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What a nice opportunity that Microsoft squandered - they should've stuck out with the 25GB free option (Like they had for existing users) - that would make today's announcement so little. Marketing win and perception win! (just like what gmail did back in April 2004). After all, their data did show that less than 1% of users cross 7GB - so they should've trusted that and went along with it.

Also, it would now makes sense for Dropbox to go even bigger - as in build their own data center, storage network ..etc (ala crashplan..etc). Being on top of s3 would allow one to be only as cheap as s3 can be.



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