Box acquires Streem so you don't have to keep filling your local disk with 'cloud-based' files

Not to be outdone by competitor Dropbox, file-storage company Box just acquired a Y Combinator startup of its own: Streem.

In short, Streem offers unlimited cloud-based storage that “never runs out.” Through StreemFS, its own filesystem, people can access their files and view them without needing to download copies and keep them on their devices, often a problem when trying to use cloud-storage as an extension of local storage.

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Streem’s team and technology will become part of Box’s products, according to Streem’s announcement on its website.

Streem’s key technology also includes and on-the-fly video transcorder that enables instant streaming of videos regardless of their original format. It even adjust the streaming format and quality based on the available internet speed, and dynamically fluctuates it as it goes.

Additionally, its streaming and buffering algorithms mean enable cloud-stored files to open as fast as files stored locally. This is particularly useful for video storage and streaming, which usually means lag and delays.

While Streem’s technology will offer Box the ability to eliminate local storage of file copies, which competing services such as Dropbox and Google Drive still require, Streem is not the only company with this kind of technology. Bitcasa, which raised $11 million last November from Horizons Ventures, Pelion Venture Partners, Samsung Ventures America, Andreesen Horowitz, and First Round Capital.

This is nonetheless terrific news for Streem’s investors, including Grooveshark co-founder Andres Barreto and Ironfire Capital.

Streem was founded in 2013 by Ritik Malhotra and Tanooj Luthra, and was part of Y Combinator’s Summer 2012 class.

We’ve reached out to the company and will update with more information.