Box Continues To Enrich AI Platform, Partners Google Cloud

Box, Inc. (NYSE:BOX) recently extended its partnership with Alphabet’s (NASDAQ:GOOGL) Google per which it is integrating its platform with Google Cloud Vision.

The company is adding advanced image recognition capacities to its platform by using Google Cloud’s machine learning capabilities. The new feature will offer enterprise customers deeper understanding of Box’s unstructured content.

According to Box cofounder and CEO Aaron Levie, “By combining the machine learning capabilities of Google Cloud with the critical data businesses manage and secure in Box, we are enabling our customers – for the first time – to unlock tremendous new value from their content, digitize manual workflows, and accelerate business processes.”

Box has increasingly been adding AI capacities to its platform leveraging on its partnerships with technology giants like Microsoft (NASDAQ:MSFT) , Amazon (NASDAQ:AMZN) , Facebook (NASDAQ:FB) and Google. The company’s rich technology partner ecosystem has been a strong driving force behind its growth. Notably, the stock has rallied 35.3% year to date, significantly outperforming its industry’s gain of 16%.

Cloud Market Opportunities

Per Gartner, the worldwide public cloud services market is anticipated to increase 18% in 2017 to $246.8 billion, up from $209.2 billion in 2016. Cloud system infrastructure-as-a-service (IaaS) is projected to grow 36.8% in 2017 to $34.6 billion. Cloud application software-as-a-service (SaaS) is expected to grow 20.1% to $46.3 billion.

How is Box Poised to Benefit?

We believe Box is well positioned to take advantage of the projected growth in the cloud segment and moves like this will positively impact its top line.

Box, Inc. Revenue (TTM)

Box, which sells cloud-based file storage and transfer services to enterprise customers, already has a customer base that includes prominent names like General Electric (NYSE:GE) and The GAP. Following this move, Box will be able to enable its customers better manage and streamline image-based workflows.

This in turn will give them the power to speed up detection of quality control issues, improve teamwork, enhance marketing, hiring and on-boarding efforts and improve customer application processing.

We believe that the addition of these enhancements will help the company attract new customers and keep the existing ones hooked on its services.

Box is currently a Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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