Will Box IPO Drain Its Cloud Innovation?

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.

BoxEUs stated mission is EUto make businesses of all sizes more productive, competitive, and collaborative by connecting people and their most important information.EU A competitor of Dropbox, MicrosoftEUs 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...

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