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CallidusCloud Announces Third Quarter 2012 Results

PLEASANTON, CA -- (Marketwire) -- 11/01/12 --


  • Q3 Total Revenues up 14% Year over Year
  • Q3 SaaS Revenue up 19% Year over Year
  • Q3 SaaS Bookings highest in 11 Quarters
  • Total Contracted Value Exceeded $100 Million
  • Non-GAAP Recurring Revenue Gross Margin a record 65%
  • 157 New Subscription Customers added in Q3

Callidus Software Inc. (NASDAQ: CALD), a leading provider of hiring, learning, marketing and selling cloud software today announced financial results for the third quarter ended September 30, 2012.

"I am pleased with our third quarter performance. This is the eighth consecutive double-digit revenue growth quarter for CallidusCloud," said Leslie Stretch, President and CEO, CallidusCloud. "Our Selling, Marketing, Learning and Hiring clouds all performed well. We had another strong SaaS bookings quarter and we exceeded the top end of our revenue guidance. We expanded our Non-GAAP recurring revenue gross margins again to a record of 65%. We added a record number of new subscription customers and signed two of the world's largest telcos for our Commissions solution making us the de-facto standard for SPM in this important vertical. We also saw increased instances of multi-product and cross-sell contracts. We were recognized as the leader in the SPM sector by Gartner Group with the only 'Strong Positive' rating in the history of the sector and we received no less than 10 International and American business awards."

Financial Highlights for the Third Quarter 2012

  • Total revenue was $23.9 million for the third quarter, representing an increase of 14% compared to the same quarter last year. Total recurring revenues, which include SaaS revenues and maintenance and support, were $17.5 million, up approximately 10% compared to the third quarter of 2011. SaaS revenues of $13.6 million were up 19%, while maintenance and support revenues of $3.9 million were down 14% as compared to the third quarter of 2011. Service and other revenues of $6.4 million were up 27% as compared to the same quarter of 2011 driven by perpetual licenses of $2.0 Million in the quarter.

  • Total GAAP gross margin was 50% for the third quarter up from 42% in the same quarter in 2011.

  • Non-GAAP gross margin was 56% for the third quarter of 2012 up from 48% for the third quarter of 2011. Non-GAAP gross margin for the third quarter of 2012 excludes $931,000 of stock-based compensation expense and $464,000 of amortization of acquired intangibles.

  • Third quarter 2012 GAAP recurring revenue gross margin was 61% up from 48% for the third quarter of 2011. Third quarter non-GAAP recurring revenue gross margin, which excludes $353,000 of stock-based compensation and $472,000 of amortization of acquired intangibles was 65%, up from 53% for the third quarter of 2011.

  • GAAP net loss was $6.5 million, or ($0.18) per share, for the third quarter of 2012, which included $3.5 million of stock-based compensation expense, $837,000 of convertible note related interest and amortization expense, $824,000 of amortization of acquired intangible assets, $232,000 of acquisition-related expense and $113,000 of patent litigation defense and restructuring costs. This compares to a GAAP net loss of $4.6 million, or ($0.14) per share, for the third quarter of 2011, which included $2.8 million of stock-based compensation expense, $1,031,000 of convertible note related expense items, gain on extinguishment of debt of $904,000, $697,000 of acquisition related expense, a tax benefit from release of valuation allowance of $572,000, $494,000 of patent litigation cost, $409,000 of amortization of acquired intangible assets, impairment of marketable securities for $375,000 and $99,000 of restructuring expense.

  • Non-GAAP net loss was $946,000, or ($0.03) per fully diluted share, for the quarter, compared to non-GAAP net loss of $130,000, for the same period last year excluding the items identified above.

Business Highlights for the Third Quarter 2012

  • CallidusCloud was the only vendor to receive the highest "Strong Positive" rating in the 2012 MarketScope for SPM Software by Gartner, the world's leading information technology research and advisory company. The report, which estimates the SPM market size at $1.5-$2 billion during 2012 and 2013, focused on vendors that provide technology for managing training, coaching, hiring, onboarding, territories, quotas and incentive compensation.

  • CallidusCloud collected 10 awards at the American Business Awards and International Business Awards including favorite company, best website, best new product and best new financial management cloud app for CallidusCloud's Commissions solution.

  • CallidusCloud's CPQ solution joined the Oracle ISV program following on from its addition to the salesforce.com ISV program.

  • CallidusCloud sponsored key industry events including Dreamforce, Cloudforce, Oracle Open World, Aberdeen Marketing Leadership Summit, Sales 2.0, Sales Management Association Sales Productivity Conference and the World at Work, Spotlight on Sales Compensation conference.

Financial Outlook
Total revenue for the fourth quarter of 2012 is expected to be between $24.8 million and $25.8 million. For the full year 2012 this translates to total revenues of between $94.5 million and $95.5 million. GAAP operating expenses are expected to be between $20.0 million and $21.0 million in the fourth quarter of 2012, which includes stock-based compensation expense of approximately $3.6 million, approximately $1.0 million in one-time transfer fees related to converting our Hyderabad contractors to employees, amortization of acquired intangibles of $825,000 and $340,000 of patent litigation defense costs.

