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Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2012 Results

Company Announces:

HOLMDEL, N.J., Feb. 13, 2013 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of communications services connecting people through cloud-connected devices worldwide, today announced results for the fourth quarter and full year ended December 31, 2012. In addition, the Company announced three noteworthy developments including a new $145 million credit facility; a new $100 million share repurchase authorization; and its international joint venture with Datora in Brazil.

New Credit Facility

Capitalizing on the low interest rate environment and the Company's strong financial position, on February 11, 2013, Vonage entered into a new $145 million credit agreement to provide increased financial flexibility for investments in growth.  The new debt agreement consists of a three-year, $70 million senior secured term loan bearing interest at LIBOR plus 3.125 percent and a $75 million revolving credit facility.  The Company used $43 million of the proceeds of the term loan to retire all of the existing debt under its prior facility.

Share Repurchase Program

On February 7, 2013, Vonage's Board of Directors authorized a new $100 million share repurchase program to be concluded by the end of 2014.  This new $100 million program replaces the Company's prior $50 million share repurchase program.  As of February 12, 2013, Vonage had repurchased a total of 14 million shares of its common stock for $33 million under the prior repurchase program, including repurchases of 8 million shares of its common stock for $19 million during the fourth quarter and 12 million shares for $28 million for the full year 2012. 

Joint Venture in Brazil with Datora

As highlighted in its press release this morning, Vonage has entered into an agreement to form a joint venture with Brazilian-based Datora Telecom to deliver communications services in Brazil.  This is Vonage's second international partnership in less than one year, and follows the Company's partnership with Globe in the Philippines announced in May of 2012.

Brazil represents a substantial growth opportunity for Vonage, with 67 million total households, 17 million broadband households and more than one million expats. Founded in 1993, Datora is a diversified, licensed telecommunications provider focused on innovative voice and data solutions for carriers in Brazil and other countries around the world. Datora was the first company to operate VoIP services in Latin America, and the first telecom provider in Brazil to be issued a Mobile Virtual Network Operator (MVNO) license. The company has a significant physical presence in Brazil, with points of presence in the country's most important economic centers, and more than 200 interconnection agreements with leading carriers in the countries where it does business. 

Summary of Fourth Quarter and Full Year 2012 Results  

Marc Lefar, Vonage Chief Executive Officer, commented, "We delivered strong fourth quarter financial results as we grew revenue and maintained adjusted EBITDA at third quarter levels, even as we increased our investment in growth initiatives.  We attracted new customers to our international and domestic calling plans, although gains in these areas were offset by declines in other segments of our business."

"For the year, we continued to improve our business operations as we reduced customer care and termination costs. Churn declined by 30 basis points from the beginning of the year, reflecting improvements in customer care and retention processes, and higher customer satisfaction. Executing on our growth initiatives, we strengthened our mobile platform as we attracted users to our Vonage Mobile app and Extensions products, and expanded internationally through our partnership in the Philippines.  We are building on this progress with our new joint venture in Brazil."

"As part of our balanced approach to capital allocation, we are announcing a new $100 million buyback reflecting our continued confidence in our cash flow generation capability and the value in our stock.  In addition, we've entered into a new credit agreement providing us with enhanced financial flexibility to invest in growth."

Fourth Quarter Financial and Operating Results

Vonage reported adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")1 of $34 million, flat sequentially, and down from $40 million in the year ago quarter, consistent with the Company's previously stated plan to increase investment in strategic growth initiatives by $5-$10 million per quarter in 2012.  The Company invested $7 million in growth initiatives in the fourth quarter.  Income from operations was $24 million, up from $23 million sequentially and down from $28 million in the year ago quarter.

GAAP net income was $13 million or $0.06 per share, flat sequentially, and down from GAAP net income of $350 million or $1.55 per share in the year ago quarter.  The prior year's quarter included a one-time income tax benefit which resulted from the release of the Company's valuation allowance as it determined that its net operating losses were likely to be used prior to their expiration. Net income excluding adjustments2 was $23 million or $0.10 per share, up from $21 million or $0.09 per share sequentially, and down from $26 million or $0.11 per share in the year ago quarter. 

