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Congratulations Imation and Nexsan
Are there any independent storage vendors left?

Last week Imation, the company that is known for making CDs, DVDs, magnetic tape and in the past floppy disk (diskettes), bought Nexsan, a company known for the SATA and SAS storage products.

Imation also (or should be) owns the TDK and Memorex names (remember is it real or is it Memorex? If not Google it). They also have had for several years removable hard disk drive (RHDD) products including the Odyssey (I am in the process of retiring mine), as well as partnership with the former ProStor for RDX and having acquired some of the assets of ProStor namely their RDX based InifiVault storage appliance. Imation has also been involved in some other things including USB and other forms of flash-based solid state devices (SSD), as well as a couple of years (2007) they launched cloud backup with DataGuard before cloud backup had become a popular buzzword topic.

Imation has also divested parts of its business over past several years including some medical related (X-ray stuff) to Kodak who occupies part of the headquarter building in Oakdale MN, or at least last time I looked when driving by there on way from the airport. They also divested their SAN lab with some of the staff going to Glasshouse and other pieces going to Lion bridge (an independent test lab company). Beyond traditional of data protection, backup/restore and archiving media or mediums from consumer to large-scale enterprise, Imation has also been involved in other areas involving recording. Imation also has done some other recent acquisitions around dedupe (Nine Technologies).

For its part, Nexsan has extended their portfolio from SATA and SAS products, AutoMaid Intelligent Power Management (IPM) which gives benefits of variable power and performance without the penalties of first generation MAID type products. Read more about IPM and related themes here, here and here. Nexsan also supports NAS and iSCSI solutions in addition to their archive and content or object storage focused Assureon product they bought a few years ago.

This is a good acquisition for both companies as it gives Imation a new set of products to sell into their existing accounts and channels. It also can leverage Nexsan's channel and solution selling skills giving them (Nexsan) a bigger brand and large parent for credibility (not that they did not have that in the past).

Here are is a link to a piece done by Dave Raffo that includes some comments and perspectives from me. To say that the synergy here is about archiving or selling SSD or storage would be too easy and miss a bigger potential. That potential is Imation has been in the business of selling consumable accessories for protecting and preserving data. Notice I said consumable accessories which in the past has meant manufacturing consumable media (e.g. Floppy disks or discs, CD, DVDs, magnetic tapes) as well as partnering around flash and HDDs.

In many environments from small to large to super-sized cloud and service providers, some types of storage systems including some of those that Nexsan sells can be considered a consumable media or medium taking over the role that tape, CDs or DVDs have been used in the pat. Instead of using tape or CDs or DVDs to protect the HDDs and SSDs based data, HDD based solutions are being used for disk-to-disk (D2D) protection (part of modernizing data protection). D2D is being done as appliances, or in conjunction with cloud and object storage system software stacks such as OpenStack swift, Basho Riak CS, CloudStack, Cleversafe, Ceph, Caringo and a list of others, in addition to appliances such as EMC ATMOS among others than can support 3rd party storage device as consumable mediums. Keep in mind that there is no such thing as a data or information recession, and people and data are living longer and getting larger, both for big data and little data.

The big if in this acquisition which IMHO is a fair price for both parties based on realistic valuations is if they can collective execute on it. This means that Imation and Nexsan need to leverage each other's strengths, address any weakness, close gaps and expand into each other's markets, channels and sell the entire portfolio as opposed to becoming singular focused on a particular area tool or technology. If Imation can execute on this and Nexsan leverages their new parent, the result should be moving from the roughly $85M USD sales to $100M+ then $125M then $150M and so forth over the next couple of years.

Even if Imation keeps maintains revenues or a slight increase, which would also be a good deal for them, granted the industry pundits may not agree, so let us see where this is in a few years. However if Imation can grow the Nexsan business, then it would become a very good deal. Thus, IMHO the price valuation for the deal has the risk built into, something like when NetApp bought the Engenio business unit from LSI back in 2011 for about $480M USD. At that time, Engenio was doing about $705M USD in revenue and seen by many industry pundits as being on the decline, thus a lower valuation. For its part, NetApp, has been executing maintaining the revenue of that business unit with some expansion, thus their execution so far is being rewarding for taking the risk.

