, Google, and, of
course, Microsoft. All these behemoths have vast
numbers of existing users, the interfaces will be
smooth, and users will be directed to the native
solution (think about iCloud for iPhone users). On
top of that, the pricing architecture is more sympathetic.
Growth in cloud storage will continue
but not for Dropbox in our view.
Microsoft 365 Family
(formerly Office 365 Home)
Microsoft 365 Family
(formerly Office 365 Home)
OneDrive 100 GB
OneDrive Basic 5 GB
USD $89.99 / year
USD $69.99
/ year
Free
Buy Now
Buy Now
Buy Now
Buy Now
Or buy at USD$8.99 per month
Or buy at USD$6.99 per month
Try free for one month
Try free for one month
OneDrive Premium Features
6 TB total (1000 GB per person)
OneDrive Premium Features
1 TB (1000 GB)
Storage only
100 GB
Storage only
5 GB
Office apps included
Office apps included
Office apps included
Office apps included
Not included
Not included
Outlook Word Excel Powerpoint
Outlook Word Excel Powerpoint
Source: Microsoft, Deltec
www.deltecbank.com
Deltec Bank & Trust Limited