Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

Dropbox, $8 billion, and the value of data backup

Nancy Marshall-Genzer Nov 20, 2013
HTML EMBED:
COPY

Dropbox, $8 billion, and the value of data backup

Nancy Marshall-Genzer Nov 20, 2013
HTML EMBED:
COPY

Dropbox is trying to raise a reported $250 million from investors, a deal that would value the company at more than $8 billion. Dropbox isn’t saying much. It’s only issued a statement saying it has more than 200 million users and  “strong momentum.” But $8 billion worth of momentum?

“It’s pretty darn steep,” says Frank Gillett of Forrester Research. He says, to really make money, Dropbox needs some online partners.

“For example, a photo service that says, ‘Look, put your photos in Dropbox, but visit our website and enhance your photos, or have them printed,’”  he explains.

Dropbox would get a percentage the photo service’s profits. But even if Dropbox gets a bunch of partners, it’s still facing lots of competition. What to do about that?  Nothing, says Larry Weber, CEO of the consulting company, the W2 Group. 

“The market for this kind of cloud storage is really endless,” he says.

Weber says there’s more than enough business for everybody. Because we’re constantly taking pictures we want to save. Forever.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.