“Our Infrastructure Optimization reduced unit costs and helped limit capital expenditures and associated depreciation. After a multiyear process, Dropbox completed what it calls its “Infrastructure Optimization” project in the fourth quarter of 2016. Obviously, lots of companies are still happy to pay AWS to manage their infrastructure, as evidenced by the steady gains the cloud market leader made in 2017.īut once certain startups turn into big companies with hundreds of millions of users, with computing needs that they’ve come to intimately understand, it can be far more efficient to set up computing infrastructure designed exactly with those needs in mind.
Dropbox makes it official, files to go public later this year with $1B in 2017 revenueĭropbox was once the quintessential cloud success story, a startup that built a massive user base and brand presence thanks to its use of Amazon Web Services. The following year in 2017, it saved an additional $35.1 million in operating costs beyond the 2016 numbers. From 2015 to 2016, Dropbox saved $39.5 million in the cost of revenue bucket thanks to the project, which reduced spending on “our third-party datacenter service provider” by $92.5 million offset by increased expenses of $53 million for its own data centers.
Starting in 2015, Dropbox began to move users of its file-storage service away from AWS’s S3 storage service and onto its own custom-designed infrastructure and software, and the cost benefits were immediate. (Courtesy: Wikipedia)Īfter making the decision to roll its own infrastructure and reduce its dependence on Amazon Web Services, Dropbox reduced its operating costs by $74.6 million over the next two years, the company said in its S-1 statement Friday.
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