Dropbox-Pro-LogoDropbox has updated its Dropbox Pro premium online storage product today in order to make large amounts of storage more affordable and provide some key new security features.

Starting today, premium subscribers will get 1 TB of storage for $9.99 a month, or $99 a year, which is a major upgrade over Dropbox’s past pricing. Previously, users could get 100 GB, 200 GB or 500 GB of storage for $9.99, $19.99 or $49.99 respectively.

The pricing change is big news for the company, which held steady on the cost for its premium service even as others like Microsoft OneDrive and Google Drive announced steep discounts. Now, Dropbox Pro costs the same per month as Google Drive’s 1 TB tier, and less money if users choose to purchase a year-long subscription all at once. Office 365 Personal users get a better deal on a terabyte of OneDrive space, which costs them only $7.99 a month, or $69.99 a year.

Dropbox will also face fierce competition from Apple in the fall, when the company rolls out a new pricing scheme for its refreshed iCloud Drive online storage service.

Password-protected-links

In addition, the update comes with a number of security benefits, including a trio of new features for shared files and folders. Users can now choose to password-protect a share link, as well as set it to expire after a certain amount of time so they don’t need to worry about resetting the sharing settings when they no longer want their files accessible. Users can also set view-only permissions for certain shared folders to give collaborators access to important files without giving them the ability to tamper with them.

Finally, Dropbox rolled out a new remote wipe capability for Pro users that will allow people to remotely delete the Dropbox files stored on a computer that they have lost the next time it comes back online. It’s not a perfect fix, since someone who wants to steal the data could just open the computer up when it doesn’t have internet access, but it provides an extra layer of security.

Comments

  • Kary

    I’d like to see an article sometime that explains the economics of this industry. The pricing seems so cheap I really have to wonder where they expect to find profit. Admittedly though I have no idea what their hardware costs are at that level.

    • Dave

      At scale, the hardware costs for Amazon, Microsoft and Google are quite low. For Google and Microsoft, storage is just another way for them to get customers for their broader suite of services–Google Apps or Office 365. So they don’t need to make money on this particularly service (break even or even a slight loss is fine), have plenty of scale to keep hardware costs down and have a good read on how much storage users really use. Amazon is just being Amazon as best I can tell. Maybe their service is a vehicle for building something else, maybe it is just trying to make Microsoft and Google mad.

      The hard thing for Dropbox and Box is that they have to invest a ton in customer acquisition trying to build a stand-alone business around a product that has become a commodity, and each of their business users must have at least one of Google Apps or Office 365 to run the rest of their business. Most of their consumer users don’t really pay or don’t pay much. Take a look at Box’s S-1 for the sales and marketing cost illustration, as well as the free versus paid stats.

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