Conference Call

A conference call to discuss the third quarter results and outlook is scheduled for 1:30 p.m. Pacific Daylight Time (PDT) today. The conference call will be available via live webcast at the Investor Relations section of Callidus Software's website.

Webcast site: http://www.calliduscloud.com/about-us/investor-relations/

Dial-in: 800-561-2693 (International callers: 617-614-3523)
Passcode: 79945512

Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.

For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/

About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud, is a leading provider of cloud software. CallidusCloud enables organizations to drive performance and productivity across their business with our hiring, learning, marketing and selling clouds. From back office to the field, from desktop to mobile, we ensure organizations have the right tools to be more effective and perform better. The combined power of our clouds, our people, and our partners fuels growth, empowers the work force and delivers real value. CallidusCloud drives performance and productivity for over 1500 leading organizations. Small, medium and large enterprises across multiple industries and geographies rely on CallidusCloud for quicker hiring, simpler learning, better marketing, and smarter selling.

For more information, please visit www.calliduscloud.com.

Note on Forward-Looking Statements

The forward-looking statements included in this press release, including discussion of our commercial prospects, estimates of fourth quarter and full year 2012 revenues, operating expenses, stock-based compensation expense and amortization of acquired intangibles expenses reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, uncertainty regarding purchasing trends in the SPM market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, uncertainty regarding the demand for and profitability of our on-demand services, increased competition or new entrants in the marketplace, and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K for 2011 and its second quarter 2012 Form 10-Q which may be obtained by contacting Callidus Software's Investor Relations department at 925-251-2248, or from the Investor Relations section of Callidus Software's website (CallidusCloud Investor Relations). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.

Non-GAAP Financial Measures

Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP net loss and non-GAAP net loss per share. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense, a benefit from a purchase acquisition-related adjustment, restructuring expense, acquisition related expense, patent litigation defense cost, convertible note interest expense, amortization of convertible note issuance cost and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

©2012. Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, TrueComp Manager, ActekSoft, ACom3, ForceLogix, Salesforce Assessments, iCentera, Webcom, LeadFormix, Litmos, the Litmos logo, Rapid Intake, and 6FigureJobs are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.


                           CALLIDUS SOFTWARE INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                 (In thousands, except for per share data)
                                (unaudited)

                               Three months ended       Nine months ended
                                  September 30,           September 30,
                             ----------------------  ----------------------
                                2012        2011        2012        2011
                             ----------  ----------  ----------  ----------

Revenues:
  Recurring                  $   17,533  $   16,015  $   52,446  $   46,067
  Services and other              6,393       5,044      17,273      15,158
                             ----------  ----------  ----------  ----------

    Total revenues               23,926      21,059      69,719      61,225

Cost of revenues:
  Recurring (1) (2)               6,923       8,363      22,365      24,860
  Services and other (1) (2)      5,084       3,937      14,271      11,952
                             ----------  ----------  ----------  ----------

    Total cost of revenues       12,007      12,300      36,636      36,812
                             ----------  ----------  ----------  ----------

Gross profit                     11,919       8,759      33,083      24,413

Operating expenses:
  Sales and marketing (1)
   (2)                            8,351       5,253      23,573      14,303
  Research and development
   (1) (2)                        4,023       3,145      12,116       8,416
  General and administrative
   (1) (2) (3) (4)                4,831       4,673      14,685      12,500
  Acquisition-related
   adjustment                        50           -      (1,787)          -
  Restructuring                     (53)         99         561         136
                             ----------  ----------  ----------  ----------

    Total operating expenses     17,202      13,170      49,148      35,355
                             ----------  ----------  ----------  ----------

Operating loss                   (5,283)     (4,411)    (16,065)    (10,942)

Interest and other income
 (expense), net (5) (6) (8)
 (9)                               (737)       (638)     (2,476)     (1,079)
                             ----------  ----------  ----------  ----------

Loss before provision
 (benefit) for income taxes      (6,020)     (5,049)    (18,541)    (12,021)

Provision (benefit) for
 income taxes (7)                   444        (478)        213        (279)
                             ----------  ----------  ----------  ----------


Net loss                     $   (6,464) $   (4,571) $  (18,754) $  (11,742)
                             ==========  ==========  ==========  ==========


Basic and diluted net loss
 per share                   $    (0.18) $    (0.14) $    (0.53) $    (0.36)
                             ==========  ==========  ==========  ==========


Shares used in basic and
 diluted per share
 computation                     35,853      32,327      35,070      32,826
                             ==========  ==========  ==========  ==========


----------------------------
(1) Stock-based compensation included
 in amounts above by category:

