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HP claims to have put deepest cloud, hybrid cloud and probably public cloud in its pocket to sell to agencies and repair suppliers. but CloudSystem, as it is prevalent, isn't so plenty a platform as a group of intersecting HP items and roadmaps to get cloud capabilities -- elastic, self-provider provisioning, storage and metered use -- into your records core.
At coronary heart, or not it's the Cloud provider Automation application that makes or breaks the HP cloud.
there may be CloudSystem Matrix, CloudSystem business, CloudStart solution, Cloud service Automation, Cloud carrier delivery, CloudMaps, Cloud Matrix operating atmosphere, CloudSystem safety, CloudAgile, and on and on. HP all of sudden has a lot of stuff stamped "cloud." What's more, there isn't a cut back-wrap; you prefer bits right here and there, and HP helps you install and tune it. happily, there's at the least one example in the wild to peer what basically constitutes an "HP cloud."
"sure, they do have tons to study," noted Christian Teeft, VP of engineering for facts middle operator and functions issuer Latisys. Teeft noted Latisys may smartly have the primary reside CloudSystem ambiance at an HP customer. Latisys is the usage of the gadget to promote cloud infrastructure features, which are available in "deepest" and "semi-deepest" alternatives; committed clouds for consumers, as it had been.
Teeft referred to Latisys intentionally leaned faraway from startups and smaller cloud platform providers, speakme to enterprise vendors and different carrier suppliers like NewScale, Joyent, BMC and others about automation, however HP had the country membership marquee valued clientele and Teeft liked the combination with HP's hardware.
"There are synergies with HP round hardware blade programs and ISS," he noted.
business regular Server technology Communications (ISS expertise communications) is HP's manner of distributing expertise courses and thoughts to users, a bit of like Microsoft's TechNet.
Teeft referred to cloud computing for business consumers was fitting a reasonably mainstream request, despite the fact actual usage should be would becould very well be exploratory or restricted to certain workloads, all new valued clientele desired to look the skill available.
"or not it's a checkmark on lots of RFPs and RFIs nowadays," he talked about.
HP additionally touts the capability of CloudSystem to make use of external public cloud functions. Teeft spoke of he become aware about the capability to do hybrid clouds but that wasn't imperative to him. Latisys' cloud is unequivocally staying high and dry from melding with other functions.
"Our workload goes to stay inside our 4 walls for now," he noted.
Teeft observed CloudSystem had two different key advantages for a service provider. it's hypervisor agnostic, which means they can serve greater than simply VMware users, and in contrast to cloud-in-a-container solutions just like the vBlock or Oracle's Exalogic or Cisco's UCS, it might run off a small hardware allotment firstly.
"It allowed us to do a unique scale… we did not should sink just a few million dollars into a vBlock or something," he talked about.
So what precisely is CloudSystem?The valuable part of CloudSystem is the Cloud carrier Automation software, which is in keeping with Opsware. HP is promoting three core add-ons: HP Converged Infrastructure (operating some thing known as the Matrix working ambiance), Cloud carrier Automation (CSA) and HP's own assist functions to retain it working.
The Matrix OE is HP perception, truly, and handles low-degree provisioning, monitoring and management for physical and digital materials. It also helps with network management with the aid of hooking into HP digital join business manager (VCEM). Cloud provider Automation is basically Opsware, which HP bought in 2007. That provides everything else needed to turn your infrastructure into a cloud -- the user interfaces (and user management), provisioning equipment, configuration and workflow tools, and management/monitoring shows -- a entrance-conclusion resource supervisor and orchestration tool. it may faucet into HP's personal Infrastructure as a provider choices when these come on-line and with other public cloud functions like Amazon net capabilities, in response to the literature.
HP says that HP blades and 3PAR storage are the hardware component for CloudSystem, however say most x86-based mostly servers and SAN storage can work with the Cloud carrier Automation utility.
"They also promote that one after the other, so you can just buy the software answer and put it for your hardware," stated Forrester analyst Lauren Nelson, who has spoken to a handful of CloudSystem early adopters.
Nelson stated that the CSA cloud platform provides all the necessary add-ons to turn a bunch of servers into whatever thing comparable to Amazon web functions or Rackspace Cloud. The consumer interface is never polished, in line with Nelson, however the functionality is there; it is on par with products like Eucalyptus, Abiquo and Cloud.com.
