Click here to close now.

Welcome!

XML Authors: Tim Hinds, Dana Gardner, VictorOps Blog, Carmen Gonzalez, Automic Blog

News Feed Item

GXS Reports Third Quarter 2012 Financial Results

GXS, a leading provider of B2B integration services, today announced its financial results for the quarter ended September 30, 2012.

FINANCIAL HIGHLIGHTS FROM THE QUARTER

  • Total Revenue: $121.3 million, down 1% versus 3Q11, up 2% adjusting for currency
  • Managed Services Revenue: $45.1 million, up 15% versus 3Q11, up 17% adjusting for currency
  • Adjusted EBITDA: $37.2 million, down 10% versus 3Q11
  • Net Income/Loss: Net Loss of $0.1 million as compared to Net Income of $0.0 million in 3Q11
  • Minimum Contracted Value (“MCV”): $50.1 million, up 12% versus 3Q11 – a record 3Q for GXS
  • Exceeded the high end of Adjusted EBITDA guidance for 3Q12 and within the range of Revenue guidance for 3Q12

BUSINESS HIGHLIGHTS FROM THE QUARTER

  • Hosted annual GXS Customer Forum in Washington, DC with over 100 attendees present from top accounts. More than 10 customers presented on best practices and case studies. Held Advisory Boards with SAP users, Financial Services accounts and Retail accounts.
  • Introduced a new solution package for the fast-growing retail omni-channel sector based upon GXS RollStream. The solution enables retailers to assess their suppliers’ readiness to participate in drop ship initiatives and then rollout the corresponding B2B integration programs.
  • Introduced a new solution for B2B e-commerce based upon GXS Catalogue and Intelligent Web Forms. The solution enables small and mid-sized customers who lack EDI or XML capabilities to issue purchase orders electronically based upon an up-to-date catalog of available items.
  • Released the results of a new survey titled “The State of e-Invoicing in Business Today.” The survey revealed that the most popular compliant process for achieving the authenticity and integrity of electronic invoices was Electronic Data Interchange (EDI) via a B2B network, according to 77% of the respondents.

“We had another strong quarter in new sales, and a record third quarter for MCV,” commented GXS President and Chief Executive Officer Bob Segert. “Our continued strength in new sales, particularly in our fast-growing Managed Services product line, has helped to drive our fifth consecutive quarter of year-over-year pro forma revenue growth, when adjusted for currency.”

FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2012

Revenue

Total Revenue for 3Q12 was $121.3 million, down 1% as compared to $122.7 million in 3Q11 (up 2%, adjusting for currency) and within the third quarter guidance of $121 to $122 million. Managed Services revenue was $45.1 million in 3Q12, up 15% as compared to $39.3 million in 3Q11 (up 17%, adjusting for currency). Messaging Services revenue was $52.3 million in 3Q12, down 11% from $58.7 million in 3Q11 (down 6%, adjusting for currency). B2B Software and Services, Data Synchronization, and Custom Outsourcing revenues were $23.8 million in the aggregate for 3Q12, down 3% as compared to $24.7 million in 3Q11 (down 1%, adjusting for currency).

Total Revenue for 3Q11 was negatively impacted by $67 thousand related to the Generally Accepted Accounting Principles (“GAAP”) write-down of certain deferred revenue from RollStream, Inc. (“RollStream”) which was acquired on March 28, 2011. Adjusting for such write-down, pro forma Total Revenue for 3Q11 was $122.8 million, pro forma Managed Services revenue was $39.4 million in 3Q11, pro forma Messaging Services revenue was $58.7 million in 3Q11, and pro forma aggregate B2B Software and Services, Data Synchronization, and Custom Outsourcing revenues were $24.7 million in 3Q11, resulting in 3Q12 growth rates of -1%, 15%, -11%, and -3%, respectively (2%, 17%, -6% and -1%, adjusting for currency, respectively).