Revenue totaled $214 million, up from $208 million sequentially due to targeted price increases and higher Universal Service Fund ("USF") and international pay-per-use revenue.  Revenue declined from $216 million in the year ago quarter primarily due to lower average lines and plan mix.  Average revenue per user ("ARPU") was $30.15, up from $29.31 sequentially due primarily to targeted price increases and higher USF and international pay-per-use revenue.  ARPU was down from $30.19 in the year ago quarter due to plan mix.

Direct cost of telephony services ("COTS") was $57 million, up from $55 million sequentially due to higher USF fees, which are a pass-through, and down from $59 million in the year ago quarter as a result of lower domestic and international termination costs. On a per line basis, COTS was $8.02, up from $7.80 sequentially and down from $8.24 in the fourth quarter of last year. 

Direct cost of goods sold was $10 million, flat sequentially and year-over-year.  Direct margin3 was 69%, up from 68% sequentially and year-over-year.

Selling, general and administrative ("SG&A") expense was $62 million, up from $60 million sequentially, and up from $59 million in the year ago quarter due to the expansion of the Company's community sales channel. 

Marketing expense was $53 million, up from $51 million in third quarter, and up from $52 million in the year ago quarter. Subscriber line acquisition cost ("SLAC") was $347, up from $299 sequentially and $306 in the year ago quarter. 

During the fourth quarter, the Company added new customers to its international and new BasicTalk domestic calling plans.  Gains in these segments were offset by declines in the Pakistani segment as a result of the unexpected decision by the Government of Pakistan to increase the cost to terminate international calls to Pakistan by approximately 500 percent. This decision compelled Vonage to remove Pakistan from its unlimited Vonage World plan.  The resulting lower customer value proposition contributed, in part, to lower gross line additions in the fourth quarter of 152,000, down from 172,000 sequentially. 

Although most of the churn impact in this segment was offset by improvements in other calling segments, the total impact from Pakistan resulted in more than a 15,000 net line reduction from the third quarter. Adjusted for the impact of Pakistan, net line additions for the quarter would have been positive and roughly flat versus the third quarter.

Customer churn was 2.5%, flat sequentially and down from 2.7% a year ago as a result of sustained improvements in customer satisfaction and more effective retention processes.  Net lines losses narrowed to 6,000 in the fourth quarter 2012, an improvement from 14,000 net lines lost a year ago and down from 9,000 net line additions sequentially. 

As of December 31, 2012, cash and cash equivalents, including $6 million in restricted cash, totaled $103 million. Capital expenditures for the quarter were $12 million, slightly lower than the Company's expectations due to the timing of expenditures. Free cash flow4 was $49 million, up from $17 million in the third quarter due primarily to changes in working capital.

Full Year 2012 Financial and Operating Results

Vonage reported adjusted EBITDA of $135 million, down from $168 million the prior year reflecting the Company's investment of $23 million in growth initiatives.  The Company generated income from operations of $65 million, down from $116 million in the prior year. 

GAAP net income was $37 million or $0.16 per share, a decrease from GAAP net income of $409 million or $1.82 per share in 2011, which included the release of the $326 million valuation allowance against the Company's net deferred tax assets in 2011.  Net income was $84 million or $0.37 per share excluding adjustments, down from $99 million or $0.44 per share excluding adjustments reported in 2011.

Revenue was $849 million, down from $870 million the prior year primarily due to plan mix and lower activation fee revenue.  Cash generated from operations was $120 million and capital expenditures totaled $27 million.  The resulting free cash flow was $93 million.

