Analysis: Dropbox Carries Risks For SMBs
By Edward F. Moltzen, CRN

Dropbox, known as a purveyor of cheap cloud storage for consumers, is now targeting small and mid-sized businesses with a new service offering. However, SMBs considering the service need to bear in mind that it lacks key compliance certifications many businesses need, potentially leaving them open to significant financial penalties.

The new Dropbox for Teams cloud storage service does not meet the requirements of Payment Card Industry (PCI), the Health Insurance Portability and Accountability Act (HIPAA) or the Sarbanes-Oxley law, executives and media representatives from the San Francisco-based company confirmed to CRN this week.

Failing to meet compliance requirements could carry catastrophic consequences to SMBs, including some businesses that Dropbox is targeting with its Teams cloud storage offering. Dropbox executives, though, defend the product saying customers who beta-tested it prior to launch were concerned with collaboration and ease-of-sharing, not PCI, HIPAA or SOX.

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