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Why You Should Short Dropbox and Box

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I recently got a new computer. As I set up my new machine, I decided that this time, I would save myself the hassle of storing anything locally by setting up a Dropbox account and storing all my documents in the cloud.

In principle this seemed like a great idea! In practice? My documents are in Google Drive. My email is Gmail. My photos? Well, I publish them on Facebook. Wait, what am I storing on my computer anyway?

The problem with Dropbox (and it’s major competitor, Box) is that their business model is centered around the core assumption that consumers have files. As we move towards cloud-based services, consumers create fewer files. The need to store files – either locally or in the cloud – becomes unnecessary.

Couple that with the explosion in use of mobile devices and tablets. How many files do you save on your iPad? Instead, consumers are becoming accustomed to interacting with apps, and that is extending to their laptop experience with machines like the Chromebook.

The final remnants of local storage will be photos and music. But even these are moving in the direction of “as-a-service.” Companies like Spotify and Pandora are changing the way that we consume music. And photos are instantly shared and stored on online services like Facebook, Flickr and Instagram.

If you believe, as I do, that in the future consumers access everything via the web or apps, what becomes of Dropbox and Box?


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