Welcome!

News Feed Item

Tsakos Energy Navigation Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2013

Adjusted Operating Income Increases by 123% to $33.2 Million; Strategic Alliance With Statoil for the Construction and Chartering of Nine Aframax Crude Tankers With Gross Revenues of About $1.0 Billion; Dividend of $0.05 per Share Declared Increasing Tota

ATHENS, GREECE -- (Marketwired) -- 03/17/14 -- Tsakos Energy Navigation Limited (NYSE: TNP)

RECENT HIGHLIGHTS

Financial Highlights:

  • Pro forma fleet of 58 vessels, consisting of 28 crude carriers, 26 product tankers, two DP2 suezmax shuttle tankers and two LNG vessels plus one option
  • Operating income (before impairment charges) up 123% in 2013 to $33.2 million compared to $16.7 million in 2012 (before impairment charges and loss on vessel sale)
  • Adjusted EBITDA to $134.2 million in 2013 compared to $117.0 million in 2012
  • Significant improvement in annual and fourth quarter adjusted net results; $(7.2) million for 2013 compared to $(33.8) million in 2012. $(5.3) million for Q4 2013, compared to $(9.0) million for Q4 2012
  • 4.3% increase in the 2013 average time charter equivalent to $17,902 per ship per day from $17,163 in 2012. Fleet well positioned to take advantage of strong Q1 2014 market
  • 1.6% decrease in average operating expenses per ship per day in 2013 to $7,634 from $7,755 in 2012
  • Fleet utilization of 97.8% in 2013
  • Cooperation with Statoil of Norway for the construction and chartering of nine aframax crude tankers with an average contract term of six years plus options, with expected potential gross revenues of approximately $1 billion.
    Commencement in 2013 of 15-year employment for two DP2 shuttle tankers to Petrobras with expected gross revenues of $515 million
  • 29 vessels with contracted charter revenues of approximately $887 million at year end 2013 with an average fleet employment of 2.8 years
  • Common stock quarterly dividend of $0.05 per share to be paid on May 22, 2014

Tsakos Energy Navigation Limited (TEN or the "Company") today reported results (unaudited) for the fourth quarter of 2013 and year ended December 31, 2013.

FULL YEAR 2013 RESULTS
For the year 2013, TEN's results improved appreciably over the 2012 results. Operating income, excluding impairment charges, for 2013 doubled to $33.2 million from $16.7 million in 2012, excluding impairment charges and loss on sale of vessel.

An increase of revenue, net of voyage expenses and commissions, by $15.4 million to $285.4 million, was the prime reason for the improved results. This reflects the significant contribution of the two new DP2 suezmax shuttle tankers and the LNG carrier and the average rate increases for the product tankers. A continued challenging crude market for most of 2013 resulted in modest freight rate declines for our suezmaxes and aframaxes until late in the year when the crude sector began to turn around dramatically. The fleet was employed virtually full time at nearly 98% and the average daily time charter equivalent rate per vessel increased by 4.3% to $17,902 compared to $17,163 in 2012.

Operating expenses for the year 2013 totaled $130.8 million, a 1.9% decrease from 2012. Daily operating expenses per ship fell to $7,634 for 2013, from $7,755 for 2012, a 1.6% decline. Our technical managers were able to achieve significant reductions in expenditure on spares and repairs, due to effective maintenance, purchasing and control during dry-dockings. Crew expenses increased mainly due to a weakened US dollar.

Depreciation and dry-docking amortization costs were $100.4 million for the full year 2013, similar to the 2012 total. Four of the older vessels registered an impairment charge at the end of the year amounting to $28.3 million in total.

General and administrative expenses (G&A) totaled $4.4 million in 2013, compared to $4.1 million in 2012, mainly due to expenditure on growth projects. Interest and finance costs in 2013 declined to $40.9 million compared to $51.6 million in 2012, due primarily to the expiry of interest rate swaps.

TEN incurred an adjusted net loss of $9.2 million before impairment of $28.3 million in 2013. If further adjusted to exclude a one-off, non-recurring charge of $2.0 million, the final adjusted loss comes to $7.2 million, a significant improvement from the adjusted net loss of $33.8 million incurred in 2012 (before impairment of $13.6 million and loss on vessel sale of $1.9 million).

