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Dropbox
Developer(s)Dropbox, Inc.
Initial releaseSeptember 2008
Stable release
Windows, macOS, Linux197.4.7629 / April 25, 2024; 13 months ago (2024-04-25)[1]
Windows (Windows Store version)5.0 / March 27, 2017; 8 years ago (2017-03-27)[2]
Android374.2.4 / April 30, 2024; 13 months ago (2024-04-30)[3]
iOS374.2 / April 22, 2024; 13 months ago (2024-04-22)[4]
Preview release
Windows, macOS, Linux198.3.7576 / April 29, 2024; 13 months ago (2024-04-29)[5]
Android375.1.4 / April 30, 2024; 13 months ago (2024-04-30)[6]
Written inPython[7]
Operating systemMicrosoft Windows
Mac OS 10.4 and later
Linux
iOS
Android
BlackBerry OS
Windows Phone
Available inEnglish,
Japanese (beta),
German (beta),
Spanish (beta),
French (beta)[8]
TypeOnline backup service
LicenseProprietary software (Windows & Mac clients and Linux dropbox daemon), GPLv2 free and open source (Linux nautilus)
Websitewww.dropbox.com

Dropbox is a Web-based file hosting service operated by Dropbox, Inc. that uses networked storage to enable users to store and share files and folders with others across the Internet using file synchronization. It was founded in 2007 by MIT graduates Drew Houston and Arash Ferdowsi as a Y Combinator startup.[10]

There are both free and paid services, each with varying options.[11] In 2011 Dropbox also announced "Dropbox for Teams",[12] a Dropbox service focused towards businesses and collaborative teams providing administrative control, central billing etc. Dropbox for Teams is still hosted on the web but has a different pricing model.[13] In comparison to similar services, Dropbox offers a relatively large number of user clients across a variety of desktop and mobile operating systems. There are a number of versions across many operating systems, including versions for Microsoft Windows, Mac OS X, and Linux (official and unofficial),[14] as well as versions for mobile devices, such as Android, Windows Phone 7, iPhone, iPad, WebOS, and BlackBerry, and a web-based client for when no local client is installed. Dropbox uses the freemium financial model and its free service provides 2 GB of free online storage.

History

According to Dropbox, founder Drew Houston conceived the idea after repeatedly forgetting his USB drive while he was a student at MIT. He says that existing services at the time "suffered problems with Internet latency, large files, bugs, or just made me think too much." He began making something for himself, but then realized that it could benefit others with the same problem.[15] Houston founded Dropbox, Inc. in 2007, and shortly thereafter secured seed funding from Y Combinator.[10] Dropbox officially launched at 2008's TechCrunch50, an annual technology conference.[16]

Due to trademark disputes between Evenflow (Dropbox's parent company) and Proxy, Inc., Dropbox's official domain name was "getdropbox.com" until October 2009, when they acquired their current domain, "dropbox.com".[16]

OPSWAT reported in their December 2010 Market Share report that Dropbox held 10.41% of the worldwide Backup Client market, based on number of installations.[17]

In May 2011, Dropbox struck deals with Japanese mobile service providers Softbank and Sony Ericsson. As per the terms of the deal Dropbox will come preloaded on their mobile phones.[18]

In May 2010 Dropbox users in China were unable to access Dropbox. Later, Dropbox confirmed they had been blocked by China. Due to the fact that the censorship usually focuses on popular services only, many considered this evidence of Dropbox's rapidly rising popularity and international user base. Up to Nov 2011, the website is still blocked in China, but locally installed applications are usable with some ISPs.[19][20][21][22][23]

As of October 2011, Dropbox has more than 50 million users.[24]

Financials

Dropbox has received a total venture capital funding of $257.2 million from several investors, including Y Combinator, Sequoia Capital and Accel Partners.[25]

According to speculation, Dropbox's valuation is more than $1 billion.[26] TechCrunch, VentureBeat, Business Insider and Financial Post have also speculated that Dropbox's valuation could be as high as $5 to $10 billion.[27]

Dropbox's annual revenue is expected to reach $240 million in 2011.[24]

Dropbox is based in San Francisco, and is funded by Sequoia Capital, Accel Partners, and Amidzad.[10] Starting in mid-2009, they began releasing new features gradually to help measure customer interest, a Lean Startup technique.[28]

On April 3, 2012, Dropbox announced Bono and The Edge, two members of the Irish rock band U2 were individual investors in the company.[29]

Business model

Dropbox operates on the Freemium financial model.[30]

