Mar
12
2018
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Dropbox sets IPO range $16-18, valuing it below $10B, as Salesforce ponies up $100M

After announcing an IPO in February, today Dropbox updated its S-1 filing with pricing. The cloud services and storage company said that it expects to price its IPO at between $16 and $18 per share when it sells 36,000,000 shares to raise $648 million as “DBX” on the Nasdaq exchange.

In addition to that, Dropbox announced that it will be selling $100 million in stock to Salesforce — its new integration partner — right after the IPO, “at a price per share equal to the initial offering price.”

A specific date has not yet been set for Dropbox’s listing later this month.

The IPO pricing values the company at between $7 billion and nearly $8 billion when you factor in restricted stock units — making it the biggest tech IPO since Snap last year, but still falling well below the $10 billion valuation that Dropbox crept up to back in 2014 when it raised $350 million in venture funding.

Many will be watching Dropbox’s IPO to see if it stands up longer term and becomes a bellwether for the fortunes and fates of many other outsized “startups” that many have also expecting to list, including those that have already filed to go public like Spotify, as well as those that have yet to make any official pronouncements, like Airbnb.

Some might argue that it’s illogical to compare a company whose business model is built around cloud storage with a travel and accommodation business, or a music streaming platform. Perhaps especially now: at a time when people are still wincing from Snap’s drastic drop — the company is trading more than 30 percent down from its IPO debut — Dropbox presents a challenging picture.

On the plus side, the company has helped bring the concept of cloud storage services to the masses. Riding on the wave of mobile devices, lightweight apps, and faster internet connections, it has changed the conversation about how many conceive of handling their data and offloading it off of their devices. Today, Dropbox has more than 500 million users in more than 180 countries.

On the minus side, only around 11 million of those customers are paying users. The company reported around $1.1 billion in revenues in 2017, representing a rise on $845 million in 2016 and $604 million in 2015. But it’s unprofitable, reporting a loss of $112 million in 2017.

Again, that’s a large improvement when you compare Dropbox’s 2016 loss of $210 million in 2016 and $326 million in 2015. But it does raise more pressing questions: Does Dropbox have a big plan for how to convert more people into paying users? And will its investors have the patience to watch its business models play out?

In that regard, the Salesforce investment and integration, and its timing of being announced alongside the sober IPO range, is a notable vote of confidence in Dropbox. Salesforce has staked its whole business model around cloud services — its ticker may be “CRM,” but its logo is its name inside a cloud — and it’s passed into the pantheon of tech giants with flying colors.

Having Salesforce buy into Dropbox not only shows how it’s bolstering its new partner Dropbox in the next phase, but I’d argue also gives Dropbox one potential exit strategy. Salesforce, after all, has been interested in playing more directly in this space for years at this point.

Jan
30
2018
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Microsoft’s Azure Event Grid hits general availability

 With Event Grid, Microsoft introduced a new Azure service last year that it hopes will become the glue that holds together modern event-driven and distributed applications. Starting today, Event Grid is generally available, with all the SLAs and other premises this entails. Read More

Sep
19
2017
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Google Cloud’s Natural Language API gets content classification and more granular sentiment analysis

 Google Cloud announced two updates this morning to its Natural Language API. Specifically users will now have access to content classification and entity sentiment analysis. These features are particularly valuable for brands and media companies For starters, GCP users will now be able to tag content as corresponding with common topics like health, entertainment and law (cc: Henry).… Read More

Sep
14
2017
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AWS now offers a virtual machine with over 4TB of memory

 Earlier this year, Amazon’s AWS group said that it was working on bringing instance types with between 4 to 16TB of memory to its users. It’s now starting to fulfill this promise as the company today launched its largest EC2 machine (in terms of memory size) yet: the x1e.32xlarge instance with a whopping 4.19TB of RAM. Previously, EC2’s largest instance only featured just… Read More

Jul
10
2017
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Microsoft’s Azure Stack private cloud platform is ready for its first customers

 Microsoft’s cloud strategy has long focused on the kind of hybrid cloud deployments that allow enterprises to run workloads in a public cloud like Azure and in their own data centers. Azure Stack, its project for bringing the core Azure services into the corporate data center, is the logical conclusion of this. If developers can target a single platform for both the public and… Read More

May
25
2017
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Meta SaaS raises $1.5 million from Mark Cuban and others

 Meta SaaS is a product that helps you cancel other products. Like Cardlife and Cleanshelf, Meta SaaS looks at all of your software-as-a-service subscriptions and tells you which ones you use and, more important, which ones you don’t. Founded by Arlo Gilbert and Scott Hertel, the product raised $1.5 million in seed from Mark Cuban with participation from Barracuda Networks, Capital… Read More

May
17
2017
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Google is giving a cluster of 1,000 Cloud TPUs to researchers for free

 At the end of Google I/O, the company unveiled a new program to give researchers access to the company’s most advanced machine learning technologies for free. The TensorFlow Research Cloud program, as it will be called, will be application based and open to anyone conducting research, rather than just members of academia. If accepted, researchers will get access to a cluster of 1,000… Read More

Mar
19
2017
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Galvanize will teach students how to use IBM Watson APIs with new machine learning course

 As part of IBM’s annual InterConnect conference in Las Vegas, the company is announcing a new machine learning course in partnership with workspace and education provider Galvanize to familiarize students with IBM’s suite of Watson APIs. These APIs simplify the process of building tools that rely on language, speech and vision analysis. Going by the admittedly clunky name IBM… Read More

Mar
09
2017
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Google makes it easier for companies to transfer data to its cloud

 Onstage today at Google’s Cloud Next conference, the company announced a series of new tools to assist users with data preparation and integration. The updates bolster both the power and agility of Google Cloud for businesses.
The first of these releases is the new private beta of Google Cloud Dataprep. Dataprep makes the data preparation process more visual. The tool includes anomaly… Read More

Feb
16
2017
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With $3.6M in fresh funding, YotaScale optimizes cloud computing for enterprises

server room and data center YotaScale, a graduate of Alchemist’s enterprise accelerator, is announcing a $3.6 million venture round today from Engineering Capital, Pelion Ventures and angels Jocelyn Goldfein, Timothy Chou and Robert Dykes. The startup employs machine learning to help balance performance, availability and cost for enterprise cloud computing. Competitors CloudHealth Technologies and Cloudability… Read More

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