           
As Reported Pro Forma 1
Third Quarter Third Quarter
2012   2011   % change 2012   2011   % change
(in $ millions)
Revenue
Managed Services $ 45.1 $ 39.3 15% $ 45.1 $ 39.4 15%
Messaging Services $ 52.3 $ 58.7 -11% $ 52.3 $ 58.7 -11%
B2B Software and Services, Data Synchronization, and Custom Outsourcing $ 23.8 $ 24.7 -3% $ 23.8 $ 24.7 -3%
                   
Total Revenue $ 121.3 $ 122.7 -1% $ 121.3 $ 122.8 -1%
 
(1) Pro forma revenue is adjusted for the write-down of certain deferred revenue from the RollStream acquisition and is presented for informational purposes.
 
Note: Some calculations may differ due to rounding
 

Expenses and Net Income (Loss)

Cost of revenues, sales and marketing, and general and administrative expenses for 3Q12 were $99.4 million, as compared to $96.8 million in 3Q11. Restructuring charges were $0.4 million in 3Q12, as compared to $0.7 million in 3Q11. Operating income in 3Q12 was $21.5 million, as compared to $25.2 million in 3Q11, and was $21.5 million and $25.3 million on a pro forma basis in the same periods, respectively. Net interest expense and net other expense totaled $20.4 million for 3Q12, as compared to $23.9 million in 3Q11, resulting in income before income taxes of $1.1 million and $1.3 million in 3Q12 and 3Q11, respectively, and $1.1 million and $1.4 million on a pro forma basis in the same periods, respectively. Net income (loss) was ($0.1) million in 3Q12 after $1.3 million in income tax expense, as compared to $0.0 million in 3Q11 after $1.3 million in income tax expense, and was ($0.1) million and $0.1 million on a pro forma basis in the same periods, respectively.

       
As Reported Pro Forma
Third Quarter Third Quarter
2012   2011 2012   2011
(in $ millions)
Expenses
Cost of revenues $ 67.2 $ 64.4 $ 67.2 $ 64.4
Sales and marketing $ 17.1 $ 17.0 $ 17.1 $ 17.0
General and administrative $ 15.0 $ 15.4 $ 15.0 $ 15.4
Restructuring charges $ 0.4   $ 0.7 $ 0.4   $ 0.7
Total expenses $ 99.8 $ 97.5 $ 99.8 $ 97.5
 
Operating income $ 21.5 $ 25.2 $ 21.5 $ 25.3
 
Other expenses
Interest expense, net ($ 21.1) ($ 21.1) ($ 21.1) ($ 21.1)
Other income (expense), net $ 0.7   ($ 2.8) $ 0.7   ($ 2.8)
Total other expenses ($ 20.4) ($ 23.9) ($ 20.4) ($ 23.9)
 
Income before income taxes $ 1.1 $ 1.3 $ 1.1 $ 1.4
Income tax expense $ 1.3   $ 1.3 $ 1.3   $ 1.3
Net income (loss) ($ 0.1) $ 0.0 ($ 0.1) $ 0.1
 
Note: Some calculations may differ due to rounding
 

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation and amortization, and certain other charges (“Adjusted EBITDA”, a non-GAAP measure) for 3Q12 was $37.2 million, down 10% as compared to $41.3 million in 3Q11 and higher than 3Q12 guidance of $36 to $37 million.

Management relies upon Adjusted EBITDA as a primary measure to review and assess operating performance of its business and management team. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as (i) an alternative to net income (loss), (ii) as a measure of operating income, or cash flows from operating, investing and financing activities, or (iii) as a measure of liquidity. Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies. The table below reconciles Net income (loss) to Adjusted EBITDA for the periods presented.

       
As Reported Pro Forma
Third Quarter Third Quarter
2012   2011 2012   2011
(in $ millions)
Net income (loss) ($ 0.1) $ 0.0 ($ 0.1) $ 0.1
Adjustments:
Income tax expense $ 1.3 $ 1.3 $ 1.3 $ 1.3
Interest expense, net $ 21.1 $ 21.1 $ 21.1 $ 21.1
Depreciation and amortization $ 14.1 $ 13.9 $ 14.1 $ 13.9
Stock compensation expense $ 0.2 $ 0.3 $ 0.2 $ 0.3
Other (income) expense, net ($ 0.7) $ 2.8 ($ 0.7) $ 2.8
Restructuring charges $ 0.4 $ 0.7 $ 0.4 $ 0.7
Merger and acquisition fees $ 0.0 $ 0.1 $ 0.0 $ 0.1
Deferred income adjustment (1) $ 0.0 $ 0.1 $ 0.0 $ 0.0
Management fees $ 1.0   $ 1.0 $ 1.0   $ 1.0
Total adjustments $ 37.4   $ 41.2 $ 37.4   $ 41.2
Adjusted EBITDA $ 37.2 $ 41.3 $ 37.2 $ 41.3
 
(1) Purchase accounting requires that deferred income of an acquired business be written-down to fair value of the underlying obligations plus associated margin at the date of acquisition.
 
