Overland Storage is not turning
around, it's already made the Turn.......
To say that over the last few years Overland
Storage has experienced a tsunami of events that have dramatically impacted
the company would be an understatement. Looking at Overland's most recent
SEC 10-K filing gives some hint as to the challenges of the last few years:
HP notified Overland it planned to stop shipping its tape products; Dell
agreed to resell Overland's tape libraries and then cancelled its agreement;
Overland then reversed its decision to outsource the manufacturing of its
products and bring manufacturing back in house. These developments, along
with the rapid shift in the general business market from tape to disk as a
backup target, led Overland to aggressively pursue the disk-based data
protection market while leveraging its legacy tape technologies to deliver
end-to-end data protection.
To get a status update on Overland's
progress in its latest endeavor, I recently spoke to Ravi Pendekanti,
Overland Storage's VP of worldwide sales and marketing.
Jerome: Ravi, what
exactly is the state of Overland's business? Can it bounce back?
Ravi: As a publicly traded
company, Overland Storage is required by the SEC to disclose the exact
nature of the conditions affecting its business, hence the recent onslaught
of bad news in its press releases. But Overland believes the bad news is in
the past and we should be steadily gaining momentum in the market for three
- First, end-to-end data protection is
taking a foothold on a global basis, so companies are looking for data
protection solutions that meet their needs. Overland has all the
components to satisfy these corporate needs.
- Second, Overland probably has the best
price-to-performance tape- and disk-based solutions on the market, so
we're well-positioned to give companies the most value for their money.
- Third, internally Overland has merged
sales and marketing departments into one unit. As a result, they are
more chiseled as a team and more focused in delivering a unified
Jerome: For the
most part, I agree with the points you make, but as you astutely point out,
these trends are only gaining momentum. How close is Overland to achieving
an actual turnaround?
Ravi: Overland is
not a company that is trying to turn around, but is a company that has
already made the turn. Everyone is experiencing a credit crunch right now,
but Overland's customers and partners are being very supportive. They
believe in what Overland is doing and are very excited about our future and
the products that Overland will be announcing in the coming months.
Jerome: Can you
point to some specific examples where Overland is seeing support and
enthusiasm from its customers and partners?
we are receiving additional requests from our customers and partners about
Overland's product suite. A section of Overland's website to which only its
customers and partners have access give them the right tools to make the
right decisions for their business continues to grow in the number of hits
it is receiving. Finally, additional partners are continuing to join our
Jerome: How has the
Snap Server helped Overland and its
perception by current and future customers and partners?
Ravi: Snap Server
has been a tremendous boost to Overland. Existing channel partners are very
excited about Snap Server while Snap has also resulted in an infusion of new
partners joining the Overland channel. Much of the reason for this
excitement is because Snap Server allows our partners to solve new problems
for our customers that they could not solve before. File services and
disk-based backup over corporate LANs are the two most immediate benefits
that Snap Server provides. At the same time, video surveillance is a rapidly
growing market for which
Snap Server is well suited. Overland has a
team dedicated to better positioning Snap in that market. Our recent
announcement with Mobotix Vision Systems is just the first of many alliances
that Overland anticipates making to expand its presence in the video
Jerome: So what
does the new Overland Storage look like?
Ravi: Overland has
a long legacy in tape and that will not go away. However, the addition of
Snap Server rounds out Overland's disk-based offerings, so we can address an
entirely new class of customer as well as better serve our existing
customers. Overland also has a number of new products in the pipeline for
2008 and beyond that will give our current and future customer the right
tools at the right price to meet whatever data protection needs they may