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Dropbox News & Analysis

Amazon Wants In on the Enterprise Sync and Share Action Too

Just yesterday we wrote that the file storage, synching and sharing market may be as big as one trillion dollars. When Amazon found out about it, they went and built their own EFSS offering.

OK, maybe it wasn’t our article that inspired AWS, but they did introduce an Enterprise Storage and Sharing service today. Its name? Zocalo.

Available in limited preview starting now, its primary functions seem to be primitive versions of what the Leaders and Challengers in Gartner’s Magic Quadrant for EFSS have to offer.

Microsoft Moves to Win Cloud, EFSS and Other Markets

Storing, synching, editing and/or sharing files in the cloud has suddenly become big business. Startups like Box, Dropbox, and Syncplicity (now owned by EMC) sensed this long ago because their founders rightly predicted that the knowledge workers of the future wouldn’t want to be emailing files to themselves and keeping track of various versions any more than they did. Ditto for carrying thumb drives around.

Fast forward a few years and the market cap for enterprise file sync and share (EFSS) services may be as big as a trillion dollars. It’s no wonder giants like Citrix, EMC, Google and Microsoft all want part (or all) of that action. Winning is critical to their ability to gain, or even retain, Enterprise market share.

As we’ve written before, Microsoft isn’t sitting back and watching as Google and Amazon race to the bottom on the price of cost storage. And while part of the reason they are doing this is to sell the Azure platform, the other part is retaining Microsoft Office, Office 365 and SharePoint market share. After all, as Enterprises map their cloud strategies, they’ll likely look at all of their options versus simply lobbing what they have on the ground to the sky.

Gartner Rates Enterprise File Sync and Share Vendors

As anyone who reads CMSWire regularly already knows, the Enterprise File Synchronization and Sharing (EFSS) market is hotter than hot. The 100+ players within it introduce new features and new releases almost as often as soccer's Tim Howard saves goals.

So it’s no wonder that Gartner, in its newly released Magic Quadrant for EFSS, notes that the market is maturing and that vendors are working hard to differentiate themselves.

Showdown at the Mobile Enterprise Corral

2014-07-July-Cowboy-Graffiti.jpgWhy have so many mobile enterprise companies made financial announcements within the last few weeks? In the mobile device management (MDM) space, Good Technology has filed an S1 to go public and MobileIron successfully executed an IPO. In the File Sync and Share (FSS) space, Dropbox announced a $500M line of credit after having raised $325M in funding only months earlier, and Box just announced another $100M investment.

Why these companies … and why now?

Will Dropbox's New Feature Be Enough?

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Dropbox wants legitimacy in the Enterprise, and it’s racing to get all the boxes (no pun intended) checked that will win it official entry through company doors. 

To be fair, according to Dropbox for Business product manager Anand Subramani, they already have 4 million users in businesses. We haven’t called any of them to ask if they’re spending a dime on the service; in fact, it would be interesting to know how many of them are personal accounts or shadow IT.

But as we’ve asked workers at large enterprises to try to create accounts on the enterprise file sync and share (EFSS) service, the most common response we get is “it’s blocked.”

Box Watch No. 2: $100M More, Please

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Maybe Re/code has a bug  (of the non-insect variety) planted in Aaron Levie’s hair or an electronic tracking device imbedded in his shoes. But somehow the site has learned — and is now reporting —that Box is considering taking on $100 million from investors.

Re/code reported that Box is in the early stages of talks with private equity firm TPG. It quoted “sources familiar with the matter,” adding that “no final decision has been made on whether or not to accept the funding”.

Box Watch: We're Talking About the IPO Again

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You know Box boss Aaron Levie can’t be sleeping too well — every time the guy blinks (or doesn’t) there’s news about his company’s impending IPO.

And as much as Levie would probably like to comment every now and then, he’s got to keep his lips zipped.

You can almost picture Box advisors and investors like former Microsoft bigwig Steve Sinofsky, Glen Tullman, former US Government CTO Aneesh Chopra and others like venture capitalist Ben Horowitz, taking turns following Levie around with a roll of tape or a gag of some sort chanting “not a word.” Or maybe they’re threatening to break his Twitter finger. Horowitz recently wrote a book, The Hard Thing About Hard Things.

Well, Aaron, not saying anything back when people are saying things about you is hard.

Will Streem(ing) Make Box More Alluring to Enterprises?

Box wants to be the place where enterprises store, sync and share their content. We’re talking all of your content, all of the time, regardless of its format or size.

Today Box’s head honcho, Aaron Levie announced the acquisition of Streem, a YCombinator startup that has developed a means of accessing all of your content stored in the cloud via your desktop.

What’s interesting about Streem is that it has developed StreemFS, a new file system that is supposed to turn the cloud into an extension of your hard drive.

