Speaker:

A question is can we change the

Speaker:

nature of work? Can we make work

Speaker:

faster? Can we make work simpler?

Speaker:

Can we make work more enjoyable?

Speaker:

Can we get people out of the

Speaker:

challenges that we're so used to,

Speaker:

which is, how hard it is to find

Speaker:

information to collaborate in

Speaker:

real-time, to make decisions

Speaker:

with other people, to get

Speaker:

everybody organized in your

Speaker:

company?

Speaker:

That's Aaron Levie, CEO of Box,

Speaker:

the content management and

Speaker:

collaboration platform that

Speaker:

reaches more than 95,000

Speaker:

businesses around the world.

Speaker:

Aaron started Box out of his

Speaker:

dorm room at USC, and then

Speaker:

dropped out of school to run the

Speaker:

company full-time with his co-

Speaker:

founder and childhood friend,

Speaker:

Dylan Smith. At just 20 years

Speaker:

old, they made the bold move to

Speaker:

cold email, Mark Cuban and

Speaker:

brought him on as their first

Speaker:

angel investor. In 2015, they

Speaker:

took the company public and Box

Speaker:

is now worth more than $3

Speaker:

billion. Aaron was named

Speaker:

Entrepreneur of the Year in 2013

Speaker:

by "Inc. Magazine" and is an

Speaker:

industry veteran with over 2.4

Speaker:

million followers on Twitter.

Speaker:

Aaron's story and mission have

Speaker:

always been an inspiration to me.

Speaker:

It's an honor to sit down with

Speaker:

him and decode his vision for

Speaker:

building products that enable

Speaker:

people to achieve their greatest

Speaker:

ambitions. This is Daniel Saks,

Speaker:

Co-CEO of AppDirect, and it's

Speaker:

time to decode viral enterprise

Speaker:

growth. Welcome to "Decoding

Speaker:

Digital," a podcast for

Speaker:

innovators looking to thrive in

Speaker:

the digital economy. I'm your

Speaker:

host, Daniel Saks. I'll sit down

Speaker:

with other founders, CEOs, and

Speaker:

changemakers to decode the

Speaker:

trends that are transforming the

Speaker:

way we work. Let's decode.

Speaker:

Aaron, welcome.

Speaker:

Hey, thanks, man. Thanks for

Speaker:

having me.

Speaker:

Great to catch up. In a lot of

Speaker:

ways, you have the classic

Speaker:

Silicon Valley founder story.

Speaker:

You started Box in your dorm

Speaker:

room at USC, dropped out of

Speaker:

college, then 10 years, later

Speaker:

took the company public. Looking

Speaker:

back, did you always know that

Speaker:

that was the path you wanted to

Speaker:

take?

Speaker:

We started the company...

Speaker:

It was born out of our own

Speaker:

personal challenges that we were

Speaker:

running into in college around

Speaker:

sharing files and collaborating.

Speaker:

We ended up doing some research

Speaker:

and identified that there was a

Speaker:

much bigger market that we could

Speaker:

go after. This was back in 2004.

Speaker:

If you think all the way back

Speaker:

then, the way that most people

Speaker:

commonly shared their files was

Speaker:

you would email yourself files,

Speaker:

you had USB thumb drives, you

Speaker:

had to set up lots of server

Speaker:

infrastructure to be able to

Speaker:

manage data. We felt like there

Speaker:

had to be a simpler way to be

Speaker:

able to work from anywhere, be

Speaker:

able to access files from

Speaker:

anywhere. We built this

Speaker:

application. Fortunately, it

Speaker:

struck a chord in the market.

Speaker:

People started signing up and

Speaker:

using it more actively. We then

Speaker:

were able to raise some early

Speaker:

angel investment from Mark Cuban,

Speaker:

and that led us dropping out of

Speaker:

college. Then 15 years later,

Speaker:

this is where we're at. The

Speaker:

idea was really, "Let's go and

Speaker:

solve a really big problem," one

Speaker:

that we personally were running

Speaker:

into but ultimately one that

Speaker:

ended up being much bigger than

Speaker:

we even imagined as we were

Speaker:

getting started.

Speaker:

You've been legendary when it

Speaker:

comes to building a brand, Box

Speaker:

is always the SaaS service that

Speaker:

I always called out as being the

Speaker:

leader in building a brand and

Speaker:

driving clarity of purpose for

Speaker:

enterprise software. Can you

Speaker:

explain? Was that done

Speaker:

deliberately? How did you think

Speaker:

about it?

Speaker:

I appreciate that. Maybe it's

Speaker:

working. When we started Box, it

Speaker:

was very early in the evolution

Speaker:

of SaaS -- software as a service --

Speaker:

and cloud computing in general.

Speaker:

What we realized was, we had to

Speaker:

find a way to get enterprises to

Speaker:

rethink what they define as

Speaker:

enterprise software and what the

Speaker:

future of work was going to look

Speaker:

like. We realized that we were

Speaker:

competing against these massive

Speaker:

incumbents and became this that

Speaker:

competing with us was much

Speaker:

greater distribution, much

Speaker:

larger sales teams, a large

Speaker:

incumbency in terms of the

Speaker:

customer-based that they had.

Speaker:

We realized that the only way we

Speaker:

were going to turn that around

Speaker:

was by trying to get people to

Speaker:

imagine a different way that we

Speaker:

could look in the future.

