Wednesday, November 5, 2014

Does this mean Microsoft will buy Dropbox?

You may have seen the news that Office and Dropbox will start working together. Here is the announcement if you missed it:

http://blogs.office.com/2014/11/04/office-dropbox-work-together-phones-tablets-web/

Now this got me thinking. With Microsoft recently announcing unlimited free storage for OneDrive consumer and also unlimited free with plans including OneDrive for Business it kind of wrecks Dropbox’s business model of charging for web storage now doesn’t it?

Microsoft has a file sync tool for OneDrive but it isn’t currently as robust or as widespread as Dropbox’s. So to me it makes sense for Microsoft to look at buying Dropbox to not only get the sync technology but also the audience.

That scenario may seem unlikely to you but let me point to a few precedents here. Firstly, Microsoft’s purchase of Skype and secondly Microsoft’s purchase of Yammer. Both gave Microsoft access to key technology as well as an audience they were not really engaged with.

So if Microsoft does acquire Dropbox you can tell people you read it here first. However, I’d love to hear whether you think what I suggest here is feasible? I’d love to hear your thoughts on the topic.