tv Bloomberg West Bloomberg June 24, 2015 4:30pm-5:01pm EDT
emily: the laws is user base. competitors closing in. i will talk about the company's strategy with the ceo. ♪ i am emily chang. this is bloomberg west. box teams up with ibm. the corporate race for customers. john scully has a plan to disrupt ibm salesforce, and oracle. he is here to tell us a about his new company.
motorola solutions data and drums to fight crime, but is it leading to eight robocop huger? to our lead. dropbox growing rapidly. in an exclusive interview, ceo told me that user base has jumped to 400 million. it is being used in 8 million businesses. dropbox is by that $10 billion. rivals are catching up. -- dropbox is valued at $10 billion. microsoft is gaining ground at 19% and box at 15%. i asked him about the company's rapid rise and plans to go public. >> 8 million businesses. itron of room to grow. -- a ton of room to grow.
if you look at how valuable that problem is. the people things that people put in their dropbox are the most valuable. making a company's team productive, a safe place for their information, that's extremely viable things. we just partnered with microsoft last year to build dropbox natively into office. there is a lot going on. investors see the potential. >> you always said that drop box is a standalone company. do you have that same conviction today? \ > being independent allows us to support different platforms. other companies tend to favor their native platform at the
expense of the others. that switzerland approached is not a value to us. >> how do you plan to raise money? >> we have been able to do a lot. we were able to raise money that we have not really needed. >> why take it if you don't need it? >> we want flexibility. we do in investment in infrastructure, acquisitions, having a stronger balance sheet is is the possibility to make it, long-term investments. >> do you have the cash you need? >> for sure. the important thing is not just generating cash. it is important to keep investing. >> could you move ahead without investing more money? >> for sure.
we can just a focused on building and growing our audience. >> what are your plans to go public? >> we don't have any right now. that's what we get with the flexibility from raising this money. >> what have you learned from box's ipo? >> i'm glad that we have our approach. it means that we don't have to spend the kind of mothers that others do on sales and marketing. >> are you profitable? >> we don't break that out now. our investors are happy. our focus is not on profitability. it is on investing and growing. emily: the dropbox ceo and cofounder there. you can see more on studio 1.0. i want to bring in leslie, who covers ipos. as well as michael wolff
founder and ceo of activate. dropbox is still in the lead. obviously, competitors are closing in. is it worth $10 billion? >> there is so much growth ahead for that company. people keep looking at it as storage. it is collaboration. the other companies are friendly. collaboration is a consumer issue. consumers love dropbox. dropbox is easy for them to use, especially when they are bringing their own devices to work. i see a lot of runway ahead. emily: what are your sources telling you? do investors like dropbox? do you think they will like it more than box? >> the sentiment has changed over the last year. sources cap saying that dropbox
has better numbers than this. don't worry. it will look better at that time. here we are one year later, people looking at dropbox, and the discussion has changed, highlighting potential cash burn rate. they still have a long way to go. in terms of an ipo, most people seem to mirror what he was saying. they don't have a plan to go public. dropbox is the type of company that to pass the 10e 10 the and valuation is an achievement. emily: he said that he can go public without raising more money. we are seeing high profile people leaving. gentry underwood running
mailbox, said he would leave, then changed his mind. should we be concerned? >> the war for talent is fierce. technology companies with the te best technologist win. they are still able to hire great people. as our everyone else. other companies are as having -- are having the same attrition issues. people find it an exciting place to work. the proof is in the product. they keep innovating, creating features that consumers love. emily: he said they monitor engineers and are seeing better numbers than ever. i want to turn to what we saw with box today. box teaming up with ibm to go after corporate customers, now able to store content in big blues cloud.
i asked aaron leavy of box about the deal and what is next in the cloud. >> the cloud is disruptive in the economic sense and the way you deliver value to customers. it's not hard to deliver the cloud. i think that most of the technology vendors will be able to get the cloud and do that successfully. it is now going to be the new opportunity and competitive market, what you do on top of the data, information, and computing in the cloud. commodity infrastructure is not to three interesting. what are you doing with that information to deliver more value to customers. i see more points of view from microsoft, ibm, oracle, and others. this is a new market that has yet to play out. emily: there are so many
companies chasing the cloud, microsoft, google, oracle, box, and dropbox. box and ibm are competitors. will we see more consolidation? >> they are all trying to integrate as much as possible. the challenge is making the clout smarter. it is allowing users to be able to get out of the cloud what they have put into it. i think we will see more partnerships. yes, people will fight in one sandbox and play to gather and another one. emily: is this confusing for investors? it confuses me a little bit. >> it confuses me too. when you look at something like this, it is a great partnership. what does it really do for box's bottom line. that is the question that investors are concerned about. it is not clear how it could
boost earnings and boost share price, but it seems like it is a better option for them than ceding to the competition, to partner with -- especially when people keep expressing their concerns about cloud storage being a commodity business better to partner than die, right? emily: how much money is changing hands, but they wouldn't go there. why doesn't ibm just by box? they want to be a big independent company. >> i doubt that ibm can push the same kind of innovation that a small company can. it is a challenge for large companies to act as startups. you talk about hiring the best people and get them to do things that are going to yield great results for consumers. emily: the race for the cloud is something that we will continue to watch. michael, you will be out -- with me throughout the show.