Speaker:

Effectively how we thought about

Speaker:

building our brand was, "Let's

Speaker:

go and redefine what the future

Speaker:

of work looks like, especially

Speaker:

the end users and the business,

Speaker:

not just IT. Let's get the users

Speaker:

excited about what the future

Speaker:

can look like in terms of how

Speaker:

work can become much simpler,

Speaker:

and people can work together and

Speaker:

collaborate much more

Speaker:

effectively." That's where we

Speaker:

built our brand from. Now, we're

Speaker:

excited because there's many

Speaker:

other players in this ecosystem

Speaker:

broadly of companies like Zoom

Speaker:

and Slack. Other companies have

Speaker:

entered the sphere to help

Speaker:

accelerate this message of work

Speaker:

doesn't have to be complicated.

Speaker:

Software doesn't have to suck.

Speaker:

You can have simple end-user

Speaker:

experiences. We can make it

Speaker:

easier to get work done in the

Speaker:

enterprise. That was the origin

Speaker:

of the company. It was to try

Speaker:

and bring that kind of consumer-

Speaker:

grade disruption to enterprise

Speaker:

software. It's been exciting to

Speaker:

see that that has taken on a

Speaker:

life of its own at this point.

Speaker:

It's incredible. In 2005, if you

Speaker:

think back to work software, we

Speaker:

were both still young, but it's

Speaker:

clunky and tough. You look at

Speaker:

how many companies have been

Speaker:

built around your ecosystem.

Speaker:

It's truly amazing as well.

Speaker:

It's been fun. I do consider it

Speaker:

very unfair that I'm the only

Speaker:

one that seemed to get gray hair

Speaker:

out of this whole thing, but it

Speaker:

has been a fun journey. It's

Speaker:

great that enterprise software

Speaker:

has gotten so much better for

Speaker:

users. That was the whole intent

Speaker:

of business to begin with. We

Speaker:

consider it mission accomplished

Speaker:

on that dimension. Now, when we

Speaker:

look out at the market, there's

Speaker:

still so much more opportunity,

Speaker:

especially when you look at

Speaker:

things like, unfortunately,

Speaker:

COVID, from a health standpoint,

Speaker:

has been the catalyst for this.

Speaker:

Ultimately, this new era of work

Speaker:

where we know that businesses

Speaker:

are going to be more distributed,

Speaker:

more remote, collaboration's

Speaker:

going to look very different in

Speaker:

the future. Even though we're

Speaker:

15 years into this, we recognize

Speaker:

how early we are in the broad-

Speaker:

scale transformation that's

Speaker:

going to be happening in

Speaker:

businesses.

Speaker:

It's incredible that you've lead

Speaker:

the charge of transformation to

Speaker:

SaaS. With your thoughts around

Speaker:

the future of work, early days,

Speaker:

where in the next 15 years do

Speaker:

you think Box is going to be,

Speaker:

and where do you think SaaS is

Speaker:

going to be?

Speaker:

I'm glad that you're giving me

Speaker:

full credit for all of that.

Speaker:

I'll take as much of it on this

Speaker:

podcast as I can get. Certainly,

Speaker:

we're collectively amongst a

Speaker:

broader ecosystem of players

Speaker:

that have been creating the

Speaker:

landscape that we got to go play

Speaker:

in, like Salesforce and Workday,

Speaker:

others. When we look at the

Speaker:

next 10 or 15 years, if I look

Speaker:

at the past 10 or 15 years in

Speaker:

software, it was much more about

Speaker:

the delivery model of technology

Speaker:

being modernized. What we were

Speaker:

doing is fundamentally bringing

Speaker:

software from on-premises

Speaker:

systems and technologies to the

Speaker:

cloud. If you look at the next 5,

Speaker:

10, 15 years, the delivery model

Speaker:

is now well understood. It's

Speaker:

going to cloud. The question is,

Speaker:

can we change the nature of work?

Speaker:

Can we make work faster? Can we

Speaker:

make work simpler? Can we make

Speaker:

work more enjoyable? Can we get

Speaker:

people out of the challenges

Speaker:

that we're so used to, which is

Speaker:

how hard it is to find

Speaker:

information, to collaborate in

Speaker:

real time, to make decisions

Speaker:

with other people, to get

Speaker:

everybody organized in your

Speaker:

company? The exciting

Speaker:

opportunity is if we can go from

Speaker:

the disruption being about the

Speaker:

delivery model of software to

Speaker:

the disruption being about what

Speaker:

work looks like and how we can

Speaker:

go change it, that's the 6Holy

Speaker:

Grail. We're excited that when

Speaker:

we look out at our product

Speaker:

roadmap, it's very much around,

Speaker:

can we bend the curve of what

Speaker:

work should look like going

Speaker:

forward? When we look out at

Speaker:

the partner ecosystem that we

Speaker:

have, again, when you take into

Speaker:

consideration companies like

Speaker:

Slack, and Zoom, and others,

Speaker:

work is going to look very, very

Speaker:

different in even next 12 months

Speaker:

than it has for the past 20

Speaker:

years. That's what's extremely

Speaker:

exciting for us.

Speaker:

How do you bend the curve of an

Speaker:

industry?