Let us see if Imation can do the same thing.

Now, does that mean that Nexsan was the last of the independent storage vendors left?

Hardly, after all there is still Xiotech, excuse me, Xio as they changed their name as part of a repackaging, relaunch and downsizing. There is DotHill who supplies partners such HP, or Dothills former partner supplier InfoTrend. If you are an Apple fan then you might know about Promise, if not, you should. Lets not forget about Data Direct Networks (DDN) that is still independent and at around $200M (give or take several million) in revenue, are very much still around.

How about Xyratex, sure they make the enclosures and appliances that many others use in their solutions, however they also have a storage solutions business focused on scale out, clustered and grid NAS based on Lustre. There are some others that I am drawing a blank on now (if you read this and are one of them, chime in) in addition to all the new or current generation of startups (you can chime in as well to let people know who you are to be bought).

There is still consolidation taking place, both of smaller vendors by mid-sized vendors, mid-sized vendors by big vendors, big vendors by mega vendors, and startups by established.

Again congratulations to both Imation and Nexsan, let us see who or what is next on the 2013 mergers and acquisition list, as well as who will join the where are they now club.

Disclosure: Nexsan has been a StorageIO client in the past; however, Imation has not been a client, although they have bought me lunch before here in the Stillwater, MN area.

With Imation having their own brand name and identity, not to mention TDK and Memorex, now I have to wonder will Nexsan be real or Memorex or something else? ;)

Ok, nuff said.

Cheers gs

Greg Schulz - Author Cloud and Virtual Data Storage Networking (CRC Press, 2011), The Green and Virtual Data Center (CRC Press, 2009), and Resilient Storage Networks (Elsevier, 2004)

twitter @storageio

All Comments, (C) and (TM) belong to their owners/posters, Other content (C) Copyright 2006-2013 StorageIO All Rights Reserved

Read the original blog entry...

About Greg Schulz
Greg Schulz is founder of the Server and StorageIO (StorageIO) Group, an IT industry analyst and consultancy firm. Greg has worked with various server operating systems along with storage and networking software tools, hardware and services. Greg has worked as a programmer, systems administrator, disaster recovery consultant, and storage and capacity planner for various IT organizations. He has worked for various vendors before joining an industry analyst firm and later forming StorageIO.

In addition to his analyst and consulting research duties, Schulz has published over a thousand articles, tips, reports and white papers and is a sought after popular speaker at events around the world. Greg is also author of the books Resilient Storage Network (Elsevier) and The Green and Virtual Data Center (CRC). His blog is at www.storageioblog.com and he can also be found on twitter @storageio.

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Cloud Expo - Cloud Looms Large on SYS-CON.TV


Cloud Expo 2013 East Opening Keynote by IBM
In this Cloud Expo Keynote, Danny Sabbah, CTO & General Manager, Next Generation Platform, will detail the critical architectural considerations and success factors organizations must internalize to successfully implement, optimize and innovate using next generation architectures.
Lisa Larson, Vice President of Enterprise Cloud Solutions of Rackspace Hosting Live From New York City
In the old world of IT, if you didn't have hardware capacity or the budget to buy more, your project was dead in the water. Budget constraints can leave some of the best, most creative and most ingenious innovations on the cutting room floor. It's a true dilemma for developers and innovators – why spend the time creating, when a project could be abandoned in a blink? That was the old world. In the new world of IT, developers rule. They have access to resources they can spin up instantly. A hybrid cloud ignites innovation and empowers developers to focus on what they need. A hybrid cloud blends the best of all worlds, public cloud, private cloud and dedicated servers to fit the needs of developers and offer the ideal environment for each app and workload without the constraints of a one-size-fits-all cloud.

Keynote: Driving Cloud Innovation: SSDs Change Cloud Storage Paradigm
Cloud is a transformational shift in computing that can have a powerful effect on enterprise IT when designed correctly and used to its full potential. Join Citrix in a discussion that centers on building, connecting and empowering users with cloud services and hear examples of how enterprises are solving real-world business challenges with an architecture and solution purpose-built for the cloud.

