Recode reported today that Google has dropped the prices for it's cloud storage product, Google Drive. The first 15 GB are free, like before, but the prices for 100 GB and 1 TB have dropped to $1.99 and $9.99 per month, respectively. Dropbox charges $99 per year for 100 GB and Microsoft's OneDrive is $50 for the same amount — Google is now at $23.88 per year.
This is what Google does. They give away services for incredibly cheap or free and then make money off of the sheer volume of users and advertising revenue. Free email, free maps, free cloud-based documents, free mobile operating system, free cloud storage with cheap upgraded tiers. Along the way they've disrupted many other services and industries. Do you remember how little mail storage Microsoft gave away with Hotmail before Gmail came along? Anybody remember buying GPS units for your car before every smartphone came with it for free?
It will be interesting to see how Microsoft and Dropbox react.