The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
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(GOOG) cloud storage service Google Drive has been rumored to be in the works for years now. However, reports suggest that it may finally be launched in the next couple of weeks. Many details as well as the app for Google Drive have been leaked.
Reportedly, Google Drive will offer 5 GB of free cloud storage -- greater than its number one competitor, Dropbox, but less than
(MSFT), which offers 25 GB of free storage. It will also compete with
(AAPL) iCloud, a cloud-based storage and sync service.
Check out our complete analysis of
Google Drive is expected to be a cloud-based storage offering, with sync capabilities and will likely be integrated with Google Docs, Google Apps and may eventually be shipped with every Android phone, to boost usage. It will initially be rolled out as a Web service, and on popular platforms like Windows, Mac, Android and iOS. Google may also offer a Google Drive API that developers can use to create apps that work with the service. Users will be charged for additional data beyond the free 5 GB limit.
However, we don't expect it to generate much revenue for Google or have any significant impact on its total value, as Google Apps account for less than 1% of
Google's total $680 Trefis price estimate,
which stands nearly 10% below the current market price.
However, Google could use the usage data generated by Google Drive users to improve its personalized search offering, ad targeting, and possibly increase revenues from its core advertising business, which generate almost all of its revenue.
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