Information good is a type of commodity whose main market value is derived from the information it contains. Especially due to current digitizing, information goods become easily and cheaply distributed, transferred, reproduced, and reconfigured (Shapiro and Varian, 1999).
In our blog and video, we dive deeper into the world of cloud computing. Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than just storing data on a local server or a personal computer. The cloud is a very broad concept, and it covers just about every possible sort of online service, but when businesses refer to cloud procurement, there are usually three models of cloud service under consideration, Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
Software as a Service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”. Platform as a service (PaaS) is a category of cloud computing services that provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the infrastructure. PaaS is typically associated with developing and launching an app (e.g. SalesForce). Infrastructure as a Service (IaaS) is a service model that delivers computer infrastructure on an outsourced basis to support enterprise operations (e.g. Amazon). For our assignment, we will focus on SaaS.
We compare two of the major players in the cloud storage (SaaS) industry: Dropbox and Google Drive. Dropbox is a cloud storage and sharing provider, with over 300 million users. Dropbox users are provided by an online storage space hosted on Dropbox accessible anywhere via the Internet. The storage space provides storage for virtually any kind of file, like docs, images and videos. On the other hand you have Google Drive. Google Drive is a online backup service, where one can create, share, collaborate, and keep all of their digital belongings. Currently, Google Drive has over 1 million paid users since September 2015.
Strengths and weaknesses of both companies are compared based on ease of use (1), reliability (2), speed (3), features (4) and security (5). Regarding ease of use, Google Drive offers the option to upload documents from within a web browser, something which Dropbox does not allow. Besides, Google Drive has far more options for sharing and saving files. With an average uptime of 99.83% and no unexplained loss due to memory issues, Dropbox is a clear winner regarding reliability. Also considering speed, Dropbox is faster in uploading and transferring files, even if these files are downloaded to the desktop. However, as mentioned earlier, Dropbox is a very basic program only delivering you 2GB of free storage space. Google Drive on the other hand offers a free 15GB to users. Other features Google Drive offers include, creating documents, spreadsheets, and working with products as Gmail and Google+. Last, security and privacy of documents is a big issue in the cloud computing industry. Both companies guarantee protection by AES-256 bit encryption, however both companies have become the victim of several phishing scams. However, Google Drive has taken it a bit farther by internal employees accessing private files and disseminate them among externals.
Based on the five previous metrics, Dropbox currently wins the battle. But to stay competitive in the cloud storage market, it is important to consider the following trends:
– The cloud for B2B – firms are more and more seeking for cloud solutions to store, share and organize their files.
– The cloud for governmental institutions – public institutions are also eager to take advantage from the benefits of the cloud, giving Dropbox and Google Drive a new potential customer base.
– Rise of emerging markets in the cloud – at this point in time Dropbox and Google Drive are hardly present in emerging markets (e.g. India). However, analysis predicts emerging market growth in storage will outpace storage spending in more mature regions opening huge opportunities for cloud storage providers.
To conclude, the cloud computing battle is fought every day and without taking into account future trends Google Drive will soon take over.
Team 26
