Dropbox flourishes after migrating to its own infrastructure from Amazon Web Services
- Category: Cloud Hosting
- Author: Admin
- March 05,2018
About two years ago, Dropbox decided to part its ways from Amazon Web Services. There were a lot of speculations in the air as to the reason behind the decision and the future of Dropbox after this bold move. After two years, Dropbox has come out with spectacular results.
Dropbox is a cloud-based company that was prospering leaps and bounds from its partnership with Amazon Web Services. Most of the infrastructure of Dropbox was handled by Amazon Web Services. Dropbox used Amazon's S3 storage to store the data of its users over the cloud. This was very beneficial for Dropbox in the earlier stages of its development as Dropbox could focus all of its manpower towards the development and technical aspects of its product rather than the operation and maintenance of the infrastructure. That part was handled completely by Amazon Web Sevices. However, it came at a price. It is estimated that Dropbox's gross margin during its partnership with Amazon was a mere 33 cents per dollar. Dropbox, after being independent of Amazon and setting up its own infrastructure for over two years is now estimated to have a gross margin of 67 cents per dollar.
About two years ago, as Dropbox was expanding at a rapid rate with the user base growing exponentially, it decided to part ways with Amazon and develop its own infrastructure. The decision must have seeded from the fact that as the company grew in size it needed more and more resources such as storage space. Hence, the pricing must have started going out of hand and Dropbox took the decision to develop its own infrastructure. However, Dropbox still uses some of Amazon's services but the majority of the infrastructure is handled by Dropbox itself.
Over two years time, Dropbox was estimated to have saved 39.5 million by migrating to its own infrastructure in the first year. While in 2006, Dropbox saved a substantial 35 million again. Observing the trends thoroughly, Dropbox made a wise decision in migrating to its infrastructure as it is growing leaps and bounds since 2015.