In any kind of business, success is often determined by the personnel. It doesn’t really matter how good the idea behind the business is. What matters is whether the business has the right team to implement the idea.
It appears that somebody at cloud storage and computing giant, Box, is thinking along these lines. This is why the company recently hired Sonny Hashmi. Mr. Hashmi is the former CIO of the US General Services Administration. The US General Services Administration is a huge contracts and acquisitions arm of the US government. This is a tremendous human resources coup for Box (NYSE:BOX) because it paves the way for a solid federal government acquisitions strategy.
While this piece of news might not be enough to push many investors off the fence and start buying up Box stock, it does point a spotlight to how strategic this company thinks. You have to remember that what separates Box from other cloud computing startups and established companies is its corporate customer list. It has a massive list of giant companies.
Currently, Box already has in excess of 40 clients in the federal government sector. These clients range from legislative, judicial, education, military, and healthcare among others. With the recent hiring of Mr. Hashmi, expect Box to get even more aggressive in courting US federal government contracts.
If this Box’s institutional client strategy pans out any further, I would suggest buying the stock. One of the key hallmarks of a truly successful company is that it tends to focus on a business-to-business model instead of a business-to-consumer model. The advantages are tremendous. If most of your customers are other businesses, you would have a lot of return business. Moreover, the volume that they buy is usually much higher than business-to-consumer sales.
