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Box Ramps Up Offerings for Government Buyers

Key Speakers At The BoxWorks 2015 ConferenceKey Speakers At The BoxWorks 2015 Conference
Michael Short—Bloomberg/Getty ImagesPhotograph by Michael Short—Bloomberg via Getty Images

The federal government will spend almost 8.5% of its IT budget on cloud services during the 2016 fiscal year. Box (BOX) wants a bigger piece of that action.

The business software company has finally delivered a special edition of its file-sharing system that meets strict government security requirements, including those enforced under the Federal Risk and Authorization Management program, FedRAMP. That approval is a big deal for any software company selling to the federal government, and it’s a distinction that Box shares with the likes of IBM, Microsoft, Google, and Salesforce.

Box’s service is already used by state agencies in California, New York, and Washington, as well as for applications within the Departments of Energy, Commerce, and Justice, and the United Nations.

It has also scored deals with governments outside the United States, such as its relationship with the UK’s digital services arm.

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Box has been talking up its government aspirations for years, but really hunkered down in March 2015 when it hired former head of the General Services Administration Sonny Hashmi.

Given the reams of paper usually associated with the legislative process, the focus makes sense.

The government should spend an estimated $6.7 billion on cloud services during fiscal year 2016, according to projections from research firm IDC.