TEN's liquidity at the end of 2013 remained strong and has been further reinforced in 2014. Over $100 million was successfully raised during 2013 mainly through the two preferred stock issues. Cash flow for the year 2013 from net income before depreciation, amortization, finance costs, impairment and non-recurring charge (Adjusted "EBITDA") was $134.2 million, compared to $117.0 million in 2012 (adjusted also for loss on vessel sale), a 14.7% increase. All the vessels, apart from one spot market aframax incurring a dry-docking, generated positive EBITDA in the year. Total cash and investments amounted to $173 million compared to $163 million at the end of 2012. A further $83 million was recently added following a follow on equity offering in January 2014, successfully capturing the benefits of our crude sector presence, particularly in light of our recently announced cooperation with Statoil of Norway as well as our long standing experience and presence in the oil tanker markets.

Total loan balances since the end of 2012 were reduced by $62 million, despite the drawdown of $92 million relating to the delivery of the two new DP2 suezmax shuttle tankers. The net debt to capital ratio fell to 54.8% and our leverage based on fleet valuation conducted by independent third parties fell to 68.3% at the end 2013. Our leverage has fallen further within the current first quarter 2014 given the increased liquidity generated by the equity offering and the markedly improved trading environment which also further boosted vessel valuations. We continue to maintain excellent relationships with all our lending banks, due in large part to our healthy balance-sheet, our debt-service record and prospective newbuilding plan that is generating considerable interest among our lenders. That interest has led to ongoing discussions with several banks to provide pre-delivery financing for our recently announced aframax newbuilding project, at very competitive proposed terms.

FOURTH QUARTER 2013 RESULTS
Revenues, net of voyage expenses and commissions, totaled $70.6 million in the fourth quarter of 2013, up 4.5% from the fourth quarter of 2012. The two new DP2 suezmax shuttle tankers and the LNG carrier continued to have a significant positive impact on revenue and the bottom line. The crude charter market improved significantly, albeit too late to have a major impact on the fourth quarter 2013. It benefitted TEN's spot and profit-share time-chartered suezmaxes, but aframaxes were not to reap the real benefits until the start of 2014. TEN's fleet of 48 vessels enjoyed nearly 97% utilization during the fourth quarter 2013 (the remaining 3% relating mostly to three scheduled dry-dockings). The average time charter equivalent rate per vessel increased from the fourth quarter of 2012 by 1.3% to $17,419.

Vessel operating expenses were $33.7 million in the fourth quarter 2013 compared to $32.5 million for the same period 2012, the increase due mainly to crew expenses which were impacted by a weaker US dollar and to tonnage tax increases.

The new shuttle tankers impacted depreciation, which increased by $1.6 million over the previous fourth quarter, and management fees which increased in total by 2.2% in the fourth quarter of 2013 from the previous fourth quarter due to the slight increase in fleet size, although there was no actual increase in the monthly fee rate during 2013. General and Administrative costs were $1.1 million, compared to $1.3 million in the fourth quarter of 2012, and daily overhead costs per vessel fell to $1,262 from $1,317 in the same period of 2012.

Fourth quarter 2013 interest and finance costs amounted to $10.0 million, compared to $13.8 million in the prior fourth quarter, a 27.3% reduction mainly due to reduced interest on interest rate swaps as a result of the expiry of certain swaps, and positive movements in the valuations of non-hedging interest rate swaps.

The fourth quarter of 2013 ended with an adjusted net loss of $5.3 million after adjusting for impairment and one-off, non-recurring expenditure of $2.0 million, which equates to an adjusted loss per share of $0.09 before taking account of preferred stock dividends in the calculation. In the fourth quarter of 2012, an adjusted net loss of $9.0 million was incurred, after adjusting for impairment and loss on vessel sale.

SUBSEQUENT EVENTS
On March 4, 2014 Statoil exercised the option for the construction and chartering of four additional Daewoo design aframax crude carriers, bringing the total number of newbuildings under the agreement to nine vessels. These additional four vessels may have ice-class capabilities and should charterers declare that feature, rates will adjust to reflect increases in vessels cost and premiums for ice operations. The duration of the charters, on average of 6 years, range from five years to twelve, including options with total gross revenues of approximately $1.0 billion.

DIVIDEND - COMMON SHARES
The Company will pay a dividend of $0.05 per common share of common stock on May 22 to shareholders of record as of May 19, 2014 with ex-dividend date May 15, 2014.

QUARTERLY DIVIDEND - PREFERRED STOCK SHARES
Dividends on the 8.0% Series B Preferred Shares and 8.875% Series C Preferred Shares are paid quarterly in arrears on the 30th day of January, April, July and October of each year if and when declared by the Company's board of directors. The Company has so far paid three quarterly dividends for the Series B Preferred Shares and the first quarterly dividend for its Series C Preferred Shares.

