Wednesday, April 19th, 2006

Welcome, Microsoft

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It’s too early to talk about it much, but it appears that Microsoft is working on Live Drive – yes, you guessed it, this will be an online storage service. For the most part my reaction is similar to what it was for Google’s “announcement.” I’m trying to figure out if GOOG and MSFT will approach this space differently, but I’m inclined to say that they will be very similar offerings. Each company has advantages in their own right: microsoft is inherently more connected to your desktop, while google has shown it has a much better web strategy so far. As an online storage startup, this is both good and bad.

The Good:

Online storage will soon become a Big industry. As someone in the chat room recently said, our turf is getting validated. The benefit of big players with big pockets is that 95% of the marketing and consumer education/awareness will be done for us. The media bites at anything coming out of Mountain View and Redmond. In the broader fight, we’re trying to get consumers to realize that online storage is more useful and economical than alternatives like remote pc access, thumbdrives, external harddrives, and discs. If another company’s resources and clout can make that happen, it only helps us.

To utilize this opportunity, we just need to continue to make Box.net stand out from the rest. How? We keep our focus on features, ease of use, privacy, neutrality, customer service.

The Bad:

There will be a downward push on pricing (Something that will surely make Michael happy). Our margins will become smaller, which means less profit. Microsoft and Google can afford to offer this type of product without having to focus immediately on revenue. To offer it for free, even without advertising, will work to their advantage as a way to lock users into their systems.

Thoughts? Bring on the comments.

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  • Jared

    I personally don’t trust either Google or Microsoft to protect my private data. Where is the profit in free storage? It seems to me that they are going to have to use my data in some way to benifit their bottom line. In the mean time, I’ll stick with the box.

  • JOJOFACE

    I would NEVER trust my personal files with Microsoft online. Never in a hundred years. It’ll be interesting to see what Google brings up.

    But, I love my Box. :) I’ll stick with it till the end. :D

  • http://5thirtyone.com Derek Punsalan

    The only thing that will matter in the end is the ‘Privacy Policy’ and ‘Terms of service’. I don’t know about anyone else, but Box will win the contest in both arenas hands down.

  • http://smallchou.blogspot.com Jack Chou

    i may be the only one that thinks this, but to assume that people won’t be trusting google and microsoft with their files is probably a little foolish. just because the early adopters and technology-intensive people don’t trust those companies doesn’t mean the mainstream public won’t. after all, don’t people already trust google and microsoft with their e-mail? i don’t know about anybody else, but i think the information in my e-mail tends to be as personal as anything on my hard drive.

    in the end, box.net will (or won’t) gain customers because of a compelling feature set, ease-of-use, and viral adoption, because we all know no one will outspend microsoft or google on marketing. it’ll be interesting to see how this all plays out. good luck to box.net!

  • Aaron

    Privacy can mean a lot of things, including their approach to advertising, data mining, use of information for other products, etc – so in general, our policies are going to be much more strict than Google’s or Microsoft’s, mostly because there is very little value in this information to us… whereas to a google, it is helping them sell you on other products and services. As I said during the whole gdrive speculation period, it becomes very easy to trust large companies – especially as an average consumer. Privacy will not be a significant factor in their decision making regarding the online storage provider they choose. In fact, the biggest factor for an “average Joe” is what their friends tell them. If we get them into box first, microsoft becomes irrelevant.

    If they’re used to thumbdrives or other storage utilities, the google/microsoft launch will bring a lot of attention to this space. It’s our job to capitalize on this.

  • http://stormgrass.com richard

    You guys are doing everything right. I couldn’t imagine trading my Box.net account for an account with MS, considering that it would probably include flashing banners on top and both sides, while being slow and buggy.

  • Doug

    I agree with the comments above that Privacy concerns will not sway Joe public and indeed the brands of Google and Microsoft provide comfort that the offering won’t go bankrupt burying your precious data forever.

    I question the notion that online storage is “sticky.” It would take only minutes to arrange a transfer of all one’s files from one service to another and a few hours for the transfer to happen. The winning service must put a new angle on it’s offering; it is very likely that Google will bring something innovative to the party.

    Search verus sort? I personally like the idea of assigning meta-data to my files and retriving them through a fast, eloquent search mechanism. Remembering what you called a file and which folder you saved it in is not always easy, harder still when it could legitimately live in several places, and the challenge will only get harder as we continue to store more and more on PCs.

    Enterprise, with the assistance of Autonomy and Verity, has taken this approach to manage mushrooming data volumes for years. To date nobody has delivered an eloquent and cost viable solution for the consumer market but with the boom of Web 2.0 surely we won’t be waiting for very much longer.

  • http://www.technologyright.com Mr Tech Right

    I am the same – wouldn’t touch a MS offering with a ten foot pole. As someone else said it would be slow and buggy. No thanks. You all are doing a good job. Keep your heads up and keep up the good work.

  • JOJOFACE

    Another HUGE factor, as I see it, that is an advantage for Box, is your integration with Netvibes.

  • Chris

    Double-time on your features and API adoption.

    If you are out there with a huge feature set while Google is in Beta for 2 years (email is still in “beta” right), then these companies will only help you. People will get frustrated, search for alternatives and find a good home.

    IMHO you need (ASAP):
    – googlesque searching
    – real sync, not this one directional business
    – ftp (or something similar) access to make a bDrive
    – email file submission

    Chris

  • Adam

    The biggest factor for me personally is not privacy, but speed. I do not store anything online anywhere that I would not want a company to be able to see, I figure it is pretty much inevitable that any online storage is not entirely secure and will eventually be compromised.
    My decision will be based mostly on speed. Which service provides the fastest upload and download speeds, and the most responsive interface will be the service that I choose. I feel that for the “average joe ” user, this will be more important than the TOS and Privacy policies.