Speaker:

Usually, through the will of the

Speaker:

users and the people. It turns

Speaker:

out, if you go to most companies

Speaker:

and you say, "What still kind of

Speaker:

sucks about work?" I think you'd

Speaker:

get a long list of answers, and

Speaker:

some are very pertinent to a

Speaker:

particular company. In general,

Speaker:

usually what you'll hear are

Speaker:

things like, "It's too slow to

Speaker:

get things done. I'm not

Speaker:

empowered to make decisions. I'm

Speaker:

spending too much time trying to

Speaker:

find information, or recreating

Speaker:

work, or spending too much time

Speaker:

dealing with software." The

Speaker:

question is, can we go and solve

Speaker:

that problem generally across

Speaker:

industries? That could be in a

Speaker:

retailer trying to get new

Speaker:

products out to market faster.

Speaker:

It could be a technology company

Speaker:

trying to innovate in a new

Speaker:

product launch. It could be a

Speaker:

government agency trying to

Speaker:

better serve their citizens. It

Speaker:

could be a life sciences company

Speaker:

trying to go and drive a new

Speaker:

discovery, whether it's

Speaker:

something urgent like responding

Speaker:

to COVID or long-range R&D going

Speaker:

after niche diseases. When you

Speaker:

look across all these different

Speaker:

industries, what is propelling

Speaker:

the world forward? It's

Speaker:

information, it's people

Speaker:

collaborating, it's people that

Speaker:

are making decisions faster on

Speaker:

leveraging data. It's being able

Speaker:

to collaborate across boundaries,

Speaker:

in continents, between

Speaker:

institutions. The potential of

Speaker:

all of that is for software to

Speaker:

get better to go solve those

Speaker:

problems. When you go and talk

Speaker:

to users and you go talk to

Speaker:

people and you say, "What are

Speaker:

the big difficult things in your

Speaker:

way for moving your business

Speaker:

forward?" It usually has to do

Speaker:

with speed, usually has to do

Speaker:

with bureaucracy. It usually has

Speaker:

to do with how the lack of

Speaker:

agility in their company.

Speaker:

That's where we think the big

Speaker:

opportunity is, can software go

Speaker:

solve those types of problems?

Speaker:

That is ultimately what bends

Speaker:

that curve is people looking for

Speaker:

better, faster, simpler, cheaper

Speaker:

ways to do things, and then

Speaker:

bringing software in that can go

Speaker:

and power that.

Speaker:

Now, there's so much software

Speaker:

everywhere that it's hard to

Speaker:

decide what is going to make

Speaker:

sense for your business and how

Speaker:

do you adopt it. You talked

Speaker:

about the challenges around

Speaker:

bureaucracy. How does a person

Speaker:

inside a business choose the

Speaker:

right software and ultimately

Speaker:

use that for more agility and

Speaker:

speed?

Speaker:

The great thing is, certainly,

Speaker:

for both of us, there is so much

Speaker:

more innovation, so much more

Speaker:

software in the world that

Speaker:

people are leveraging. It's

Speaker:

interesting, because if you look

Speaker:

back 10 or 15 years ago, there

Speaker:

maybe was, I don't know, 20 or

Speaker:

30 SaaS companies that you could

Speaker:

list if you were forced to,

Speaker:

maybe 20 at best. Today, if you

Speaker:

sat down with a piece of paper,

Speaker:

you could probably remember a

Speaker:

couple hundred. Then, as soon as

Speaker:

you start to look in any

Speaker:

category of software, you'll

Speaker:

instantly find that there's

Speaker:

thousands of software companies

Speaker:

today, all effectively working

Speaker:

on your behalf to try and make

Speaker:

your company, or your business

Speaker:

process, or your team, or your

Speaker:

particular function more

Speaker:

efficient. That's what's

Speaker:

amazing is 15 years ago, when

Speaker:

you said, "OK, I want my finance

Speaker:

team to be more efficient,"

Speaker:

maybe you could build some

Speaker:

macros inside of Excel. Maybe

Speaker:

you could get them onto the new

Speaker:

version of Oracle or NetSuite,

Speaker:

and there was maybe 5 or 10

Speaker:

pieces of software you could use.

Speaker:

Today, if you said, "I want to

Speaker:

get my finance team more

Speaker:

efficient," you have to ask the

Speaker:

question, what part do you want

Speaker:

more efficient? Do you want

Speaker:

procurement more efficient? Do

Speaker:

you want financial planning more

Speaker:

efficient? Do you want M&A

Speaker:

transactions to be more

Speaker:

efficient? Do you want how you

Speaker:

transact with your customers and

Speaker:

collect their revenue more

Speaker:

efficient? What's amazing is

Speaker:

that you have software that has

Speaker:

been created for every single

Speaker:

function of every single role in

Speaker:

every single organization in

Speaker:

every single industry. On one

Speaker:

hand, that's a lot of software.

Speaker:

That means you have a lot of

Speaker:

work to do to navigate in an IT

Speaker:

organization, be the arbiter of

Speaker:

what software should come in and

Speaker:

out and deciding what makes

Speaker:

sense for your industry and your

Speaker:

business. The amazing thing is

Speaker:

that you have thousands and

Speaker:

thousands of companies that are

Speaker:

all working to try and make your

Speaker:

organization move faster,

Speaker:

generate more revenue, save

Speaker:

money, automate more of the

Speaker:

business, and that's an

Speaker:

incredible thing. Now, it's all

Speaker:

about making great judgment

Speaker:

decisions of what software you

Speaker:

bring into your enterprise and

Speaker:

having the right kind of tools

Speaker:

available to your employees.