funds at a $10 billion valuation. big data could mean big dollars for advertisers if they know how to use the tech knowledge he. data interactive help brands to crunch the numbers and send data to customers. they work with 700 different customers, quaker oats british airways, sprint. we have more and the company cofounder, john's gully -- john scully. john, i will start with you. how can you serve the needs of everyone with one technology? >> we are a platform company
able to leverage that capability with 350 million profile names and we have a repeatable model. last year, we grew over 7% topline. we had 700 people. this is a company that is at the stage of rapid scaling. >> how are you going to stand out in the world of ad tech. there are so many other companies with great day to science, and the march of advertising innovation continues forward. >> we are a data and analytics company. the big difference between us and to companies we compete with ibm, salesforce, we focus on the entire customer lifecycle versus just focusing on crm, which is what our competitors do. we have very large enterprises
help them combine their data and build an analytical breakdown and then we help find them dramatic cost savings they can invest to create customers. most companies adjust focus on that crm component. we do acquisitions, crm, and monetization. emily: john, you thought led to advertising powerhouse is. i think about the pepsi taste challenge, apple 1984, and i wonder with big data, everything is becoming more targeted. i wonder how that impacts creativity in advertising. what a shocking campaign like 1984, would it be possible today. >> i don't think it would be the place to put your best talent. those campaigns were designed when everything was about experience marketing and you had
a lot of audience and a lot of time. we don't have that anymore. we have people who give us 10 seconds of attention. we are in the attention economy. you have to look at the way people see media. they are more likely to see it on their mobile devise. the campaigns that we did before, they would not be the kind of campaigns that i would be leading. it would be in advertising and data analytics. >> so much of the advertising is going to video. creativity becomes more important as we moved to video advertising. >> you have to make sure that people who are seeing the video are the ones most apt to buy the product and view the video. you can look at how it is compiled and creativity will always be an important component. we fully believe that.
we believe that spending to reach a massive audience, when you could get much more focused and much tighter and get to the people who not only have the highest aptitude to purchase a product, but also to replicate your best customers. you are adding customers, butter highest revenue, highest value customers, by targeting down that micro and macro data. >> what we are seeing today is that we can use predictive analytics to know a lot about people we are targeting. we have a very short attention span with the customer today. we want to focus on things that they will be most interested in. >> john scully, former ceo of apple, pepsi, thank you all. emily: jack ma is expanding the alibaba in part. they will launch my bank.
this is part of a trend of private banks being licensed by the government to target small loans. not everyone is thrilled by the growth. chinese banks are setting up e-commerce platforms as a defense to their expansion. my bank will begin operating tomorrow. up next, in the future computers will solve crime and prevent them from ever happening. that's what motorola solutions says. they will explain, next. ♪
190 million 227,552, the number of posts on creddit. they turned 10 years old today. they released the number of counts, 36 million, as well is billion comments and 200,000 lines of code. they have been generous. they donated just under $2 million to charities. motorola solutions is betting that the future of policing involves a lot more numbercrunching. public safety technology makes up a significant part of business, and the company has been on a tear investing in a
drone maker, partnering with a crime analytics lab. we are joined now from new york. since the new season of true detective started, i wonder how big data make a true detective's work easier, fight crime faster essentially? >> we purchased a company earlier this year that does predictive analytics. we are able to predict 30% or 40% of the crimes that will happen the next day. that way detectives can deploy forces much better. we did a one-year partnership which included investigative analytics, connecting people places, and things. shrinking from what takes days to collect two minutes.
emily: the idea of computers digging around and personal data, thinking on behalf of police officers, can it be creepy or controversyial? >> this is data available in police databases. it is arrest records, 911 records not easily accessible. that's what big data and software does, accesses data, crushes numbers, and does predictions. >> michael? >> this is incredibly cool stuff. it will be effective. because of all the devices, they have their own network. this is not like the pre-crime unit in tom cruise movie minority report. this is about looking and seeing the history of what is going on and using that network to say
what is likely to come next. emily: you guys are investing in drones. how far away is mass adoption of drones by police department and how can they help? >> we invested in a company earlier this year. two things, situational awareness, you think about a drone going up. they can stay up in the air for a day or two days at a time. they can send video back. yesterday, we did a cool demonstration on motorola where we sent out a broadband network on a drone. in the case of a natural disaster, the drone was able to create a dome of broadband into an area and connect all the devices that the police officers have. emily: does it concern you that we might be had in -- might be
heading to a robocop future? >> i think that the concern is the broader consumer user. once that gets combined with what's going on out there, i think it can make a big difference. the cloud being able to say what is going on is much more powerful than any algorithm that can get created. i'm not concerned about it because in a lot of ways, this is something that consumers want and they will contribute to. emily: you're probably also not breaking the law. i hope not. michael wolff, thank you for joining us. motorola solutions, interesting work that you guys are doing. thank you so much. that does it for this edition of "bloomberg west". do not miss my full interview on studio 1.0. we talk about washington. ♪