At that time, Dropbox had only existed for two years and wasn’t as well-known around the world, as it is today. Steve recommended Drew and Arash to sell Dropbox to them, as Apple would soon be launching a competing service.
Drew and Arash turned down the offer and today Dropbox has almost 50 million users worldwide, who saves a billion files every 3 days.
Meanwhile, Apple has introduced their Dropbox competitor – iCloud, which has some advantages and disadvantages compared to Dropbox. But iCloud is not Dropbox’s only competitor these days, there are plenty of other similar services, for example box.net. However, Dropbox doesn’t just sit back and wait. Dropbox recently raised a whopping $250 million from investors and their company is now valued at $4 billion. They are also planning on moving to bigger offices where they will have room for 200 employees, compared to the just 70 employees they have now, in their San Francisco based office.
It is estimated that 96% of Dropbox users are Free users who signs up for the free 2GB plan, and the last 4% of their users are paying $10-$20 a month for extra storage space. Apparently that’s enough to make Dropbox a good business, especially because thousands of those 96% free subscribers throw in so much data each day, that they upgrade to a paid plan. Even if Dropbox doesn’t sign up a single customer in 2012, their sales will still double.
Dropbox may very well be a feature, not a product, as Steve Jobs said to the Dropbox founders, and as Forbes wrote in another recent article on how Dropbox will die – and if so, I can only say that it’s a very good feature, and free 🙂