Dropbox: “It Just Works”

Have you ever been in the library or away from your computer and realized that you’ve forgotten the USB drive at home so that you are stuck with no way to get your documents? Drew Houston wanted to get rid of that reoccurring problem people were facing so he created Dropbox. This service allows users and businesses to share information, documents, and reports anywhere, without the use of a USB or jump drive. Houston always strived to exceed expectations throughout his life, so after about 2 years of Dropbox being on the market, he was already thinking of how to expand and grow the company. Houston’s next problem was whether or not Dropbox should continue selling one product or if they should segment their user base and produce differentiated products.

I personally have had the same problem of forgetting or losing my USB drive at home when I need to print a report out at school. I don’t know why this invention wasn’t thought of or created before 2007. This is a game changing invention because now I can share documents or files with not just one person, but many different people at once. Dropbox allows me to never have to worry about my USB drive again.

Drew Houston was headed for success the day he was born. At the age of five he was already writing software and testing games, which led him to his first job as a network engineer. Someone with this much passion for technology was destined to end up earning a degree from MIT, in which he did in 2006. I believe this background alone helped aide Houston towards success in creating one of the largest online backup companies in the world. Drew’s best asset is his knowledge in software. Growing up learning the ins and outs of computer programming and gaming software helped him get into MIT. Before graduation, he had already helped found Accolade, which is an online SAT preparation service. This was his first attempt in the field of Entrepreneurship, which actually was profitable. He didn’t have much passion for the start up though, so he focused on finding new opportunities that were technically challenging. If Houston wouldn’t have had two jobs, then he probably wouldn’t have needed to work on his Bit9 report at the bus station, therefore, never coming up with the idea for Dropbox.

I could see a lot of motivation and passion when reading about Houston. Ever since he was a child he had a passion for technology and it’s software. I think he had a vision that he stayed true to throughout his early career. Drew always wanted to create a service that would benefit not only himself and a couple people, but a service that would help millions around the world. Other backup services were having problems connecting to corporate firewalls and network configurations Dropbox promises to handle any obstacle no matter how difficult the task, so when they entered the competitive market they were a huge hit by millions of people. Another success factor was Houston’s approach with the “Freemium” business model that he had implemented when entering the industry. The freemium business idea offered both free and premium versions of Dropbox which helped the company find a target area.

Houston seemed to be very stingy with his money when he was growing up. His idea to skip out on the infrastructure investments and to stay in the small 900 square foot office rather than upsizing into a larger and nicer office helped him save money. I think his former job with the security software startup helped him excel in learning about the business and the specific industry. Through this hands on training, I believe Houston learned how to target enterprise customers. What helped him the most was his idea to open Dropbox to not only businesses but to the general public as well. One of the best forms of advertisement is by word of mouth, so by opening up the company’s service to the public Houston allows users to spread the product by word of mouth.

Houston is always trying to save money in any way, shape, or form possible. His ease-of-use idea was so helpful to customers that they spread the word to all of their friends and families, which saved the company thousands of dollars in marketing and advertising. He was always looking to gain value in his company and in his brand and was very smart in his decision making. He decided to not launch after he got many good reviews from his startup video stating, “Not launching is painful, but not learning can be fatal.” This is why I believe Houston is leading the employees at Dropbox to becoming one of the top online backup and data storage companies. Houston also seems to be very personable and adaptable to people. He seems to care about what the customer thinks and is always looking on how to improve his service. He believes that customers want to know that their files are secure and he strives to ensure that they are secure and private by building rapport with his customer base.

I am impressed with everything Drew Houston has done to make Dropbox a successful startup. If I were to do anything different, I think I would have come up with a way to influence the ‘free’ version users to switch over to the ‘premium’ version. One way to do this would be to limit the amount of files or storage capacity the ‘free’ version users can upload. This way, when they reach their maximum limit, they’ll either have to delete what could be important documents or buy the ‘premium’ version. I think marketing is an essential function that can lead to a company’s success, but I am also a huge fan of cheap and adequate advertising. I think Dropbox could have not used as much money on marketing and advertising and more money on program engineers and software developers.

My prediction is that Dropbox will be leading it’s industry within the next 3 years. Technology grows at such a rapid pace these days that I think in three year’s time, Dropbox can make some dynamic moves. Houston had a vision from the very beginning of what he wanted his company to look like and I think he is living that vision out to this day. He will always be conjuring ways to expand and grow which is why he will continue to be a successful entrepreneur for years to come.