Dropbox won’t back down, slashed price to compete with Amazon, Apple, Google and Microsoft. Will it pay off?

Cloud storage wars ignite anew as Dropbox radically lowers its Pro subscription rate to $9.99 per month for 1 terabyte plus new features to enhance sharing and collaboration. Dropbox Basic remains free with 2 GB of space.

The San Francisco-based cloud storage company also consolidated its previous three Pro plans to just one simplified subscription rate. Before, consumers can subscribe for 100, 200 and 500 gigabytes of storage for a monthly rate of $9.99, $19.99, and $49.99, respectively.

Existing Dropbox Pro subscribers on high-tiered plan won’t only get an automatic increase in storage space but also a pro-rated refund.

Moreover, this new Dropbox Pro comes with a multitude of features based on requests from its customer base. Users can now set passwords for shared links, enable view-only permissions to restrict access, assign expiration dates for shared links and completely wipe out data from a device in case it’s stolen or got lost.

“Simplicity and ease of has a core part of our DNA or philosophy in how we design and build products,” said ChenLi Wang, Head of Product, Dropbox Pro.

Reducing the subscription rate isn’t much of a choice for the growing start-up company. They now faced strong competition against tech giants including Google and Amazon.

Dropbox, however, remains positive about the long-term profitability of their business model. CEO Drew Houston believes their core strength is their ability to seamlessly integrate and synchronize with almost all platforms out there. And they aren’t alone with these beliefs. According to Forrester Research analyst Ted Schadler, the company has about 300 million users and they are deeply loyal to this service.

“People say you can just move your stuff out of Dropbox and drag and drop it somewhere else. I don’t think that’s true. I think Dropbox has momentum. Dropbox has first mover advantage and it has executed on that really well,” said Schadler.

There is also a big opportunity to grab a sizeable share in international markets considering more than two-thirds of its client base is located overseas.

See Also: Dropbox announces Mailbox for Mac, now in public beta.

The cloud storage war started to heat up in March when Google Drive’s 1TB plan went down by 80 percent from $50 per month to $10. Amazon reacted by reducing their price by 65 percent. Microsoft remains the lowest in the market with its OneDrive for Business at a rate of $2.50 per user per month for 1TB space.

See Also: Silicon Valley stands in support of Facebook in new privacy case.

Now that the playing field is even, the name of the game moves from how much you can upload to how many features are available to users. The excitement continues to build up.

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