Two leading companies Hewlett Packard and Dropbox operating in separate areas of IT, have come together to help each other grow their business.
The companies disclosed Tuesday that HP Enterprise was the late equipment supplier in technological change Dropbox strategy. HP Enterprise modified some of their standard computers Dropbox to help customers store data on their own premises, part of an effort over two years to end the service file sharing dependency on Amazon Web Services moving data in internal.
Their alliance discussed by the heads of the two companies in the same in this case, is presented as the HP Enterprise CEO Meg Whitman is eager to prove your business can compete with the imports of cheap sellers coming from Asia for Web services companies sales. These customers have continued their purchases of computers, while other companies have slowed disbursements.
For Dropbox, one of many startups in Silicon Valley whose enormous valuations have decreased lately, the relationship with HP Enterprise is designed to help find paying customers in enterprises.
Dropbox says 500 million people have subscribed to the service, which allows users to share and collaborate on documents. But the vast majority of people do it for free. Drew Houston, CEO of Dropbox, said the collection of a company’s hardware brand like HP0-Y52 dumps HP Enterprise, it is important to reassure potential corporate customers concerned about reliability and data security.
“HPE has many customers trust,” Houston said in an interview. “This helps us to scale faster.”
In addition, HP Enterprise has recently become one of the 150,000 companies that pay to use Dropbox. The Dropbox equipment manufacturer has followed a pattern described for the acquisition of other clients, the companies said. HP company’s workers initially began using the service in the office on an unpaid basis, but later the hardware manufacturer has become a paying customer.
He agreed to become a business partner also launching the service to its corporate customers, the companies said.
Dropbox build their own internal storage, known as magic pocket, a massive effort was designed to help the company differentiate their offerings from other cloud services, Houston said.
It is also expected to save money, he said. One reason is that it avoids the profit margin included in the price of Amazon Web Services. Another is that it allows Dropbox to enjoy the benefits of lower prices and faster hardware requires HP Enterprise to modify their systems to operate more economically by packing much harder on a server, Houston said.
Financial terms of the agreement are not disclosed material. However, both companies agreed to Dropbox made difficult negotiations in the search for an attractive price of HP Enterprise.
Yet Whitman said the deal was profitable. “We do not take action for the benefit of the quota,” he said in an interview. “There’s no reason to be in business to lose money.”
HP Enterprise, one of two companies created pass4sure HPE2-E64 in the breakup of Hewlett-Packard Co. last November, is struggling to increase its top line. The company reported second fiscal quarter earnings last month rose by 1%, the first year growth year reported by the HP business companies in five years.
In addition to quarterly results, the company last month announced a surprise $ 85 Billion spin off transaction of its largest business services companies, Test4practice employing approximately 100,000 people, about two-thirds of its workforce and merge with similar operations in Computer Sciences Corp. Some analysts have questioned the idea because it would depend HP Enterprise relatively unreliable hardware sales.
But Whitman argued that HP and Computer Sciences Enterprise grow faster because they focus on different markets. “We had to become smaller to go faster,” he said.