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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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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
 
Cloud Expo helps focus the debate on the critical issues at hand in effect connecting main street with the next frontier."

GREG O’CONNOR
President & CEO, Appzero


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@CloudExpo Blogs
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
After many years of research, misfires and frightening Hollywood plotlines, artificial intelligence (AI) is finally coming into its own and beginning to demonstrate significant business value. The combined forces of big data, human expertise and AI are being used across industries as diverse as healthcare and manufacturing, as well as within all aspects of business. IT operations is one area that AI is beginning to contribute to enormously. IT infrastructures are changing rapidly today, particularly hybrid cloud environments. While they are increasingly dynamic and agile, they are also ext...
A data breach could happen to anyone. Data managed by your company is valuable to someone, no matter what the data is. Everything has a price tag on the dark web. It is especially true when it is customer data, such as personal and payment card details. When your customers’ data turns up somewhere unexpected on the Internet, you may feel the world is collapsing around you. People start tweeting about the hack, angry customers phone in, and Brian Krebs publishes his first article. Your organization switches to an emergency mode to handle the situation. It is the time when your incident respons...
This is a no-hype, pragmatic post about why I think you should consider architecting your next project the way SOA and/or microservices suggest. No matter if it’s a greenfield approach or if you’re in dire need of refactoring. Please note: considering still keeps open the option of not taking that approach. After reading this, you will have a better idea about whether building multiple small components instead of a single, large component makes sense for your project. This post assumes that you have experience with software architecture and services (you’ll find some words about my experience...
Tapjoy’s data-driven business of serving 500 million global mobile users - or more than 1.5 million add engagements per day, a data volume of a 120 terabytes - runs with extreme efficiency. The next BriefingsDirect Voice of the Customer big data case study discussion examines how mobile app advertising platform Tapjoy handles fast and massive data - some two dozen terabytes per day - with just two part-time database administrators (DBAs).
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the development process, accelerating application delivery times, and ensuring that developers will become her...
IDC estimates that the digital universe is doubling every two years. That means the need for data storage is increasing at the same rate. This exponential demand is no match for traditional vertical-scaling storage architectures. The resulting bottlenecks significantly reduce performance, and trying to store so much data would require prohibitively expensive server scale-out.
Before becoming a developer, I was in the high school band. I played several brass instruments - including French horn and cornet - as well as keyboards in the jazz stage band. A musician and a nerd, what can I say? I even dabbled in writing music for the band. Okay, mostly I wrote arrangements of pop music, so the band could keep the crowd entertained during Friday night football games. What struck me then was that, to write parts for all the instruments - brass, woodwind, percussion, even keyboards - I had to have an overall score to work from. Or at least a sketch of one. Otherwise, I'd ...
IT planning is an imprecise science that allows IT experts to increase the flexibility and agility of IT environments while reducing the bottom line. In an ideal world, where time and budget are not limiting factors, upgrading an organization's infrastructure happens on an ongoing, as-needed basis. In the real world, IT administrators have to make decisions about the hardware they put in place and how to maintain acceptable service levels over the course of the equipment's expected life. Most businesses do not have the luxury of replacing their current storage systems when IT demands outpace ...
Microsoft took another step toward being king of the cloud hill when it announced in January that it was releasing its Azure stack to the public. There are many technical reasons why this is cool, but more importantly, it's the psychological advantage this gives Microsoft. Google has always had the ability for developers using its stack to develop locally on the same tools that run in Google App Engine. It recently forked its environments, so now the local and cloud environments are slightly different for some of the configurations -- I can't tell you how many nights I have lost sleep becaus...
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically can be done to offer protection at every layer. He o...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior to VenueNext, he spent over 35 years as a founder, CEO or executive leader of product and engineerin...
When digital laggards finally recognize the degree of change digital technologies will force upon their businesses, and desperately try to outrun the inescapable Darwinian effect of their slow start, they will be faced with not one, but three ages of digital transformation to navigate and survive. Understanding these ages, and what is unique about each one, is critical for business strategy, prioritizing, planning, sequencing and budgeting.
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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