Note: Some calculations may differ due to rounding
 

LIQUIDITY AND CAPITAL EXPENDITURES

Cash and cash equivalents totaled $40.8 million at the end of 3Q12, as compared to $25.2 million at the end of 3Q11. There were no amounts outstanding under the revolving credit facility at the end of both 3Q12 and 3Q11. At the end of both 3Q12 and 3Q11, $11.7 million of the $50.0 million of revolving credit facility capacity was pledged as security for certain letters of credit. Therefore, total available cash liquidity, including cash and cash equivalents and total revolving credit facility capacity less outstanding borrowings and letters of credit secured by the revolving credit facility, was $79.1 million and $63.5 million at the end of 3Q12 and 3Q11, respectively.

Capital expenditures (“CAPEX”) were $11.1 million in 3Q12, as compared to $11.9 million in 3Q11.

CUSTOMER ACQUISITION ACTIVITY

Total MCV for 3Q12 was $50.1 million, up 12% as compared to $44.7 million in 3Q11, and a record for MCV for GXS in a third quarter. Sales activity in 3Q12 continued to be focused primarily on new Managed Services contracts which comprised 72% of 3Q12 MCV, the same as in 3Q11.

MCV is the incremental future minimum committed revenue of new sales agreements signed in the current period by customers. If the new contract signed is to replace an existing revenue stream, the MCV is adjusted to reflect only the incremental value from the sale. The MCV calculations are not reflected or recorded within the condensed consolidated financial statements. MCV is not a measure of financial condition or financial performance under U.S. GAAP and should not be considered as an alternative to deferred income or revenues, as a measure of financial condition or operating performance.

FINANCIAL GUIDANCE

The company is providing guidance for 4Q12 as well as adjusting its FY12 guidance previously provided on August 13, 2012. For 4Q12, Revenue is expected to be in the range of $126 to $127 million which would result in FY12 Revenue of $487 and $488 million, tightening the range of guidance previously provided of $485 to $490 million. For 4Q12, Adjusted EBITDA is expected to be in the range of $37.5 to $38.5 million which would result in FY12 Adjusted EBITDA of $145 to $146 million, the high end of the range decreased from guidance previously provided of $145 to $148 million. For 4Q12, CAPEX is expected to be in the range of $11.6 to $13.6 million which would result in FY12 CAPEX of $43 to $45 million, decreased from guidance previously provided of $45 to $50 million. For 4Q12, MCV is expected to be in the range of $49.6 to $54.6 million which would result in FY12 MCV of $205 to $210 million, the high end of the range decreased from guidance previously provided of $205 to $215 million.

Achieving this guidance is subject to a number of risks and uncertainties as described in the company’s filings with the Securities and Exchange Commission (“SEC”). As a result, there can be no assurance that such guidance can be achieved.

         
Fourth Quarter 2012 Full Year 2012
(in $ millions)        
Revenue $ 126.0 to $ 127.0 $ 487.0 to $ 488.0
Adjusted EBITDA $ 37.5 to $ 38.5 $ 145.0 to $ 146.0
CAPEX $ 11.6 to $ 13.6 $ 43.0 to $ 45.0
MCV $ 49.6 to $ 54.6 $ 205.0 to $ 210.0
Adjusted EBITDA % 29.5% to 30.6% 29.7% to 30.0%
 
Fourth Quarter and Full Year 2012 Adjusted EBITDA Guidance - Reconciliation to GAAP
               