Speaker:

When you speak to your power

Speaker:

users, is there certain things

Speaker:

that you recognize that makes an

Speaker:

incredible user or adopter of

Speaker:

software versus someone who

Speaker:

hasn't? A lot of people botch

Speaker:

the adoption of software, and

Speaker:

the people who get it right can

Speaker:

effectively transform their

Speaker:

industries. Those who get it

Speaker:

wrong can fail. What do you

Speaker:

think?

Speaker:

I totally agree. Most of this, I

Speaker:

put the blame on the vendor's

Speaker:

side. Software vendors make it

Speaker:

harder than necessary a lot of

Speaker:

the time. I still think most

Speaker:

software is harder to use than

Speaker:

it should be. We still have a

Speaker:

wholesale industry problem that

Speaker:

enterprise software could be

Speaker:

made simpler, it could be made

Speaker:

more delightful. While I think

Speaker:

we all generally agree that

Speaker:

software should all look like

Speaker:

the best consumer technology in

Speaker:

the enterprise, not all software

Speaker:

is there yet. We all, as an

Speaker:

industry, have more work to do

Speaker:

on that front. The best way to

Speaker:

create power users, the best way

Speaker:

to enable users to adopt

Speaker:

technology is making it simple,

Speaker:

making it easy to bring in, easy

Speaker:

to solve immediate problems.

Speaker:

This whole idea of training, and

Speaker:

change management, and all of

Speaker:

those kind of things, in a

Speaker:

perfect world, we should all be

Speaker:

building software that doesn't

Speaker:

require training. That doesn't

Speaker:

require change management,

Speaker:

because it's either so dead

Speaker:

simple, so delightful, or so

Speaker:

obviously necessary that it's a

Speaker:

better way to do things that we

Speaker:

want to adopt it right away.

Speaker:

That's the Holy Grail I think we

Speaker:

all are striving to get to.

Speaker:

You've always, obviously, done a

Speaker:

lot, in terms of virality in

Speaker:

your product, in your business,

Speaker:

scaled users. I remember in the

Speaker:

early days, you used to have

Speaker:

billboards talking about how you

Speaker:

power a percentage of the

Speaker:

Fortune 500. From the outsider's

Speaker:

perspective of Box, I've always

Speaker:

seen you've had this viral magic.

Speaker:

Was that intentional, and how do

Speaker:

you create that virality?

Speaker:

We've definitely tried to make

Speaker:

our software be able to spread

Speaker:

as easily as possible. Part of

Speaker:

this is just the nature of the

Speaker:

product category when we build

Speaker:

software that makes it easy to

Speaker:

share files and collaborate.

Speaker:

It's almost by definition,

Speaker:

you're using our product to

Speaker:

spread information to other

Speaker:

people. We do think that the

Speaker:

virality of software is very

Speaker:

important. Beyond making a

Speaker:

simple product that's easy to

Speaker:

spread between teams and

Speaker:

organizations, the rest is the

Speaker:

demand of the market and trying

Speaker:

to follow that demand.

Speaker:

In the early days, you were

Speaker:

visionary about competition and

Speaker:

ensuring that you can beat

Speaker:

SharePoint, beat Dropbox. You're

Speaker:

probably one of the people that

Speaker:

I've seen that's faced a lot of

Speaker:

competition but also had a

Speaker:

unique approach to it. How do

Speaker:

you live in the world of

Speaker:

competition, and what lessons

Speaker:

would you have learned along the

Speaker:

way?

Speaker:

I prefer to not have any

Speaker:

competition. I haven't yet been

Speaker:

lucky enough to choose a market

Speaker:

that is lacking competition.

Speaker:

It's also probably a sign of how

Speaker:

big the market you're in, based

Speaker:

on how much competition you're

Speaker:

going to be dealing with. In

Speaker:

general, we want to try and do

Speaker:

things that we don't think our

Speaker:

competition can do, and so we've

Speaker:

attempted to build a strategy

Speaker:

that we don't think is easily

Speaker:

replicable by another company.

Speaker:

Our investment in data security,

Speaker:

our investment in simple user

Speaker:

experiences, our investment in

Speaker:

really, really powerful software

Speaker:

that helps our customers with

Speaker:

their workflows and manage

Speaker:

unlimited amounts of data inside

Speaker:

of their organization. Our job

Speaker:

is if we can build something

Speaker:

that the competition can't build,

Speaker:

not because we somehow have all

Speaker:

the world's best engineers. We

Speaker:

know that we're going to compete

Speaker:

with great engineering teams,

Speaker:

but because the decisions we

Speaker:

make are hopefully going to be

Speaker:

decisions that are in the best

Speaker:

interest of the customer, in the

Speaker:

best interest of either long-

Speaker:

term data architecture and

Speaker:

technical architecture. We are

Speaker:

very, very religious about how

Speaker:

we design our software to ensure

Speaker:

that we don't introduce any

Speaker:

complexity into the technology.

Speaker:

When you add all that up, we

Speaker:

think that's the sustainable

Speaker:

approach to how we're going to

Speaker:

be able to outcompete in a very,

Speaker:

very competitive landscape.

Speaker:

That's always been our approach

Speaker:

and we'll be maintaining that

Speaker:

going forward.

Speaker:

What's the code, the rigorous

Speaker:

approach to easy design and

Speaker:

interface? What do you do at Box

Speaker:

specifically that gives you and

Speaker:

the company the focus on

Speaker:

rigorous design and easy user

Speaker:

interface?

