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Tuesday, February 23, 2010
  Iron Mountain Acquires Mimosa/Retention Sponsorship
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Daily Digest: February 23, 2010
Archiving, E-Discovery, & Compliance

PGP Corporation Announces New PGP Key Management Server
New Policy-Driven Server Provides Global Enterprises Better Manageability and Visibility of Encrypted Data to Enable Trusted Data Protection

W. O'Donnell Consulting Deploys Sonian eMail Archiving For SMBs
Hosted Service Complements Existing Messaging and eMail-Protection Offerings for NYC-Based Systems Consulting Firm

Email, Messaging & Collaboration

Open-Xchange Partners with eleven to Integrate Anti-Spam Security
Built-in protection for e-mail and groupware

Websense Announces Global Managed Security Service Provider Program to Meet Growing Demand for Unified Content Security
Expanding Relationships With Leading MSSPs to Deliver Managed Web Security Gateway and Data Security Solutions Leveraging the New Websense TRITON Unified Content Security Solution

TerraTel selects CronLab as sole supplier for spam filtering solution
TerraTel, the Gothenburg based hosting provider, selects CronLab as sole supplier for spam filtering by choosing a CronLab hardware appliance solution

Commtouch to Broaden Support of Service Provider Offerings with Connector for Microsoft Exchange
To enable Hosted Exchange providers to bolster messaging security and differentiate their offerings

Benefit from comprehensive Internet monitoring and web security with GFI WebMonitor  

Kaspersky Anti-Virus 2010 receives Gold Malware Treatment Award from Anti-Malware Test Lab  

Blog Item(s) & Announcements

Iron Mountain Acquires Mimosa

Iron Mountain announced it has acquired Mimosa Systems. This puts an end to over a year of rumors concerning Mimosa's acquisition discussions with a number of possible suitors.

Iron Mountain has a vested interest in building bridges between customer on-premise deployments and its Digital Archive, and the company has been building partnerships with numerous on-premise archiving vendors to build bridges into their products. The idea is that as on-premise archives grow stale, customers will treat Digital Archive as a third tier of nearline storage at Iron Mountain's hosting facilities. Today's move places Iron Mountain into direct competition with other archiving vendors, and therefore casts a shadow over its partnership initiatives.


  • Allows Iron Mountain to offer on-premise archiving. That makes sense.
  • Iron Mountain acquires a good-size customer pool that it will no doubt try to upsell into its Digital Archive.
  • Also provides a new offering for Digital Archive customers.
  • It seems rather late in the game to be entering the on-premise archiving market. Two powerful forces that Iron Mountain faces are the shift toward storing data in the cloud, and native archiving capabilities included in platforms such as Exchange 2010.
  • By virtue of its leadership position in hardcopy archiving, Iron Mountain could be a dominant force in digital archiving. It has failed so far to achieve such a position.
  • Iron Mountain is most reticent to give figures about its digital archiving business. We suspect that despite its major name in hardcopy archiving, those revenues are extremely modest.
  • Iron Mountain has a series of archiving offerings that must now be sorted out. For example, it has its own code, plus offerings from MessageOne and MIMEcast. Products or services will need to be dropped, and interfaces made consistent. Integrating different products is difficult, and it's not clear Iron Mountain has good skills in this regard.
  • Iron Mountain has a very confusing mix of digital offerings. It badly needs to develop a clear vision of how these fit together.
  • We hear that partly because of this confusion, the Iron Mountain sales team has a tough time selling the digital archiving portfolio.
  • A million dollars here, a million dollars there, pretty soon you're talking about real money ..... On the other hand, Iron Mountain is a large company. It can afford to invest $100M or so in acquisitions, without having to worry too much about the success of the investment.
  • Iron Mountain has made a number of acquisitions, and established a number of technology partnerships. Some have gained traction, others haven't. Overall, it feels like a strategy of trying this and that, and seeing what works. If you're a big, rich, successful company, you can afford that approach.

Regarding the transaction:

  • Mimosa was generating about $25M/year and had flat revenues.
  • Mimosa had never been profitable. It was probably losing about $10M/year.
  • Mimosa took around $70M to $100M in investment funding. The investors had evidently decided not to put in more money, and the company was forced to find a buyer. See our December 2009 bulletin, "Mimosa Funding Challenges".
  • The $112M valuation is a roughly 4.5 multiplier on sales. This is an excellent price for shareholders, especially in today's climate. The goodwill generated toward Iron Mountain will help ease the trauma of a merger.
  • We presume the VCs will get their money back, and the founders will get a small amount of money, but not enough to retire. Everyone else is probably wiped out.
  • The $112M was probably largely determined so that VCs and bank-like creditors get their cash back.

All further input welcome: Either post here or email david.ferris@ferris.com. If you want anonymity, let me know and we won't disclose your identity. ... David Ferris


Determining Retention Policy for Electronic Documents
Vendor Sponsorship Opportunity

It is very difficult for an organization to determine its retention policy for electronic documents. This defers the purchase and implementation of archiving and related technologies.

To clear the logjam, Ferris Research is preparing a white paper and webcast on retention policy. We will give practical advice that concretely helps organizations determine the policies that are right for them.

Vendors are invited to sponsor the project. Sponsorship benefits include:

  • Builds name and brand. The report and webcast will be widely circulated. Sponsors' logos and support as sponsors are very visible in the report and webcast
  • Helps user organizations determine their retention policies. The report and webcast facilitate sales by helping to remove the policy formulation logjam
  • Provides valuable sales collateral: sponsors have distribution rights for the white paper and webcast
  • Reduces the time sales and support staff spend educating prospects on retention policy
  • Allows sponsors to provide input on the white paper and webcast
  • Builds a working relationship with Ferris Research

Further information is here. Sponsorship starts at $5,995. A 10% early bird discount is available for orders and payment received by February 28, 2010.

To order your sponsorship, contact David Ferris at david.ferris@ferris.com or +1 415 367 3436.

About Ferris Research

Messaging. Collaboration. Compliance. Ferris Research analysts bring more experience in these areas than any other firm. Period.

Major areas of interest are email, spam and malware control, archiving, e-discovery, information leak prevention, unified communications, instant messaging, SharePoint, and mobile communications. We help:

  • IT staff evaluate, implement, and maintain these technologies
  • Vendors understand the marketplace and its technologies; explain their products or services to the marketplace; and find strategic partners, raise funds, or sell their company
  • Investors find and evaluate investment opportunities

We've been in business since 1990-longer than any other analyst firm in our field:

  • Clients include many of the world's largest organizations as well as computer vendors from major corporations to small startups.
  • We have published more than 200 formal reports and 1,100 short bulletins.
  • Our news service has approximately 10,000 readers and covers more than 2,000 highly specialized announcements annually.
  • Our research team shares many decades of experience in our core competencies.

In short, our technology and industry depth helps you understand today's products, where they've come from, where they're going, and their value.

Have news you want to share with us or product or interest area that you would like us to cover? Send press releases to releases@ferris.com.

Copyright © Ferris Research 2009.


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