Cloud computing giant Dropbox and New Zealand-based cloud accounting software company Xero announced a partnership at the end of June. According to The Australian Financial Review, the companies are hoping the alliance will serve to further assist small businesses and may end up impacting the cloud services market as well as accounting. Small business productivity, workflow and file sharing will likely become easier for Australian users of the software as a result of the partnership.
Dropbox is a software-as-a-service cloud offering. According to Forbes contributor Louis Columbus, global revenues for SaaS cloud computing will reach $106 billion in 2016, a 21 percent increase over projected numbers from 2015. Dropbox’s service was first released in 2008 in order to provide an easy cloud storage and file-sharing platform to consumers and small businesses. The partnership with Xero serves to further the company’s goal of moving more of its customers to its paid services.
“We have 8 million users in Australia, so we have a very strong brand locally, but our biggest challenge is getting businesses to understand that we also have a grown-up business product that has all the necessary controls for numerous users and collaboration,” said Charlie Wood, Dropbox’s manager for Australia and New Zealand.
In pursuing this goal, Dropbox hopes to cater to small businesses with new offerings and applications that will be released later this year as a result of the alliance with Xero.
Cloud services industry still strong
The partnership between the two cloud computing giants only points to more room to grow within the cloud computing industry. Xero sees major potential in the cloud accounting field, and the alliance with Dropbox will allow the company to realize this potential by offering updated services to a wider range of customers across Australia.
“There is more room to grow within the cloud computing industry.”
The partnership could have an effect on companies in the U.S. and elsewhere. The benefits of cloud computing can be realized by small businesses and enterprises alike around the world when using cloud-based accounting software specifically designed for the cloud. Those can include easy file sharing, more up-to-date information and inexpensive updates, according to the accounting software company’s website.
The companies see potential for their alliance to impact small and medium-sized businesses, but what does this mean for the future of enterprise cloud computing? Dropbox and Xero are well-suited to small businesses looking to simplify their computing processes and move more workflows and data to the cloud. However, larger enterprises would still be better suited with an infrastructure provider experienced in providing data center services to bigger clients.