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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
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[June 11-14, 2012]

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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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Cloud Expo was a fantastic event for CSS Corp - we easily exceeded our objectives for engaging with clients and prospects."
AHMAR ABBAS
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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..."
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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!"
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@CloudExpo Blogs
I sat down with Michael Rösch, COO of POOL4TOOL, to chat about cloud computing. With a lot of buzz about the impact of the cloud on business, it was a chance to get a perspective, as well as a few hints and tips, from someone who has been at the coalface of procurement cloud services for the past 15 years. Michael has been at POOL4TOOL since 2000, becoming COO in 2012, and has worked on projects with German giants like Behr, Hansgrohe, Heidelberger Printing Presses, Carl Zeiss and ThyssenKrupp Presta in that time.
The arrival of the Microsoft Azure Stack Technical Preview marks a turning point in the cloud-computing market and forms a leading indicator of how dramatically Microsoft has changed in the past two years. The cloud turning point comes because the path to hybrid-cloud capabilities and benefits has a powerful new usher, one with the enterprise, developer, and service-provider presence, R and D budget, and competitive imperative to succeed in a market still underserved and nebulous.
2016 will be the year of the data lake. But I expect that much of 2016 data lake efforts will be focused on activities and projects that save the company more money. That is okay from a foundation perspective, but IT and Business will both miss the bigger opportunity to leverage the data lake (and its associated analytics) to make the company more money. This blog examines an approach that allows organizations to quickly achieve some “save me more money” cost benefits from their data lake without losing sight of the bigger “make me more money” payoff – by coupling the data lake with data scie...
For Valentine's Day, here's a lighthearted look at the "relationship" between two complementary technologies: service virtualization and cloud dev/test labs. Hey, I know it's been a while since we started being "a thing." When we met, everyone said you were just mocking, and that I wasn't real enough to make a living, with my head in the clouds. Yet, here we are, a few years later.
The Net Neutrality fight has been all over the news this year with the latest installment on Net Neutrality coming in from T-Mobile. Private and public companies alike are tuned into to this continual saga to see how the eventual outcome will affect business and ultimately their online lives. But whether the FCC’s recent ruling on Net Neutrality stands the test of time or not, there is a new technology that will provide customers fast, reliable Internet services at much lower costs than private business lines.
Enterprises across all industries are in the midst of difficult, bet-the-company changes we call digital transformation. And yet, there remains broad confusion about the scope of the word digital. While the rise of mobile technologies are the impetus for many such transformations, digital goes well beyond the choice of user device. In fact, digital transformation reflects the fact that customer preferences and behavior are driving enterprise technology decisions – and such technology decisions impact the entire organization, from innovative, customer-focused efforts all the way to the traditi...
With some of the busiest shopping days of the year behind us, now is the time for retailers to pause for a moment to evaluate what worked, and to consider new online strategies and technologies for the 2016 shopping season. We don’t yet have numbers for 2015, but in 2014, holiday season retail e-commerce spending in the United States amounted to 53.3 billion U.S. dollars with the most money being spent online on Cyber Monday. Fujitsu is working with Grid Dynamics to deliver an Oracle Commerce Platform as a fully-managed cloud service. I had a chance to sit down with Victoria Livschitz, E...
The Internet of Things (IoT) is growing at a rapid pace with millions of new devices getting connected every day. Gartner forecasts that 6.4 billion connected things will be in use in 2016 and by 2020, the number will reach 20.8 billion. Billions of devices including smartphones, laptops, cars, watches, refrigerators, and even thermostats are all getting connected thanks to APIs. Many of these devices are part of a larger application ecosystem, connected to the cloud and each other using the same APIs.
At first adopted by enterprises to consolidate physical servers, virtualization is now widely used in cloud computing to offer elasticity and scalability. On the other hand, Docker has developed a new way to handle Linux containers, inspired by version control software such as Git, which allows you to keep all development versions. In his session at 17th Cloud Expo, Dominique Rodrigues, the co-founder and CTO of Nanocloud Software, discussed how in order to also handle QEMU / KVM virtual machines versions, they have developed a new tool, called Vm_commit, which can create commits, backup any ...
Microservices are all the rage right now — and the industry is still learning, experimenting, and developing patterns, for successfully designing, deploying and managing Microservices in the real world. Are you considering jumping on the Microservices-wagon? Do Microservices make sense for your particular use case? What are some of the “gotchas” you should be aware of? This morning on #c9d9 we had experts from popular chat app Kik, SMB SaaS platform Yodle and hosted CI solution Semaphore share their journey and learnings from decomposing their monolithic application into Microservices. Wit...
Earlier this week it was reported that researchers at Boston-based security company, Rapid7, identified several security flaws in an app connected to a new toy from Mattel's Fisher-Price brand. The news of the security vulnerability caught our attention for a few reasons: The name of the toy - Smart Toy Bear - is strangely close to the name of our company SmartBear Software. More importantly, the story caught our attention because the security vulnerability brought up an important reminder about the important issue of security in today's connected world
Non-profit New York Genome Center manages and analyzes up to 12 terabytes of data each day with a swift, cost efficient, and accessible big-data analytics platform. To hear how genome analysis pioneers exploit vast data outputs to speedily correlate for time-sensitive research, please join me in welcoming our guest, Toby Bloom, Deputy Scientific Director for Informatics at the New York Genome Center in New York City. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
In a recent market study offering by Transparency Market Research (TMR), the global cloud security market is projected to grow at a CAGR of 12.80% from 2015 to 2022. The report, titled "Cloud Security Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2022", states that the global cloud security market will reach a valuation of US$11.8 bn by 2022 increasing from its 2014 valuation of US$4.5 bn.According to the report, factors such as the rapid proliferation of handheld devices, the increasing trend of CYOD and BYOD policies in corporate organizations, increasing...
Over the past year, Microsoft has been introducing Azure Resource Manager (ARM) as the preferred way to provision and manage resources in its Azure cloud. ARM is the successor to the original Service Management model, also known as “Classic.”[1] While Classic will continue to be supported for the foreseeable future, ARM is the preferred deployment model and all new Azure features are being released on ARM only. Here is an overview ARM and the new features it provides.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, Alex Lovell-Troy, Director of Solutions Engineering at Pythian, will present a roadmap that can be l...
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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