The Deal to Get Content Archiving
Iron Mountain is a major player in the information management market, everyone has heard of this company. But maybe they haven't heard as much about Mimosa Systems, which is based out of California. Well they will after today as Iron Mountain has picked up the provider of content archiving and eDiscovery solutions for US$ 112 million in cash.
The deal seems to be all about providing Iron Mountain with an on-premise content archiving solution — in this case Mimosa NearPoint — to complement their cloud based offering.
Mimosa NearPoint is a an email archiving and eDiscovery solution. Version 4 was brought to market last June, offering an integrated content archive that includes not only email, but also content in blogs, wikis, documents and more. It also improved content search, case management and came with a new user interface and data capture methodology.
It's these capabilities along with being able to now capture manage content from additional devices like desktops, laptops and systems like SharePoint, that caused Iron Mountain to choose Mimosa.
And, of course, eDiscovery
Iron Mountain also likes what NearPoint offers for eDiscovery. That solution gets added to Iron Mountain's Stratify eDiscovery services which includes Stratify Legal Discovery Services for large litigation needs and eVantage for early case assessment.
Stratify recently achieved its Statement on Auditing Standard (SAS-70) certification.
What Happens to Mimosa?
The Mimosa team will become part of Iron Mountain Digital. And Mimosa's CEO T.M. Ravi will become Iron Mountain Digital's chief marketing officer, in charge of strategy planning and execution.
In a letter from Iron Mountain's President and Mimosa's CEO, existing Mimosa customers — which are 1,000 strong — can expect continued support and growth of the NearPoint solution. But customers will also get an expanded solution offering which includes cloud-based eDiscovery services.
And they should be comforted in the knowledge that Iron Mountain is a very financially stable company with a global reach (something Mimosa partners should appreciate for sure).
Iron Mountain is acquiring the Mimosa team and their expertise, not just their technology. The Mimosa team will become an integral part of Iron Mountain Digital and will help support the company’s information management services strategy. Mimosa’s executive team strongly supports this acquisition, and I (Ravi) will join Iron Mountain Digital as its Chief Marketing Officer, responsible for driving marketing functions and playing a key role in its strategy planning and execution.
In House eDiscovery and the SharePoint Factor
There are a couple key things at play here. The first is that there is a strong movement to take eDiscovery in-house. For Iron Mountain this was a key market they were not going to be able to access prior to this acquisition.
Gartner recently published their MarketScope for E-Discovery Software Product Vendors report, which helps organizations figure out how to build the business case for in-house eDiscovery. In it, Mimosa Systems rated as positive, but came behind other larger vendors like Autonomy, Clearwell and Zylabs.
Stratify doesn't even show up in this report, which could mean Iron Mountain isn't widely recognized for its eDiscovery services. Mimosa's NearPoint may change that.
The other key to this deal is the SharePoint factor. With the upcoming release of SharePoint 2010, there are likely many organizations starting to think about their content migration strategy. And the smart ones aren't going to move all the content housed within their current SharePoint implementation to the new environment — especially if they are among the many with messy environments.
Since SharePoint doesn't provide content archiving — or eDiscovery for that matter — Iron Mountain has the opportunity to get in the door of these organizations with an integrated content archiving offering via Mimosa. It's also great for Mimosa as it opens the SharePoint universe on a global scale.
While this deal is still subject to closing adjustments, it may be a "well spent" US$ 112 million for Iron Mountain. And, of course, a smart deal for Mimosa.