Growth Initiatives

The Company continues to execute on its strategic growth initiatives.  Over the past 18 months, Vonage has built a robust mobile platform capable of delivering high quality voice and messaging services across wired and wireless data networks for most devices running iOS and Android.  Vonage Extensions, which creates a unified international calling capability for home and mobile services, has been well received.  In less than two years, 28% of the Company's customer base has signed up to use Vonage on their mobile devices.  Reflecting the Company's progress executing against its mobile strategy, 24% of international calling minutes now originate from mobile devices.  In addition, the number of downloads and users of the Vonage Mobile app continues to accelerate.

Following the Company's technical trial of its low-cost international roaming product, which allows customers traveling outside their home country to avoid high roaming fees, the Company plans to expand its roaming service in the coming months. In this same timeframe, Vonage also plans to add video capability to the suite of high quality communications services delivered by Vonage Mobile.

Building on this progress, in 2013, the Company expects to continue to invest in targeted ethnic segments, commercialize its Basic Talk product line in the U.S., enhance its mobile product offerings, prepare to go to market in Brazil, and pursue other international partnerships. 

Outlook

During 2013, Vonage expects to continue to invest $5-$10 million per quarter in its strategic growth initiatives. The Company may choose to increase or reduce the level of quarterly investment depending on the success of its initiatives. Vonage continues to expect new initiatives to generate $100 million in annualized revenue by the fourth quarter of 2014.  The Company expects capital expenditures of $30-35 million in 2013.

  1. This is a non-GAAP financial measure. Refer below to Table 3 for a reconciliation to GAAP income from operations.
  2. This is a non-GAAP financial measure. Refer below to Table 4 for a reconciliation to GAAP net income.
  3. Direct margin is defined as operating revenues less direct cost of telephony services and direct cost of goods sold as a percentage of revenues.
  4. This is a non-GAAP financial measure. Refer below to Table 5 for a reconciliation to GAAP cash provided by operating activities.

 

VONAGE HOLDINGS CORP.

TABLE 1. CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except per share amounts)










Three Months Ended


For the Years Ended


December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012


2011


(unaudited)





Statement of Operations Data:










Revenues

$   213,711


$   207,584


$   215,690


$   849,114


$   870,323











Operating Expenses:










Direct cost of telephony services

 (excluding depreciation and amortization

 of $3,534, $3,722, $3,969, $15,115,

 and $15,824, respectively)

56,814


55,245


58,847


231,877


236,149

Direct cost of goods sold

9,568


10,444


10,125


39,133


41,756

Selling, general and administrative

62,461


59,676


58,579


242,368


234,754

Marketing

52,801


51,361


51,604


212,540


204,263

Depreciation and amortization

8,052


8,110


8,638


33,324


37,051

Loss from abandonment of software assets




25,262



189,696


184,836


187,793


784,504


753,973

Income from operations

24,015


22,748


27,897


64,610


116,350

Other expense:










Interest income

29


30


23


109


135

Interest expense

(1,267)


(1,402)


(2,002)


(5,986)


(17,118)

Change in fair value of stock warrant





(950)

Loss on extinguishment of notes





(11,806)

Other (expense) income, net

(16)


28


(266)


(11)


(271)


(1,254)


(1,344)


(2,245)


(5,888)


(30,010)

Income before income tax (expense) benefit

22,761


21,404


25,652


58,722


86,340

Income tax (expense) benefit

(9,928)


(8,191)


324,494


(22,095)


322,704

Net income

$   12,833


$   13,213


$   350,146


$   36,627


$   409,044

Net income per common share:










Basic

$       0.06


$       0.06


$         1.55


$       0.16


$        1.82

Diluted

$       0.06


$       0.06


$         1.48


$       0.16


$        1.69

Weighted-average common shares outstanding:










Basic

219,379


225,555


225,572


224,264


224,324

Diluted

228,107


233,708


237,342


232,633


241,744











 


Three Months Ended


For the Years Ended


December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012


2011


(unaudited)





Statement of Cash Flow Data:






Net cash provided by operating activities

$   61,046


$   18,157


$   38,645


$   119,843


$   146,786

Net cash used in investing activities

(12,011)


(1,120)


(13,249)


(25,472)


(37,604)

Net cash used in financing activities

(26,129)


(15,513)


(22,522)


(56,257)


(130,138)

Capital expenditures, intangible asset purchases and development of software assets

(12,009)


(1,402)


(13,250)


(26,750)


(38,653)











 

VONAGE HOLDINGS CORP.

