Microsoft’s deal with Box
On June 27, Microsoft (MSFT) made a deal with Box (BOX) to partner on cloud computing technology. Microsoft has a significant cloud partner in Box. Microsoft and Box will work together to integrate their products and sell their combined services.
Box provides file sharing and document storage services to customers looking to hoard documents, videos, and other types of digital data online. On the other hand, Microsoft’s Azure cloud-computing service offers a technical platform where companies like Box can run their services. It’s a win-win for both companies despite the fact that they continue to compete with each other on several other levels.
Box’s quarterly revenues
Box has been performing well in the last few quarters, as the above graph shows. In its most recent quarter, Box did fairly well. Revenues of $117.2 million in fiscal 1Q18 rose 30% from the previous year and beat the consensus estimate.
The partnership gives Microsoft’s Azure an edge over Google in cloud computing. It increases Azure’s exposure to large enterprise companies. Box counts 64% of the Fortune 500 companies as customers. However, Microsoft is behind Amazon (AMZN) in the cloud computing space. Amazon is also one of Box’s partners.