|By Jim Liddle||
|July 22, 2014 11:00 AM EDT||
Followers of the Enterprise File Share and Sync Market (EFSS) will have noticed a flurry of announcements in the last few weeks. In particular:
SAP and OpenText collaborated with Tempo Box; Egnyte outlined it would leverage Google's Storage; Box purchased Stream as well as announcing Box Notes (something SME has had for ages) and unlimited storage for business plan customers as well as being able to save files to Box directly from Microsoft Office (again something SME has had for a long time); SalesForce and Microsoft announced interoperability with Office365; Microsoft also announced that certain Office365 subscribers would receive 1TB free of charge; Cloudian announced a partnership with Amazon Web Services; Amazon announced Zocalo their EFSS solution; Zimbra purchased Mezeo.
So why is this flurry activity happening? There are a few reasons. The first is that the market is on a race to zero from a storage viewpoint. Getting more storage is becoming cheaper and cheaper. OneDrive, Google and now Box, have pushed hard on what the price is for unlimited or pseudo unlimited storage. To quote Aaron Levie from Box, the costs of storing a gigabyte of data has reduced by a factor of 22000 over the past two decades to the point where the cost is now more or less negligible (but not for the companies who have to provide it....).
A current snapshot mix of consumer and business public cloud storage pricing is:
- Box starts at $5 per user unlimited storage for business and enterprise users
- DropBox Pro starts at $9.99 per user per month for 100GB
- Huddle starts at $20 / £15 per user per month for 100GB Storage
- Amazon Zocalo - $5 per user per month for 200GB or $2 per user per month if using workspaces
- Google Apps for business $5 per user per month for 1 TB or $10 per user per month for unlimited storage
- OneDrive $6.99 per month 1 TB unlimited storage or $9.99 per month for a 5 person family plan
Companies who were selling storage now find themselves in "storage hell" and are revamping business models to move to "solution heaven".
The second point is that the overall storage and file share and sync space is crowded and many companies in this space are venture backed. The race to zero hurts all the vendors who's primary business model was founded on selling storage. Vendors such as Amazon, Microsoft and Google can easily accommodate the race to zero as they can make margin on other services. The vendors who had only storage sales as their primary business model cannot.
So what to expect ? I expect to see more "culling" of companies over the next 12 months and more aggregation. The venture backed companies have to show a good ROI path to get future rounds and some of these will fall by the wayside either in acquisition or worse as the space gets even more competitive.
Vendors will also all have to concentrate on the selling of storage as their main business model to the selling of a solution ie. concentrate on their many USP's and value added features.
Also, expect to see vendors look to devolve their storage back ends and offer hybrid storage or storage on something else other than their platform. This increases their margin and cuts down on costs.
The other thing that has hurt the majority of vendors on that list is the recent Snowdon / PRISM debacle coupled with the US Supreme Court adjudication. It has led to the majority of companies outside of the US unwilling to place their data in US Cloud companies. Locality of data centre does not matter when data seizure is potentially up for grabs if the company is a US Inc. This has certainly hurt the bottom line and potential revenue streams of vendors such as Egnyte and Box who recently expanded into the UK market.
The Gartner magic quadrant for EFSS was recently released and you will see a lot of the vendors discussed above on that list. We are not, even though we regularly get selected in head to head selection choices with these vendors. I'd like to dig into this a little as I think it is worthy of some comment.
A lot of the vendors on that list are very heavily VC backed and have huge marketing budgets to throw at analysts and getting media airtime in general. It gets them known and gets analyst airtime. Great if you have the money, bad if you haven't.
The interesting thing for me is that these companies who have heavy VC investment are not necessarily going to be around in their current incarnation in a brutal market. something that surely is worth of debate and highlighting. Instead you have to look elsewhere for such debate. I would recommend reading this from the Motley Fool and this from Josh Hannah for such a debate on Box for example.
Also the governance and audit aspect of what is required by an EFSS player is largely missing and we would say this is the most important part in a corporate world that is having stricter data controls placed on them each week and that is also obsesses with data snooping. The research analyst Osteman produced a good independent white paper analyst report on this if you are interested.
So let me recap on the Storage Made Easy Private EFSS solution with regards to the Gartner Quadrant (given we were not on it !). We offer private on-premise behind the firewall, or on IaaS, EFSS. We cover every desktop Operating System, Mac Windows and Linux, and are one of the only vendors to have a Linux solution. Specifically SME has plug-in's for Open Office and Microsoft Office as well as for Microsoft Outlook and for Mac Mail and Mac Outlook (one of the few to do this). More importantly we are the only vendor on that list to have Cloud Drive's for each platform as the "view" of large amounts of corporate data is just as important as the ability to sync (In fact you can currently obtain a version of the SME Mac drive specifically from Huddle one of the EFSS vendors mentioned in the Quadrant).
SME covers every mobile Operating System, iOS, Android Windows Phone, Windows Tablet, BlackBerry (both OS versions). We also offer versions of the mobile App for Oracle Mobile Security Suite and also Sector.
SME uniquely offers App "packagers" for web,desktop, and mobile to allow Enterprise customers to self brand and create a strong brand identity.
