These days, internet connections are fast, storage is cheap, and on-demand applications (think Gmail) are everywhere…meanwhile, local hardware requires cash, maintenance, and overhead…so why not store everything in the cloud? This is what Egnyte provides: an online server that enables simple and secure file storage, sharing, and backup, for a fraction of the cost.

They have a lot of competition in this market, but are aiming to differentiate themselves by targeting small and medium sized businesses instead of consumers. SMBs need to have lots of centralized storage, collaboration with business partners, and backup/protection of data, but typically cannot afford the local hardware required. Egnyte provides all of this, with extra focus on reliability and security.

In this interview, Vineet Jain, Co-Founder & CEO of Egnyte, discusses the details of the tech, the market, and their most recent press announcement: the integration of their product with the iPhone, allowing users to share and access all of their files on-the-go, while effectively providing limitless storage on a device with very little local memory. This provides great business utility to the iPhone, broading its use beyond the consumer space.

The company would be an interesting startup case study, given that they’ve attracted over 1000 customers in 8 months, and closed their first round of funding just 3 months ago. Below you can check out a detailed demo of the product, which showcases every feature on a laptop…and on the iPhone too, of course.

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In this final video in the 3-part series, Aaron shares the interesting story of how Box.net got started. Back in 2004, when the founders were in college, they realized that there was no practical solution on the market for online file management and sharing between computers and users, and found themselves trapped using USB drives and emailing files to themselves. The founders started the company from their dorm rooms, and once they received angel funding, they left school to pursue the Box.net project full time.

I asked Aaron about how they successfully made the transition from a dorm room project to a full-fledged company…at one point, every startup has no users, no employees, and no money, so those initial steps can be very challenging. Aaron stated that because of the tremendous demand for online file sharing, there was immediate interest in Box.net…they were even featured on Engadget on Day 2 after launch, which created instant momentum, helping the company attract users and ultimately receive funding.

Aaron also shares about the beginnings of his entrepreneurial career back in high school, and provides advice on the skill set required to be a successful CEO of a young and growing startup. He also opens up about the mistake of their initial hesitation to offer a free version of their software, and that it can be counterintuitive to increase revenue by giving things away for free!

Don’t miss this final video in the series!

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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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