Iron Mountain Stratify: A Hill to Climb
March 17, 2011
Has Stratify taken a hit as competing eDiscovery products have gained momentum?
Once called “The purple Yogi,” Stratify–an eDiscovery Product by Iron Mountain–was the darling of In-Q-Tel, the CIA Investment Unit. Stratify repositioned itself, and in late 2007, Iron Mountain, then a paper document storage company, snapped up the firm.
Author Chris Mellor, in “Iron Mountain’s eDiscovery Made 2010 a Rusty Mess,” reported:
- Iron Mountain bought Mimosa, a system relying on technology from such vendors as dtSearch, a modestly-sized vendor of search technology primarily for Microsoft-centric installations.
- Iron Mountain intended to integrate Mimosa’s NearPoint eDiscovery product into its Total Email Management Suite. That would have helped Iron Mountain grow, but the implementation was flawed.
- Competing eDiscovery products entered the market, and prices plummeted. Missing this trend, Iron Mountain decision-makers did not lower their prices in time, and sales took a big hit.
- Iron Mountain did see some revenue increases from other sides of its business, including other products acquired from Mimosa, but this was far offset by losses from the eDiscovery side of its business.
So what’s next for Iron Mountain?
Recognizing the error of their ways, CFO, Brian McKeon, expressed the company’s commitment to getting back on track:
We’ve corrected these issues and reduced our cost structure in line with current revenues. The impact on revenue growth from eDiscovery will continue into 2011, but our cost actions will offset these impacts, sustain margins and position us well for profit gain as we get growth back on track.
To us, this sounds like a bit of a hill to climb with a purple yogi and a content system based on a very basic search and retrieval system.
Stephen E Arnold, March 17, 2011
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