New Doyenz Owner, Persistent Systems, Seeks More Acquisitions?

New Doyenz Owner, Persistent Systems, Seeks More Acquisitions?

Persistent Systems has acquired Doyenz -- part of a wild cloud storage M&A week that saw Carbonite buy Zmanda and Microsoft buy StorSimple. I believe it's a safe bet Persistent, a $200 million software and technology services company, will pursue more acquisitions in such potential areas as cloud computing, mobility, collaboration and analytics. Here's a closer look at the Persistent-Doyenz deal, and potential implications for managed services providers (MSPs).

MSPmentor just got off the phone with Persistent Systems Chief Product Officer Nara Rajagopalan; Doyenz CEO Ashutosh Tiwary; and Doyenz Chief Revenue Officer Eric Webster.

Among the bullet-points from the conversation:

  • Financial terms were not announced. The entire Doyenz team is joining Persistent. Tiwary and Webster noted that they are "fully engaged" and looking forward to the opportunities ahead.
  • It's difficult for MSPmentor to pinpoint headcount involved in the deal. Doyenz had layoffs earlier this year and exited the European market, but recent headcount has remained consistent and will make the transition to Persistent's ownership.
  • Persistent will invest in the Doyenz rCloud platform. "We want MSPs to know this is very strategic to us," said Rajagopalan. "We will increase the investment that has been growing into the product line. We have a vibrant roadmap coming out. You'll see even more services coming out of Doyenz now."
  • The company sees an opportunity to extend additional Persistent services out to the Doyenz MSP base.
  • Persistent has been on the acquisition trail, discovering the Doyenz opportunity only a few weeks ago and pulling the trigger quickly. Earlier deals this year involved handset location technology that allows telecom carriers to locate smartphones and devices in the field.
  • One hypothetical scenario that popped into my head:  Mobile device management and geo-location services tied to Doyenz cloud storage and data protection services.
  • Persistent is publicly held and the company's stock trades in India.
  • Rajagopalan is based in Santa Clara, Calif. And under his watchful eye, more acquisitions could be coming. Rajagopalan said: "We are aggressively looking to add things to our arsenal." He confirmed that more acquisitions could be part of that strategy.
The Persistent-Doyenz deal surfaces during a busy week for cloud storage, backup and disaster recovery. Later today we're set to speak with Carbonite about its Zmanda buyout. And I'm closely watching Microsoft's plans for StorSimple -- part of yet another M&A deal this week.

For its part, Doyenz has had a laser-like focus on MSPs as customers and partners. But the company has spent the past year or so seeking a potential investor. That journey ultimately involved layoffs and a retreat from Europe. But Doyenz may have crossed the chasm here, having found a growing parent that wants to make cloud investments.

I suspect we'll see and hear similar stories in the weeks and months ahead: Start-ups and early stage storage companies seem to be everywhere. Not everyone will survive. Market consolidation has arrived. And it's bound to accelerate.

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