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Tuesday, July 5, 2016

Dropbox's HP Enterprise Deal Was About More Than Revenue Growth

Things may be getting better for cloud storage decacorn @Dropbox, but the almost-certainly overvalued start-up is by no means out of the woods just yet. With rising competition from tech giants including @Apple, @Alphabet, @Microsoft, @Amazon.com (NASDAQ:AMZN), and Box (NYSE:BOX), #Dropbox has lately slashed some of its more opulent (read: absurd) perks in an effort to steer the company toward eventual profitability. The company's renewed commitment to revenue growth and monetization seems to be paying off, as its recent deal with HP Enterprise (NYSE: #HPE ) further demonstrates. Dropbox and HP Enterprise cozy up They say the best deals are mutually beneficial, and the deal announced earlier this month between Dropbox and HP Enterprise certainly appears to fit that bill. According to The Wall Street Journal, Dropbox and HP Enterprise announced that HP Enterprise will supply the servers for Dropbox's transition to a hybrid cloud model. Crucially, the deal will help Dropbox reduce its reliance on @Amazon Web Services ( #AWS ), removing Dropbox from the uncomfortable situation of paying a company that's also a competitor. According to the report, Dropbox's pivot away from Amazon Web Services took over two years and marks something of a boon for Dropbox.

http://www.fool.com/investing/2016/07/04/dropboxs-hp-enterprise-deal-was-about-more-than-re.aspx?source=eptfxblnk0000004

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