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It's hard to compete with free. Google can afford to undercut Dropbox.

Many people view free as a reason not to use a service.

Clearly, if I was going to use the service as disaster recovery, I'd pay for dropbox. (I use dropbox for free right now)

Google's services are synonymous with free. I don't see many people freaked out by it.

Competing with Google is like competing with MS in '90s... a really hard proposition.

I don't see many people freaked out by it.

Depends on your circle really. For personal stuff, I make full use of google. However for anything business related my leash of trust would be a lot shorter. I'd feel much more comfortable to pay for a service that gives me someone to blame/sue should the response to a disaster be less than adequate. You really just don't get this with google.

I don't pay for Dropbox. Its free service is more than enough for me.

Will you switch if Google offers you more space and better integration with their apps? Imagine being able to access & edit your Gdrive files from Google Docs and Gmail, for example. I think this is where Google's going with this.

No. I dislike Google Docs, I use Mail.app for Gmail, and 2GB is enough for me.

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