Speaker:

We just put the time into it,

Speaker:

frankly. Unfortunately, every

Speaker:

time I try and describe design

Speaker:

processes, it ends up sounding

Speaker:

more inane than it's meant to.

Speaker:

The reality is that it's very

Speaker:

straightforward of what to do.

Speaker:

The reason why companies don't

Speaker:

do it is because you end up

Speaker:

making compromises and trade-

Speaker:

offs that prevent you from doing

Speaker:

it right. The kind of

Speaker:

compromises that tend to happen

Speaker:

is you start out with a simple,

Speaker:

amazing design. Everybody loves

Speaker:

it, it's great. Then, you go ask

Speaker:

customers about it and they say, "

Speaker:

Well, could you add this button

Speaker:

or this feature? Or can you move

Speaker:

this thing around? Can you add

Speaker:

this capability?" You start to

Speaker:

say yes, and yes, and yes, and

Speaker:

yes. Over time, you end up

Speaker:

having scope creep in the

Speaker:

software that at some point, the

Speaker:

software becomes too difficult

Speaker:

to use. A simple example is like

Speaker:

if you look at Microsoft Excel,

Speaker:

or Word, or PowerPoint, that's

Speaker:

25 years of features getting

Speaker:

added. Nothing getting

Speaker:

subtracted, just getting baked

Speaker:

into that technology. It's no

Speaker:

wonder that when you look at the

Speaker:

next generation of employees or

Speaker:

students, they're like, "Hey, I

Speaker:

just want to use a Google Doc,

Speaker:

because it's instantaneous, it

Speaker:

has just the base features that

Speaker:

I need, and it's easy to

Speaker:

collaborate with others." It's

Speaker:

a classic challenge that any

Speaker:

company has to deal with, which

Speaker:

is you almost know too much

Speaker:

about your customers, so you're

Speaker:

packing too many of the features

Speaker:

that you suspect they need into

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your technology. Making it more

Speaker:

and more complicated and not

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having the discipline to hold

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the line of what, ultimately,

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you're going to deliver, what

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you're going to make available

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to your customers, what you're

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going to say no to. The reality

Speaker:

is the only way that I know, at

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least, to build simple software

Speaker:

is to be hyperfocused, saying no

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to more things than you say yes

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to, and then hold the line when

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you start to see that you're

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losing that focus or that

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simplicity. What can happen

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sometimes in organizations is --

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I've heard this line within Box,

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but I think it happens a lot

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everywhere -- you end up having

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your own internal employees --

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product managers, engineers, or

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whatever -- effectively

Speaker:

rationalize the complexity that

Speaker:

they've introduced. You'll

Speaker:

start to hear things like, "Well,

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this is what the customer asked

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for." Or, "It's not that hard to

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use." Or, "People will get used

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to it." Or, "If they just do

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this training experience,

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they'll understand it." The

Speaker:

moment you start to hear those

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types of things, you know that

Speaker:

you've effectively lost the plot,

Speaker:

and you got to go back to basics

Speaker:

and really rethink, "Are you

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building the right kind of

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simple experience?" That can be

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painful because it can take

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longer. You have to be much more

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intentional about the software

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you're building, but that's the

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only lessons I know from doing

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that.

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Whose role is that in the

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organization?

Speaker:

Hopefully, it's everybody's role.

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Now, at some point, what ends up

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happening is you do get to a

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point where there might have to

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be effectively tradeoffs or

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somebody has to make that

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ultimate vote one way or another.

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Ideally, product managers,

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designers, engineers are able to

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get to that conclusion

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themselves. Occasionally,

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that's not possible.

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Occasionally, you need to be

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able to, in some cases, give

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permission to those teams.

Speaker:

There have been situations where

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a team has said, "We want to

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build the software like this,

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but the market is giving us

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feedback that they really need X,

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Y, Z features." It might take

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somebody like the CEO or head of

Speaker:

product to basically say, "You

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know what? In the best interest

Speaker:

of our broader user base over

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the long arc of our business,

Speaker:

we're going to say no to the

Speaker:

customer for now, and we're

Speaker:

going to do it the simple way.

Speaker:

That is going to be actually

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what we go and drive." We've

Speaker:

had to make those decisions

Speaker:

occasionally. It can be annoying,

Speaker:

because you might have a

Speaker:

customer that's like, "I really

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will pay you more money if you

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just build this one thing," and

Speaker:

you're having to say no to that

Speaker:

customer. That can be super

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difficult.

Speaker:

We met, you cold emailed me, it

Speaker:

was like 2:35 AM or something

Speaker:

like that. It was maybe a two-

Speaker:

liner being like, "Hey, I'm

Speaker:

Aaron Levie, CEO of Box. I want

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to chat about this." Is that a

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strategy you use a lot,

Speaker:

and who do you cold email?

Speaker:

That sounds like me, 2:30 in the

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morning. I'd say that's

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authentic email that you got. As

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we were both very early in this

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industry, it was important to

Speaker:

find peers and colleagues that

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we're similarly scaling

Speaker:

businesses, ways of partnering

Speaker:

and working together on growing

Speaker:

the industry. What's been

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exciting about the software and

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tech space is that there's so

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much innovation, so many

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different companies having lots

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of approaches that you can

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benefit by partnering up with

Speaker:

companies, learning from each

Speaker:

other's experiences. Figuring

Speaker:

out different distribution

Speaker:

models, different partnership

Speaker:

approaches, different ways to

Speaker:

grow. This industry is rich

Speaker:

with those types of experiences.

