In Part 2 of my interview with Aaron Levie, we dive into the details of Box.net’s market strategy. He starts by discussing how the company managed to establish a base of nearly 2 million users, which was primarily achieved through the offering of their 1GB free package. This “freemium” pricing structure actually increased revenue for the company by attracting additional users, many of whom eventually transition to a paid package.

Aaron also provides his perspective on the reasons behind the failure of Xdrive, another online file storage company. He speculates that Xdrive provided a significant amount of free storage in an arena where banner ads are not very effective, and they failed to focus on the file-sharing aspects of their business, which is the true value-add in an industry where online storage has become commoditized.

He concludes by discussing Box.net’s recent growth and transition into a fancy new office space, which was big news for the company. They now have nearly 40 employees, many of whom have just been hired in the last few months!

Tune in tomorrow for the final video in this 3-part series on Box.net!

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This week, I’m experimenting with a completely different format for the show! Last weekend I had a great conversation with Aaron Levie, Co-Founder and CEO of Box.net, and I will be featuring his interview as a 3-part series, with videos posted on Wednesday, Thursday, and Friday. Do let me know what you think about this new structure!

Box.net is a 3 1/2 year old startup specializing in the storage, sharing, and management of files online. Uploaded files can be accessed from any computer and securely shared with anyone over the internet; this may eventually become the most useful way to manage files, with the increased popularity of cloud computing, social networking, and online collaboration. About a year ago, the company launched its OpenBox API, enabling developers to integrate Box.net files with their online applications, enhancing the functionality of the Box.net platform. Through OpenBox, Box.net can be seamlessly used with Facebook, Twitter, eFax, Zoho (online office software), EditGrid (online spreadsheet software), Picnik (online photo editing software), Autodesk (online 3D graphic design), and many other applications.

Late last week, Box.net and Dell announced a partnership (BIG news for a startup!), where purchasers of the just-launched Inspiron Mini 9 laptop will be able to sign up for 2GB of free storage with Box.net. This sleek, compact, and affordable new “netbook” laptop offers only 4-16GB of disk space, so additional storage through Box.net will be valuable for Inspiron Mini owners, and of course allow ease of online sharing and collaboration. Aaron discusses more details about this relationship, sharing how Box.net managed to get noticed by Dell, and Box’s role in the emergence of netbooks as a new trend for inexpensive mobile computing in the cloud. He also discusses some details on the Box.net back-end and redundancy/security features, and concludes this segment with how they differentiate themselves from new and former file storage companies like iBackup and XDrive, allowing them to achieve success where others have failed.

Be sure to check back tomorrow for Part 2 of my interview with Aaron!

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