Box, Inc. At $2B: Fundamental Shift Or Yet Another Bubble?

Tyler Shields

$2 billion. That's billion with a "B". That's a lot of money. That is also what Aaron Levie's Inc. Magazine Entrepreneur of the Year company, Box Inc., is being valued at today. According to an article in the Wall Street Journal, Box has said it recieved a fresh round of $125 million in investment, with $100 million of that money coming from a single private equity firm. Also according to the article, Box is expecting to close out 2013 with approximately $100 million in revenue, giving the company a 20x multiple. The numbers are certainly impressive, but is this a bubble or are we seeing a fundamental shift in how businesses of the future will operate, thus justifying the big dollar signs?

A recent article in Forbes stated the following: "Taking a cue from the Dot-com bubble’s playbook, investors have resorted to valuing today’s profitless tech companies on a price-to-sales ratio basis, yet even this metric shows that Twitter’s valuation is quite overvalued at 22 times its expected 2014 sales, which is approximately double the multiple carried by Facebook and LinkedIn (which have high multiples in their own right)."

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Shining The Harsh Light On Cloud Washing

James Staten

For years I have been railing about cloud washing -- the efforts by vendors and, more recently, enterprise I&O professionals to give a cloud computing name to their business-as-usual IT services and virtualization efforts. Now, a cloud vendor, with tongue somewhat in cheek, is taking this rant to the next level. 

Appirio, a cloud integration and customization solution provider, has created the cloud computing equivalent of the Razzie Awards to recognize and call out those vendors it and its clients see as the most egregious cloud washing offenders. The first annual Washies will be announced next Wednesday night at The Cigar Bar in San Francisco, and in true Razzie tradition, the nominees are invited to attend and pick up their dubious honors in person. I'm betting that Larry Ellison will be otherwise engaged.

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