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Quantum expects to scale StorNext products, sales this year

Quantum’s forecast for the next year includes more StorNext and scale-out archiving products, sales and vertical markets.

The sales bump has already started. Quantum last week reported its scale-out storage – which includes StorNext – increased 116 percent to $31.7 million for last quarter and grew 74 percent to $102.4 million for the year. That led overall Quantum revenue growth of 15 percent for the quarter while its total revenue for the full fiscal 2015 year was flat with the previous year.

CEO Jon Gacek said more StorNext products are coming soon during the vendor’s earnings call last week.

“We will further expand our portfolio of full StorNext solutions with a goal of enhancing the customer experience,” Gacek said. “We will also continue to focus on increasing our StorNext 5 appliance footprint with large install base customers by employing more disk, object, tape and cloud storage.”

The product expansion will come on top of the Artico NAS and larger capacity Lattus nodes that Quantum rolled out last month.

Gacek said he expects a surge in Quantum’s video surveillance customer base over the next year. Most of StorNext’s revenue today comes from the media and entertainment industry, but Gacek sees surveillance as ripe for growth because of requirements for long-term retention and larger capacity video formats.

“Surveillance has generally been a low-cost NAS market for storage,” Gacek said. “Surveillance cameras didn’t have a lot of resolution and there was a short retention period. Now the cameras are going high definition, there’s a lot more data, people are doing analytics on it, and the retention periods are enormous.”

He said close to an exabyte of data is captured in the world every day. Besides StorNext, Gacek sees Quantum’s Lattus object storage and even its core tape business playing big roles in the surveillance market. Quantum is also going after network forensics, government intelligence and high performance computing with its scale out platforms. Data for all of those markets must be ingested fast, retained indefinitely and accessed whenever needed.

Quantum forecasted a 50 percent increase in scale-out revenue this quarter over last year. For the full year, its guidance calls for a 50 percent bump in scale-out storage revenue.

Quantum’s DXi deduplication and disk backup platform increased 30 percent year over year to $25.2 million last quarter and increased 120 percent to $88.2 million for the year. StorNext and DXi helped Quantum overcome a decrease in tape sales to hold revenue at the same level as 2014. For the fiscal year, Quantum reported a net income of $16.8 million compared to a loss of $21.5 million the previous year.

“Fiscal 2015 was a key turning point for Quantum,” Gacek said.

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