Dropbox has 275 million users. It's steadily improving the business capability of its Internet file system. That makes it important to understand what Dropbox is doing and why it matters to business. Here's what they are doing:
- Last week, Dropbox secured a $500 million line of credit. My take is that Dropbox will use this money to build datacenters as well as global business capacity. Today, the company uses cheap storage from Amazon S3, but it keeps all the juice (like user permissions, search metadata, and application data) in its own data centers. This cheap funding (debt is much cheaper than equity) gives it a reasonable capital structure to buy lots of servers to build global applications.
- Yesterday, Dropbox made its new Dropbox for Business "linked folders" generally available. This feature lets technology managers give employees a business Dropbox that it can secure and own. Employees can link the business Dropbox to their personal Dropbox so they see all their files in a consistent way. When an employee leavers the firm, the business Dropbox disappears from personal devices (if it works as designed). Customers like Facebook are using this product and seeing a big shift in its employees moving business files from a personal Dropbox to the new business Dropbox.
- Dropbox has attracted 100,000 disrupters -- many of which are targeting mobile moments. Mobile moments open up a universe of new personal and business applications to get things done in a small moments of need. This level of partner investment is a huge deal because it signals that Dropbox is becoming a file system for the Internet era. Using Dropbox, these innovators can simply inherit the entire file management and storage sub-system they need.