Why Dropbox Will Never Fully Replace The Hard Drive

The venerable cloud storage company recently announced it wants to replace the hard drive. Here are three reasons why that may not be easy to back up.

"Today the hard drive goes away, and we replace the hard drive," announced Dropbox CEO Drew Houston last week at the company’s first ever developer conference.

He went on to outline a future in which all the data apps need is stored online, turning phones and computers into mere metal portals to the web.

Could this be the future for app developers? Maybe, but according to some experts, cloud storage literally replacing the hard drive is definitely not happening "today."

"It’s a great marketing message," says Terri McClure, a senior analyst at the Enterprise Strategy Group (ESG) who helps track about 60 cloud storage companies, "but from a practicality standpoint, I don’t think it makes a lot of sense right now."

Dropbox’s own product contradicts its new mission by mirroring the files stored on a hard drive, and its most recent target market, business users, has been somewhat reluctant to jump into the cloud. According to a survey of about 500 IT professionals by ESG, just 28% had implemented cloud storage solutions, though 33% had plans to open corporate cloud storage accounts within two years.

Even some Dropbox competitors think an all-cloud world is unfeasible. "It’s just like the paperless office is never going to be happening," says Vineet Jain, the CEO of a company called Egnyte that provides cloud storage for enterprise customers.

Clearly, the drive-less future is a hard sell. Here are three reasons why:

  • Compliance And Security: Regulations that protect consumer data may contribute to health and financial companies' qualms about storing data in a third-party cloud like Dropbox. Even if a vendor says it complies with these standards, as Box did this April, responsibility for compliance lies on each individual company. Many of them aren’t ready to put that much trust in the cloud—especially when Dropbox has investigated security breaches in the past. Furthermore, regulations weren’t written with the option of cloud storage in mind. A privacy law in Canada, for instance, prohibits health data from being stored outside the country. If it’s in the cloud, where is it geographically?
  • Internet Accessibility: Until the Internet blankets the world, there will be times when you’ll access documents offline. Dropbox’s new Datastores API helps sync offline changes to files once you’re connected again, but you can’t retrieve files without logging on. "You don’t want to stop at the next local Wi-Fi Starbucks every time you want to access something," McClure says.
  • Latency: One of Jain’s customers is a construction company with more than 200 terabytes of data. In order to download just two terabytes of that data from the cloud, he estimates it would take a week. That’s not so convenient, especially when you’re being audited or subpoenaed.

Hard drive obsolescence isn’t impossible, McClure says. The Internet will get faster and more ubiquitous. Privacy regulations may address cloud storage, providing some peace of mind to businesses who use it. More likely than a drive-less future, however, is a future in which cloud and local storage complement each other, with the cloud providing storage expansion and a vehicle for multiple collaborators to share a file.

"To say all data will live in the cloud, I don’t buy that," Jain says. "And I’m not going to buy that for at least a decade."

[Image: Flickr user Jared and Corin]

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6 Comments

  • Jimbo_in_Cali

    Have to agree with all the other comments. Dropbox is great for what it is *and* what it isn't. It's great for sharing a few files with friends or syncing them between devices, but it's waaaaay too expensive to use for everything not to mention the privacy concerns with the whole NSA / Prism fiasco. 

    I was already looking into personal / private cloud solutions when the whole Prism fiasco came about and have been *very* happy with Transporter (www.filetransporter.com) as a viable Dropbox replacement. Curious if any others here have had experience with the product.

    Jimbo

  • GHCro

    I think the shape of things to come will be a hybrid hard drive/cloud server - a device you own and control but one that you can get to from anywhere on the Internet. The Cloudlocker is a good example (cloudlocker.it). It gives you complete privacy. Because you keep it at home, no one can get to it without a warrant and you always know where your stuff is. And if you get worried about a breach, you can unplug it. At least you don't have to worry about Dropbox handing over your files to others, or using them for marketing, or rogue employees at Dropbox doing nasty things to your stuff.  I think private cloud devices like Cloudlocker are the wave of the future.

  • Danelle

    This article points out why it won't replace the hard drive everywhere, but it does not debunk the possibility of it for many whose issues are not listed above as concern and therefore is a possibility to replace many hard drives as we know them (or other companies doing so soon). Everyone has their preference and options.

  • Luis

     

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    Cloud
    Storage Will Never Fully Replace The Hard Drive

    No,
    not fully; but a lot!

    Think
    of other “industries” like our money storage; most people (but
    not all) put it in banks.

    Is
    it totally safe? Noway! It can even vanish or be frozen, or be spied
    on by the “state”.

    Can
    I access it at any time? not really.

    On
    the the 3 reasons:

    Compliance
    And Security & where
    is it geographically?

    As
    in other cases regulations always tend to be behind reality; in this
    matter of storage the law maker still worries about
    physical/technological aspects; they haven't learned yet (they will
    never do) that one should not focus on technology but on the
    use_of_technology.

    Internet
    Accessibility

    Accessibility
    will become really widespread in the near future; but any critical
    data will have local copies just in case or for performance reasons,
    or because it's part of a distributed solution.

    Latency

    Of
    course a true problem; but in certain cases, like application that
    handle terabytes of data, the solution might be to have the
    application “clouded” as well, near the data; playing with an
    architecture of data/applications/interfaces is still key to
    understand and solve this type of problems.

  • spiralx

     After the revelations of Prism, and the the UK equivalent, off the coast of Cornwall, I'd be amazed that anyone is contemplating leaving their data in the hands of a US-based server. 

  • Guest

    Dropbox shouldn't try to replace the harddrive.  They cost waaaaay too much as is.  I back up all of my files with backupthat for free, why would you pay hundreds for the same thing with dropbox.