Dropbox offers a free account of 2 GB and a paid account of 50 GB, 100 GB, and a team account of 1 TB or more. The free account and the paid account are identical in all aspects except for the amount of storage space offered. Providing the free account to users costs a lot of money to Dropbox but nevertheless Dropbox continues to provide the free accounts because it benefits Dropbox in several ways. Drew Houston, the CEO of Dropbox has pointed out that:

"Most of our growth is word of mouth/viral, so free users are still valuable: we grow faster, and they refer people who might pay"
"Picking the right duration is tricky, and people add files to their Dropboxes at different rates. Many pay eventually after using the free service for a long time."[31]

In October 2011, Forbes published that Dropbox has 50 million users, of which 96% are using a free account.[24]

For a brief period of time, Dropbox operated an affiliate program whereby third parties which referred customers to Dropbox would get a small cut out of Dropbox's revenue. But this affiliate program was shut down indefinitely on November 5, 2009 because it was not providing good returns. Dropbox provided the following official explanation:

"We believe that our efforts as a company are better spent improving the Dropbox product for our customers and delivering the features that they have been asking for."
"Because we are a small company, we have to be very selective about which projects we work on, and the affiliate program didn't seem like a wise use of our resources."[32]

In 2009, Dropbox implemented a referral program[33] to encourage their users to tell their friends about Dropbox. Their referral program had a two-sided incentive for sharing: the person who signs up for Dropbox through your referral link gets more space than through a normal sign up, and you get more space yourself too. According to Drew Houston at the Startup Lessons Learnt Conference on 23 April 2010, the referral program was inspired by the Paypal Sign up Bonus program. The referral program was wildly successful and it permanently increased their signups by 60%.[34] Referrals account for roughly 35%[35] of their daily signups (as of April 2010). In the 30 days before the conference presentation, Dropbox estimated that their users had sent 2.8 million[36] direct referral invites to their friends.

Technology

Both the Dropbox server and desktop client software are primarily written in Python.[37] The desktop client uses GUI toolkits such as wxWidgets and Cocoa. Other notable Python libraries include Twisted, ctypes, and pywin32. Dropbox ships and depends on the librsync binary-delta library (which is written in C).

The Dropbox client enables users to drop any file into a designated folder that is then synced with Dropbox's Internet service and to any other of the user's computers and devices with the Dropbox client.[38] Users may also upload files manually through a web browser.[39] Through these usages, it can be an alternative to sneakernet (physical transportation of removable media), and other traditional forms of file transfer, such as FTP and e-mail attachments.[40]

While Dropbox functions as a storage service, its focus is on synchronization and sharing. It supports revision history, so files deleted from the Dropbox folder may be recovered from any of the synced computers.[41][42] Dropbox's version control also helps users know the history of a file they may be currently working on, enabling more than one person to edit and re-post files without complications of losing its previous form.[43] The version history is limited to 30 days. A paid option for unlimited version history called "Pack-Rat" is available.[44]

The version history is paired with the use of delta encoding technology. To conserve bandwidth and time, if a file in a user's Dropbox folder is changed, Dropbox only uploads the pieces of the file that are changed when syncing.[45] Though the desktop client has no restriction on individual file size, files uploaded via the web site are limited to a maximum of 300 MB per file.[46] To prevent free users (who get 2 GB of free storage) from creating multiple free accounts, Dropbox includes the content of shared folders when totaling the amount of space used on the account.[47]

Dropbox uses Amazon's S3 storage system to store the files;[48] though Houston has stated that Dropbox may switch to a different storage provider at some point in the future.[49] It also uses SSL transfers for synchronization and stores the data via AES-256 encryption.[50]

Power users have devised a number of innovative uses for and mash-ups of the technology that expand Dropbox's functionality. These include: sending files to a Dropbox via Gmail; using Dropbox to sync IM chat logs; BitTorrent management; password management; remote application launching and system monitoring; and as a free Web hosting service.[51][52][53][54][55][56]

Functionality

Add-ons

There are a large number of official and unofficial Dropbox addons that are available, mostly created by the Dropbox community. These addons are both in the form of web services such as SendToDropbox[57] (which allows users to email files to their Dropboxes), Backup Box (which facilitates online backup of FTP, Git, MySQL, and other services to Dropbox accounts),[58] and desktop applications such as MacDropAny[59] (which allows users to sync any folder on their computer with Dropbox). There is also a web services and browser extensions called cloudHQ for Dropbox[60] which allows Dropbox users to synchronize Google Docs with files in Dropbox storage and also to edit Dropbox documents in the browser.

