Microsoft and Google, which offer their respective cloud storage and file share services to both consumers and businesses, are locked in a vicious price war which is squeezing competitors like Dropbox.
For example, Microsoft recently announced its plan to more than double to 15GB the storage capacity in the free, stand-alone OneDrive service for consumers, while also slashing the cost of additional storage. An extra 100GB will now cost US$1.99 per user/month, down from $7.49, and 200GB will cost $3.99 per user/month, down from $11.49.
For customers of the Office 365 Home, Office 365 University and Office 365 Personal productivity app suites, Microsoft is sending OneDrive storage to the stratosphere, from 20GB to 1TB per user.
Meanwhile, with a free Google account, people get 15GB of storage for files in Drive, Gmail messages and Google+ photos, and can purchase 100GB of additional storage for $1.99 per month. A free Google account also includes Docs, a set of office productivity apps.
By comparison, Dropbox options for consumers start with a free 2GB plan, and the option to upgrade to 100GB for $9.99 per user/month, to 200GB for $19.99 per user/month or 500GB for $49.99 per user/month.
In the enterprise market, Microsoft announced in April an increase in per-user storage of OneDrive for Business from 25GB to 1TB. OneDrive for Business is the workplace version of OneDrive, designed for employees to store, share and sync their personal work files.
The increase applied to the stand-alone version of OneDrive for Business, which costs $5 per month with the free Office Online, and to OneDrive for Business bundled with the workplace versions of Office 365.
Last week, Google announced a new version of its Apps for Business cloud email and collaboration suite called Drive for Work which includes, among other things, unlimited storage for all users. It costs $10 per user/month.
Subramani declined to comment when asked if Dropbox planned to respond with its own price adjustments to Dropbox and Dropbox for Business at some point.
In addition to Google and Microsoft, Dropbox for Business also faces other strong competitors, including offerings from Box, IBM, YouSendIt, Citrix, Accellion, Egnyte and WatchDox.
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