Freemium pricing of dropbox Essay

Since cloud environment does not reside in a capital facility, there is a substantial saving of the time and space. Also, it provides users access only to the resources they need for a particular task. This prevents them from paying for idle computing resources. Besides, there are competing providers for this service and an organization can always shift its business to another company offering better service or lower price. In terms of statistics, we spend $6,000 per month to update software, maintain our computer lab, and pay our employees. However, implementing a cloud computing with a constructing price of $2800 will incur a cost as low as $249 per month (Hinchcliffe 2009).

Atlantic computer’s most important goal is to increase profitability by selling ‘Tronn with PESA’ packages to consumers who want to operate web sites or share files. Among 4 price alternatives suggested in the case, the price based on value-in-use pricing analysis will be charged for ‘Tronn with PESA’ package. To achieve this goal, the company should overcome some impediments; one is that consumers are not accustomed to paying more money for the software tool such as PESA, and the other is that the company does not have sales structure for its new product. To overcome these problems, the company can make the new server product category and

4. Licensing Cost- If we are able to use the cloud technology to grant access for the Microsoft program as people need them instead of having them installed on someone’s computer that never uses them.

The Great Space Race is a novel marketing ploy by the team from Dropbox. The promotional campaign is an attempt to differentiate itself from the plethora or cloud-based services that have sprung up over the years. In fact, the landscape for cloud storage has nearly tripled over the last five years . Enterprise-level organisation from small to large, as well consumers, are offered greater incentives to sign-up with services that claims to offers convenience, reliability and security. Moreover, it promotes increased productivity through sharing of files as well as greater mobility . Nevertheless, the word “free” seems to be rampant as different services try to win the business of potential customers. However, the connotation to this word is far more complex than meets the eye. Rather, the word “free” has led to an environment where consumers and enterprise alike are being duped to exchange their valuable, and often personal and patented secrets, to the lowest bidder. Moreover, this exchange of information is happening as a result of a complacent attitude from users who ignore the very dangers the technology offers, particularly cloud based technologies, can bring after being won over by a marketing ploy.

After defining its business model, Dropbox started an aggressive online marketing campaign, which wasn't" so effective. For instance, "it cost more than U$ 300 to acquire a new customer". Even with more money being raised from different funds, Dropbox wasn't able to decrease this cost/new user.

Cloud computing services have become incredibly cheap. Public cloud prices have dropped 6 to 8 percent annually, but hardware costs actually dropped 30 to 45 percent annually. Recently Google has announced a

Houston created Dropbox so that it would make it easier for customers and small-medium sized businesses to keep track of their files all in one place. Dropbox is the perfect solution for all people who work on multiple computers and a laptop but they can’t catch a break to remember to

In the last ten years the most popular pricing model for SaaS within consumer and enterprise firms is freemium. Although there are many definitions and alliterations, basically this represents a business model that

That doesn’t seem to cheep verses free software for ever. If the company grows and you have Microsoft that means the cost grows.

DropBox failed when they created their first product because they didn 't realize who their target market was. They later learned that to make people want your product one must produce something of value to the consumer. You have to understand people 's need and provide them with a quick and easy solution. According to the case study Dropbox went from 100,000 to many million registered users in just about 18 months. That number has been significantly growing since 2008. Dropbox serves over 500,000 worldwide users. When Dropbox created dropbox for business they are targeting

Based on the personal frustrating experience of transferring files between devices, Drew Houston founded Dropbox in 2007. The company was later launched to the public in 2008. The downloadable application provides a service to sync, store and share files across platforms (personal computers, smart phones, tablets, laptop) over the internet. Although Dropbox was a late entrant to the highly competitive online backup and storage service space, its “freemium” pricing strategy provides a very flexible option for the users enables Dropbox successfully differentiates itself from rivals at the time. Currently, Dropbox ‘s service is available in 200 countries and 19 languages has about 70 percent of its 300 million users outside of the U.S.

The Coral Systems’ pricing model is the combination of the recurring revenue model and the per product licensing fee. This hybrid model allows company to start each quarter from the ending point of previous subscriber base. Coral sell a one-time license per subscriber according to the current number of subscribers at the time of license. For each addition subscribers, carrier is charged an addition license fee. The recurring revenue stream is created as the customer base grows. The hybrid model can build value for the company and solve potential problem of customers who wanted to buy the application and control.

The world has gone digital and people are always looking for the most recent free product to test. Thus to catch the consumers’ attention, the product or service must be the simplest product or service and it must also provide an instant value. Freemium is the business model that has been growing in popularity among businesses and obviously users/consumers due to apparent simplicity. Freemium is composed of the two terms “free” and “premium”. The word ‘freemium’ in itself was created after a discussion on Fred Wilson’s blog in 2006 where he wondered of what kind of business model allows a business “give your service away for free, possibly ad supported but maybe not, acquire a large number of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer premium priced value added services or an enhanced version of your service to your customer base” (Wilson, 2006). However the origins of the freemium business model come from the business model called shareware. This business model has been

The triumph of the public cloud- I ranked this trend first because I believe it is one of the most advanced and talked about topic in tech world in present year. This controversial topic is creating buzz all over the world. With advancement of technology, various tech companies have increased their effort to provide a free cloud storage system. Eric Knorr also listed this topic as a number one tech trend in his list. I believe this topic itself is one of the major challenges for public and private companies in term to provide certain product which not only is hard to maintain as well as complex and costly to generate. IT Companies can shift their fundamental competitive landscape by fabricating a new platform which will help to create and deliver values businesses have to its stakeholders (IBM, 2012). The cloud based storage can be used by companies to generate Enterprise data which can be used as various decision making and evaluation tools. (Stair and Reynolds, n.d.)

Cloud storage is one of the best solutions for storing files in the modern world. It takes the stress out of storing important and precious files. You don’t have to worry about running out of space, and you can be certain your files are safe and secure. Cloud storage is a lifesaver. For those running a small business or just individuals wanting to keep their files organised, a good online backup service and storage will be a must-have.