US Cloud Storage Market Projected to Reach $55 Billion in 2016
Canadian Cloud Pioneer Partners with US Data Storage Leader
May 21, 2015 By Peter Cole
A recent report by ‘Compass Intelligence’ predicts that the US SMB cloud storage market will grow from about $43 billion in 2014 to $55 billion in 2016.
BOX (NYSE:BOX), a cloud-based platform offering content management and file storage, IPO’d four months ago and now has a market cap of $2 billion; a multiple of approximately 10 times the company’s reported revenue.
For most modern businesses, permanent data loss has catastrophic financial consequences. For private individuals it can mean the loss of a lifetime of memories. Thirty-seven percent of US small businesses have adapted to the cloud, but an anticipated 78% will be fully cloud operational by 2020. The data back-up business is booming.
Cloud service provider Data Deposit Box (CSE:DDB) (FSE:2DD) is taking advantage of this opportunity. This pioneer of cloud backup and recovery technology went public on March 27, 2015 in conjunction with a $2.89MM financing. The Company’s 2015 plans are to market its products aggressively and demonstrate growth.
“We created a direct backup and recovery business before the industry was branded cloud,” stated Tim Jewell, CEO & Founder of DDB in an exclusive interview, “and that strategy has been very successful. We can now focus on aggressive expansion by pursuing OEMs and helping them add revenue to their own businesses.”
DDB’s 2014 revenue was $5,009,764 CAD with an adjusted EBITDA of $886,112. 2014 operating expenses declined 28.8% to $3,696,127.
On May 5, 2015 DDB announced it has entered into a definitive OEM agreement with Austin, Texas based software developer Caringo Inc. The partnership will see Caringo’s highly scalable Swarm object storage technology bundled and integrated with the Data Deposit Box cloud backup and recovery solutions.
“Our combined offering provides a comprehensive cloud backup and recovery solution that meets strict regulatory demands for devices and corporate data,” stated Caringo CEO Mark Goros. “We look forward to a successful relationship with DDB.”
Caringo’s current clients include the US Department of Defense, British Telecom, the Brazilian Federal Court System, City of Austin, Telefonica, Ask.com, Johns Hopkins University and hundreds more worldwide.
Data Deposit Box cloud products and software are now completely integrated with Caringo Swarm storage software and offered through Caringo’s sales channels as an all-in-one solution.
“The Caringo technology is similar to Amazon S3 or Azure Cloud Storage,” stated Jewell. “We are now able to pursue partnerships with companies that have existing Amazon or Azure accounts. This hybrid model has Data Deposit Box store the metadata and the heavy lifting is done by Azure or Amazon.”
DDB’s patented backup technology is scalable and easy to use. The software is currently used daily by over 200,000 customers, 1,000 resellers, 25 MSPs and private label partners.
In February of this year DDB’s product as a white label solution was included on every consumer device produced by one of the largest private computer manufacturers in the world. The company currently ships about 14 million units per year. On initial boot-up, each consumer device has a pop-up message offering a free 60-day trial.
“The software becomes associated with the manufacturer,” confirmed Jewell. “From a customer’s point of view it’s reassuring to know the company that built the machine is offering to back up your data. And we acquire customers without direct marketing costs.”
In 2014, DDB became a more streamlined company. It now has 17 full time employees—ten in Toronto, two in Windsor and five in the Ukraine.
“DDB delivers its award winning solutions with a focus on ‘ease-of-use’ and competitive pricing,” wrote Mamush Heayie, Managing Editor of BackupReview.com in a recent report. “Lately, DDB has been adding more focus and resources towards enabling others to use its solution, resulting in huge growth.”
“We were attracted to DDB by its growing recurring revenue base,” stated Roger Dent, CEO of Quinsam Capital (CNX:QCA). “Data storage and back-up are becoming increasingly problematic for both businesses and individuals and we expect DDB to grow its sales base both in North America and internationally.”