SME also provides extra strong governance controls with Audit logs that can be exposed at a business level for download or archive (Excel), or can be used at a tech level (SysLog). It has already been used and deployed as part of HIPPA AND FISMA solutions. It also integrates with Active Directory and LDAP from an Identity Management perspective. The SME solution is also offered on the UK G-Cloud, an IL3 level service as well as with Amazon GovCloud in the US.
The SME solution provides a unique protocol layer that support WebDav, FTP, SFTP above any data store for integration with common Apps or hardware. This is unique amongst all vendors to us.
It can also be deployed with a a specific integration with Apache Lucene for deep content search of data stored in distributed clouds. Veritext did just such a deployment with us for their Veritext Vault service.
On the business side SME has over 250,000 personal customers (SaaS service) and over 5000 business customers with over 50 of these customer deployed on premise or IaaS using their own private EFSS service. The largest deployment is for 250,000 users, geo load balanced between east and west coast US and UK and Amsterdam. The Storage Made Easy solution is also OEM'd or white labelled by over 20 service providers globally. At an enterprise level we also recently closed our first 8 figure annual recurring revenue deal.
All worthy of note on an "independent" analyst briefing document I would have thought......
So lets get back to the market. The nature of where EFSS and Cloud Storage is at begs the question, "what about Storage Made Easy ?", where does that leave us in the EFSS space?
Well the first thing to note is that Storage Made Easy concentrates on private enterprise file share and sync for "all" corporate data. It's always been about a solution sale and our focus is firmly on being an EFSS control appliance for all private and cloud corporate data. We are a facilitator in that sense but can also be used as an EFSS solution with any private (or public Data store), for example OpenStack Swift. This means we already partner with a lot of vendors who already provide EFSS services.
The second thing to note is that by and large Enterprise File Share and Sync vendors are not in the storage market. For example the Storage Made Easy EFSS Appliance does not come with any storage. The focus is supporting multiple back end private data clouds, combined with any public data clouds used, in a secure, governed way, storing only the metadata to be used in value added ways, such as the deep search , or for search classification across corporate data silos for example.
The third point of note is that Storage Made Easy and private and not VC backed. The original founders still own more than 50% of the company. Raising money has occurred through private equity rather than via an Angel or VC model. This gives it access to funds when needed but direct control over its future and a model of growth by revenue rather than purely by VC funding. This has plus points and drawbacks but one of the plus points is not needing to desperately hit VC baked proof points to hit another round (or IPO) when burning cash ie. unlike Box we are not spending 137% of our revenue on Sales and Marketing to achieve these. Growth instead is steady and organic at over 30% per quarter and cash brought into the business is invested back into the business.
Also we are taking a different tack in this market. The sales expertise inside of the company is, in the majority, enterprise based. We are using this experience coupled with the product to engage with companies to solve enterprise type problems that can have a much a larger price point than simply shifting user licenses.
Okay a quick summary, the market is hot, white hot. It's crowded. There will be more aggregation and more price and feature wars. Vendors are being forced to move from selling storage to selling solutions and will as a consequence of this look to devolve offering storage as part of a solutionized offering.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Jan. 25, 2015 07:45 PM EST Reads: 2,282
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
Jan. 25, 2015 07:00 PM EST Reads: 1,169
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Jan. 25, 2015 06:15 PM EST Reads: 3,766
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
Jan. 25, 2015 06:00 PM EST Reads: 2,949
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Jan. 25, 2015 06:00 PM EST Reads: 2,679
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Jan. 25, 2015 04:30 PM EST Reads: 2,990
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
Jan. 25, 2015 04:00 PM EST Reads: 2,407
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Jan. 25, 2015 04:00 PM EST Reads: 1,526
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Jan. 25, 2015 03:00 PM EST Reads: 2,412
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 25, 2015 02:30 PM EST Reads: 2,220
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Jan. 25, 2015 02:15 PM EST Reads: 2,836
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
Jan. 25, 2015 02:00 PM EST Reads: 3,408
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Jan. 25, 2015 01:00 PM EST Reads: 3,755
“The age of the Internet of Things is upon us,” stated Thomas Svensson, senior vice-president and general manager EMEA, ThingWorx, “and working with forward-thinking companies, such as Elisa, enables us to deploy our leading technology so that customers can profit from complete, end-to-end solutions.” ThingWorx, a PTC® (Nasdaq: PTC) business and Internet of Things (IoT) platform provider, announced on Monday that Elisa, Finnish provider of mobile and fixed broadband subscriptions, will deploy ThingWorx® platform technology to enable a new Elisa IoT service in Finland and Estonia.
Jan. 25, 2015 11:00 AM EST Reads: 1,449
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
Jan. 25, 2015 11:00 AM EST Reads: 2,843
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
Jan. 25, 2015 11:00 AM EST Reads: 2,785
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
Jan. 25, 2015 11:00 AM EST Reads: 1,743
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
Jan. 25, 2015 10:45 AM EST Reads: 2,914
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Jan. 25, 2015 10:30 AM EST Reads: 2,241
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Jan. 25, 2015 10:00 AM EST Reads: 2,820