FLEET STRATEGY & OUTLOOK
The year 2013 was a benchmark year for oil tankers as the crude market sprang back to life, albeit towards the latter part of the year, and revitalized owners and investors' interest for this sector. Unlike those who had repeatedly downplayed the sector in the recent past, we always believed crude tankers would and will continue to play a significant role in world energy trade as the result of anticipated hikes in Chinese and Indian oil demand, which will not only absorb more vessel tonnage, due to the subsequent increase in distances, but will also help neutralize the effect US oil import reductions had on crude seaborne demand. The low industry orderbook and modest growth in the crude fleet over the next couple of years provides us with a sound foundation for such confidence.

With product tankers in healthy territory coupled with the recent crude turnaround, which is expected to exhibit sustainability, our fleet is well positioned to maintain its strong cash generating power and allow, when appropriate, management to proceed responsibly with its growth aspirations. One such step has already taken place through the strategic alliance with Statoil for the construction and chartering of nine aframax crude tankers, four of which potentially with ice-class capabilities. Management is also exploring other opportunities both in the crude and product spaces while maintaining its commitment in the LNG sector. TEN grows and renews its fleet responsibly, avoiding damaging speculative overbuilding in the market.

Another area of focus, and an integral part of the Company's operations, remains the strategic divestment of assets. The maintenance of the young age profile of the fleet preferably with the generation of acceptable capital gains, would be the main determinant in any decision concerning vessel disposals.

Moving on, and as reiterated in the past, efficient housekeeping and experienced technical management will continue to spearhead our efforts for maintaining one of the more attractive and sought after, we believe, fleets in the tanker universe. The quality of our counterparties over the years supplemented by the recent addition of Statoil, coupled with high levels of fleet utilization, 97.8% as at end 2013 compared to the world average of about 85.0%, is a testament to that.

On the employment front, management approach remains twofold. On the one hand, maintain cash flow visibility through the maintenance of secured fixtures while on the other, ensure participation in market peaks by placing a sizeable part of the fleet in profit sharing agreements or other spot related charters with committed employment. As year end 2013, the Company had secured 60.0% of 2014 days under committed employment, while for 2015 and 2016 those numbers were at 38.0% and 25.0% respectively. At the end of each relevant year, it is expected the fleet's secured revenue days, albeit some on flexible charters, will eventually rise to the region of about 70.0%. In terms of revenues, these fixtures above represent approximately $887 million of forward minimum gross proceeds, $400 million of which are expected over the next three years.

"TEN has once more demonstrated its ability to navigate through the rough shipping cycles and arrive at the other end stronger and bigger. Our successful chartering strategy together with our large operational capacity, places us on the top of companies with the ability to take advantage of market improvements," stated Mr. Nikolas P. Tsakos, President & Chief Executive Officer of TEN. "Our growing list of first class customers and our proven access to capital, positions TEN in the forefront of its peer group and provides our shareholders with a solid future," Mr. Tsakos concluded.

Conference Call
As previously announced, today, Monday, March 17, 2014, at 10:00 a.m. Eastern Time, TEN will host a conference call to review fourth quarter 2013 results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond what is included in this press release.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Tsakos" to the operator.

A telephonic replay of the conference call will be available until Monday, March 24, 2014 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 90295809#

Simultaneous Slides and Audio Webcast:
There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN's website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company's corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TSAKOS ENERGY NAVIGATION
To date, TEN's fleet, including the LNG carrier Maria Energy and nine Aframax crude oil tankers under construction, consists of 58 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 5.9 million dwt. Of these, 28 are crude tankers ranging from VLCCs to Aframaxes, 26 product carriers ranging LR2 aframaxes to handysize, two DP2 shuttle tankers and two LNG carriers. The Company also holds an option for construction of an LNG carrier to be exercised by March 31, 2014. 21 vessels have ice class designation.

ABOUT FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.


             TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
               Selected Consolidated Financial and Other Data
      (In Thousands of U.S. Dollars, except share and per share data)

                            Three months ended            Year ended
                                December 31               December 31
                         ------------------------  ------------------------
STATEMENT OF OPERATIONS
 DATA                        2013         2012         2013         2012
                         -----------  -----------  -----------  -----------

Voyage revenues          $   105,030  $   100,303  $   418,379  $   393,989
                         -----------  -----------  -----------  -----------

Commissions                    4,001        3,668       16,019       12,215
Voyage expenses               30,478       29,097      116,980      111,797
Vessel operating
 expenses                     33,706       32,455      130,760      133,251
Depreciation                  24,582       23,023       95,349       94,340
Amortization of deferred
 dry-docking costs             1,357        1,376        5,064        4,910
Management fees                4,050        3,961       15,896       15,887
General and
 administrative expenses       1,056        1,261        4,366        4,093
Stock compensation
 expense                         469          563          469          730
Foreign currency losses          148           77          293           30
Net loss on sale of
 vessels                           -        1,879            -        1,879
                         -----------  -----------  -----------  -----------
Total expenses                99,847       97,360      385,196      379,132
                         -----------  -----------  -----------  -----------

                         -----------  -----------  -----------  -----------
  Operating income             5,183        2,943       33,183       14,857
                         -----------  -----------  -----------  -----------

Vessel impairment charge     (28,290)     (13,567)     (28,290)     (13,567)

Interest and finance
 costs, net                  (10,042)     (13,818)     (40,917)     (51,576)
Interest income                   66          227          366        1,348
Other, net                    (2,533)         (93)      (2,912)        (118)
                         -----------  -----------  -----------  -----------
Total other expenses,
 net                         (12,509)     (13,684)     (43,463)     (50,346)
                         -----------  -----------  -----------  -----------
  Net loss                   (35,616)     (24,308)     (38,570)     (49,056)

    Less: Net
     loss/(income)
     attributable to the
     noncontrolling
     interest                     23          (93)       1,108         (207)
                         -----------  -----------  -----------  -----------
Net loss attributable to
 Tsakos Energy
 Navigation Limited      $   (35,593) $   (24,401) $   (37,462) $   (49,263)
                         ===========  ===========  ===========  ===========

Effect of preferred
 dividends                    (2,109)           -       (3,676)           -
Net loss attributable to
 common stockholders of
 Tsakos Energy
 Navigation Limited          (37,702)     (24,401)     (41,138)     (49,263)

Loss per share, basic
 and diluted             $     (0.66) $     (0.43) $     (0.73) $     (0.92)
                         ===========  ===========  ===========  ===========

Weighted average number
 of common shares, basic
 and diluted              57,286,257   56,294,867   56,698,955   53,301,039
                         ===========  ===========  ===========  ===========


BALANCE SHEET DATA                                  December 31  December 31
                                                        2013         2012
                                                    -----------  -----------
Cash, restricted cash and marketable securities         171,764      162,153
Other assets                                             80,546       80,889
Vessels, net                                          2,173,068    2,088,358
Advances for vessels under construction                  58,521      119,484
                                                    -----------  -----------
  Total assets                                      $ 2,483,899  $ 2,450,884
                                                    ===========  ===========

Debt                                                  1,380,298    1,442,427
Other liabilities                                       105,938       81,617
Stockholders' equity                                    997,913      926,840
                                                    -----------  -----------
  Total liabilities and stockholders' equity        $ 2,483,899  $ 2,450,884
                                                    ===========  ===========


                                   Three months ended       Year ended
OTHER FINANCIAL DATA                  December 31           December 31
                                    2013       2012       2013       2012
                                  --------  ---------  ---------  ---------
Net cash from operating
 activities                      $  13,694  $  21,405  $ 117,923  $  60,862
Net cash (used in)/from
 investing activities            $  (1,659) $  10,071  $(144,437) $ (42,985)
Net cash from/(used in)
 financing activities            $ (17,121) $ (38,472) $  44,454  $ (49,288)

TCE per ship per day             $  17,419  $  17,197  $  17,902  $  17,163

Operating expenses per ship
 per day                         $   7,633  $   7,545  $   7,634  $   7,755
Vessel overhead costs per
 ship per day                    $   1,262  $   1,317  $   1,196  $   1,180
                                  --------  ---------  ---------  ---------
                                     8,895      8,862      8,830      8,935

FLEET DATA

Average number of vessels
 during period                        48.0       47.7       47.5       47.9
Number of vessels at end of
 period                               48.0       46.0       48.0       46.0
Average age of fleet at end
 of period                   Years     7.1        6.5        7.1        6.5
Dwt at end of period (in
 thousands)                          4,786      4,474      4,786      4,474

