001100110100111 (Translation: Quantum is a leading data storage company). The company provides hardware and software used for data archiving, backup, and recovery. Its products include tape- and disk-based storage devices, automated tape library (ATL) systems, and related media. It also provides data management software and offers services in configuration, installation, technical support, and training. Quantum sells its products through resellers and distributors and to computing equipment makers such as Dell, EMC, HP, IBM, and Oracle. The company makes two-thirds of its sales in the Americas; its top five customers account for about 30% of sales.
The company divides its products into three main segments: tape automation systems (30% of sales), disk systems and software (20% of sales), and devices and media (15%). Service and product support accounts for another quarter of sales, and royalties for IP agreements make up the remaining 10%.
Quantum maintains sales offices in China, France, Germany, Singapore, the UK, and the US (in several states). It has research and development facilities in Australia and the US (in several states) and 24-hour, multi-language technical support centers in North America, Europe, and Asia.
The US is its largest single market, accounting for 65% of sales. Europe makes up about a quarter of sales; Asia the remaining 10%.
Sales and Marketing
Quantum sells its products through resellers such as CDW and distributors (including Ingram Micro) through its Quantum Alliance Reseller Program. OEM customers that resell its hardware under their own brand names typically assume responsibility for sales, service, and support. (A large percentage of sales come from a few customers, some of which are also competitors.) In addition, Quantum sells directly to some corporate clients and government agencies. Customers range from small businesses to multinational corporations.
The company has experienced seven straight years of declines due to the changing storage environment, as demand for tape products is reduced for preference for scale-out storage and archive products. Year-over-year revenue fell 6% in fiscal 2014 (year-end March) to $553 million, despite record sales for the Q-Series and StorNext scale-out storage products in North America. Quantum has also been in the red for the past three years. In 2014 it recorded a net loss of -$21 million, trimmed down from the -$51 million it lost in 2013.
New technologies have replaced demand for tape-based storage products, and Quantum has seen its business decline as a result. The company has kept up with disk products by emphasizing software solutions, branded disk systems, next generation object storage, virtual offerings, and cloud solutions. Notable new product introductions include StorNext 5 software, DXi 4700 disk systems, expansion of the Lattus Object Storage offerings, and adding new features to the Scalar i6000 enterprise library.
Quantum has also expanded its strategic partnerships to combine Lattus with products from other partners to reach data center environment solutions, to provide an object storage-based private cloud solution, and to create an archiving solution that reduces the burden of unstructured data growth on primary storage.
To remain competitive, the company has transitioned all of its manufacturing to contract manufacturers. Until 2014 some products were produced in China, Japan, Malaysia, Singapore, and the US. Now its disk products, vmPRO appliances, StorNext appliances, tape automation systems, tape devices, and service parts are made by third parties in China, Hungary, Malaysia, Singapore, Thailand, and the US.