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The Talkin' Cloud™ 50 The Talkin’ Cloud™ 50: 2011 Edition Meet the top VARs and MSPs working in cloud computing Research Contact: Joe Panettieri, Editorial Director, Nine Lives Media Inc. 631-423-3536 or joe [at] ninelivesmediainc [dot] com Sales Contact: Amy Katz, CEO, Nine Lives Media Inc. 978-468-0092 or amy [at] ninelivesmediainc [dot] com Table of Contents About Nine Lives Media Inc. and Talkin’ Cloud........................................... 3 Executive Summary/Survey Methodology................................................... 4 Top Nine Trends Worth Noting…................................................................ 5 The Talkin’ Cloud 50 • Ranked 1-50....................................................................................... 7 • Alphabetized company profiles, links and more................................. 9 Talkin’ Cloud 50 Project Conclusions………………………………………... 20 Research Schedule and Project Overviews…………………………………. 20 • MSPmentor 100 • MSPmentor 250 • Talkin’ Cloud 50 • Talkin’ Cloud Stock Index • The VAR Guy’s Channel Finance 25 Contact Information................................................................................... 20 Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 2 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc. About Talkin’ Cloud Talkin’ Cloud (www.talkincloud.com), owned by Nine Lives Media Inc. (www.NineLivesMediaInc.com), covers the convergence of cloud computing and the channel. The site combines a video blog, daily news analysis, timely insights and forum chatter (beta) for VARs and MSPs navigating cloud computing. The Talkin’ Cloud brand includes: • TalkinCloud.com: The first video blog and news analysis site for cloud computing and the channel • Talkin’ Cloud 50, identifying the world’s top 100 VARs and MSPs working in the cloud • Talkin’ Cloud 200, updated each Friday, tracks channel leaders who are defining cloud opportunities for VARs and MSPs • Talkin’ Cloud Stock Index, updated each Friday, tracks 20 publicly held cloud computing companies About Nine Lives Media Inc. Nine Lives Media Inc. defines emerging IT media markets and disrupts established IT media markets. Founded in 2008, Nine Lives Media Inc. has generated profitable, debt-free growth since its inception. The company’s market leading blogs and online destinations include: • Talkin’ Cloud (www.TalkinCloud.com): The first video blog and forum destination for VARs and MSPs navigating the cloud. • MSPmentor (www.MSPmentor.net): The ultimate guide and world’s top managed services blog. • MSPtweet (www.MSPtweet.com): The loudest tweets in the managed services industry. • The VAR Guy (www.TheVARguy.com): Tracking what’s next in the IT channel. The top-ranked blog serving VARs and channel partners. • VARtweet (www.VARtweet.com): The loudest tweets in the IT channel. Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 3 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc. Executive Summary/Survey Methodology The Talkin’ Cloud 50 is an annual research report from TalkinCloud.com and its owner, Nine Lives Media Inc. (www.NineLivesMediaInc.com). Instead of launching a popularity contest, the Talkin’ Cloud 50 ranks VARs and MSPs by such variables as: • Total cloud-related revenues (in U.S. dollars, 2010) • Cloud-related revenues 2010 vs. 2009 (dollar growth) • Cloud-related revenues 2010 vs. 2009 (percentage growth) • Number of end-customer users leveraging cloud services • Note: All financial information for international VARs and MSPs was converted to U.S. dollars Call for Submissions: The survey was promoted on Talkin’ Cloud, The VAR Guy, MSPmentor and Nine Lives Media’s social media destinations (FaceBook, LinkedIn and Twitter). Survey Timing: The survey ran from January through March 31, 2011. The results were published May 31, 2011 on TalkinCloud.com. Confidentiality This report includes much – but not all – of the survey data. In order to gather reliable financial data, Nine Lives Media Inc. agreed not to disclose specific annual revenue information (i.e., revenue dollars). We reserved the right, however, to publish company growth rates based on the private revenue information. Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 4 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc. Top Nine Talkin’ Cloud Channel Trends 1. Annual Cloud Revenues: The Talkin’ Cloud 50 companies generated $321 million in annual cloud revenues for 2010, up 47 percent from $218 million in 2009. The average company in our survey now generates $6 million annually in cloud revenues. 