Click here to close now.

Welcome!

API Journal Authors: Elizabeth White, Liz McMillan, Pat Romanski, Carmen Gonzalez, AppDynamics Blog

Blog Feed Post

Dropbox, Google Drive, Apple iCloud, Microsoft SkyDrive; maybe they’re not apples after all?

Cloud storage product Dropbox is one of those tools that users tend to rave about. It’s deceptively simple. It’s pretty reliable. The value proposition is immediately apparent. It has paid tiers of usage that bring additional storage but (like other freemium beacons such as Evernote) the free offering is rich enough to be compelling, engaging, and valuable. However, as Apple, Google and Microsoft start bundling very similar capabilities right into their latest operating systems, how can Dropbox (or any of its many peers) manage to keep attracting new customers?

Maybe all the articles and blog posts that lump these products together and label them as ‘just’ alternative cloud storage solutions are missing the point? Maybe they’re addressing fundamentally different problems, and maybe that offers room for differentiation as the market becomes clearer.

The late Steve Jobs once, famously, described Dropbox as ‘a feature, not a product.’ A feature for which he was apparently willing to part with as much as $800 million, but still just a feature. And, from Apple’s perspective, cloud storage is just a feature. It’s a feature that strengthens the Apple product ecosystem. It’s a feature that makes it that little bit harder to seriously consider buying a non-Apple tablet or computer when you already own an Apple phone. All your data is available on all of your devices. All of your music is available on all of your devices. Diary entries made on one device automatically appear on all of the others. It’s magical. It’s genuinely useful. And it’s a concept that is ridiculously easy to sell to prospective customers. Those customers are buying an iPhone or an iPad or an iMac, and they’re loving glass and aluminium, but the (allegedly) seamless cloud stuff going on behind the scenes is a very effective means of dissuading an existing Apple customer from straying toward the latest shiny alternative from Amazon or Google or Microsoft. The latest Lumia has tiles? So what. You’d have to copy your data onto it manually!

Microsoft’s SkyDrive and Google’s Chrome OS incarnation of Drive are essentially the same. They’re convergence plays, intended to make today’s devices as sticky as possible, and to ensure that future devices from the same stable are current customers’ first choice. And, as Jobs said, they’re features. They’re another badge, handed out to members of the tribe of Apple/ Microsoft/ Chrome|Android and worn with pride.

Growth in Dropbox registered users (numbers from Dropbox)

With over 100,000,000 users, a valuation in the billions of dollars, and investment in excess of $250 million, Dropbox remains a force to be reckoned with. It would be easy to suggest that the arrival of iCloud et al has simply removed Dropbox’s market overnight, but the number of registered users doubled in the six months to November of this year. It took over a year for the previous doubling of user numbers, from 25 to 50 million. SkyDrive, Google Drive and iCloud were all available.

Nevertheless, Dropbox does face a challenge. Early adopters and engaged users already consciously opt for services like Dropbox’s. But the vast majority of potential users, when looking for a cloud storage solution, will surely just switch on the one that their device is already configured with. In other words, iCloud, Drive, or SkyDrive. The market of users who will take this easy route must be far larger than the market of users who will go out and download something else when they don’t have to. But — and this may ultimately play to Dropbox’s advantage — the mass market of default-choosing users is probably almost entirely populated by people who will never hit the limit on the free storage that Dropbox offers them. They will take, and they will consume, and they will be a cost, but they’re very unlikely to ever pay Dropbox any money. The customers who care enough to go looking for alternative solutions, on the other hand, probably have the mindset or the storage requirements to part with cash. Dropbox’s conversion rates should rise, leading to slower growth on that overall user graph but a healthier balance sheet.

Ironically, perhaps the biggest potential market for future Dropbox growth is also one that is increasingly being squeezed. iCloud, Drive, and (to a lesser degree) SkyDrive appeal to individuals and small companies with enlightened IT procurement policies. They appeal to people with the power to choose (and the budget to afford) a set of devices that can and will work together seamlessly. But for the great mass of enterprise employees, spending their own money on a tablet or a smartphone and then trying to find a workflow that shares data between them and the bland Windows laptop handed to them by their employer, Dropbox must seem the answer to their prayers.

Except, of course, that enterprise CIOs are (understandably) terrified about data loss and they are cracking down hard on employee use of consumer cloud storage solutions. Dropbox’s fledgling business offering is limited at best, and ‘enterprise Dropbox’ offerings like Oxygen Cloud, Egnyte and GroupLogic are snapping at the company’s heels with a raft of CIO-friendly capabilities around audit, permissions, and more. For the CIO, and the business, these solutions make an awful lot of sense and deliver an awful lot of value.

But for the poor employee with a personal iPad and a company Dell? They probably still want their Dropbox…

 

Disclosure: I use the premium versions of Dropbox and Evernote every single day. They are invaluable core parts of my workflow across multiple devices. I pay for them, just like the rest of you. I also make some use of the free storage allowance offered by Box, Google’s Drive, Apple’s iCloud and Amazon’s CloudDrive.

Read the original blog entry...

More Stories By Paul Miller

Paul Miller works at the interface between the worlds of Cloud Computing and the Semantic Web, providing the insights that enable you to exploit the next wave as we approach the World Wide Database.

He blogs at www.cloudofdata.com.

@ThingsExpo Stories
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, connected, and small. If your ambitions are big, so are ours. In his session at @ThingsExpo, Jack Hu, D...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.