"The federal government has made significant moves toward deploying cloud systems, consolidating data centers and reducing redundancy in government IT, driving more efficiency and better collaboration," Box CEO Aaron Levie said in a statement.
"We are excited to continue to support and accelerate these major trends, and Sonny's innovative leadership is just what the industry needs to accelerate the adoption of cloud and mobile technologies."
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For Box, the deeper push into the federal government reflects a broader strategic shift. The company's key product remains online software that allows companies to save and share digital files on any device—desktop, tablet or smartphone.
But Box is working hard to expand into new areas of modern corporate technology. Specifically, Box aims to offer high-value solutions tailored to certain industries such as financial services, retail and health care.
For instance, Box acquired a company called MedXT last fall. Its cloud-based technology allows health professionals to view, share and collaborate on medical images. Box's clients in the sector now include Stanford Medicine as well as GlaxoSmithKline and Boston Scientific.
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The financial opportunities for Box in federal government are obvious—federal government IT spending is $90 billion per year—but there are real challenges, including serious competition.