Welcome!

Virtualization Authors: Pat Romanski, Elizabeth White, Carmen Gonzalez, Yeshim Deniz, Liz McMillan

Related Topics: Virtualization, Java, SOA & WOA, Linux, Web 2.0, Big Data Journal

Virtualization: Article

The Hyper-Crowded Enterprise File Share and Sync Market Is White Hot

Companies that were selling storage are revamping business models to move to 'solution heaven'

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.

More Stories By Jim Liddle

Jim is CEO of Storage Made Easy. Jim is a regular blogger at SYS-CON.com, covering mobile, Grid, and Cloud Computing Topics.

@ThingsExpo Stories

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
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, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
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.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Swiss innovators dizmo Inc. launches its ground-breaking software, which turns any digital surface into an immersive platform. The dizmo platform seamlessly connects digital and physical objects in the home and at the workplace. Dizmo breaks down traditional boundaries between device, operating systems, apps and software, transforming the way users work, play and live. It supports orchestration and collaboration in an unparalleled way enabling any data to instantaneously be accessed on any surface, anywhere and made interactive. Dizmo brings fantasies as seen in Sci-fi movies such as Iro...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
This Internet of Nouns trend is still in the early stages and many of our already connected gadgets do provide human benefits over the typical infotainment. Internet of Things or IoT. You know, where everyday objects have software, chips, and sensors to capture data and report back. Household items like refrigerators, toilets and thermostats along with clothing, cars and soon, the entire home will be connected. Many of these devices provide actionable data - or just fun entertainment - so people can make decisions about whatever is being monitored. It can also help save lives.