TABLE 1. SUMMARY CONSOLIDATED FINANCIAL DATA - (Continued)

(Dollars in thousands, except per share amounts)




December 31,


December 31,



2012


2011

Balance Sheet Data:





Cash and cash equivalents


$    97,110


$     58,863

Restricted cash


5,656


6,929

Accounts receivable, net of allowance


20,416


17,862

Inventory, net of allowance


5,470


6,715

Prepaid expenses and other current assets


15,487


16,820

Deferred customer acquisition costs


5,765


5,685

Property and equipment, net


60,533


67,978

Software, net


19,560


45,661

Debt related costs, net


772


2,007

Intangible assets, net


6,681


9,056

Total deferred tax assets, including current portion, net


306,113


325,601

Other assets


3,826


3,038

Total assets


$   547,389


$   566,215

Accounts payable and accrued expenses


$   129,815


$   135,740

Deferred revenue


36,533


39,981

Total notes payable, including current portion


42,500


70,833

Capital lease obligations


15,561


17,665

Other liabilities


1,565


2,429

Total liabilities


$   225,974


$   266,648

Total stockholders' equity


$   321,415


$   299,567






 

VONAGE HOLDINGS CORP.

TABLE 2. SUMMARY CONSOLIDATED OPERATING DATA

(unaudited)



Three Months Ended


For the Years Ended


December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012


2011

Gross subscriber line additions

152,319


171,628


168,538


652,750


672,274

Change in net subscriber lines

(5,708)


9,440


(13,834)


(15,071)


(29,996)

Subscriber lines (at period end)

2,359,816


2,365,524


2,374,887


2,359,816


2,374,887

Average monthly customer churn

2.5%


2.5%


2.7%


2.6%


2.6%

Average monthly operating

 revenue per line

$   30.15


$   29.31


$   30.19


$   29.89


$   30.35

Average monthly direct cost of telephony

 services per line

$     8.02


$     7.80


$     8.24


$     8.16


$     8.23

Marketing costs per gross subscriber

 line addition

$      347


$      299


$      306


$      326


$     304

Employees (excluding temporary help)

 (at period end)

983


971


1,008


983


1,008

Direct margin as a % of revenues

68.9%


68.4%


68.0%


68.1%


68.1%











 

VONAGE HOLDINGS CORP.

TABLE 3. RECONCILIATION OF GAAP INCOME FROM OPERATIONS

TO ADJUSTED EBITDA

(Dollars in thousands)

(unaudited)












Three Months Ended


For the Years Ended


December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012


2011

Income from operations

$   24,015


$   22,748


$   27,897


$   64,610


$   116,350

Depreciation and amortization

8,052


8,110


8,638


33,324


37,051

Loss from abandonment of

 software assets




25,262


Share-based expense

2,374


3,473


3,819


11,975


14,279

Adjusted EBITDA

34,441


34,331


40,354


135,171


167,680











 

VONAGE HOLDINGS CORP.

TABLE 4. RECONCILIATION OF GAAP NET INCOME TO

NET INCOME EXCLUDING ADJUSTMENTS

(Dollars in thousands, except per share amounts)

(unaudited)



Three Months Ended


For the Years Ended


December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012


2011

Net income

$   12,833


$   13,213


$   350,146


$   36,627


$   409,044

Loss from abandonment of software assets




25,262


Change in fair value of stock warrant





950

Income tax expense (benefit)

9,928


8,191


(324,494)


22,095


(322,704)

Loss on extinguishment of notes





11,806

Net income excluding adjustments

$   22,761


$   21,404


$     25,652


$   83,984


$    99,096

Net income per common share:










