After IPO, Carbonite Seeks Potential Cloud Acquisitions
Carbonite raised $63.2 million when the online backup and cloud storage company went public last week. So what’s next for Carbonite? The answer includes a major SMB push, along with potential acquisitions and expansion plans for Europe and China, according to Carbonite’s prospectus.
In the prospectus, Carbonite states:
“We plan to continue to grow our core business. With over 200 million broadband subscriptions in the U.S. alone, according to the OECD, we believe that we have a large domestic opportunity. In addition, we are pursuing several other ways to enhance our revenue and growth:
Enhanced consumer offerings. We intend to enhance our consumer offerings with a series of features, such as external hard drive backup, tailored to appeal to market segments that we do not serve today.
Broadened SMB offerings. We intend to expand the feature set of our SMB solutions with enhanced administrative controls to drive further market adoption.
International expansion. We plan to launch our SMB offering in China over the next year. We have also translated Carbonite into French and expect to start marketing in Europe in 2012.
U.S.-based customer support. We have initiated steps to expand our U.S.-based support operations, as we determined that this provides superior support to our customers and is more cost effective. We intend to use our U.S.-based support organization to drive additional sales and offer premium customer support services to our SMB customers.
Smartphone and tablet backup. We intend to back up smartphones and tablets, providing a substantial new growth opportunity for us.
Strategic investments and acquisitions. We continually evaluate strategic investment and acquisition opportunities to enhance the features of our solutions, accelerate the growth of our customer base, extend our product portfolio, increase our geographic presence, and take advantage of new market opportunities.
The prospectus says very little about Carbonite’s channel partner strategy. The filing notes: “In June 2010, we decided to cease distribution of our consumer solutions through third-party distribution channels, and we terminated most of our distribution agreements at that time.”
Still, Carbonite’s SMB channel plans could be vastly different from the company’s consumer strategy. Carbonite continues to recruit resellers on its website. And Talkin’ Cloud has a strong suspicion that Carbonite will accelerate its outreach to SMB channel partners.
Either way, Carbonite faces intense competition as it moves into new markets. Asigra, for one, recently expanded its cloud backup platform to help MSPs support tablets and smartphones. And dozens of cloud storage companies work with channel partners.
Nevertheless, channel partners and rivals should not underestimate Carbonite. As of June 30, 2011, the company had more than 1.1 million consumer and SMB subscribers in more than 100 companies, according to the Carbonite prospectus. Carbonite’s revenues were $38.6 million in 2010, and $27.2 million during the first half of 2011 — though the company had a net loss of $10.0 million for the first half of 2011, the prospectus stated.
Now that Carbonite has launched its IPO, we’re reaching out to the company for more clarity on its partner program efforts going forward.