($ millions) Fourth Quarter 2012 Full Year 2012
Adjusted EBITDA $ 37.5 to $ 38.5 $ 145.0 to $ 146.0
Income tax benefit (expense) $ 4.0 to $ 5.0 $ 0.6 to $ 1.6
Interest expense, net ($ 21.1) ($ 84.7)
Depreciation and amortization ($ 14.5) to ($ 14.0) ($ 56.8) to ($ 56.3)
Stock compensation expense ($ 0.3) ($ 0.9)
Other income (expense), net $ 0.0 ($ 3.7)
Restructuring charges ($ 1.5) to ($ 1.0) ($ 2.9) to ($ 2.4)
Management fees     ($ 1.0)         ($ 4.0)    
Total adjustments ($ 34.4)   to   ($ 32.4) ($ 152.3)   to   ($ 150.3)
Net income (loss) $ 3.1 to $ 6.1 ($ 7.3) to ($ 4.3)
 
Note: Some calculations may differ due to rounding
 

EARNINGS CONFERENCE CALL

Bob Segert and Gregg Clevenger will conduct a call to review the third quarter 2012 results on Tuesday, November 13, 2012 at 1:00 PM U.S. Eastern Time. To access the call, please dial 877-269-6740, or outside the U.S. 816-650-0840, at least 10 minutes before the start of the call (when calling in, you’ll be asked for your name and the Conference ID Number 48694736). A replay will be available for one week beginning two hours after the call ends. It can be accessed by dialing 855-859-2056 or 404-537-3406.

ABOUT GXS

GXS is a leading provider of B2B integration services and operates the world’s largest integration cloud, GXS Trading Grid®. Our software and services help more than 400,000 businesses, including 22 of the top 25 supply chains, extend their partner networks, automate receiving processes, manage electronic payments, and improve supply chain visibility. GXS Managed Services, our unique approach to improving B2B integration operations, combines GXS Trading Grid® with our process orchestration services and global team to manage a company’s multi-enterprise processes. Based in Gaithersburg, Maryland, GXS has direct operations in 20 countries, employing more than 2,400 professionals. To learn more, see http://www.gxs.com, read our blog at http://www.gxsblogs.com, follow us on Twitter at http://twitter.com/gxs and join us on LinkedIn at http://www.linkedin.com/company/gxs. You can also access our public filings with the SEC at http://www.sec.gov/edgar.shtml.

FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking statements." All statements, other than statements of historical facts, that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future, including the discussion under “Financial Guidance,” are forward-looking statements. These forward-looking statements are affected by risks, uncertainties and assumptions, including but not limited to those set forth in the company's public filings with the SEC, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Accordingly, actual results or outcomes may differ materially from those expressed in the forward-looking statements. You should not place undue reliance on these statements and the company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise.

NON-GAAP MEASURES

This press release contains certain supplemental measures of performance that are not required by, or presented in accordance with, GAAP. Such measures should not be considered as alternatives to GAAP measures. It also contains certain “pro forma” financial information and results, which adjust for the impact of write-downs in deferred revenue in relation to the Inovis and RollStream acquisitions, as discussed above. Such pro forma information is presented for informational purposes only, as an aid to understanding the company's financial results. This pro forma information is not prepared in accordance with GAAP and should not be considered a substitute for the historical financial information presented in accordance with GAAP. The pro forma financial information used by the company may be different from pro forma financial information used by other companies and is not necessarily indicative of future results. You should not place undue reliance on such information.

   
GXS WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
 
September 30, December 31,
  2012     2011  
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 40,818 $ 12,968
Receivables, net 103,650 106,799
Prepaid expenses and other assets   27,439     28,881  
Total current assets 171,907 148,648
 
Property and equipment, net 108,658 105,049
Goodwill 269,082 268,767
Intangible assets, net 105,642 120,483
Deferred financing costs 12,109 15,018
Other assets   20,929     23,112  
 
Total Assets $ 688,327   $ 681,077  
 
Liabilities and Stockholder's Deficit
Current liabilities:
Borrowings under revolving credit facility $ - $ 3,000
Trade payables 14,861 19,640
Deferred income 39,888 46,622
Accrued expenses and other current liabilities   68,366     47,369  
Total current liabilities 123,115 116,631
 
Long-term debt 774,493 772,068
Deferred income tax liabilities 11,122 9,961
Other liabilities   51,560     46,743  
Total liabilities 960,290 945,403
 