Speaker:

That was certainly how we got to

Speaker:

know each other early on, and

Speaker:

what's been so exciting about

Speaker:

the cloud industry.

Speaker:

When you do outreach to people,

Speaker:

it seems like you have this

Speaker:

great network. You angel invest

Speaker:

a lot, you've built a great

Speaker:

ecosystem of partners. What

Speaker:

drives that? To wake up in the

Speaker:

morning and say, "Who am I going

Speaker:

to reach out to today? Who do I

Speaker:

want to meet?"

Speaker:

Certainly, since the pandemic,

Speaker:

I've been a little bit less

Speaker:

focused on expanding the network.

Speaker:

There's been not enough hours in

Speaker:

the day to even do the basics,

Speaker:

but in general, there's just so

Speaker:

much exciting innovation

Speaker:

happening. Some of that draws

Speaker:

me in from an investor

Speaker:

standpoint, where you see an

Speaker:

interesting trend or a company

Speaker:

emerge that might have a

Speaker:

disruptive approach to a

Speaker:

particular industry or category.

Speaker:

That's exciting to go and get

Speaker:

involved in. Again, the

Speaker:

industry is great because of how

Speaker:

hyperconnected. Everybody is

Speaker:

online 24/7, and so that makes

Speaker:

it easier to be able to stay

Speaker:

connected with peers and friends,

Speaker:

and that's just always been my

Speaker:

approach.

Speaker:

One of the things I found really

Speaker:

hard is you have to manage your

Speaker:

own psychology and running a

Speaker:

company. There's times when

Speaker:

you've been here on the cover

Speaker:

magazine, other times when

Speaker:

people probably are giving you a

Speaker:

hard time. How do you deal with

Speaker:

that personally?

Speaker:

We've been through every roller

Speaker:

coaster there is. We've had

Speaker:

funding rounds that fell through.

Speaker:

We had to get bridge rounds from

Speaker:

investors. We've been through

Speaker:

now to economic crises. We had

Speaker:

an IPO that was delayed. You

Speaker:

are constantly hearing bad news

Speaker:

about lost a deal or an employee

Speaker:

going off to do something

Speaker:

different. This is not a

Speaker:

business for the faint of heart.

Speaker:

In terms of the kind of stuff

Speaker:

that we run into, it's a very

Speaker:

fast moving, very dynamic

Speaker:

industry. The only thing I

Speaker:

found that gets me through any

Speaker:

of those difficult moments or

Speaker:

challenges is trying to step

Speaker:

back, but the current situation

Speaker:

and perspective, and really

Speaker:

remember the long arc of the

Speaker:

strategy and the vision the

Speaker:

mission that we're on. That's

Speaker:

helped me get through most

Speaker:

difficult events was you step

Speaker:

back and you said, "OK, that was

Speaker:

brutal news. We just lost this

Speaker:

deal. We're spending a lot of

Speaker:

time on it. That really sucks.

Speaker:

That would have been game

Speaker:

changing for this industry or

Speaker:

whatnot." Then, you zoom out,

Speaker:

you say, "OK. 5 years from now

Speaker:

or 10 years from now, if you

Speaker:

look at our what our mission is

Speaker:

to go out and do, is this really

Speaker:

going to be the defining moment

Speaker:

of the company?" You setback,

Speaker:

you realize, "No, we're going to

Speaker:

be able to get through this.

Speaker:

We're going to be able to charge

Speaker:

through this one," and that

Speaker:

recharges me think about the

Speaker:

future. The cool thing about

Speaker:

this industry is that because

Speaker:

we're in the new third or fourth

Speaker:

cycle of the industry itself,

Speaker:

there's great lessons in history

Speaker:

that you can learn from a wide

Speaker:

range of companies. The thing

Speaker:

that's always exciting -- and

Speaker:

obviously you can tell these

Speaker:

stories for yourself -- to the

Speaker:

point of becoming delusional,

Speaker:

but you have companies like

Speaker:

Oracle, where they were quarters

Speaker:

away, maybe even sooner from

Speaker:

bankruptcy in the early '90s.

Speaker:

This is a company that has,

Speaker:

depending on the day, worth $200

Speaker:

billion. They could have gone

Speaker:

bankrupt because of a massive

Speaker:

business and financial

Speaker:

restatement issue that they had

Speaker:

to deal with. You look at Apple.

Speaker:

They lost maybe 5 to 10 years of

Speaker:

relevance, where they were not

Speaker:

considered to be the future of

Speaker:

technology, the future software,

Speaker:

the future of hardware, and a

Speaker:

very, very niche, small player

Speaker:

in the technology industry. Low,

Speaker:

low, low single digits in market

Speaker:

share in the '90s from all of

Speaker:

their products. Now, it's the

Speaker:

world's largest company. It's

Speaker:

like holy crap, in this industry,

Speaker:

if you have the patience and you

Speaker:

have, hopefully, the vision, you

Speaker:

can ultimately get through

Speaker:

almost any difficulty that

Speaker:

you're dealing with. Probably,

Speaker:

the only difficulty that we've

Speaker:

seen to be fairly unrecoverable

Speaker:

is if you create a toxic culture,

Speaker:

if your company blows up from

Speaker:

internal issues. For the most

Speaker:

part, the external environment,

Speaker:

even though it's

Speaker:

hypercompetitive, even though

Speaker:

it's hyperdynamic, doesn't tend

Speaker:

to ever be the final factor for

Speaker:

most companies. You can usually

Speaker:

pull off being able to reinvent

Speaker:

yourself or build something for

Speaker:

the future, assuming you've got

Speaker:

a strong culture and a strong

Speaker:

vision of where things are going.