"With Abiquo, which you could change the color of the interface heritage, I consider," noted Nelson.
The reason HP is promoting the software one by one as a substitute of an exclusive hardware/application bundle is that it needs to delight either side: suppliers like Latisys, and also the purchasers who are on the fence about operating their personal infrastructure or outsourcing. there's a powerful impulse in organizations to do some thing within the means of inner most cloud this 12 months, observed Nelson, however clients are looking to delivery small in the event that they perhaps can.
HP all at once has a lot of stuff stamped "cloud."
"in case your infrastructure is definitely at the back of, you might be going to be a hardware/software solution or hosted inner most cloud," she referred to. "when you are no longer somewhat as worried concerning the hardware, you might be looking at just the utility this yr."
HP has a couple of extra software enhancements for the base platform, like Tipping factor, which gives some network protection, intrusion detection and traffic management features. CloudMaps are templates for the platform in accordance with ordinary business application stacks, HP ArcSight can be used for compliance, HP Storage necessities and so on. Aggregation Platform for SaaS (AP4SaaS) has billing and templates for software as a service suppliers baked in. All of those are sideshows to the Cloud provider Automation software.
IT giants compete for cloud dominanceNelson stated that, presently, handiest HP and IBM have an entire kit to offer enterprises round inner most cloud, which means utterly integrated hardware and application to run and support it. Dell's partnerships with Joyent and Microsoft (Hyper-V speedy tune) and its own virtual Infrastructure device (VIS) weren't at the same level, and the pure-play cloud platforms require loads of work to tune for numerous styles of infrastructure. they're additionally a riskier guess, as the organizations have an unclear future.
HP has put up a big tent for its private cloud products and piled it filled with bric-a-brac. At heart, however, or not it's the Cloud carrier Automation software that makes or breaks the HP cloud. Experimenting with and adopting cloud items in apartment is without delay becoming a truth for a lot of agencies, and the big providers are naturally making an attempt to step as much as the plate. but if nothing else, this is yet an extra solution to demonstrate that cloud computing is not just extra of the same historic facts center operations.
Carl Brooks is the Senior technology creator for SearchCloudComputing.com. Contact him at email@example.com.
if you're drawn to an excessively colossal and excessively potent vehicle (here is the usa, why would not you be?), Chevrolet has simply the pair of SUVs for you. accessible at Chevy buyers, warranties blanketed, are modified versions of the Suburban and Tahoe producing...look forward to it...1,000 horsepower.
Tuned through forte vehicle Engineering, a usual GM employer accountable for the latest Yenko muscle automobiles, the SUVs get a customized-developed, 6.8-liter, supercharged V-eight in response to the LT1 producing exactly 1,000 ponies and 875 pound-ft of torque. For those more mechanically inclined than I, the mill features a "blueprinted LT1 aluminum block, race-first-rate, desktop-balanced rotating assembly including solid 4340 steel crankshaft and cast steel H-beam rods, solid aluminum pistons, CNC ported excessive-movement LT4 cylinder heads, a custom supercharger, and an eight-rib belt drive gadget."
If all of that sounds like gibberish, simply understand 1,000 hp is 37 greater from what you get out of a Ferrari LaFerrari.
The engine and supercharger are backed by a 3-12 months/36,000-mile guarantee whereas the heavy-responsibility upgraded transmission is coated for 365 days/12,000 miles.
in this video SC12, Mike Stoltz from Xyratex describes the enterprise’s ClusterStor products for HPC. Xyratex currently announced that HP and Dell will resell ClusterStor to power their advanced HPC clusters.
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HP claims to have put private cloud, hybrid cloud and possibly public cloud in its pocket to sell to enterprises and service providers. But CloudSystem, as it is known, isn't so much a platform as a collection of intersecting HP products and roadmaps to get cloud capabilities -- elastic, self-service provisioning, storage and metered use -- into your data center.
At heart, it's the Cloud Service Automation software that makes or breaks the HP cloud.
