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- Google can offer 15 GB of free storage on Google Drive without significantly affecting their bottom line due to several strategic reasons:
- 1. **Economies of Scale**: Google operates massive data centers worldwide, benefiting from economies of scale. This reduces the cost per gigabyte of storage.
- 2. **Cross-Selling Opportunities**: Offering free storage attracts users to Google's ecosystem, where they might use other paid services like Google Workspace, Google One (for additional storage), or even YouTube Premium.
- 3. **Advertising Revenue**: While Google Drive itself is ad-free, the data and insights gained from user behavior across Google's services can enhance targeted advertising on platforms like Google Search and YouTube.
- 4. **User Retention and Loyalty**: Providing valuable free services helps retain users and build brand loyalty, which can lead to long-term revenue through various Google products and services.
- 5. **Data Insights**: The usage data from Google Drive can help Google improve its services and develop new features, indirectly contributing to their overall business strategy.
- Would you like to know more about how Google manages its services or any other topic?
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