Why Box Inc. looks to leverage hot tech trends—cloud and mobility

By

Nov. 20 2020, Updated 12:43 p.m. ET

Box Inc.’s products are compatible with other mobile and cloud platforms

In the previous articles of this series, we discussed the details of Box Inc.’s IPO plans, its ownership structure, and its valuation. Here, we’ll discuss the company’s business and how it’s trying to leverage cloud service market growth. Box’s storage product is based on cloud architecture, and it’s compatible with all PC as well smartphone platforms, such as Apple’s (AAPL) iOS, Google’s (GOOG) Android, and Microsoft’s (MSFT) Windows. Another important feature of Box’s product is that it can be easily integrated with not only third-party applications but also other cloud-based applications such as Salesforce.com (CRM) and NetSuite (N).

The cloud services market is poised for rapid growth

According to IDC, worldwide spending on public IT cloud services will increase from $47.4 billion in 2013 to $107 billion by 2017—a compounded annual growth rate of 23.5%. Box Inc. plans to leverage this growth.

Article continues below advertisement

According to the company’s S-1 filings, “We are building a rich ecosystem around Box. Our platform integrates with the applications of our technology partners, including salesforce.com, NetSuite and others, giving our users full access to Box without leaving partner applications. In addition, third-party developers can rapidly build, update and provision new applications that leverage and extend the core functionality of our service, increasingly with a focus on specific industries and vertical market use cases. To date, tens of thousands of third-party developers have leveraged our platform as the secure content layer for their applications, including developers that are part of our Box OneCloud ecosystem, which provides users with access to more than 1,000 iOS and Android third-party applications.”

The mobile devices market is also growing fast

The prospectus also talks about mobile device growth. It says, “The rapidly increasing functionality of smartphones, tablets and other mobile devices has resulted in the significant adoption of such devices within organizations. According to International Data Corporation (IDC), there were 1.4 billion mobile internet users worldwide in 2013 and there will be 2.3 billion in 2017. Forrester Research, Inc. (Forrester) estimates that 29% of the global workforce in 2012 used three or more devices, worked from multiple locations and accessed several applications. According to Gartner, the number of tablets sold has grown at a compound annual growth rate of 97% between 2010 and 2014 worldwide, and is expected to surpass personal computers (PCs), by annual number of units sold, in 2016.”

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.