Speaker:

What do you do to protect your

Speaker:

culture?

Speaker:

We spend a lot of time owning it.

Speaker:

We spend a lot of time making

Speaker:

sure to reinforce our company's

Speaker:

values, reinforce what we want

Speaker:

our company to continue to look

Speaker:

like going forward, invest in

Speaker:

the internal community itself as

Speaker:

well as the external community.

Speaker:

It means you have to ensure that

Speaker:

you're continuing to live by

Speaker:

your values, which means that

Speaker:

any time that something is an

Speaker:

affront to whatever the core

Speaker:

values are of the organization,

Speaker:

you have to make sure that

Speaker:

you're either firing people that

Speaker:

maybe are not living up to those

Speaker:

values, or, doing your best to

Speaker:

hire people that fit that mould

Speaker:

but can continue to shape the

Speaker:

culture in positive directions

Speaker:

going forward. It is something

Speaker:

that the moment you stop paying

Speaker:

attention to your culture for

Speaker:

even a month, you can see a

Speaker:

degradation of decision-making,

Speaker:

of talent, of community, of

Speaker:

alignment. We spend a lot of

Speaker:

time on that.

Speaker:

Who are some of the tech leaders

Speaker:

or business leaders that you

Speaker:

look up to?

Speaker:

The cool thing is that there's a

Speaker:

plurality of cultures that are

Speaker:

in the tech community. There's

Speaker:

one of everything in this

Speaker:

industry. There's a hyper-

Speaker:

secretive approach to building a

Speaker:

business, and that's Apple.

Speaker:

There's a hyper-transparent, and

Speaker:

I'd say relatively collaborative

Speaker:

approach, which is Google.

Speaker:

There's a hyperdata decision-

Speaker:

oriented type of culture like

Speaker:

Amazon. There's a very values-

Speaker:

driven-oriented culture like at

Speaker:

Salesforce. You try and pick

Speaker:

and pull different parts of

Speaker:

those cultures that you respect

Speaker:

for you that you think align to

Speaker:

who you are as an organization.

Speaker:

We've learned a lot over the

Speaker:

years from Marc Benioff or Tim

Speaker:

Cook on the value-oriented

Speaker:

nature of building a business.

Speaker:

We try and live up to having a

Speaker:

culture that cares, again, about

Speaker:

the values of the employees and

Speaker:

of the organization. At the

Speaker:

same time, we probably are not

Speaker:

as hyperdata-driven as Amazon.

Speaker:

We're probably a bit more like a

Speaker:

Facebook or a Google, where

Speaker:

we'll make a bet on a market and

Speaker:

we're going to go and drive to

Speaker:

build the best product or

Speaker:

experience in that market.

Speaker:

You're always trying to connect

Speaker:

the dots between different types

Speaker:

of cultures and different types

Speaker:

of business models to create

Speaker:

something that works for your

Speaker:

organization.

Speaker:

I remember I visited you at your

Speaker:

office a few years back, and

Speaker:

there was such a feeling of this

Speaker:

being the headquarters. It's the

Speaker:

center of Silicon Valley. I

Speaker:

remember you said, "I'd never go

Speaker:

up to the city. This my spot."

Speaker:

Now, we have this remote,

Speaker:

diverse world. How did your

Speaker:

culture evolve through that?

Speaker:

I don't think I could've been

Speaker:

less remote-oriented as a

Speaker:

founder. My ultimate dream was

Speaker:

if you could have a gigantic

Speaker:

warehouse as an office, where it

Speaker:

was completely flat. You could

Speaker:

see everybody get to everybody,

Speaker:

talk to everybody, having

Speaker:

hundreds of thousands of people

Speaker:

in that type of setup. That

Speaker:

would've been my dream state.

Speaker:

Now, we're in the exact opposite,

Speaker:

where you're on a computer all

Speaker:

day long. You don't leave your

Speaker:

little room and you're on Zoom

Speaker:

calls all day. We've had to

Speaker:

adapt. We've been like everybody

Speaker:

else, that this has been a

Speaker:

curveball that was thrown on us.

Speaker:

Two things that prepared us -- I

Speaker:

think well, I don't know if

Speaker:

better than most, but certainly,

Speaker:

well -- one is the way that we

Speaker:

operate as a business was well

Speaker:

set up for this. Everybody's on

Speaker:

Slack. Everybody's on Zoom.

Speaker:

Everybody already works in this

Speaker:

type of modern way. We have a

Speaker:

culture that is built on

Speaker:

collaboration, is built on being

Speaker:

agile and responding dynamically

Speaker:

to events in the market. It's

Speaker:

been fairly smooth in unleashing

Speaker:

the energy of the organization,

Speaker:

pointing it in the right

Speaker:

direction, and going out and

Speaker:

executing on our mission, even

Speaker:

though we've had to adapt to

Speaker:

this environment. I don't

Speaker:

totally love the remote-only

Speaker:

nature of this situation. I

Speaker:

would much more prefer that

Speaker:

there's more of a hybrid

Speaker:

approach, and that's ultimately

Speaker:

what we think the future looks

Speaker:

like. One where you'll go back

Speaker:

to the office for certain things,

Speaker:

but you'll have more flexibility

Speaker:

to work remotely when you so

Speaker:

choose. For now, obviously,

Speaker:

we're heads down, trying to get

Speaker:

through the health pandemic.

