NEW YORK (TheStreet) -- Dropbox has been guarded about the details of its business, given it's still a private public. However, when it finally files for its highly-anticipated IPO, the filing may well show finances in tip-top shape.
While the market gawked at the soaring costs detailed in competitor Box's S-1, Dropbox in contrast is expected to exhibit even spending, particularly for the higher-cost items. On a day-to-day basis, this is in no small part thanks to its long-standing relationship with Amazon Web Services' (AMZN) for its Amazon S3 storage service. The long-term partnership is believed to have given Dropbox the type of storage pricing structure that enables the company to reign in technical expenses.
The cost of storing files for its 275 million and growing number of customer accounts is believed to be the company's most significant technical cost by far. And as a consumer-focused company, Dropbox experiences especially voracious storage demands. Consumers tend to eat up more file capacity with their photos, music and video storage needs than businesses, who typically require just document storage.
That said, Dropbox has, of course, also been a big beneficiary of AWS' price cuts across the board.
"Dropbox is clearly one of the biggest AWS users and they've been with them right from the beginning -- they work very, very closely with them," says Alan Pelz-Sharpe, research director for social business at 451 Research. "I'd think that they've got one of the sweetest deals going, frankly."
But sticking with AWS isn't just about having to spend less for more. It's also about having more predictable costs. While some might argue that in the long-run it would be cheaper for Dropbox to build out its own datacenters, such heavy, long-term investments could end up being extremely costly to maintain if the subscriber growth doesn't match up.