Cloud computing stocks Box ( NYSE:BOX ) and Dropbox ( NASDAQ:DBX ) compete in the cloud content management market. Both companies provide software as a service (SaaS), known otherwise as enterprise file synchronization and sharing. In simple terms, this means uploading files to the cloud, storing them there, and sharing them with others. The cloud-based file sharing market is crowded and competitors in the business range from a bevy of small private companies to a smattering of mega cap giants like Amazon’s Amazon Drive , Microsoft’s OneDrive , and Alphabet, Inc.’s Google Drive (I’m sure brand consultants labored tirelessly to conceive those inimitable names). Image Source: Getty Images Investors looking to own a cloud-based file sharing stock should focus on Box and Dropbox. Both companies focus solely on the cloud-based workplace automation and collaboration market. They are "pure play" providers. Here’s how they compare. Box and Dropbox are similar in some respects Box and Dropbox allow consumers and large enterprises to securely sync and share documents, photos, and videos across multiple devices. Their corporate customers include an impressive roster of Fortune 500 companies. Ultimately, these large-scale businesses are their primary targets. They compete for their customers by offering similar product lines. Both Box and Dropbox have open architectures that aren’t dependent on a specific platform or application. This allows them both to integrate easily with other cloud services their customers use. They both make it possible for their customers to accelerate business processes and empower workforce collaboration. And they each provide a high level of data security. But this is largely where the similarities end. Dropbox has a Better Enterprise Offering Than Does Box Dropbox offers one of the fastest sync algorithms on the market. Dropbox invented the method that allows you to sync files to the cloud, and their algorithms are used by nearly all cloud service providers. Box doesn’t use the same algorithms, so syncing files to the cloud is slower. Dropbox also makes it easier for teams to work together. Users can collaborate on a sharing page that makes company information easier to access. Box doesn’t do this. What’s more, Dropbox lets teams coordinate tasks and timelines and communicate with each other in real time. Dropbox can be integrated with other cloud providers’ apps to allow teams to upload and download content, share it, and collaborate and comment on it regardless of the platform it originated from. Teams using Dropbox can open Microsoft and Google files (Docs, Sheets, or Slides), and can work across applications that couldn’t otherwise talk to each other, and can access files wherever they are saved: in the cloud, on a hard drive, or on some other device. Finally, while Box has been in business a couple of years longer than Dropbox, Dropbox has done a much better job branding itself with both consumers and businesses. Dropbox is Executing Their Business Model Better Than Box Given the two companies’ similarities, one would expect that their operating numbers would likewise be similar. But […]
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