[briguy]

On some level, Dropbox is a hardware company [1]. I think that once you have installed software at a clients location, you are in a different realm than simply being a cloud/software/service provider. The customer has full ownership of the device. I think that the move to hardware is tri-fold (a) hardware is easier now than ever (b) hardware is a good strategy and a natural barrier to entry for a startup (in general, less people grok hardware and systems software than they do web programming[2]) (c) a small/mini subconscious push-back against the Cloud[3] where more and more customers are being turned off by not owning something at the end of the day[4]

[1] The hardware is the customers PC.

[2] iOS device programming, w/ human interaction (gyroscope) has also been a natural training ground.

[3] Of course, many Hardware companies these days Square, Dropbox, etc, will be paired with a cloud service.

[4] Acqui-hires..."We are shutting Down. Please Download your stuff by next week. Thanks for being a User and getting me interest from a big fish, see you on my next startup"