Time charter employment -
 fixed rate                   Days   1,892      1,308      6,713      4,928
Time charter employment -
 variable rate                Days     932      1,209      4,107      5,405
Period employment (pool and
 coa) at market rates         Days     276        335        674      1,793
Spot voyage employment at
 market rates                 Days   1,180      1,342      5,460      4,529
                                  --------  ---------  ---------  ---------
  Total operating days               4,280      4,194     16,954     16,655
  Total available days               4,416      4,392     17,339     17,544
    Utilization                       96.9%      95.5%      97.8%      94.9%
    Utilization (excluding
     La Prudencia and La
     Madrina)                          N/A       99.1%       N/A       98.0%


             TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
               Selected Consolidated Financial and Other Data
      (In Thousands of U.S. Dollars, except share and per share data)

                             Non-GAAP Measures

              Reconciliation of Net Loss to Adjusted Net Loss

                                     Three months ended      Year ended
                                         December 31         December 31
                                     ------------------  ------------------
                                       2013      2012      2013      2012
                                     --------  --------  --------  --------

Net loss attributable to Tsakos
 Energy Navigation Limited            (35,593)  (24,401)  (37,462)  (49,263)
Impairment loss                        28,290    13,567    28,290    13,567
Loss on sale of vessel                      -     1,879         -     1,879
Non-recurring charge                    2,000         0     2,000         0
                                     --------  --------  --------  --------
Adjusted net loss attributable to
 Tsakos Energy Navigation Limited    $ (5,303) $ (8,955) $ (7,172) $(33,817)
                                     ========  ========  ========  ========


                   Calculation of Adjusted Loss Per share

                               Three months ended          Year ended
                                   December 31             December 31
                             ----------------------  ----------------------
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------

Adjusted net loss
 attributable to Tsakos
 Energy Navigation Limited   $   (5,303) $   (8,955) $   (7,172) $  (33,817)

Weighted average number of    57,286,25   56,294,86   56,698,95   53,301,03
 shares Basic and diluted             7           7           5           9

Adjusted loss per share,
 basic and diluted
 attributable to Tsakos
 Energy Navigation Limited   $    (0.09) $    (0.16) $    (0.13) $    (0.63)


               Reconciliation of Net Loss to Adjusted EBITDA

                                     Three months ended      Year ended
                                         December 31         December 31
                                     ------------------  ------------------
                                       2013      2012      2013      2012
                                     --------  --------  --------  --------

Net loss attributable to Tsakos
 Energy Navigation Limited            (35,593)  (24,401)  (37,462)  (49,263)
Depreciation                           24,582    23,023    95,349    94,340
Amortization of deferred special
 survey & drydocking costs              1,357     1,376     5,064     4,910
Impairment loss                        28,290    13,567    28,290    13,567
Interest Expense                       10,042    13,818    40,917    51,576
Loss on sale of vessels                     -     1,879         -     1,879
Non reccuring charge                    2,000         -     2,000         -
                                     --------  --------  --------  --------
Adjusted EBITDA                      $ 30,678  $ 29,262  $134,158  $117,009
                                     ========  ========  ========  ========


-The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). However, management believes that
certain non-GAAP measures used within the financial community  may provide
users of this financial information additional meaningful comparisons
between current results and results in prior operating periods as well as
comparisons between the performance of Shipping Companies. Management also
uses these non-GAAP financial measures in making financial, operating and
planning decisions and in evaluating the Company's performance. See in the
tables above for  reconciliations of  (i) Adjusted Net Loss to Net Loss (ii)
Calculation of Adjusted Loss per share  (iii) Adjusted EBITDA. Also we are
using the following  Non-GAAP measures:
(i) TCE which represents voyage revenues less voyage expenses divided by the
number of operating days-commission is not deducted
(ii) Vessel overhead costs which  include Management fees, General &
Administrative expenses and Stock compensation
(iii) Operating expenses per ship per day which exclude Management fees,
General & Administrative expenses and Stock compensation expense
Non-GAAP financial measures should be viewed in addition to and not as an
alternative for, the Company's reported results prepared in accordance with
GAAP.

-The Company does not incur corporation tax.

For further information please contact:
Company
Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
[email protected]

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Paul Lampoutis
+212 661 7566
[email protected]

Tsakos Energy Navigation Limited (TEN)
367 Syngrou Avenue, 175 64 P. Faliro, Hellas
Tel: 30 210 94 07 710-3
Fax: 30 210 94 07 716
e-mail: [email protected]
Website: http://www.tenn.gr

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...