Rapid-Fire Answers From Box's Aaron Levie

Transcript

welcome to the stage Aaron Levy and our moderator Alex Wilhelm okay thank you perfect okay okay did you hear a word she said I I I know I got made fun of at some point but I'm not sure what it was it was I couldn't hear I couldn't hear either okay good hi hey how you doing all right so I just did a little check um boxes Shares are down uh 0.57% tod... Read More

Summary

In a panel discussion, Aaron Levie, the CEO of Box, answers questions from the moderator about various topics such as Box's developer platform, enterprise key management, competition with Dropbox, and the valuation of SaaS companies.

Questions & Answers

Q: Why were you on a drone panel at SF disrupt last year?

At the time, Box was in a quiet period and could only talk about unrelated things to their business. They had a partnership with a company called SkyCatch, which specializes in industrial drones, and wanted to make sure people knew about their drone strategy.

Q: What is Box Developer Edition and why did you create it?

Box Developer Edition is a way for developers to incorporate Box's technology into their own applications. It was created because Box realized they had built a lot of technology that could be useful beyond their own customers. There was a combination of customer demand and the company's own vision that led to the creation of Developer Edition.

Q: How many people are currently using Box Developer Edition in closed beta?

Currently, dozens of customers and partners are using Box Developer Edition in closed beta. Box is building it to eventually have hundreds of thousands of users, but they are focusing on identifying the right use cases before opening it up to a larger audience.

Q: Will the Developer Edition generate more revenue than Box proper?

Box believes Developer Edition will be a significant product line that will generate a lot of revenue. They plan to sell it to customers and open it up to developers, similar to Amazon Web Services.

Q: Box's growth rate is expected to be 30% this year, does it meet your expectations?

Box gave guidance that they felt comfortable with, but they are focused on investing in growth and exceeding expectations. The decline in growth rate from the previous year is partly due to the scale of the company.

Q: Who is currently beating everyone else in getting large enterprise deals?

According to Levie, the landscape is still undersaturated, meaning that many companies have not chosen a solution yet. Box competes with companies like Dropbox, Microsoft, and Google for these enterprise deals.

Q: How is Dropbox performing in the market compared to Box?

Dropbox is formidable in the small and medium business market, and they have a large consumer user base that brings the product into workplaces. However, Box's model is different, as they have more focus on B2B sales and selling to Fortune 500 companies. Dropbox will be competitive in certain industries, but Box has a different strategy.

Q: Are there any companies that Box is interested in acquiring?

Box is interested in acquiring companies that enhance, secure, and help collaborate around content. They have already made acquisitions in the 3D rendering and security space. Their goal is to be the best-in-class service for content-related activities in the cloud.

Q: Is Box interested in buying companies that compete with products like Box Notes?

Box does not want to directly compete with products like Microsoft Office. They believe that the competition with Office should focus on new sets of experiences that leverage mobility and adapt to the changing workplace.

Q: How does Box Enterprise Key Management (EKM) fit into the encryption debate?

Box is on the side of more encryption and giving customers control over their data. The EKM product helps customers control encryption keys, which in turn helps address legal, risk, and compliance concerns related to moving data to the cloud. The government has also shown interest in this product.

Q: Does Box's encryption technology open up new markets, especially in Europe?

Box believes that the encryption key technology will open up new markets for them. However, they also acknowledge that there needs to be greater clarity, alignment, and standardization in how internet surveillance is treated by governments to ensure success at a global scale.

Q: Is there a valuation bubble in the private SaaS sector?

Levie believes that there is currently a scarcity issue between supply and demand, which is driving up prices for SaaS companies. However, he does not think it is a valuation bubble as long as there is an opportunity for these companies to create more value in the future.

Q: In five years, will Box be a public company?

Box's focus is to be a public company, as going public is the path they are on. Levie also plans to continue leading the company as CEO.

Takeaways

In the panel discussion, Aaron Levie talks about Box's developer platform, the creation of Box Developer Edition, their encryption technology, competition with Dropbox, and the valuation of SaaS companies. Levie highlights the importance of giving customers control over their data and the need for more encryption. He also addresses concerns about the valuation of private SaaS companies, stating that there is a scarcity issue but not necessarily a valuation bubble. Ultimately, Box aims to be a public company and continue its growth in the enterprise market.