Cloud-based Secure Content-sharing Service Box May Introduce New Payment Scheme
Cloud-based secure content-sharing service Box Inc. is considering introducing a new payment scheme for enterprise customers. The news, announced at the company’s Box Dev 2014 event in San Francisco, USA, suggests that the company might move away from its traditional monthly payment model to a model where users pay for infrastructure usage. Companies that share files and documents stored within the Box infrastructure with partners and customers will be charged for doing so – something that is outside the company’s existing revenue model.
The change comes against a backdrop of the company planning to raise around $250 million in an initial public offering. The company plans to use this money to compete with the likes of major online storage players such as Google, Microsoft, Amazon, and Dropbox Inc. In addition, it is also received against a backdrop of the company making revenue of $125 million in 2013, but also losing $158 million in the period.
Box is considering charging enterprise customers for “interactions” with its services - interactions it calls “API actions." These might include uploading and viewing documents, and a charge will be applied for every API action instance. The change will better enable the company to entice developers to create services that utilize the Box infrastructure. Software developers won’t be charged as they will build solutions into Box’s existing products, while enterprise customers will be charged for using such services.
What do you think about Box’s new approach? Leave your comments below.
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