There's CloudSystem Matrix, CloudSystem Enterprise, CloudStart Solution, Cloud Service Automation, Cloud Service Delivery, CloudMaps, Cloud Matrix Operating Environment, CloudSystem Security, CloudAgile, and on and on. HP suddenly has a lot of stuff stamped "cloud." What's more, there's no shrink-wrap; you pick bits here and there, and HP helps you install and tune it. Fortunately, there's at least one example in the wild to see what actually constitutes an "HP cloud."
"Yes, they do have an awful lot to look at," said Christian Teeft, VP of engineering for data center operator and services provider Latisys. Teeft said Latisys may well have the first live CloudSystem environment at an HP customer. Latisys is using the system to sell cloud infrastructure services, which come in "private" and "semi-private" options; dedicated clouds for customers, as it were.
Teeft said Latisys deliberately leaned away from startups and smaller cloud platform vendors, talking to enterprise vendors and other service providers like NewScale, Joyent, BMC and others about automation, but HP had the country club marquee customers and Teeft liked the integration with HP's hardware.
"There are synergies with HP around hardware blade systems and ISS," he said.
Industry Standard Server Technology Communications (ISS technology communications) is HP's way of distributing technology guides and techniques to users, a bit like Microsoft's TechNet.
Teeft said cloud computing for enterprise customers was becoming a fairly mainstream request, although actual usage might be exploratory or limited to certain workloads, all new customers wanted to see the capability available.
"It's a checkmark on a lot of RFPs and RFIs these days," he said.
HP also touts the ability of CloudSystem to use external public cloud services. Teeft said he was aware of the ability to do hybrid clouds but that wasn't relevant to him. Latisys' cloud is unequivocally staying high and dry from melding with other services.
"Our workload is going to stay within our four walls for now," he said.
Teeft said CloudSystem had two other key advantages for a service provider. It is hypervisor agnostic, meaning they can serve more than just VMware users, and unlike cloud-in-a-box solutions like the vBlock or Oracle's Exalogic or Cisco's UCS, it can run off a small hardware allotment at first.
"It allowed us to do a unique scale… we didn't have to sink a few million dollars into a vBlock or whatever," he said.
So what exactly is CloudSystem?The central component of CloudSystem is the Cloud Service Automation software, which is based on Opsware. HP is selling three core components: HP Converged Infrastructure (running something called the Matrix Operating Environment), Cloud Service Automation (CSA) and HP's own support services to keep it running.
The Matrix OE is HP Insight, basically, and handles low-level provisioning, monitoring and management for physical and virtual resources. It also helps with network management by hooking into HP Virtual Connect Enterprise Manager (VCEM). Cloud Service Automation is mostly Opsware, which HP acquired in 2007. That provides everything else needed to turn your infrastructure into a cloud -- the user interfaces (and user management), provisioning tools, configuration and workflow tools, and management/monitoring displays -- a front-end resource manager and orchestration tool. It can tap into HP's own Infrastructure as a Service offerings when those come online and with other public cloud services like Amazon Web Services, according to the literature.
HP says that HP blades and 3PAR storage are the hardware component for CloudSystem, but say most x86-based servers and SAN storage can work with the Cloud Service Automation software.
"They also sell that separately, so you can just buy the software solution and put it on your hardware," said Forrester analyst Lauren Nelson, who has spoken to a handful of CloudSystem early adopters.
Nelson said that the CSA cloud platform provides all the necessary components to turn a bunch of servers into something comparable to Amazon Web Services or Rackspace Cloud. The user interface isn't polished, according to Nelson, but the functionality is there; it is on par with products like Eucalyptus, Abiquo and Cloud.com.
"With Abiquo, you can change the color of the interface background, I think," said Nelson.
The reason HP is selling the software separately instead of an exclusive hardware/software bundle is that it wants to please all sides: providers like Latisys, and also the customers who are on the fence about running their own infrastructure or outsourcing. There's a strong impulse in enterprises to do something in the way of private cloud this year, said Nelson, but users want to start small if they possibly can.
HP suddenly has a lot of stuff stamped "cloud."
"If your infrastructure is really behind, you're going to be looking at a hardware/software solution or hosted private cloud," she said. "If you're not quite as worried about the hardware, you might be looking at just the software this year."