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[June 11-14, 2012]

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Introducing Big Data Expo
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There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Get a jump on that rapidly evolving trend at Big Data Expo, which we are introducing in June at
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Testimonials
Cloud Expo was a fantastic event for CSS Corp - we easily exceeded our objectives for engaging with clients and prospects."
AHMAR ABBAS
SVP, Global Infrastructure Management, CSS Corp.
 
With our launch at Cloud Expo, we successfully transformed the company from a relatively unknown European player into the dominant player in the market. Our competitors were taken by surprise and just blown away. We got a huge number of really high quality leads..."
PETE MALCOLM
CEO, Abiquo
 
We were extremely pleased with Cloud Expo this year - I’d say it exceeded expectations all around. This is the same info we got from partners who attended as well. Nice job!"
MARY BASS
Director of Marketing, UnivaUD
 
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President & CEO, Appzero


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@CloudExpo Blogs
"Appcore has been around since January 2008. We exclusively built clouds for service providers. We've been working with CloudStack since about that same time and our software sits on top of CloudStack," stated Jeff Tegethoff, CEO of Appcore, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
While news about the malicious hacking trade and the actions of elusive cyber-criminals continue to grab headlines, the third of our annual Insider Threat reports confirm that the risk posed by those legitimately ‘inside the fence’ continues to top business data security concerns. Of course, there can be no denying that the breadth and depth of private and public sector breaches in the past few years that have resulted from trusted insiders turning rogue or being compromised by perpetrators of APTs and the like indicates that there is a major disconnect when it comes to organisations’ handling...
Last week I was able to catch up with Chris Tranter, Technical Lead at Hallmark UK. Hallmark’s engineering team runs on tight deadlines, and like all popular websites, places a huge importance on customer experience. As you can imagine, their site has abnormal and inconsistent load times, especially through the holiday season. Ensuring a smooth, seamless experience without stalls, outages, or crashes is extremely important. It was great to see how AppDynamics APM can become a necessary solution on a developer’s toolkit.
Big Data, AI, Machine Learning, Hadoop, Predictive Analytics — we hear these terms every day from companies such as Cloudera, Trifacta and Dato (formerly GraphLab) that are securing many millions in financing. I believe that 2015 will be the year when the conversation moves from Big Data to the Dataware stack. Over the past twelve months we have seen a lot of companies across the big data spectrum emerge and while the language can be the same, there are clear product categories that have emerged which describe the market opportunity and future growth.
A couple years ago I attended several "fast pitch" competitions and events for entrepreneurs in Southern California, all designed to give startups a chance to "pitch" their ideas in about 60 seconds to a panel of representatives from the local investment community. Similar to television's "Shark Tank," most of the ideas pitches were harshly critiqued, with the real intent of assisting participating entrepreneurs in developing a better story for approaching investors and markets.
Some users of WebSphere Application Server prefer to upgrade their EAR/WAR applications using WAS’s “update-in-place” option instead of uninstalling it and then re-installing. The latter, of course, is XL Deploy’s default behavior, but it can be changed with a simple tweak to a type definition in an XML file. Here is a look at how the WAS Admin Console presents these options:
With every New Year it is time to look back at the industry events of the past 12 months, and use our expertise to predict what lies ahead, in order to be more prepared. With regards to DDoS attacks, here is a short list of what to expect in 2015. We expect to see an increase in DDoS attacks size in terms of bandwidth, but likely there will be an emphasis on packets per second metric. Bandwidth is an important metric, and it is something most people can relate to. When shopping for home Internet connection, the bandwidth metric is what people are comparing.
Small data management solutions don’t work in our brave new Big Data world. Back in the small data days, we talked proudly about having gigabytes of structured data that had been carefully denormalized to reduce latency as much as possible. Today’s data is measured in petabytes, and it is dynamic, complex, and wildly varied in structure. Small data was a nicely planned garden, but Big Data is a jungle: rich with resources, abundant in growth, but also a bit overwhelming and easy to get lost in.
SYS-CON Media announced today that Mike Kavis’s blog has exceeded 40,000 reads. Launched in March 2014, his popular blog feed on DevOps Journal covers IT with a focus on cloud computing, DevOps and the Internet of Things. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done.
I’ve spent the past few years looking at clouds on the ground and in the air. On the ground, I’m immersed in OpenStack’s global innovation and momentum. Doing so involves lots of time in the air, looking at literal clouds as I fly around the world talking with OpenStack developers, community members and users. Yet most of my conversations don’t reside in the clouds. They reside squarely in reality, as users want clear answers on how OpenStack-based solutions can help with their everyday challenges. I’m fortunate to spend my time talking about the critical issues that matter, which often diffe...
If your business had the choice between one million lifetime customers or two million one-time transaction customers, which would you choose? Selecting the former guarantees a recurring revenue stream for years while the latter only guarantees revenue for that individual transaction. Sounds like a no-brainer, right? There are many factors that contribute to a successful recurring revenue cycle for your business, from product packaging and pricing to configuring existing systems and operations. There is one particular metric that is especially critical to understanding the success or failure...
Our last post defined customer lifetime value (CLV) as the metric critical in measuring the success or failure of a recurring revenue program. In order for your company to routinely return significant revenue, maximizing CLV needs to be at the top of your priority list. A CLV-supported strategy boosts many aspects of your business, from sales to customer service. When it comes to increasing customer retention and customer satisfaction, the two keys to driving long-term results, this same strategy works to increase both at every available opportunity.
I followed a meetup last night in Austin presented by Michael Cote of 451 Research and CloudCamp co-founder Dave Nielsen. John provided a review of the past five years of cloud computing and Dave talked about some current strategies in using PaaS. The overall program provided a nice and thorough review of where we've been and where we are. The global nature of the cloud reaches to most nations. In the modern era, enterprise IT evolves at a similar pace worldwide, rather than in North America and Western Europe first, as in days past. Depending on what particular aspect you're examining, it ...
TiP is not something to be afraid of. The more you understand what may go wrong and how to take the proper precautions to prevent that, the more successful and efficient your overall app development process will be. Today’s post is about the major risks of Testing in Production, how to mitigate them and ensure you’re getting your best end-product to users.
Here’s a short anecdote: a QA team maintained a test environment separate from their production environment, but they had gone through great lengths to ensure it matched what was in production in every respect. It was filled with the same hardware, and all the software was identical down to the patch level. They had a strong process to ensure that any change made to one environment was mirrored in the other. Perhaps you can see where this story is going. Sure enough, the environments turned out to not be identical. In fact, there was some BIOS setting that differed on the servers, which result...
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Past SYS-CON Events
    Cloud Expo West
cloudcomputingexpo
2011west.sys-con.com

