|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.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Oct. 22, 2016 12:00 AM EDT Reads: 5,924
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Oct. 22, 2016 12:00 AM EDT Reads: 3,802
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 22, 2016 12:00 AM EDT Reads: 926
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Oct. 21, 2016 11:45 PM EDT Reads: 4,407
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 21, 2016 11:45 PM EDT Reads: 863
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Oct. 21, 2016 11:45 PM EDT Reads: 981
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
Oct. 21, 2016 11:45 PM EDT Reads: 3,146
The Open Connectivity Foundation (OCF), sponsor of the IoTivity open source project, and AllSeen Alliance, which provides the AllJoyn® open source IoT framework, today announced that the two organizations’ boards have approved a merger under the OCF name and bylaws. This merger will advance interoperability between connected devices from both groups, enabling the full operating potential of IoT and representing a significant step towards a connected ecosystem.
Oct. 21, 2016 11:15 PM EDT Reads: 1,127
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Oct. 21, 2016 10:00 PM EDT Reads: 33,892
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Oct. 21, 2016 10:00 PM EDT Reads: 4,211
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 21, 2016 09:30 PM EDT Reads: 629
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
Oct. 21, 2016 09:30 PM EDT Reads: 1,588
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 21, 2016 09:15 PM EDT Reads: 1,194
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Oct. 21, 2016 09:15 PM EDT Reads: 1,980
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and...
Oct. 21, 2016 08:15 PM EDT Reads: 348