HP has a number of additional software enhancements for the base platform, like Tipping Point, which gives some network security, intrusion detection and traffic management features. CloudMaps are templates for the platform based on common enterprise application stacks, HP ArcSight can be used for compliance, HP Storage Essentials and so on. Aggregation Platform for SaaS (AP4SaaS) has billing and templates for Software as a Service providers baked in. All of these are sideshows to the Cloud Service Automation software.
IT giants compete for cloud dominanceNelson said that, right now, only HP and IBM have a complete package to offer enterprises around private cloud, meaning fully integrated hardware and software to run and support it. Dell's partnerships with Joyent and Microsoft (Hyper-V Fast Track) and its own Virtual Infrastructure System (VIS) weren't at the same level, and the pure-play cloud platforms require a lot of work to tune for various kinds of infrastructure. They are also a riskier bet, as the companies have an uncertain future.
HP has put up a big tent for its private cloud products and piled it full of bric-a-brac. At heart, however, it's the Cloud Service Automation software that makes or breaks the HP cloud. Experimenting with and adopting cloud products in house is quickly becoming a reality for many enterprises, and the big vendors are clearly trying to step up to the plate. But if nothing else, this is yet another way to show that cloud computing is not just more of the same old data center operations.
Carl Brooks is the Senior Technology Writer for SearchCloudComputing.com. Contact him at firstname.lastname@example.org.
Welcome to “Cold War II.”
Spying and secret subversion are flaring anew between the two great superpowers America and Russia, with ripple effects throughout the western alliance and around the globe.
Digital theft also happens to individuals, as underscored by the lurid case of billionaire Jeff Bezos and the alleged extortion scheme surrounding the hacked “sexts” to his mistress. The tabloid press (and comedians on TV) are having a field day. I’ll refrain from repeating the puns.
But I won’t refrain from putting a bright spotlight on Bravatek Solutions (OTC: BVTKD), a cybersecurity firm that’s generating considerable interest among investors. Based in the thriving tech hub of Austin Texas, the company claims that its innovative technology is a game changer. Problem is, it’s a micro-cap penny stock and therefore by its nature a highly risky investment.
Regardless, the battlefield of the 21st century is cyberspace. It’s clear from the daily headlines that America is under attack, but not by conventional military forces. This war is being fought with bits and bytes, not bullets.
A shadowy army of cyber criminals and spies are stealing proprietary information from corporations and national secrets from intelligence agencies. The 2016 U.S. presidential election revealed that foreign powers such as Russia have the wherewithal and the will to hack and compromise our electoral process.
This rising incidence of hacking, cybercrime and industrial espionage is creating robust demand for corporate security. Proprietary information is a major competitive asset, but data security systems are riddled with vulnerabilities, especially as the workforce becomes more mobile and supply chains more global.
The phenomenon of cybertheft is exacerbated by the growing involvement of organized crime. Many financial losses have been traced back to the bank accounts of specific criminal organizations, especially in Russia and Eastern Europe. These tech-savvy gangsters won’t whack you; they’ll hack you.
Enter Bravatek. This small company makes cybersecurity tools to help individuals and companies fight these dark forces. But the firm’s market cap is only about $831,000. The company recently initiated a 1:10,000 reverse stock split, and yet only trades at about $0.70 per share.
Is Bravatek an investment only for the brave? It appears to be excessively risky but let’s give it a fair assessment. Beating the market requires elevated risk. No guts, no glory.
Below, I weigh the pros and cons of the company, with a prediction for the stock in 2019.What Is Bravatek Solutions?
Bravatek provides security platforms that include software, tools, and services to protect infrastructure and computers against attack.
The company’s flagship product is Encrypt One, which the company describes as a direct replacement for conventional secured email systems, consisting of an email service bundled with security products and services.How Has Bravatek Stock Performed?
Cybersecurity is a hot trend that has attracted large-cap rivals with deep pockets and impressive clients. Bravatek is dwarfed by the competition.Fortinet (NSDQ: FTNT)
With a market cap of $13.8 billion, Fortinet provides cyber security solutions for service providers and government agencies around the world.
Fortinet specializes in the private sector, especially in creating products that guard the “corporate perimeter.” The company’s security products are familiar and trusted brand names to anyone in the IT field.
