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Summary:

“We’re not cutting prices,” Dropbox CEO Drew Houston declared Wednesday. This despite the fact that web giants with money to burn like Google and Microsoft are undercutting his service on pricing.

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photo: Lauren Hockenson/Gigaom

Cloud storage price cuts have been quite the rage so far in 2014, but Dropbox CEO Drew Houston isn’t on board just yet.

“We always think about making (Dropbox) more affordable, but we’re not cutting prices,” Houston told attendees at the Code Conference Thursday. He thinks that Dropbox offers something that others seeking to compete with his cloud file storage service — companies ranging from Box to Google — can’t match, and he likely walked away from what was otherwise a tough interview believing that even more after a conference attendee told the room he switched back to Dropbox after trying the cheaper Google service because the user experience was better.

Recode’s Liz Gannes and Walt Mossberg grilled Houston about flaws in Dropbox’s services, especially its Carousel photo-sharing product introduced earlier this year. Houston fielded the barrage well, but was on the defensive throughout most of the interview as he defended his company’s products and said it was working on improvements.

Dropbox charges $9.99 for 100GBs of storage, which both Google and Microsoft have dramatically undercut this year with service plans of their own. It doesn’t sound like that’s going to change any time soon, but it will be interesting if Dropbox feels more pressure to gain users as it approaches what is likely to be a lucrative IPO.

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  1. Sharon Wagner Wednesday, May 28, 2014

    As far as I know, DropBox user metadata is stored in Dropbox data centers, while the actual files stored on Amazon’s S3. It’s actually means that Dropbox prices can go as low as AWS S3 prices (I’m sure Dropbox gets special discounts…) assuming we exclude dropbox data center cost of operation. Assuming Dropbox would like to participate in the storage prices war, they will have to get off AWS.

    More details about Dropbox storage system: http://www.datacenterknowledge.com/archives/2013/10/23/how-dropbox-stores-stuff-for-200-million-users/

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  2. All I know is when it is time for renewal of my Pro subscription w/ Dropbox I will move to Google Drive or OneDrive. Regardless of how valuable Dropbox believes their services are for a large number of their customers the additional costs are not worth it.

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  3. I love dropbox, but it’s too expensive for personal use.

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