Can Dropbox Buy Its Way into the Enterprise?

2014-11-June-IntheDoor.jpgIf you don’t have enough time or talent to build it, maybe you can buy it. At least if you have as much money as Dropbox.

OK, we admit that we’re being a bit sarcastic here, but we actually have enough information to present a pretty good case around Dropbox trying to buy its way into the Enterprise File Sync and Share (EFSS) market.

We won’t bore you with all of the details, but consider that last week Dropbox acquired Droptalk and that late yesterday MobileSpan announced that it had been acquired by Dropbox as well. 

Do Sync & Share Files Belong on Public Clouds?

2014-10-June-Paper-Airplanes.jpgIt was only a matter of time.

With public cloud storage costs quickly heading toward zero, it may not make sense for some Enterprise File Sync and Share (EFSS) providers to store customer files in their own data centers.

Last night news broke that EFSS provider Egnyte will now leverage Google Cloud Services to store client files.

It’s a move that didn't shock Alan Pelz-Sharpe, a research director at the 451 Research.

“Many cloud service providers are finding out that low cost and free subscriptions are hard to upsell and the cloud storage costs alone can be a huge drag on the limited finances of a startup,” he said.

On the Eve of Box's IPO, Dropbox Raises Its Enterprise Play

While the battle between BYOD and company issued mobile devices is pretty much over (BYOD takes it all), the competition between Enterprise File Sync & Share providers seems to be getting more and more intense.

It’s a bit unfortunate for Aaron Levie’s once red hot Box which is trying to go public (Quartz reports that this is supposed to happen within weeks) because its competitors, and would be competitors, keep upping their plays, adding appealing end-user facing features as well as safeguards to suit the CIO’s fancy.

Consider that last week Salesforce’s Mark Benioff and Microsoft CEO Satya Nadella announced plansfor a tight integration between their products (including EFSS), and that SAP and OpenText made arrangements to offer TempoBox to certain mutual customers for free.

Add to that Microsoft’s recent announcement that it’s increasing OneDrive for Business storage from 25GB to 1TB per user.  Levie finds himself in a crowded field (Apple may join soon) that includes not only the 100+ existing players (see our recent EFSS update), but also 300 million user Dropbox that seems to be getting serious about the Enterprise.

Sync This, Share That: What's Up in EFSS

We know that we don’t have to tell you that the day when every worker at your company stores his content in the cloud isn’t too far away. In fact, at some enterprises, it’s already here.

A study conducted by Forrester Research reveals that 70 percent of employees use some kind of enterprise file sync and sharing (EFSS) service every single day — and that nearly one in five use it hourly.

Needless to say, this presents an unprecedented opportunity for vendors, which might well explain why the market is so dense. According to some estimates there are as many as 1,000 of them vying for our business.

Try as we might, there’s no way we can keep up with even a tenth of them. It seems that every time we write an article about EFSS, we get three to five vendors we’ve never heard of pitch us on stories.

Much as we might like to give you the skinny on each, it’s just not feasible. So what we’re going to do instead is keep you up to date on those that we feel are market makers or are doing something unique and especially interesting.

Cloud Storage, Shadow IT and the Real Question to Ask

The battle for file sharing and storage has been happening for a while, but things started heating up when Microsoft decided to offer OneDrive for Business as a standalone service -- it took a direct hit at Box and Dropbox. The question is, does it really have an advantage?

Game On! Industry Responds to OneDrive for Business

Microsoft CEO Satya Nadella's vision of “Cloud for everyone, on every device” no doubt includes Enterprise File Sync and Share (EFSS).

Earlier this week the company put Box, and almost every other vendor in the space, on notice with a blog post, “Thinking outside of the Box.”  

Its author, John Case, corporate vice president of Microsoft’s Office Division, had a fairly simple message for the marketplace:

The era of making isolated, single-solution decisions is rapidly coming to a close. Smart businesses are now choosing partners that have a holistic, comprehensive and connected set of cloud offerings and in doing so, creating a 'data culture' in their organization.”

In other words, Microsoft users should look to OneDrive for Business as the way to go for EFSS.

When you take into account that 670 million users use Microsoft Office and Office 365, what Microsoft’s message boils down to is pretty simple: If you’re a point EFSS solution in our world, you’re redundant.

Is Dropbox's Condoleezza Problem Gone?

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It was supposed to be a feel-good week for Dropbox. CEO Drew Houston unveiled a handsome stack of new, well-received products. Then he invited Condoleezza Rice to serve on his board.

We’ll get to that problem in a second, first a recap of the other Dropbox announcements.

It was with great delight last Wednesday that Houston introduced Carousel, a place in the Cloud where you could store the pictures and videos of your life and access them from any device. The user experience is not only delightful, but it also has some interesting filters and features which, in comparison, make Instagram less cool.

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