FortiGate wards off attempted breaches of firewalls, virtual private networks and wide area networks; FortiManager provides centralized administration of security solutions; FortiAnalyzer provides a single portal for log data aggregation; and FortiAP strengthens wireless access points.
Fortinet has its feet firmly planted in both the commercial and government spheres, a diversification that should help it weather the broader economic storms I expect to unfold in 2019.
The accelerating transition to the cloud opens additional cyber vulnerabilities, which further fuels the need for cybersecurity products.
Read This Story: Our Alphabet Stock Prediction In 2019 (Buy or Sell?)Booz Allen Hamilton (NYSE: BAH)
Booz Allen Hamilton provides management consulting and technology solutions for public and private sector entities in the U.S. and around the world.
Booz Allen’s roots in the U.S. military establishment run deep, starting with World War II and continuing throughout the first Cold War… and now into Cold War II.
BAH’s intelligence data helped the U.S. Navy meet the challenge of the Imperial Japanese Fleet in World War II. The company also provided intelligence support for the CIA during the agency’s long, twilight struggle with communism.
Booz Allen helps clients sift through a torrent of informational white noise, to provide interpretive analysis for decisive action. The company’s capabilities extend to cloud-based storage and its clients operate in the niches of command, control, communications, computers, intelligence, surveillance, and reconnaissance.
Booz Allen leverages these myriad capabilities into forging cyber security programs as well.
With a market cap of $7.6 billion, the company is headquartered in McLean, Virginia, in the heart of the military-intelligence complex that rings the Washington, DC Beltway. As such, the firm benefits from its entrenched and loyal client roster in the Pentagon and the U.S. spy agencies.ManTech International (NSDQ: MANT)
With a market cap of $2.3 billion, ManTech International is another IT firm along the lines of Booz Allen, but it’s more narrowly focused on providing solutions for mission-critical national security programs in the U.S. and internationally.
ManTech provides hardware as well as software to support technology infrastructures, such as data centers, cloud services, and e-mail or desktop computing. As with Booz Allen, the company is based in the Washington’s Beltway metroplex, in Fairfax, Virginia.
ManTech’s forte is cyber warfare and cyber defense security, especially in pinpointing and countering external cyber-attacks.
The company’s client roster reads like a “who’s who” of the American national security establishment: The CIA, FBI and NSA; the Departments of Defense, State, Homeland Security, Energy, Justice, Veterans Affairs, and Health and Human Services; the Space Community; and other government agencies.Will Bravatek Stock Go Up in 2019 (Should You Buy?)
Cybersecurity stocks such as Bravatek enjoy powerful multi-year tailwinds, as this video makes clear:
Small wonder that legacy tech titans are moving into the industry.
Read This Story: Our Microsoft Stock Prediction in 2019 (Buy or Sell?)
There’s a lot of boasting on Bravatek’s website about the wonders of its flagship cybersecurity product Encrypt One. However, actual third-party information on the product is elusive. A thorough search mostly reveals self-serving press releases.
The company’s product materials are vague, offering unsubstantiated claims and generalized discussion of “security.” For example, there’s this boilerplate:
“Software-generated, private protocol encrypted links between servers ensure control over the end-to-end security of a connection. They can be used to connect disparate groups, departments, and even companies. Links are automatically managed by the system to prevent misconfiguration errors.”
Got that? Seems like “word salad” to me. I’m skeptical that this product has anything more than limited usage.
Bravatek’s financial reporting raises red flags, too. The company’s financials have not been audited according to its most recent 10-Q. The firm claims to have generated $2.58 million in revenue over the past 12 months from four customers.
If that is true, the company trades at less than 0.3x revenues. Viewing that metric in a vacuum, we could regard the stock as cheap.Will Bravatek Go Down in 2019 (Should You Sell?)
While it’s encouraging that Bravatek appears to have actual customers, management paid itself $2.78 million in fees and expenses in the most recent nine months alone.
Add in another $1.3 million in expenses, and the company racked up an operating loss of about $3.8 million in just the past nine months. The company’s cash burn was $722,864, which is hefty considering how little revenue came in.
Let’s review the bearish case: Bravatek’s financials are unaudited; the market cap is tiny; the company appears to have only four customers; and the company’s rivals sport large market caps and established products.
