Dropbox Discontinues Unlimited Cloud Storage Tier
The company has decided to cap its highest-tier storage plan at around 5 terabytes per user for new customers, according to a blog post. Previously, it was marketed as “all the space you need.”
The shift comes as some users took advantage of the unlimited option for unintended purposes like cryptocurrency mining and resale, consuming excessive resources and potentially impacting other clients.
This step aims to ensure a reliable experience for the majority of Dropbox’s customers.
Boasting over 18 million paying users and generating $2.5 billion in annual recurring revenue, Dropbox is a prominent player in cloud storage.
The company’s latest decision aligns with Google’s move in May to modify its Workspace plan branding, ceasing to offer “as much storage as you need.”
Users who exceeded their storage limits faced potential charges, prompting discussions of shifting to Dropbox.
Dropbox has now introduced a new tiered pricing structure, with additional terabytes costing $8 per month. Existing users with under 35 terabytes can maintain their current storage and price for five years.
As cloud storage expenditure soars, this strategic shift is in line with industry trends.
IDC forecasts a 25% rise in cloud storage spending to $59.9 billion this year, reaching $127.8 billion by 2027.