Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Data Storage
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Will Box IPO Drain Its Cloud Innovation?
Will Box IPO Drain Its Cloud Innovation?

By Jennifer LeClaire
March 25, 2014 10:35AM

    Bookmark and Share
The public offering is a huge milestone for Box and a clear validation for the enterprise cloud landscape. Still there are questions. First, can Box continue to sustain its growth and acquire customers in a profitable way? Second, will the company remain an industry innovator amidst the quarterly pressures of investor expectations?
 



Box is getting ready to take its cloud concept to the next level. The online storage company has filed a registration statement with the Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of its common stock. But there are questions about the data storage company's ability to innovate and be profitable in the wake of its IPO.

In an S1 document on file at the SEC, Box reveals plans to raise up to $250 million in the IPO. However, the company said the number of shares to be sold and the price range for the proposed offering have not yet been determined. Box was valued at $2 billion in a recent private funding round but could be worth much more in the public markets. General Atlantic, a private equity firm, is one of its largest investors.

Box’s stated mission is “to make businesses of all sizes more productive, competitive, and collaborative by connecting people and their most important information.” A competitor of Dropbox, Microsoft’s OneDrive, Google Drive and others, Box has taken a partnership approach to cloud storage, integrating with Google Apps, NetSuite and Salesforce.com.

Massive Opportunity

According to the New York Times, Box reported revenue of $124.2 million in the fiscal year ended Jan. 31, and had losses of $168.6 million. In the year-ago period, Box posted revenue of $58.8 million, and losses of $112.6 million. In its earnings, the company said there were 34,000 companies that had paid to use the platform, and more than 25 million individuals who had accessed data, documents, images and other material in its storage service, the New York Times reported.

But the opportunity is massive. Market research firm IDC predicts worldwide spending on public IT cloud services will reach $47.4 billion in 2013 and it's expected to be more than $107 billion in 2017. Over the 2013-2017 forecast period, public IT cloud services will have a compound annual growth rate of 23.5 percent, IDC reported. That’s five times that of the IT industry as a whole.

"The first wave of cloud services adoption was focused on improving the efficiency of the IT department," said Frank Gens, senior vice president and Chief Analyst at IDC. "Over the next several years, the primary driver for cloud adoption will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings. The emergence of cloud as the core for new 'business as a service' offerings will accelerate cloud adoption and dramatically raise the cloud model's strategic value beyond CIOs to CXOs of all types."

Questions Remain

We caught up with Alex Gorbanksy, CEO and founder of Docurated, a cloud document management platform and former analyst at Boston Consulting Group, to get his take on the Box IPO. He told us the public offering is a huge milestone for Box and a clear validation for the enterprise cloud landscape. Still, he said, he has questions.

“Two immediate questions come to mind for prospective investors as we head toward a Box IPO,” Gorbansky said. “First, can they continue to sustain their growth and acquire customers in a profitable way? Second, will they remain an industry innovator amidst the quarterly pressures of investor expectations? The future is wide open for Box -- the IPO should be a very interesting ride.”
 

Tell Us What You Think
Comment:

Name:

Eric:

Posted: 2014-04-06 @ 11:00am PT
Box is ready to take its cloud to the next level? Don't think I agree based on how little Levie owns and how much the company suffered in losses. Plus other companies are really cutting down cloud costs. Just don't see it happening.



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Data Storage
1.   Cloud Firms Offer Azure Starter Kit
2.   Amazon Intros Zocalo Storage Service
3.   EMC Moves Toward Hybrid Cloud
4.   Oracle Boosts ZS3 Storage Server Line
5.   Fusion-IO Deal Speeds SanDisk Shift


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.