2. Breaking Down the List: • Nine companies generated at least $10 million in cloud-related revenues • 15 generated at least $5 million in annual recurring revenues • 43 companies generated at least $1.0 million in annual recurring revenues 3. Cloud Services vs. Managed Services: Roughly a dozen companies from the Talkin’ Cloud 50 have also appeared on our sister report, the MSPmentor 100. We don’t pretend there’s a hard line between cloud services and managed services. There certainly is overlap between the two markets. For instance, many MSPs include hosted Exchange – a cloud service -- as part of their monthly managed services contracts. 4. Cloud Services Offered: • Infrastructure as a Service (IaaS), 68% • Platform as a Service (PaaS), 42% • Software as a Service (SaaS), 74% 5. Specific Areas of Specialization: • Hosted/SaaS Email, 70% • Virtual Servers in the Cloud, 64% • Storage as a Service, 60% • Hosted/SaaS SharePoint, 52% • Website Hosting, 50% • Security as a Service, 48% • Virtual Desktop Infrastructure, 48% • Hosted/SaaS CRM, 36% • Hosted VoIP, 34% • Hosted Unified Communications, 34% 6. Whose Infrastructure?: VARs and MSPs are pursuing multiple paths to the cloud. Roughly 50.6% of survey participants offered cloud services in their own data centers, 48.3% leverage third-party public clouds, 64% leverage co-location centers, and 31.5% are building private clouds in customers’ data centers. (The total exceeds 100 percent because multiple answers were permitted.) 7. SMB Dominates: The Talkin’ Cloud readership focuses mostly on the SMB market opportunity. Nearly 70% of survey participants target customers with 21 to 50 employees. Other targets include: • Customers with 1 to 20 employees, 48.3% • Customers with 21 to 50 employees, 69.0% • Customers with 51 to 100 employees, 61.8% • Customers with 101 to 500 employees, 55.1% • Customers with 501 to 1000 employees, 32.6% • Customers with 1000 or more employees, 19.1% Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 5 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc. 8. Going Vertical: Of the Talkin’ Cloud 50 survey participants, 74% have a vertical market focus and 26% do not. The most popular target markets include: • Healthcare, 48% • Technology, 42% • Banking/financial services, 40% • Legal, 36% • Manufacturing, 35% 9. Most Popular Cloud Partners: Of the Talkin’ Cloud 50 survey participants, the most popular cloud partners included: • VMware, 47.2% • Microsoft BPOS, 28.1% • Google Apps, 24.7% • Zenith Infotech, 18% • Amazon Simple Storage Service (S3), 16.9% • Microsoft Windows Azure, 15.7% • Salesforce.com, 14.6% • Mozy, 14.6% • Amazon Elastic Compute Cloud (EC2), 13.5% • Rackspace, 13.5% • Intermedia (Hosted Exchange), 11.2% • NetApp, 11.2% • Ingram Micro Seismic, 10.1% Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 6 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc. The Talkin’ Cloud 50: Ranked 1 Through 50 Overview: The Talkin’ Cloud 50 overall ranking is based on (A) annual cloud revenues for 2010, (B) dollar growth 2010 vs. 2009, (C) percentage growth 2010 vs. 2009 and total number of customer users running cloud applications. Rank Company Website City State Country 1 OpSource www.opsource.net Santa Clara CA USA 2 Apptix, Inc. www.apptix.com Herndon VA USA mindSHIFT Technologies, 3 Inc. www.mindSHIFT.com Waltham MA USA 4 iland Internet Solutions www.iland.com Houston TX USA 5 Alliance Technology Group www.Alliance-IT.com Hanover MD USA 6 Anittel Group Limited www.anittel.com.au North Sydney NSW Australia 7 HEIT www.goheit.com Fort Collins CO USA 8 NetBoundary www.netboundary.com Carrollton TX US 9 MySecureCloud www.mysecurecloud.com King of Prussia PA USA 10 Excel Micro, Inc. www.excelmicro.com Folsom PA USA 11 Data Intensity www.dataintensity.com Bedford MA USA 12 Corporate Technologies LLC www.gocorptech.com Eden Prairie MN USA 13 Cloud Sherpas www.cloudsherpas.com Atlanta GA USA 14 Virtacore Systems, Inc. www.virtacore.com Sterling VA USA 15 SADA Systems, Inc. www.sadasystems.com N. Hollywood CA USA 16 Netgain Technology, Inc www.NetgainHosting.com St. Cloud MN USA 17 Tsukaeru.net KK www.tsukaeru.net Nagano - Japan 18 iConvergence www.iconvergence.com Lafayette LA USA 19 Claris Networks, LLC www.clarisnetworks.com/ Knoxville TN USA 20 SheepDogInc.ca www.SheepDogInc.ca Halifax NS Canada 21 Ntirety, Inc www.ntirety.com Dedham MA USA 22 iomart Group plc www.iomart.com Glasgow - UK 23 Netarx, LLC www.netarx.com Auburn Hills MI
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