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Analysis: Dropbox Carries Risks For SMBs

By Edward F. Moltzen
November 04, 2011    3:50 PM ET

Page 3 of 3

The market for cloud-based collaboration and storage is crowded, and there are competing solutions that do provide regulatory compliance and channel support. These solutions include, for example, IBM’s IBM Lotus Connections combined with IBM Vantage.

On the issue of working through third-party solution providers, Wang said the company only sells Dropbox for Teams direct, not through a channel of solution providers

While Teams may address needs for quick, low-touch solutions for cloud-based collaboration and sharing in an organization, the unaddressed risks it brings may become an increasingly important topic of conversation for even the smallest of businesses. The sooner and more focused that conversation begins, the better.

For now, there appears to be nothing wrong with using Dropbox’s base consumer service for storing innocuous files and having access to them across platforms. And many organizations may even find Dropbox for Teams to be a solid offering that's easier to use for file sharing and storage than e-mail.

But for others, there may be $500,000 (or more) worth of reasons to be cautious about taking the quick, cheap and easy route.

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