Two pretty big price drops were announced this month by cloud storage industry giants Box.net and Amazon S3. Box.net now offers a free 5GB account and a 500GB account for individuals and businesses for only $15 a month. And Amazon Web Services drops their prices up to 19% for developers and businesses that base their file storage infrastructure with S3.
This is great news for consumers, developers and IT, but what does it mean for the online file storage industry as a whole when margins get pushed further and further down? We will likely see even more industry consolidation and makeover, like the recent news that Drop.io being bought by Facebook then shutdown. And companies like Box.net, Dropbox, Sugarsync and the rest will have to transform their businesses to price their services without being tied so directly to storage quotas as the primary value and feature differentiator for their customers. If all these services offered unlimited free storage, what features or intangibles like usability and design would matter most to you?