Iron Mountain Digital, a subsidiary of Iron Mountain Inc., today acquired data archiving software vendor Mimosa Systems for $112 million as part of a strategy to put the services-focused Iron Mountain on premise
Mimosa's NearPoint software suite began as an email archiving product when the company first launched in 2004, but has since added file archiving, SharePoint archiving, and case management for e-discovery. It has a relationship with cloud email management vendor LiveOffice that connects NearPoint to the cloud, but has been primarily focused on deployments on-site at large enterprises.
Iron Mountain Digital president Ramana Venkata says Mimosa will remain focused on on-site deployments at large enterprises as it is folded into Iron Mountain Digital. Iron Mountain said Mimosa's entire staff will be retained, with Mimosa CEO T.M. Ravi serving as chief marketing officer for Iron Mountain Digital.
Venkata said Iron Mountain Digital's new goal is to be "a location agnostic provider of information management services."
Venkata said Iron Mountain will continue its relationship with U.K.-based Mimecast for SaaS based email management and archiving through Iron Mountain's Total Email Management Suite (TEMS), despite overlap between Mimecast's and Mimosa's email archiving features. Venkata said Iron Mountain also plans to integrate Mimosa into its cloud data storage offerings as a data capture mechanism.
"There's some segmentation between TEMS and Mimosa" in terms of market focus, Ravi said. TEMS also includes email management features aside from data archiving, such as antispam and antivirus monitoring.
For now, it's unclear how the Mimosa integration into Iron Mountain's cloud-based products will happen or what it will look like. In addition to TEMS, Iron Mountain has legal review service provider Stratify under the Iron Mountain Digital umbrella, as well as eVantage, an early case assessment tool for e-discovery.
"I don't know where and how this integration will happen – and my guess is they don't know the answer quite yet," Taneja Group founder and consulting analyst Arun Taneja said.
"Iron Mountain clearly has some portfolio rationalization to do," Enterprise Strategy Group analyst Brian Babineau said. In the past, with deals for LiveVault and Stratify, "Iron Mountain has been very methodical when it comes to integration. But if they want to differentiate against [market leader] Autonomy, they're going to need to integrate, and they'll have to be a lot faster."
Mimosa brings more than 1,000 customers to Iron Mountain Digital and added 320 new accounts in 2009. It claimed large companies like United Healthcare Group and Flextronics. Ravi said Mimosa was close to profitability before the acquisition.