GXS Worldwide, Inc. stockholder's deficit:
Common stock $1.00 par value, 1,000 shares authorized, issued and outstanding 1 1
Additional paid-in capital 429,654 429,045
Accumulated deficit (697,950 ) (687,446 )
Accumulated other comprehensive loss   (3,982 )   (6,208 )
Total GXS Worldwide, Inc. stockholder's deficit (272,277 ) (264,608 )
Non-controlling interest   314     282  
Total stockholder’s deficit   (271,963 )   (264,326 )
 
Total Liabilities and Stockholder’s Deficit $ 688,327   $ 681,077  
 
These statements should be read in conjunction with the Form 10-Q filed with the SEC on November 13, 2012.
       
GXS WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands)
(Unaudited)
 
Three Months ended September 30, Nine Months ended September 30,
  2012     2011     2012     2011  
Revenues $ 121,279 $ 122,716 $ 361,000 $ 355,639
 
Costs and operating expenses:
Cost of revenues 67,201 64,394 198,809 190,883
Sales and marketing 17,117 17,049 50,797 48,632
General and administrative 15,033 15,365 49,862 49,819
Restructuring charges   402     709     1,360     2,328  
Operating income 21,526 25,199 60,172 63,977
 
Other income (expense):
Interest expense, net (21,093 ) (21,109 ) (63,562 ) (61,689 )
Other income (expense), net   697     (2,755 )   (3,679 )   (3,358 )
Income (loss) before income taxes 1,130 1,335 (7,069 ) (1,070 )
 
Income tax expense   1,276     1,295     3,403     2,626  
Net income (loss) (146 ) 40 (10,472 ) (3,696 )
Less: Net income (loss) attributable to non-controlling interest   47     (35 )   32     (3 )
 
Net income (loss) attributable to GXS Worldwide, Inc. $ (193 ) $ 75   $ (10,504 ) $ (3,693 )
 
These statements should be read in conjunction with the Form 10-Q filed with the SEC on November 13, 2012.
   
GXS WORLDWIDE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Nine Months ended September 30,
  2012     2011  
Cash flows from operations:
Net loss $ (10,472 ) $ (3,696 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 42,294 40,165
Deferred income taxes 956 (726 )
Amortization of deferred financing costs and debt discount 6,029 5,546
Unrealized gain on interest rate swap –– (2,365 )
Settlement of interest rate swap –– (2,318 )
Stock compensation expense 609 787
Changes in operating assets and liabilities, net of effect of business acquisitions:
(Increase) decrease in receivables 3,149 (4,974 )
(Increase) decrease in prepaid expenses and other assets 3,901 (6,466 )
Increase (decrease) in trade payables (4,745 ) 306
Increase (decrease) in deferred income (6,734 ) 320
Increase in accrued expenses and other liabilities 25,541 22,761
Other   2,302     2,837  
Net cash provided by operating activities   62,830     52,177  
 
Cash flows from investing activities:
Purchases of property and equipment (including capitalized interest) (31,405 ) (34,270 )
Business acquisitions, net of cash acquired ($4 for nine months ended September 30, 2011)   ––     (1,125 )
Net cash used in investing activities   (31,405 )   (35,395 )
 
Cash flows from financing activities:
Borrowings under revolving credit facility 20,000 34,000
Repayments under revolving credit facility (23,000 ) (42,000 )
Payment of financing costs   (421 )   (2 )

Net cash used in financing activities

  (3,421 )   (8,002 )
   
Effect of exchange rate changes on cash   (154 )   84  
 
Increase in cash and cash equivalents 27,850 8,864
Cash and cash equivalents, beginning of period   12,968     16,326  
Cash and cash equivalents, end of period $ 40,818   $ 25,190  
 
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized $ 39,144 $ 39,285
Cash paid for interest rate swap $ - $ 4,683
Cash paid for income taxes $ 2,343 $ 2,215
 
Noncash investing and financing activities:
Fair value of equity securities issued in business acquisition $ - $ 420
 
These statements should be read in conjunction with the Form 10-Q filed with the SEC on November 13, 2012.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to make sense of it all.
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT," said Meg Whitman, Chairman, President and Chief Executive Officer of HP...
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.