Welcome!

API Journal Authors: Elizabeth White, Carmen Gonzalez, Jonathan Fries, Pat Romanski, Harry Trott

Related Topics: Containers Expo Blog, Industrial IoT, Microservices Expo, Open Source Cloud, @CloudExpo, CRM

Containers Expo Blog: Blog Feed Post

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...

More Stories By 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.

@ThingsExpo Stories
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, 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 ...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.