Cloud Storage Firm SageCloud Tweaks Business Model, Changes Its Name To StoriantApril 28, 2014
Boston Business Journal
by Jay Fitzgerald
SageCloud, a Boston cloud storage startup, is changing its name and tweaking its business model as it begins shipping its software products to major clients looking for more secure ways to store their business and institutional data.
The company is expected to announce this morning that it’s changing its name to Storiant, as a way to better convey its mission to clients, said co-founder and chief executive Jeff Flowers.
The name SageCloud suggested to some potential clients that its products and services were tied to the so-called “public cloud” operated by giant providers such as Google, Amazon and Microsoft, all of which offer off-site data storage for individual consumers and businesses.
But Flowers, who was also a co-founder of the publicly traded Carbonite Inc. of Boston, said his company’s targeted clientele – large financial firms, federal government agencies and even other cloud-service providers like Carbonite – don’t want to share the same storage space with other businesses and entities.
Concerned about security, those clients instead want to store their data on “private clouds” that they can better monitor and protect against potential cyber intruders, said Flowers. Storiant’s ultimate goal is to provide large customers “cold storage” software services, or data that’s not frequently used by companies but still needs to be accessible when firms want it.
“The company’s old name was definitely conjuring up images that we didn’t want to convey,” said Flowers, whose two-year-old Storiant has raised $13.2 million in funding from investors such as Braemer Energy Ventures, Matrix Partners, and David Friend, the CEO of Carbonite, a cloud-services company catering to general consumers.
In addition to changing its name, Storiant is also tweaking its business model. Originally, the company envisioned offering both software and hardware solutions to large clients. But Flowers said software – which helps firms move their data to off-site storage locations– is the future for Storiant.
“No one can do anything with all that beautiful hardware without software,” said Flowers. “The future of storage is going to be software.”
Indeed, Flowers said the cloud software market could hit $10 billion over the next three years, as companies increasingly move data to either public or private clouds.
And Storiant hopes to nab a large piece of that market. Storiant currently employs about 30 people, but that number could grow to 60 by the end of the year, Flowers said.
The company recently began shipping its software to major clients and Flowers said he can see Storiant one day becoming a company with hundreds of millions of dollars in revenue.