ReadWriteWeb

The Wall Street Journal has revived rumors about Google launching a cloud storage service called Drive. The comparison everybody wants to make is to Dropbox. The thinking is that Google will challenge everyone's favorite start-up by releasing a native desktop and mobile Drive app with the same syncing features Dropbox users know and love.

Google Drive rumors have been around for many years, and they've always conformed to the understanding of "The Cloud" that has prevailed at the time. If it's not like Apple's iCloud, which is integrated into Apple's devices, then it must be like Dropbox, which lives on the Web but syncs through a client. But think outside the box for a minute. Google has new and unique cloud services that Dropbox and Apple don't. There's room for a third, stand-out option here.

An alteration made for the latest 2.0 version of the Dropbox app for Android in order to better comply with the rules of the operating system resulted in the removal of some features that, in the 1.x versions, users had come to rely upon. As a result, Dropbox team members these past few weeks have found themselves in damage control mode, as they work to stem a rising tide of frustration from users, some of whom aren't yet buying the company's message that these changes were necessary.

The biggest change the new version makes is to the storage locations for files downloaded from users' Dropbox storage areas to their phones. One is the cache for files that may be useful on the phone, like pictures and music. Another is for documents that may then be opened up in apps on the phone, like the QuickOffice productivity suite or the KeePassDroid password cache. The new version of the Dropbox app moves these locations to directories specified in the Android guidelines. But the change was implemented before users and developers were ready.

A low-profile Silicon Valley startup beat Microsoft in delivering an application that allows users to access MS Office documents on their iPads.

CloudOn launched its eponymous iPad app Tuesday. Working in conjunction with DropBox, CloudOn lets users access and create MS Word, Excel and Powerpoint documents on their tablets. Unlike CitirixReceiver and other desktop access apps, CloudOn is designed to work specifically and only with Office.

Microsoft originally said it would try to take on Apple's iWork suite of productivity applications by developing an iPad app when the original device was first introduced. By the time it was launched in 2010, however, Microsoft had changed its mind. In November, citing unnamed sources, The Daily reported that Microsoft planned to launch an iPad Office app in the first half of 2012.

Computers keep getting closer and closer to making people obsolete. The latest step towards human obsolescence? Dropbox Automator, a Web-based tool for setting up actions that happen as soon as you put a file in a Dropbox folder. It’s not flawless just yet, but it might provide a useful service for many Dropbox users.

The service is powered by Wappwolf, an online “action store” that features a set of Web actions that can process files. For example, it has ready made actions to encrypt and decrypt files, extract text from PDFs, convert documents to PDF, generate QR codes and manipulate images.

I got all excited this morning when I saw a link on Hacker News to BitPocket, one of the latest so-called “DIY Dropbox” offerings that’s open source. The excitement faded pretty quickly when I hit the GitHub repo and found that it’s just a “small but smart script that does 2-way directory synchronization” without most of the Dropbox features.

Dropbox didn’t get where it is today by being a wrapper for rsync, Git, Unison or any of the other open source tools for file synchronization. If you want to replicate Dropbox’s suceess, there’s a few features that are mandatory.

What happened to startups in 2011? E-commerce and mobile payments continued to grow, and group buying startup Groupon went public. Facebook, the biggest social network around, expanded in a huge way, announcing Timeline, frictionless sharing and a settlement (finally) with the FTC. It also swallowed up many promising startups, including group messaging service Beluga, social network-enhancing service Friend.ly and software company WhoGlue.

The mixing of social gaming and mobile payments, social network alternatives to Facebook, consumer cloud storage and apps that actually make you feel productive (read: not like you're just wasting more time online) came out on top as just a few of the most important startups of this year.

This year's top 10 startups list is a combination of companies that launched in 2011, and others that gained considerable attention. We chose these startups based on how they've changed or disrupted their niches and how they've influenced trends this year and for the year to come. They are listed in no particular order. Take a look after the jump.

Every year since 2004, ReadWriteWeb has selected a best "little company." These are small companies (loosely defined as less than 100 employees) that have had a big effect on the Web over the calendar year. Last year we chose Tumblr, which experienced extraordinary growth during 2010. In prior years we've given this honor to Aardvark (2009), Zoho ('08), Twitter ('07), YouTube ('06), 37Signals ('05) and Flickr ('04). Many of those companies went onto much bigger things, either through acquisition (Flickr, YouTube) or by ramping up independently (Twitter, Zoho).

This year there were a number of worthy contenders for Best LittleCo. Square, Evernote, Flipboard, BetaWorks, SoundCloud and Tumblr (again) have all had cracker years. So our winner must be something pretty special, right?

The file sharing, synchronization market led by Dropbox is a popular target these days. For many companies, it's a chance to horn in on a growing market and carve out a piece of the pie for themselves. For open source projects, it's a chance to return control of personal data to the user. For the folks behind ownCloud, it's both.

ownCloud is a project started by Frank Karlitschek, who's been very active in the KDE project. This week, Karlitschek took ownCloud to the next level with former SUSE/Novell guy Markus Rex and funding from General Catalyst. Terms weren't disclosed, but sources say that the funding is "well into 7 figures" but below $10 million.

With all the cloud storage providers available these days, one thing I was looking for was a simple way to share and synchronize a networked file server in my office with a cloud-based repository. Sure, there are dozens of providers that will let you synch to your desktop. But what if you have a couple of branch offices and want to share files between them or have multiple users in a single office and single place to backup your most commonly used files? That is a tougher proposition.

Yesterday, Richard's cloud drive article made note of Dropbox and Google Docs and other cloud storage providers. There is a new take on this from a company called Cloud Engines with their Pogoplug service. It combines the typical cloud drive with a piece of hardware. Here is how it works.

You purchase the device, called Pogoplug Mobile for $80. It is about the size of a small paperback, and has ports for SD and USB drives, wired Ethernet and power. Before you hook everything up, you can use either the SD card or a standard USB thumb drive to store backup copies of your files. Next, you connect it to your network and hence to the Internet, register the device and download client software to add other files.