NEW YORK (TheStreet) -- The cloud storage wars have begun, but online-storage startup and likely IPO candidate Dropbox may not need to join the fray.
Some of the biggest cloud storage vendors have been mercilessly undercutting each others' cloud storage prices. Microsoft (MSFT) OneDrive and Google (GOOG) Drive reduced their prices by upwards of 80% and Google recently cut its price down to just $9.99 a month per terabyte.
Instead of matching these steep price cuts, Dropbox has been concentrating on amassing an impressive technology suite. The hope is it can exude an attractive "stickiness," keeping churn levels at a minimum and guiding users from the free to the paid service model. The tools also serve to bring in lucrative enterprise deals. The growing tendency among cloud users toward file-size expansion will also benefit the company.
"These guys are certainly looking ahead to make sure that the value of their service is so high it's going to continue to attract customers," says Paul Hughes, program director of storage and data management services at IDC. "They're really looking at breadth of services and breadth of offerings."
Dropbox has been rather quietly building out value-added applications and functions, slick tool sets and smooth user interfaces, and increasingly better and better customer experiences since its inception in 2007, both internally and through a spate of acquisitions that have bulked up its portfolio to now include increased collaboration, e-commerce, mobile commerce and mobile advertising capabilities. At the same time, the company has seen its user base steadily march up to 200 million as of Nov. 2013.