The question isn’t whether Bravatek’s stock will go up. The question is, how long can this company actually stay in business?Overall Bravatek Forecast and Prediction for 2019
As mentioned, Bravatek is a penny stock. The company also is loaded down with convertible notes, which will likely get converted into common stock at some point this year, diluting shareholders.
For broader context, I expect an imminent industry-wide consolidation in the cybersecurity space, as smaller competitors either get gobbled up by tech giants or fall by the wayside.
The only bullish argument that I can muster for Bravatek is that it could get bought out by a Silicon Valley behemoth that specializes in cybersecurity, but that’s a slim reed on which to base your investment hopes.
What’s worse, Bravatek’s technology seems conventional, if not vaguely defined. The company has caught the eye of penny stock investors who are looking to make a quick killing, but this stock will probably kill their portfolios instead.
I won’t sugar coat it: Bravatek’s stock seems headed on a one-way trip to zero by year-end. If you’re looking to make money from the mega-trend of cybersecurity, there are plenty of better places to put your money. As with the marijuana industry, cybersecurity is generating a lot of hype. Stick to quality and avoid the penny stock junk.
John Persinos is the managing editor of Investing Daily.
Some consolidation in the world of enterprise storage to kick off the new year: the storage and data security giant Imation Corp. has acquired Nexsan Corporation, a specialist in disk-based storage systems, for $120 million, with $105 million of that in cash and the remainder in publicly-traded Imation shares, according to a statement from the companies.
The move appears to be a part of Imation’s efforts to rebuild its business around more high-growth areas, as it comes off a particularly bad quarter of declining revenues in all of its existing lines of business.
Like many other startups in the enterprise space, Nexsan was a success story that somewhat flew under the radar. Nexsan competes against companies like EMC and HP selling storage specifically to companies in the small- and medium-business sector. It appears to have only raised $7.5 million in funding since being founded in 2000. In 2011, it had revenues of $82 million with margins of over 40% on its products.
For Imation, which offers storage solutions both to enterprises and consumers, the deal will add 11,000 customers to its books, and give it a boost in its business targeting the SMB segment — a sector that has followed in the footsteps of larger enterprises by increasingly needing remote storage alternatives for their data, a key area to target as business growth among larger enterprises slows down and faces more competition from larger players (like HP and EMC). As Mark Lucas, the president and CEO of Imation, puts it, Imation is “targeting markets with strong growth rates.”:
“Our strategy includes focusing on the underserved SMB market with purpose-built storage systems and appliances,” he noted in a statement. “This is a market that Nexsan knows well.”
Investing in healthily-growing areas is an imperative at the moment for Imation: the company in Q3, at the end of October, reported that its revenues were $248.2 million, down 19.6% from Q3 2011, on the back of missing revenue expectations in “almost all lines of business” and all regions, but with specific problems in the company’s traditional media storage business — which will have been disrupted massively by the big rise in lower-cost cloud-storage services.
Imation also posted an adjusted operating loss of $6.5 million: that included a benefit in restructuring and other charges of $3.6 million, and a diluted loss per share of $0.17. Excluding those charges the loss would have been $10.1 million.
One recent appearance of Nexsan in the news was in September, when it was named, along with Rackspace and others, in a patent lawsuit filed by PersonalWeb and Level 3 over Github hosting. We are reaching out to the company to find out the latest developments in that case. Update: Imation “will not have any liability with respect to the case you reference,” an Imation spokesperson writes in an email, but she would not comment further on whether the case has been settled or dismissed.
Nexsan, which is based in Thousand Oaks, California, employs about 200 people across the U.S., UK and Canada. These employees, led by CEO Philip Black, will all be joining Imation, the company says.
Imation Acquires Nexsan CorporationAcquisition Further Strengthens Imation’s Tiered Storage and Security Solutions Growth Platform, Accelerates Strategic Transformation
OAKDALE, Minn.–(BUSINESS WIRE)–Imation Corp. (NYSE: IMN), a global scalable storage and data security company, has reached an important milestone in its strategic transformation. Imation today announced that it has acquired privately held Nexsan® Corporation, a Thousand Oaks, Calif.-based provider of disk-based storage systems. As the Company continues to execute its strategy, Imation is leveraging its deep data storage core, building a platform for long-term growth and improving operating margins in high-growth data storage and security solutions markets.