Basic

$       0.06


$       0.06


$         1.55


$       0.16


$        1.82

Diluted

$       0.06


$       0.06


$         1.48


$       0.16


$        1.69

Weighted-average common shares outstanding:










Basic

219,379


225,555


225,572


224,264


224,324

Diluted

228,107


233,708


237,342


232,633


241,744

Net income per common share, excluding adjustments:










Basic

$       0.10


$       0.09


$        0.11


$      0.37


$       0.44

Diluted

$       0.10


$       0.09


$        0.11


$      0.36


$       0.41

Weighted-average common shares outstanding:










Basic

219,379


225,555


225,572


224,264


224,324

Diluted

228,107


233,708


237,342


232,633


241,807

 

VONAGE HOLDINGS CORP.

TABLE 5. FREE CASH FLOW

(Dollars in thousands)

(unaudited)













Three Months Ended


For the Years Ended













December 31,


September 30,


December 31,


December 31,


2012


2012


2011


2012



2011

Net cash provided by operating

 activities

$   61,046


$   18,157


$   38,645


$   119,843



$   146,786

Less:











Capital expenditures

(9,206)


(865)


(3,783)


(13,763)



(12,636)

Intangible assets



(3,725)




(3,725)

Acquisition and development

 of software assets

(2,803)


(537)


(5,742)


(12,987)



(22,292)

Free cash flow

$   49,037


$   16,755


$   25,395


$   93,093



$   108,133

 


VONAGE HOLDINGS CORP.

TABLE 6. RECONCILIATION OF NOTES PAYABLE AND CAPITAL LEASES TO NET (CASH) DEBT

(Dollars in thousands)

(unaudited)




December 31,


December 31,



2012


2011






Current maturities of capital lease obligations


$      2,471


$     2,104

Current portion of notes payable


28,333


28,333

Notes payable, net of discount and current maturities


14,167


42,500

Capital lease obligations, net of current maturities


13,090


15,561

Gross debt


58,061


88,498

Less:





Unrestricted cash


97,110


58,863

Net (cash) debt


$   (39,049)


$   29,635

About Vonage

Vonage (NYSE: VG) is a leading provider of communications services connecting individuals through cloud-connected devices worldwide. Our technology serves approximately 2.4 million subscriber lines. We provide feature-rich, affordable communication solutions that offer flexibility, portability and ease-of-use. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and visual voicemail -- for one low monthly rate. Our Vonage Mobile® app lets users make free high-definition calls and send free texts to all users of the app, worldwide. The app works over Wi-Fi, 3G and 4G wireless data networks. Vonage's service is sold on the web and through regional and national retailers including Wal-Mart, Best Buy, Kmart and Sears, and is available to customers in the U.S. (www.vonage.com), Canada (www.vonage.ca) and the United Kingdom (www.vonage.co.uk).

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing LLC., owned by Vonage America Inc.

To follow Vonage on Twitter, please visit www.twitter.com/vonage. To become a fan on Facebook, go to www.facebook.com/vonage. To subscribe on YouTube, visit www.youtube.com/vonage.

Use of Non-GAAP Financial Measures

This press release includes the following measures defined as non-GAAP financial measures by the Securities and Exchange Commission: adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), net income excluding adjustments, net (cash) debt and free cash flow.

Vonage uses adjusted EBITDA as a principal indicator of the operating performance of its business.

Vonage believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of depreciation and amortization and loss from abandonment of software assets, which may vary from period to period without any correlation to underlying operating performance, and of share-based expense, which is a non-cash expense that also varies from period to period.

The Company provides information relating to its adjusted EBITDA so that investors have the same data that the Company employs in assessing its overall operations. The Company believes that trends in its adjusted EBITDA are valuable indicators of the operating performance of the Company on a consolidated basis and of its ability to produce operating cash flow to fund working capital needs, to service debt obligations, and to fund capital expenditures.

