Dropbox Raising Big Bucks, Cloud.com Selling for Big Bucks: Why “The Cloud” = $$$

It seems that “The Cloud” is in the news just about every day and any company that touches the cloud sees some pretty incredible traction. Today Techcrunch announced that Dropbox will be raising between 200 – 300 million dollars in it’s next round of funding based on a valuation of over five billion dollars. Here’s the real kicker, the company has seen multiple offers come-in at a valuation of 2 billion dollars but turned them down, can someone say “Cloud Power!”

This is news is coming through the very same day that Cloud.com was announced to have sold for somewhere in the range of 200 – 250 million. Remember Apple’s last developer conference…what was the focus there? iCloud. Amazon’s new music service…where does it take place? In the cloud.

For anyone that doubted that this whole cloud concept was going away or wasn’t going to be a big deal, time to admit defeat, The Cloud is here to stay and it means big bucks for anyone who gets near it. However, there’s a catch. Just like the .COM boom in the late 90’s, what goes-up, must come down. There are a lot of players in the cloud space, it’s getting crowded, and not all of these companies will end-up victorious. Still it’s going to be exciting to watch everyone duke it out and of course as the consumer we should all win since it just means more cool cloud-based services for us to use.

Here’s a few more examples of how “The Cloud” is continuing to gain steam:

Microsoft held a two-day event, the focus of Day 2…The Cloud

Business software maker Sage just announced it is putting more focus on…The Cloud

Today Copper Egg announced new services for monitoringThe Cloud

VMWare just updated vSphere, now they have a cloud suite…The Cloud (just wanted to do the …The Cloud in this one, unnecessary but more dramatic right?)

I think you get the picture. I’m a big fan of the cloud but also know that you need a good business model to succeed. Investors are jumping on companies that embrace the cloud because it is the hottest thing in tech right now…what will be interesting to see is which of these companies delivers on their promise and helps make The Cloud everything it has been made out to be.


Morgan Linton

Morgan Linton