Dropbox acquires Hackpad (YC W12)

Well yeah, of course all this exists somewhere else. And it's making those folks money hosting it, not DB.

The problem is that DB caps your outgoing bandwidth so hosting even moderately large number of users will kill your site dead pretty quick.

It's obvious that people want to use it for these use cases, but DB hasn't been able to execute on that demand.

Advertising I'd their cash cow. Google's original business model was enterprise search. It took them a bit of time to land on their current business model m

How is Dropbox's core business unsustainable?

The way I see it, Dropbox wants to be the filesystem and personal hard drive of the Internet. Easy enough business, just sell hard drive space. And as always with any software business, with users, you have data, and with data, you have potential advertiser money and a lot of investor interest.

Why can't they rival Google/Apple? Yes, bigger companies have a lot more resources. But that doesn't mean that only big companies can succeed. If small companies have nailed a service that big companies can't wrap their heads around/move quick enough to take over, then they'll outperform big companies in that market. Once upon a time, Apple was a small company, too. But they did personal computer and personal computer software better than competitors long enough to become a large company. Not too long ago, Google was a small company too, competing with large companies. The reason they succeeded to go on to become a big company is their superior product. Yahoo and other search engine competitors just couldn't tap into what Google had, whether it be because they didn't possess the genius/talent/skill/anything-other-than-resources Google employees had that made their product better, or because Yahoo was too large to move strategies fast enough to beat Google to market. Even more recent than Google being a small company, Dropbox was just another Y Combinator application that was shat on by oblivious HNers who thought "Don't people just use rsync and ftp?". But because they could provide a product that people wanted before big companies could catch on in time, they grew in size. Small companies have a chance against big companies. If they didn't, it'd be a pretty fascist society where everyone'd be forced to use the same products and services for all of forever.

How is this "flailing"? Google integrates cloud editing (Docs) with cloud storage (Drive) pretty well and that great integration is what's allowing Google to enroach on Dropbox's vision of being "the file system and hard drive of the Internet." Google has just shown us that integrating content creation tools with content storage tools isn't "flailing" or feature creep or anything; it's a valid strategy to boost content storage. And Dropbox is catching the hints. That's why this acquisition exists. So they can integrate content creation (HackSpace) with content storage (Dropbox). Now claiming HackSpace is going to put up a good fight against Google Docs is pretty absurd, but 1. now they're being backed by Dropbox, which should aid in the fight, and 2. remember what I said about small companies having a good chance if their product is good enough? With proper leadership (Drew Houston and Condoleezza Rice [moral issues aside, she has business and leadership skills that are completely separate from her political views which wouldn't affect anything about her position at Dropbox] -- check), resources (Dropbox -- check), and product design and development (this is the risk Dropbox is taking by purchasing HackSpace -- will DB be able to produce a better product than Docs?), yes HackSpace can beat Docs.

"Acquisitions like this never go to plan, and they are almost always a waste of money."

Why does HN do this? Toss around bold and interesting rhetoric that is completely baseless and has no substance or logic. Like the Michael Bay of writing.

This is so absurd, I don't even feel like I need to argue against it; it's like saying "The idea of companies never go to plan and are almost always a waste of money." It's just so ridiculous and against the way the real world works that it's more on you to prove your radical theories than it's on me to prove them wrong.

If acquisitions didn't work to produce a net benefit, then successful companies wouldn't do them, period.

This is true, static hosting is served by the ecosystem -- yet they are buying companies very quickly right now with less obvious user value. Why wouldn't they buy one of these and see if they can grow it into something?

This idea will likely be appalling to many here, but it's an interesting and novel concept -- a promo DB folder with trial versions of, say, five products you can install if you wish, and the contents of the folder refreshes with new stuff every so often. If Dropbox is selective about the stuff it lets into the folder, I'd be up for it. It's kind of like all those subscribe-to-a-box-of-stuff services that are springing up.