Dropbox Inc. SWOT and PESTLE Analysis

Strength

1. Open and thriving ecosystem of Dropbox keeps users loyal and makes products more desirable: Open and thriving ecosystem leads to deeper relationships with the users and developers of Dropbox. Developers can make applications that connect to Dropbox through their DBX Developer Platform. Many small applications have already been developed and are functional in the ecosystem. E-mail applications can plug in to Dropbox to share links or send attachments. Videoconferencing apps allow users to start meetings and share content natively from Dropbox, and eSignature apps give users the ability to manage and maintain contract workflows all from within Dropbox. As of December 31, 2020, Dropbox was receiving over 60 billion API calls per month and over 0.75 million developers had registered and built applications on its platform. In addition, more than 85% of Dropbox Business teams have linked to one or more third-party applications. Such an open ecosystem allows developers to keep the ecosystem up to date and the applications that come out of it make the software more user friendly attracting new user base. It acts as a support system for Dropbox and allows it to grow its revenues and provide quality experience to its users. New ideas can also get generated out of this system which Dropbox’s developers can choose to implement into the software and improve the experience further.

2. Dropbox depends on data centres and storage facilities for its day to day operations: Thus it becomes important for it to ensure that these facilities remain operational throughout the year to prevent outages. Minimized outages also ensure increased user trust on the company for their data storage solutions. Providing secure and easy to use platform is the prime selling proposition for Dropbox. Dropbox has datacenter co-location facilities in California, Oregon, Texas, and Virginia. More than 90% of its users’ data is stored on their own custom-built infrastructure, which has been designed from the ground up to be reliable and secure, and to provide annual data durability of at least 99.999%. Dropbox also employs Amazon Web Services, or AWS, for the remainder of their users’ storage needs and to help render their services. These AWS datacenters are located in the United States, Australia, Europe, and Japan, which allows the company to localize where content is stored. The technology infrastructure, combined with select use of AWS resources, provides Dropbox with a distributed and scalable architecture on a global scale. The infrastructure is built with multiple redundancies to prevent data loss and has multiple backups as well to keep the user data protected at all times.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

1. Remote management and unstaffed data centres are more likely to take centrestage in the future: In the future it is likely that there are more servers than the people to manage them. This challenge has been addressed by automation which has allowed a single system admin to manage tens of thousands of severs at the same time. The server to admin ratio is becoming out of control. As sever growth continues to pick up, staff development is not keeping up. Thus, in the future it is likely that unstaffed data centres will mushroom to satisfy the needs of the users. This effort of unstaffed data centres will be driven by software companies providing solutions to accomplish this goal. This effort will also feature new approaches to design and even robotics. The need for unmanned and automated datacenters is a trend that is likely to gain traction in the near future and the businesses need to be ready to embrace the advantages that this provides to them. The savings in operational costs, need to be invested elsewhere to reap more profits. Automation and software together will be able to fulfill this and companies operating in the cloud storage space like Google, Dropbox and Microsoft should leverage opportunities in this upcoming centre to grab a competitive advantage.

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Technological

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Legal

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Environmental

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