There are also a number of client applications for operating systems that Dropbox does not officially support, such as Maemo, Symbian, and webOS.

An open source tool called Dropship provides unauthenticated access to Dropbox-hosted files by using the Dropbox API to access files by their hash. Dropbox has attempted to squash this project by requesting its suspension where it was being hosted, and by inadvertently issuing a fake DMCA takedown notice.[61]

Dropbox user demographics

A plurality (32.7%) of Dropbox users are from the United States, with 6.7% and 6.5% from the United Kingdom and Germany, respectively. 66.1% of Dropbox users use Windows only, 20.9% use Mac OS only, 2.0% use Linux only, and the remainder use some combination of the three.[62]

Reception

Positive

Dropbox has been praised by many publications—including The Economist, The New York Times, PC Magazine, and The Washington Post—for its simple design and ease of use.[63][64][65][66] It has also received several awards, including the Crunchie Award in 2009 for Best Internet Application, and Macworld's 2009 Editor's Choice Award. It was nominated for a 2010 Webby Award, and for the 2010 Mac Design Awards by Ars Technica.[67][68][69][70]

Dropbox has been named as the world's fifth most valuable web startup after Facebook, Twitter, Zynga and Groupon,[71][72][73] has been touted as Y Combinator's most successful investment to date,[74] and is among the top 10 iPhone most popular apps of all time, according to TechCrunch.[75]

Other accolades include being voted among the top 10 Android apps of all time, according to ZDNet,[76] being recognized as one of the top 50 emerging companies by TIEcon,[77] and called one of the 20 best startups of Silicon Valley.[78]

Drew Houston was called the best young tech entrepreneur by Business Week,[79] and he and co-founder Arash Ferdowsi were named among the top 30 under 30 enterpreneurs by inc.com.[80]

In January 2012, the company was honored as start up of the year by Tech Crunch.[81]

Negative

Dropbox has been criticized by independent security researcher Derek Newton, who has argued that Dropbox's authentication architecture is inherently insecure,[82] and by software expert Miguel de Icaza who claims that Dropbox's terms of service contradicts its privacy policy and that the company's famous claim "Dropbox employees aren’t able to access user files" is a lie.[83]

In May 2011, a complaint was filed with the US FTC alleging Dropbox misled users about the privacy and security of their files. At the heart of the complaint was the policy of "deduplication", where the system checks if a file has been uploaded before by any other user, and links to the existing copy if so; and the policy of using a single AES-256 key for every file on the system so Dropbox can (and does, for deduplication) look at encrypted files stored on the system, with the consequence that any intruder who gets the key (as well as Dropbox employees) could decrypt any file if they had access to Dropbox's backend storage infrastructure.[84]

On 20 June 2011, all Dropbox accounts could be accessed without password for 4 hours as reported by TechCrunch. The error was caused by a code update made at 1:54 pm Pacific Time. The error was detected at 5:41 pm and immediately fixed. Fewer than 1 percent of Dropbox's users were logged in at that time. All logged in sessions were ended since then. All users with compromised accounts were notified by email.[85][86] Dropbox could potentially face a class action lawsuit over this incident. The lawsuit is being initiated by Cristina Wong of Los Angeles and claims violation of the California Unfair Competition Law. The suit has been filed as Wong et al. v. Dropbox Inc., No. 11-CV-3092-LB, (N.D. Cal. June 22, 2011). The suit is scheduled to be heard by U.S. Magistrate Judge Laurel Beeler.[87]

Headquarters

The headquarters of Dropbox has its corporate headquarters in Suite 400,[88] on the fourth floor of the China Basin Landing building in San Francisco.[89] The company occupies the entire fourth floor of the 1991 section of the facility, with 85,600 square feet (7,950 m2) of space. The company also has an option to take space on the fifth floor.[90]

The company previously occupied less than 20,000 square feet (1,900 m2) of space at the 760 Market Street building. In July 2011 Dropbox announced that it was moving into the China Basin Landing, with a significant increase in space. After Dropbox signed the leasing deal, the entire China Basin Landing center became 91% leased. The space taken by Dropbox had been constructed over the existing three story 1991 portion of the complex and opened in 2007, but the office space remained empty during the late-2000s recession. Ed Lee, Mayor of San Francisco, said "While the state and the nation are focused on jobs and the economy, San Francisco’s economy rumbles forward – adding new jobs thanks to the growth of firms like Dropbox. Dropbox’s move is a significant expansion which continues the steady drumbeat of innovative, talent-driven companies which start, stay and grow right here in San Francisco."[90]

See also

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References

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