Box Inc (NYSE:BOX) partners with Amazon (AMZN), IBM to solve a major cloud storage riddle

Box Inc (NYSE:BOX) has come up with a cloud data storage solution called Box Zones. The feature is aimed at companies, especially multinationals, that are struggling with regulatory issues when it comes to storing data in the cloud. Box Zones provides companies with a simplified interface to store their data in local data centers in the different regions they have operations.

Because Box Inc (NYSE:BOX) doesn’t operate data centers everywhere around the world, it has partnered with, Inc. (NASDAQ:AMZN) and the International Business Machines Corp. (NYSE:IBM) to enable its customers store data locally anywhere globally. Box intends to add more partners to its Box Zones network to enable local data store in more regions around the world.

Data residency riddle

Many multinational companies are struggling to cope with fragmented and somehow repugnant data sovereignty polices. The fact that different countries have different laws about cloud storage of sensitive data has created a confusing environment for many companies to operate in. Some companies are forced to set up local data centers in every region they operate in, but that is usually costly and time consuming for companies with operations scattered everywhere globally.

With Box Inc (NYSE:BOX)’s Box Zones, the data sovereignty riddle is somehow solved. When a Box customer wants to move data to the cloud, Box Zones will enable them to conveniently select the region they want to store the data locally. Initially, they will be able to select the regions where Amazon and IBM have their data centers. Amazon and IBM have data centers around the world and Amazon in particular plans to expand its cloud data center footprint this year.

In the future, Box Inc (NYSE:BOX) customers will have more local regions options in Box Zones as the company adds more partners.

Competitive advantage

Box Inc (NYSE:BOX) said Box Zones will be offered as an add-on to its customers. According to Box’s CEO, Aaron Levie, they have been thinking about solving the cloud data storage riddle for many years and they are glad they have got a solution. Box Zones is expected to give Box a competitive advantage against competitors such as Dropbox.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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