U.S. and European Cloud Storage Merger

Two cloud storage vendors, Backup Technology Limited of the United Kingdom and Terian Solutions LLC of Texas, are merging. Is this an isolated deal or is the online storage market poised for global M&A consolidation?

Before we get into the speculation let’s start with the facts. Under the Backup Technology-Terian deal, the merged entity will retain the Backup Technology name and brand. The combined company claims to form the world’s largest online backup & disaster recovery provider, protecting 5 petabytes of data for clients like The Red Cross and Master Lock.

Gaining International Reach

Backup Technology sees the merger as a way to gain major momentum in the US and European markets. Moreover, the cross-continent deal could help Backup Technology to meet government compliance regulations in multiple countries.

Both Backup Technology and Terian Solutions leverage Asigra Cloud Backup at the highest level of partnership, and have a history of working together on joint ventures, according to a prepared statement from the company.

The combined Backup Technology entity will have its European head office in Leeds, UK, with data centers in Manchester and London. The US head office will remain in Houston, Texas, with Texan and New York data centers.

More Consolidation Coming?

Cloud storage and disaster recovery are garnering major channel buzz as an affordable, easy value-add for VARs and MSPs. But here’s the twist: Dozens of online backup and cloud storage companies are building partner programs — and the race is on to recruit more partners from a limited pool of MSPs.

Frankly, TalkinCloud expects consolidation in the cloud storage market to accelerate sometime in 2011. But it won’t always be storage-to-storage consolidation. Trend Micro, for instance, is marching beyond cloud security and preparing an online storage push, which will launch for the channel sometime in 2011. The Trend Micro cloud storage effort will leverage SafeSync, which is based on technology Trend acquired earlier this year.

Also, hosted email specialist Intermedia is taking a close look at the online storage market, TalkinCloud has learned. Sometime in early 2011 Intermedia is expected to unveil the online storage strategy, though sources decline to disclose whether the effort involves in-house development, an acquisition or a partnership.

We’ll be watching closely for more moves.

Additional reporting by Joe Panettieri. Follow Talkin’ Cloud via RSS, Facebook and Twitter. Sign up for Talkin’ Cloud’s Weekly Newsletter, Webcasts and Resource Center. Read our editorial disclosures here.