Link: Dropbox S-1 Analysis – The King of Freemium

“Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month. 90% of revenue originates through self serve channels – an astounding figure for company that generated more than $1B in revenue last year.”
Original source: Dropbox S-1 Analysis – The King of Freemium

Unlike Office Online and Google Docs, the Dropbox badge doesn’t support real-time editing. That means if you edit a document while someone else is working on it, you’ll still be able to save it locally, but you’ll have to manually figure how you want to merge in your changes.

Everything sounded awesome until I got to that part…

Dropbox at “hundreds of millions of dollars” in revenue

Of all the start-ups, though, Dropbox has seemed to enjoy the most meteoric growth. It just reached 200 million users—or about 10 times as many people as it had at the end of 2010. Its revenue has grown 20 fold since late 2010 and is now in the “hundreds of millions of dollars” per year range, say the people familiar with Dropbox’s funding plans.

It’s be cool to know the margins.

Dropbox at “hundreds of millions of dollars” in revenue

Even Google’s CIO clamps down on IT

“The important thing to understand about Dropbox,” Fried said, “is that when your users use it in a corporate context, your corporate data is being held in someone else’s data center.”

I’m fascinated by this idea of “corporate data.” It makes perfect sense, of course, but as always with IP, it opens up weird cans of intellectual worms if you start to get all pissy.

As one astutely snarky commenter added:

But the quote in the article sounds like precisely [like] the reason for any other company’s CIO to object to storing their data on Google Drive.

Even Google’s CIO clamps down on IT