The Company has also excluded from its net income the change in fair value of stock warrant, loss on extinguishment of notes, the income tax expense/(benefit), and loss from abandonment of software assets.  The Company believes that excluding these items will assist investors in evaluating the Company's operating performance and in better understanding its results of operations when these events occurred on a comparative basis.

Vonage uses net (cash) debt as a measure of assessing leverage, as it reflects the gross debt under the Company's credit agreements and capital leases less cash available to repay such amounts. The Company believes that net (cash) debt is also a factor that third parties consider in valuing the Company.

Vonage considers free cash flow to be a liquidity measure that provides useful information to management about the amount of cash generated by the business that, after the acquisition of equipment and software, can be used by Vonage for debt service and strategic opportunities. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.

The non-GAAP financial measures used by Vonage may not be directly comparable to similarly titled measures reported by other companies due to differences in accounting policies and items excluded or included in the adjustments, which limits its usefulness as a comparative measure. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

Vonage defines adjusted EBITDA as GAAP income from operations excluding depreciation and amortization, share-based expense, and loss from abandonment of software assets.

Vonage defines net income excluding adjustments, as GAAP net income excluding the change in fair value of stock warrant, the loss on extinguishment of notes, the income tax expense/(benefit), and loss from abandonment of software assets.

Vonage defines net (cash) debt as the current and long-term portion of notes payable and capital lease obligations plus unamortized discount on notes payable less unrestricted cash.

Vonage defines free cash flow as net cash provided by operating activities minus capital expenditures, intangible assets and acquisition and development of software assets.

Conference Call and Webcast

Management will host a webcast discussion of the quarter and full year results on Wednesday, February 13, 2013 at 10:00 AM Eastern Time. To participate, please dial (877) 359-9508 approximately ten minutes prior to the call. International callers should dial (224) 357-2393. A replay will be available approximately two hours after the conclusion of the call until midnight February 19, 2013, and may be accessed by dialing (855) 859-2056. International callers should dial (404) 537-3406. The replay passcode is: 90371714.

The webcast will be broadcast live through Vonage's Investor Relations website at http://ir.vonage.com. Windows Media Player or RealPlayer is required to listen to this webcast. A replay will be available shortly after the live webcast.

Safe Harbor Statement

This press release contains forward-looking statements regarding growth strategy, including new products, and related investment, cash flow, revenues from new initiatives, the Company's stock repurchase plan, and capital and software expenditures. In addition, other statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to: the competition we face; our ability to adapt to rapid changes in the market for voice and messaging services; our ability to retain customers and attract new customers; our ability to establish and expand strategic alliances; governmental regulation and related actions and taxes in the countries that we operate; increased market and competitive risks, including currency restrictions, in our international operations; risks related to the acquisition or integration of future businesses or joint ventures; our ability to obtain or maintain relevant intellectual property licenses; intellectual property and other litigation that have been and may be brought against us; failure to protect our trademarks and internally developed software; security breaches and other compromises of information security; our dependence on third party facilities, equipment, systems and services; system disruptions or flaws in our technology and systems; uncertainties relating to regulation of VoIP services; liability under anti-corruption laws; results of regulatory inquiries into our business practices; fraudulent use of our name or services; our ability to maintain data security; our dependence upon key personnel; our dependence on our customers' existing broadband connections; differences between our service and traditional phone services, including our 911 service; restrictions in our debt agreements that may limit our operating flexibility; our ability to obtain additional financing if required; any reinstatement of holdbacks by our vendors; our history of net losses and ability to achieve consistent profitability in the future; the Company's available capital resources and other financial and operational performance which may cause the Company not to make share repurchases as currently anticipated or to commence or suspend such repurchases from time to time without prior notice; and other factors that are set forth in the "Risk Factors" section and other sections of Vonage's Annual Report on Form 10-K for the year ended December 31, 2011, as well as in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, and therefore, you should not rely on these forward-looking statements as representing the Company's views subsequent to today.

(vg-f)

SOURCE Vonage Holdings Corp.

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The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.