 
    Cloud Expo East
cloudcexpo
2011east.sys-con.com

 
    Cloud Expo West
cloudcomputingexpo
2010west.sys-con.com

 
    Virtualization Expo West
virtualization
2010west.sys-con.com
    Cloud Expo Europe
cloudexpoeurope2010.
sys-con.com

 
    Cloud Expo East
cloudcomputingexpo
2010east.sys-con.com

 
    Virtualization Expo East
virtualizationconference
2010east.sys-con.com
    Cloud Expo West
cloudcomputingexpo
2009west.sys-con.com

 
    Virtualization Expo West
virtualizationconference
2009west.sys-con.com
    GovIT Expo
govitexpo.com
 
    Cloud Expo Europe
cloudexpoeurope2009.sys-con.com
 

Cloud Expo 2011 Allstar Conference Faculty

S.F.S.
Dell

Singer
NRO

Pereyra
Oracle

Ryan
OpSource

Butte
PwC

Leone
Oracle

Riley
AWS

Varia
AWS

Lye
Oracle

O'Connor
AppZero

Crandell
RightScale

Nucci
Dell Boomi

Hillier
CiRBA

Morrison
Layer 7 Tech

Robbins
NYT

Schwarz
Oracle

What The Enterprise IT World Says About Cloud Expo
 
"We had extremely positive feedback from both customers and prospects that attended the show and saw live demos of NaviSite's enterprise cloud based services."
  –William Toll
Sr. Director, Marketing & Strategic Alliances
Navisite
 


 
"More and better leads than ever expected! I have 4-6 follow ups personally."
  –Richard Wellner
Chief Scientist
Univa UD
 


 
"Good crowd, good questions. The event looked very successful."
  –Simon Crosby
CTO
Citrix Systems
 


 
"It's the largest cloud computing conference I've ever seen."
  –David Linthicum
CTO
Brick Group