“We are excited to have Nexsan become part of Imation”The acquisition of Nexsan brings to Imation a proven technology platform and a robust portfolio of disk-based and hybrid disk-and-solid-state storage systems with more than 11,000 existing customers worldwide. It is expected to significantly accelerate Imation’s growth in the small and medium-sized business (SMB) and distributed enterprise (SME) storage markets. Imation will provide the Nexsan business with global scale and a well-known storage brand for global expansion. With SMBs and SMEs struggling to address their rapidly increasing data storage and management needs, the combined Imation and Nexsan portfolio will offer customers an attractive, price / performance alternative to competitive offerings.
The combination cash-and-stock transaction included approximately $105 million in cash and 3,319,324 Imation common shares, the equivalent of approximately $15 million.
“Imation’s acquisition of Nexsan is an exciting next step in our strategic transformation, which includes investing in growth platforms in data storage and security solutions, where we are targeting markets with strong growth rates,” said Mark Lucas, president and CEO of Imation. “Our strategy includes focusing on the underserved SMB market with purpose-built storage systems and appliances. This is a market that Nexsan knows well. Nexsan’s management team has grown this business from start-up to more than $80 million, with strong gross margins. Nexsan is a successful company that is addressing some of today’s fastest growing trends in storage, and we are pleased that its management team, including CEO Philip Black, will join Imation. The combination of Nexsan’s products, technologies, and talented teams with Imation’s global reach and infrastructure will be an excellent accelerator for our growth strategy in storage solutions,” concluded Lucas.
“We are excited to have Nexsan become part of Imation,” said Philip Black, CEO of Nexsan. “Imation provides us the scale and global footprint to expand our business, while still keeping intact our award winning partner program, our strong management team and employees, and our innovative products and roadmap. We look forward to working as part of Imation to deliver compelling solutions that meet the growing storage, archive and compliance requirements of businesses worldwide. This is good news for Nexsan channel partners, employees and customers.”
Nexsan’s 2011 revenues were $82 million and are continuing to grow, with gross margins in the 40 percent range. This acquisition is expected to be immediately accretive to Imation’s EBITDA.
Approximately 200 employees, based in the U.S., U.K. and Canada, have joined Imation with this acquisition. The Nexsan business will continue to operate within Imation from Nexsan’s current headquarters in Thousand Oaks, Calif., under existing management. Integration and global expansion activities between Imation’s Tiered Storage and Security Solutions business and Nexsan will be determined in first quarter 2013.
Imation Schedules Fourth Quarter 2012 Financial Results Conference Call
Imation also announced that it is scheduled to release the Company’s fourth quarter 2012 financial results on Wednesday, February 13, 2013 at 6:00 a.m. Central time. A teleconference for the financial community and a live webcast are scheduled from 9:00 to 10:00 a.m. Central time.
The live webcast of the teleconference will be available on the Internet at www.imation.com or www.streetevents.com. A replay of this webcast will be available at either of these websites through Friday, February 22, 2013. A taped replay of the teleconference will also be available beginning at 11:00 a.m. Central time, February 13, 2013 until 11:00 p.m. Central time February 22, 2013 by dialing (855) 859-2056 or (404) 537-3406 (Conference ID #64544023).
All remarks made during the teleconference will be current at the time of the call and the replay will not be updated to reflect any subsequent developments.
About Imation Corp.
Imation (NYSE: IMN) is a global scalable storage and data security company. The Company’s portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. Imation reaches customers in more than 100 countries through a powerful global distribution network and well recognized brands. Additional information about Imation is available at www.imation.com.
Nexsan® is a leading provider of data storage systems with more than 33,000 systems installed at 11,000 customers worldwide. Nexsan’s pioneering Hybrid Storage systems combine solid-state technologies, disk storage and advanced software to deliver radically new levels of performance and capacity at lower cost. The company’s advanced technologies enable organizations to optimize traditional, virtual and cloud computing environments for increased productivity and business agility. The company delivers its data storage systems through a worldwide network of cloud service providers, value-added resellers and solution integrators. Nexsan is based in Thousand Oaks, Calif. For more information, visit www.nexsan.com.
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