Iomega Corporation, a global leader in data protection, today announced that it has reached a definitive agreement to acquire CSCI, Inc, a San Diego-based managed services and outsourced IT company.
CSCI is the 2006 winner of the Juniper Networks, Inc "Managed Services Provider of the Year" award and the creator of OfficeScreen services, a suite of managed virtual private networks (VPNs) that provide small to medium-sized businesses with secure wide-area networks that efficiently and economically link offices and remote workers.
"With the addition of OfficeScreen, Iomega is taking the first step toward becoming a managed services company," said Bobby Kennedy, Key Account Manager for Iomega in South Africa. "Small businesses need simple, secure, easy-to-use networks from a company they trust. The debut of Iomega OfficeScreen services will expand on Iomega`s 25-year history of dependable data security products for SMBs and position the company to capitalise on the growing managed services market."
"Managed services are going to be a key part of our product portfolio moving forward," said Kennedy. "South Africa is one of our fastest growing markets - if not the fastest - and we will be keen to roll out the offering as soon as it is ready. We look forward to this as it will be a major addition to the small business centred products we have in out StorCenter network hard drive and REV removable hard drive lines.
Currently hundreds of small and medium-sized businesses utilise OfficeScreen as a secure, outsourced network security and VPN service that does not require upfront hardware expenses or setup costs, an appealing combination for small businesses that do not have dedicated IT resources or large IT budgets. OfficeScreen`s firewall/VPN, Secure Socket Layer (SSL) and IPSec (IP security) bundles create wide area networks that connect remote offices and workers to applications and data at a company`s headquarters, while countering security threats from hackers, worms and viruses across a company`s entire network.
"Today`s SMBs face many of the same risks and regulatory requirements as Fortune 100 corporations," said Jonathan Huberman, Chief Executive Officer, Iomega Corporation. "Whether it`s HIPAA compliance, SEC regulations, Sarbanes-Oxley requirements or protection from malicious intrusions, SMBs must ensure the privacy of their customers` data and protect the intellectual property of their businesses. Iomega`s new OfficeScreen services are simple, cost-effective turn-key security platforms that deliver on the network needs of today`s small and medium businesses."
OfficeScreen, which incorporates multifunction remote access hardware solutions from the Juniper Networks security product lines, creates new growth opportunities for both Iomega and Juniper Networks.
"Iomega`s purchase of CSCI and OfficeScreen represents an exciting new opportunity to increase the utilisation of the Juniper products with small and medium-sized businesses," said Robert Bruce, Juniper Networks` Vice-President of Americas Channels. "Iomega has a strong global brand name in data protection for small businesses and is well positioned to become a major player in the managed services market. Now that it has acquired OfficeScreen, we look forward to partnering with Iomega to broaden the reach of Juniper`s `Best in Class` remote connectivity solutions in the SMB space."
Iomega expects to grow the existing OfficeScreen business in the USA by selling its branded managed services through several different channels, including telecommunications providers, hosting companies, VARs and systems integrators, direct and indirect sales organisations and retail operations. By utilising its strong European sales infrastructure, Iomega plans to launch its new managed services in international markets before the end of 2006.
"OfficeScreen will provide the basis of a new growth platform and transformation engine for Iomega," said Huberman. "To make that happen, we will leverage the tremendous equity of the Iomega brand, our worldwide sales, marketing and operations infrastructure as well as a quarter-century of service to SMB customers around the world."
Rich Tear, CEO of CSCI, said Iomega`s purchase of CSCI makes it possible to accelerate the growth of OfficeScreen by multiples that the company could not have accomplished on its own.
"Combining the international Iomega name, its marketing and sales acumen and its financial capabilities with the superior network services offerings of OfficeScreen is a synergistic recipe for growth and success in the exploding market of managed services for SMBs," said Tear.
According to independent market analysis, the global market for managed security services is expected to be $2.9 billion in 2006, growing to $3.7 billion in 2008. In addition to OfficeScreen, CSCI, Inc has a systems integration business that is included in the Iomega acquisition of the company. The transaction is expected to close within 60 days.
Share