Box, IBM Partnership: 16 Cloud Deals Worth $100K or More
The Box-IBM partnership has reached its tipping point. The evidence: Box signed 64 deals in Q4 2017 that were worth $100,000 or more. Of those deals, 16 involved IBM, according to Box CEO Aaron Levie.
“We also continue to deepen our product partnership with IBM,” Levie said during the company’s earnings call this week. For instance, Box is now embedded within 10 IBM products that IBM sales reps sell, he noted.
“I think you will see more success from the partnership this year than even last year, and it’s going currently well,” Levie said. “And then, importantly, it’s a very strong template for success that we have with partners broadly. So, I think you’re going to see us be able to drive more partnerships like this in the future as well.
Box has worked overtime in the past year to transform from a single SaaS app into a true platform for collaboration. The company has inked strategic partnerships with Amazon Web Services, AT&T, IBM, Fujitsu and Microsoft, while also lining up channel partners to reach SMB customers.
Box Revenues, Profits, Rivals: Progress and Challenges
The results sound promising. Box’s revenue was $110 million for Q4 2017, up 29 percent from Q4 2016. The company for the first time generated positive free cash flow of $10 million.
Still, challenges remain. Box had a $36.8 million net loss for the quarter and posted a $151.8 million net loss for the year. The company’s stock fell about 8 percent on the earnings report, based mostly on concerns about Box’s expectations for the current quarter.
While Box has a strong brand name, the company faces competition from Microsoft, Google, Dropbox and other file sharing services. Within the SMB IT channel, Autotask Workplace, Datto Drive and eFolder Anchor also have been pursuing MSP partners.