Speaker:

If you were to close your eyes

Speaker:

and visualize 15 years out

Speaker:

future of work with a day in the

Speaker:

life of the average worker, 15

Speaker:

years out, how's it different?

Speaker:

I'd say that 15 years exceeds my

Speaker:

ability to predict these things

Speaker:

because it could either be

Speaker:

everything looks exactly the

Speaker:

same, or we're all wearing VR

Speaker:

goggles and looking at it at AI

Speaker:

dashboards with augmented

Speaker:

reality. Let's say timeline

Speaker:

aside, post-health pandemic,

Speaker:

what we do imagine is that

Speaker:

offices are still going to be a

Speaker:

pervasive part of workplace

Speaker:

culture. People want to get

Speaker:

together. They want to work with

Speaker:

their colleagues in person. They

Speaker:

want to see their colleagues and

Speaker:

be able to work on projects or

Speaker:

get mentorship. Even just

Speaker:

frankly, it's a social fabric

Speaker:

that a lot of people are

Speaker:

attached to. I don't think the

Speaker:

office goes away, but I do think

Speaker:

that remote has shown us is that

Speaker:

you can be very productive. You

Speaker:

can be incredibly effective as

Speaker:

an organization with a

Speaker:

distributed workforce. There are

Speaker:

some companies that have always

Speaker:

done that. Now, the rest of the

Speaker:

economy, let's say, the 90

Speaker:

percent of companies that didn't

Speaker:

operate that way previously are

Speaker:

now realizing, "Oh, wow, this is

Speaker:

actually an effective way that

Speaker:

we can run our business." I do

Speaker:

think that we're going to enter

Speaker:

a hybrid world. Maybe you come

Speaker:

in for three or four days a week.

Speaker:

Maybe you're able to work

Speaker:

remotely. You have longer

Speaker:

weekends. You have more flexible

Speaker:

hours. I probably think that

Speaker:

things don't change as much as

Speaker:

we're picturing, because right

Speaker:

now, the way that we're working

Speaker:

is so much more catalyzed by

Speaker:

necessity as opposed to it being

Speaker:

voluntary. Once it's voluntary

Speaker:

and not being unnecessary, it'll

Speaker:

be interesting to see where

Speaker:

things settle out on a rolling

Speaker:

basis.

Speaker:

You're like a Twitter power user

Speaker:

extraordinaire. Do you think

Speaker:

that's critical as part of the

Speaker:

work fabric in the future? How

Speaker:

do you think that platform will

Speaker:

change?

Speaker:

No, I do not think it's critical

Speaker:

to that in the future. Twitter

Speaker:

is a fantastic medium for being

Speaker:

able to get your message out.

Speaker:

I've had a lot of fun with it as

Speaker:

a platform. It's questionable

Speaker:

for our democracy. I think it

Speaker:

has some challenges. We've seen

Speaker:

how it can be exploited for

Speaker:

negative outcomes. I consider

Speaker:

Twitter to be almost entirely a

Speaker:

personal use case.

Speaker:

What other personal things you

Speaker:

try to do for fun?

Speaker:

I don't have a long list of

Speaker:

hobbies, but I do have 18-month-

Speaker:

old kid that we're having a lot

Speaker:

of fun with. That's where most

Speaker:

of my discretionary time is

Speaker:

going into. That's been a blast

Speaker:

at this point. Other than just

Speaker:

working and trying to grow the

Speaker:

business, I'm not doing too much

Speaker:

else right now.

Speaker:

How's your magic coming?

Speaker:

I'd say that there's

Speaker:

been fewer audiences for magic

Speaker:

during a pandemic. I've sold out

Speaker:

in my skill level.

Speaker:

Do you have audio-only magic

Speaker:

tricks?

Speaker:

I don't. I'm not a big fan of

Speaker:

number. I guess you can have

Speaker:

somebody guess a word or

Speaker:

something, but I don't think I

Speaker:

can pull it off right now.

Speaker:

Nice. Aaron, this is fantastic.

Speaker:

I really appreciate you spending

Speaker:

the time discussing the future

Speaker:

of work and sharing your passion.

Speaker:

Thanks so much, man.

Speaker:

Awesome. Thank you.

Speaker:

On the next episode of "Decoding

Speaker:

Digital."

Speaker:

Anybody can be a change maker.

Speaker:

It's really remarkable when you

Speaker:

see the power of the individual,

Speaker:

the impact that an individual

Speaker:

can make on the planet in their

Speaker:

community. You can be a

Speaker:

changemaker that uplifts you,

Speaker:

uplifts people around you, and

Speaker:

build a better society, a better

Speaker:

community.

Speaker:

CEO of LightSpeed, one of the

Speaker:

fastest growing commerce

Speaker:

companies, Dax Dasilva. Thanks

Speaker:

for listening to Decoding

Speaker:

Digital. Make sure you never

Speaker:

miss an episode by subscribing

Speaker:

to the show in your favorite

Speaker:

podcast player. To learn more,

Speaker:

visit decodingdigital.com. Until