Re:WHAAAAT? Unlimited storage for $4.99 a month not a viable...
by limmeau on Thursday February 03, 2011 @04:17AM
(#2174189)
As the Dropbox clients talk to Dropbox servers instead of directly to S3, Dropbox can just transparently migrate their data to a storage facility of their own when they decide that that has become cheaper than S3.
Dropbox is based on Amazon S3, which means that not only do they have storage costs to a 3rd party that are so to speak 'out of their control' but they are also dealing with bandwidth and transaction costs.
I wish them all the best, however I can imagine this being quite expensive for them considering the amount of free users they have.