Quantum Announces Definitive Agreement to Acquire Hyperconverged Software Startup EnCloudEn™ Technology
Quantum Corporation (NASDAQ: QMCO) has announced a definitive agreement to acquire the assets of EnCloudEn, a hyperconverged infrastructure software company. This acquisition aims to enhance Quantum's video surveillance portfolio by providing flexible, subscription-based software solutions compatible with various server hardware. Following the recent acquisition of Pivot3's surveillance business, Quantum intends to leverage EnCloudEn's technology to broaden its market reach, particularly in India and Asia. The deal is expected to close later this quarter, subject to customary conditions.
- Acquisition expands Quantum's addressable market for video surveillance solutions.
- Integration of EnCloudEn's technology enables flexible subscription-based purchasing.
- Establishment of a new engineering facility in India enhances regional presence.
- Acquisition follows the successful integration of Pivot3's assets, showcasing operational capability.
- Integration challenges may arise from merging EnCloudEn's technology with existing solutions.
- Pending conditions for closing the acquisition may introduce uncertainty regarding finalization.
SAN JOSE, Calif., Aug. 26, 2021 /PRNewswire/ -- Quantum Corporation (NASDAQ: QMCO) today announced a definitive agreement to acquire the assets of EnCloudEn, an early stage hyperconverged infrastructure (HCI) software company. This agreement follows Quantum's recent acquisition of the surveillance business assets of Pivot3, an early pioneer of hyperconverged infrastructure for video surveillance workloads. The EnCloudEn acquisition will enable Quantum to expand the addressable market for the company's video surveillance portfolio, offering customers a solution using their server hardware of choice with a flexible subscription-based software model. EnCloudEn's approach to simplicity and automation integrates tightly with Quantum's strategy to offer customers intuitive end-to-end solutions for the video data lifecycle.
"The recent acquisition of Pivot3's surveillance business assets brought a customer-proven solution, an established customer base, an established go-to-market, and an experienced team for the mission-critical video surveillance and physical security market." said Jamie Lerner, Chairman and CEO, Quantum.
Lerner continued, "The addition of EnCloudEn technology brings an open and flexible HCI software stack that strengthens our position in the video surveillance and physical security market. We can now extend HCI solutions to a broader set of customers, accelerate our development roadmap for HCI-based solutions and employ a subscription-based software purchasing model which is fast becoming the way businesses want to procure and manage their software investments."
About EnCloudEn
EnCloudEn was founded in 2015 and is headquartered in Bangalore, India. The company built an HCI software stack that delivers software-defined compute, storage, and networking in one virtualized platform, and is used by large banks, engineering companies, and pharmaceutical industries in India. The EnCloudEn HCI software is hardware-agnostic, easy to manage, and simple to purchase in a pay-as-you-go model.
EnCloudEn's feature-rich hyperconverged platform allows surveillance customers to not just store video data, but run the VMS, access control, card readers, analytics, and other HCI workloads on the same platform while bundling in the best enterprise data-center security features. Some key benefits of EnCloudEn's software platform include:
- Ability to support a wide range of x86 server hardware from systems vendors such as Dell, Lenovo, HP, Cisco, IBM, Supermicro, and much more
- Software defined hybrid storage pooling that can handle mixed storage media (HDD, SSD, etc.) and differing system capacities including the incorporation of large SANs
- Feature-rich hyperconverged private cloud platform with policy driven resource orchestration
- Lower total cost of ownership (TCO) through strategic use of open source, including a built-in KVM based hypervisor for ease of deployment and management
- Advanced m+k erasure coding across all nodes for extreme resiliency
- Automatic cache tiering for high performance use cases
- A whole set of storage data services such as in-line compression, deduplication, snapshots and quality of service policies on workloads
This technology acquisition adds key technical talent with expertise in hyperconverged infrastructure, cloud operations and enterprise sales along with several Red Hat certified engineers. It also establishes a new Quantum global engineering facility in India as Quantum expands into more addressable markets, including India and the rest of Asia.
"When Quantum acquired the Pivot3 surveillance business assets, the acquisition expanded our ability to address physical security projects of every size and scope and manage the video surveillance data lifecycle from initial capture through expiration," said Curt Wittich, vice president of sales, Strategic Markets, at Quantum. "This message has been resonating with customers and partners, and the EnCloudEn technology allows us to further expand on that strategy in every way."
The asset acquisition is expected to close later this quarter and is subject to customary closing conditions.
Visit the Quantum Surveillance and Security solution page to learn more.
About Quantum
Quantum technology, software, and services provide the solutions that today's organizations need to make video and other unstructured data smarter – so their data works for them and not the other way around. With over 40 years of innovation, Quantum's end-to-end platform is uniquely equipped to orchestrate, protect, and enrich data across its lifecycle, providing enhanced intelligence and actionable insights. Leading organizations in cloud services, entertainment, government, research, education, transportation, and enterprise IT trust Quantum to bring their data to life, because data makes life better, safer, and smarter. Quantum is listed on Nasdaq (QMCO) and the Russell 2000® Index. For more information visit www.quantum.com.
Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.
Forward-Looking Statements
The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting our business. Such forward-looking statements include, in particular, statements about the anticipated benefits of our acquisition of assets from EnCloudEn, the anticipated benefits and features of the EnCloudEn software technology and its incorporation into Quantum's products, expected changes in market position and customer base related to EnCloudEn, timing of the expected closing of the proposed transaction, our business prospects, changes and trends in our business and the markets in which we operate.
These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: risks related to the possibility that the conditions to closing the transaction may not be satisfied, integration of the business, products, employees and other aspects of EnCloudEn that we acquired, the need to address the many challenges facing our business; the potential impact of the COVID-19 pandemic on our business, including potential disruptions to our supply chain, employees, operations, sales and overall market conditions; the competitive pressures we face; risks associated with executing our strategy; the distribution of our products and those products that we acquired from EnCloudEn and the delivery of our services effectively; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; and other risks that are described herein, including but not limited to the items discussed in "Risk Factors" in our filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on May 26, 2021, and our Form 10-Q filed on August 9, 2021. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulation.
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