  • bob

    I have major problems with MSFT. Google at least fought the DOJ’s attempt inthe end the DOJ didn’t get everything,and GOOG got some respect from me for that.
    As for me Ilke to have more than just one backup for that reason I use both Box & GOOG. Thumbdrives & disks are OK but online I’ve found is easiest.
    Now of those Box is the easiest to use ‘cuz I can upload in a file of any size without busting it up, downloads too. When it comes to updating a
    file No one does it like Box!
    BOX ROCKS!!!

  • Daniel

    Looks like Box is getting some more compitition…

    Putting it this way, ask people what they like better Google or Box.net. More than 99% of people would choose Google. Every company has a purpose. Unlike Box, Google’s purpose is to provide you with quick and efficient searches. They do a pretty damn good job at it. Now, just look at all the stuff they have, GMAIL, Blogger, GCAL, Google Maps, Google Earth, and much more. It’s hard to think of Google as only a search engine. I love Google, and everything they make is great. But, when it comes to online storage, Box.net may have an advantage. Why? Just look at this list.

    * Privacy Policy
    * There is no reason for Box to want our files
    * Box is online storage, nothing else
    * Good Web Design
    * AJAX is cool :D
    * Sync thingy

    What Box will need to beat Google
    * New features = New members
    * A good advertising plan
    * Partnership with other companies (like what you did with netvibes. That’s where I first heard about you. Mabye you guys can make a module for Google before they release their product.)
    * Mabye this site can have some forums for the users. Like the meebo.com forums

    ;)

  • http://getmortified.com david

    i agree with jack c. people already trust both companies. don’t kid yourself.

    but….

    the thing about google and ms is that they are not yet live. box is. and even better? box is MUCH better than its current competition– as a refugee from the crapfests that are onlinefilefolder.com and YahooBriefcase, i should know. so bascially, yes, Box should totally EXPLOIT any media hype that might come to the topic of online data storage. Box should take advantage of the fact that MS and Google are drawing attention. they are handing you a giant spotlight.

    so my average guy advice? get the Box name out there now. make the service even better and even easier.

    if Box manages to ‘own the turf’ in terms of mental real estate BEFORE the big boys officially show up, Box might be okay.

    case in point?

    this is how Yahoo became the first big search giant– not AOL or MSN or Disney’s Go.com or iWon.com (which sprung from CBS i think). remember Time Warner’s Pathfinder? neither do i.

    this is also how Amazon won the web’s retail wars defeating not the sites that were funded by major existing retailers (which ironically are now “featured” mini-stores on Amazon).

    so Box just needs to be position itself as Christopher Columbus here and plant a flag large enough (like, asap) that captures a MASS audience, not just a niche one.

    i am not super sure HOW they can get word out… since… the sad thing about data storage is that unlike recent net successes with image-sharing sites (flickr) and communities (myspace)… Box’s turf isn’t super sexy press-wise or public-wise. perhaps it needs an attention getting feature that hooks into not just tech nerds… but hipster teens and 20somethings who can serve as a base.

    a key reason Yahoo and Amazon got great toeholds was because they had a service that people (LOTS of people) already used and liked. people saw zero reason to switch when the big boys arrived… becuase a pattern had already been established. a relationship had formed. a brand had been created.

    i don’t think putting Box logos on billboards or doing costly ad blitzes are the solution. great products, specifically great WEB products, sell themselves. do you recall seeing giant ads for myspace and flickr and youtube when they were starting?

    no. but you do see ads for companies like Tagworld.com– which smacks of the type of dotcom that is fatally “yet another” and thus doomed to be gone.

    give people something to talk about… and they will. as someone who runs a very grassroots organization, i have found this to be very true. and rewarding.

    but to be clear, it’s not just about making a great product. it’s about making a great product… that people actually want to talk about.

    especially when facing threats from the you know whos.

  • http://www.gwx.nl Joost

    In my opionion, Box.net will really need to offer free Webdav access to beat Google and Microsoft in this clash (and to make me _really_ happy =D)

  • http://indoloony.blogspot.com Joy

    I love the simplicity and speed of box.net. It’s rare that I find some service that works well for me, and box is one of them. I would like to see better organization options for moving files around and stuff after upload..

    I think new features will keep me here.

  • dave

    someone just sent me a file via this site

    http://beta.yousendit.com

    less storage based. more email based.

    i think if you guys offered something like this, it’d be a cool way to lure in new users.

    figured i’d share

  • http://indoloony.blogspot.com Joy

    the beta yousendit service is just 50 MB. the original yousendit allows for files upto 1 GB for a week before they get purged. that’s purely file sharing and not community based like box.net..

  • http://www.brendancarr.be koppit

    I think this is a fantastic service, and I’ve shared it with everyone I can. I love being able to grab files from anywhere at any time, and it just works, its simple. Some features I’d like to see that will probably be offered by GOOG or MSFT would definitely include but not be limited to,

    *Integrated Virus Scan
    *My Computer Integration (shows up as an extra hard drive)
    *Email addresses for box.net -> when you receive emailed files it shows up in your received files folder?
    *Blog hosting, integrate files/pictures seamlessly in a single place

    There’s plenty more.. I’m a web dev. so I appreciate how long this would take, in the meantime, good job!

  • Alex B

    Or you’ll be just acquired by Google. How about that. They did it with writely, and in the g.a. case, why whouldnt they do it with you. And you won’t worry about revenues any more.

  • Vern

    As I read through the comments, my thought, like Alex B.’s above, was the poosibility of one of the giants attempting to buy out, or swallow up Box.net. Another strategy that might play out would be to (attempt to) recruit the owners to either jumpstart their effort or improve upon it. Any chance you guys would sell the ship or go over to another other camp?