  Cost of recurring          $      353  $      731  $    1,282  $    2,523
  Cost of services and other        578         370       1,623       1,054
  Sales and marketing             1,026         502       2,971       1,320
  Research and development          485         366       1,384       1,090
  General and administrative      1,070         843       3,747       2,907
                             ----------  ----------  ----------  ----------
    Total stock-based
     compensation                 3,512       2,812      11,007       8,894

(2) Acquisition, acquired and
 settlement related asset amortization

  Cost of recurring                 472         163       1,378         286
  Cost of services and other         (8)          -          36           -
  Sales and marketing               233         222         646         519
  Research and development           68           -         136           -
  General and administrative         59          24         180          47
                             ----------  ----------  ----------  ----------
    Total acquisition
     related asset
     amortization                   824         409       2,376         852

(3) Acquisition-related
 expense                            182         697         820       1,080
(4) Patent litigation cost          166         494         786       1,072
(5) Interest expense on
 convertible notes                  703         874       2,110       1,265
(6) Amortization of
 convertible note issuance
 cost                               134         157         402         216
(7) Tax benefit from release
 of valuation allowance               -        (572)       (224)       (572)
(8) Gain on extinguishment
 of convertible note                  -        (904)          -        (904)
(9) Impairment of asset               -         375           -         375


                           CALLIDUS SOFTWARE INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                               (In thousands)
                                (unaudited)

                                               September 30,   December 31,
Assets                                              2012           2011
                                               -------------  -------------

Current assets:
  Cash and cash equivalents                    $       6,631  $      17,383
  Short-term investments                              19,856         35,406
  Accounts receivable, net                            29,490         21,778
  Deferred income taxes                                  110            110
  Prepaid and other current assets                     7,773          5,831
                                               -------------  -------------

    Total current assets                              63,860         80,508


Property and equipment, net                            9,827          6,772
Goodwill                                              31,213         24,416
Intangible assets, net                                22,362         17,769
Deferred income taxes, noncurrent                        206            206
Deposits and other assets                              3,212          3,936
                                               -------------  -------------

    Total assets                               $     130,680  $     133,607
                                               =============  =============

Liabilities and Stockholders' Equity

Current liabilities:
  Accounts payable                             $       5,040  $       3,515
  Accrued payroll and related expenses                 4,011          4,278
  Accrued expenses                                    12,118         12,272
  Deferred income taxes                                  596            596
  Deferred revenue                                    32,794         30,211
  Capital lease obligations                            1,107          1,196
                                               -------------  -------------

    Total current liabilities                         55,666         52,068

Deferred revenue, noncurrent                           3,450          4,257
Deferred income taxes, noncurrent                        308            197
Other liabilities                                      1,881          2,413
Capital lease obligations, noncurrent                    128            915
Convertible notes                                     59,215         59,215
                                               -------------  -------------

    Total liabilities                                120,648        119,065
                                               -------------  -------------

Stockholders' equity:
  Common stock                                            34             33
  Additional paid-in capital                         252,948        238,798
  Treasury stock                                     (14,430)       (14,430)
  Accumulated other comprehensive income                 282            189
  Accumulated deficit                               (228,802)      (210,048)
                                               -------------  -------------

    Total stockholders' equity                        10,032         14,542
                                               -------------  -------------

    Total liabilities and stockholders' equity $     130,680  $     133,607
                                               =============  =============


                           CALLIDUS SOFTWARE INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (unaudited)

                                                         Nine months ended
                                                           September 30,
                                                       --------------------
                                                          2012       2011
                                                       ---------  ---------


Cash flows from operating activities:
  Net loss                                             $ (18,754) $ (11,742)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
    Depreciation expense                                   2,184      2,338
    Amortization of intangible assets                      3,818      2,284
    Provision for doubtful accounts and service
     remediation reserves                                    188         88
    Stock-based compensation                              11,007      8,852
    Stock-based compensation related to acquisition            -         42
    Release of valuation allowance                          (350)         -
    Gain on disposal of property and equipment                (6)         -
    Impairment of investments                                  -        375
    Amortization of convertible note issuance cost           402        217
    Gain on extinguishment of convertible notes                -       (904)
    Net amortization on investments                          310        351
    Acquisition-related adjustment                        (1,787)         -
      Changes in operating assets and liabilities:
      Accounts receivable                                 (7,628)      (593)
      Prepaid and other current assets                    (1,875)     1,594
      Other assets                                           322     (2,923)
      Accounts payable                                      (114)      (302)
      Accrued expenses                                       742       (257)
      Accrued payroll and related expenses                  (267)       313
      Accrued restructuring                                   37       (251)
      Deferred revenue                                     1,635     (1,648)
      Deferred income taxes                                  111        144
                                                       ---------  ---------
Net cash used in operating activities                    (10,025)    (2,022)
                                                       ---------  ---------

  Cash flows from investing activities:
  Purchases of investments                               (16,536)   (47,864)
  Proceeds from maturities and sale of investments        31,811     22,595
  Purchases of property and equipment                     (4,927)    (1,827)
  Proceeds from disposal of property and equipment             6          -
  Purchases of intangible assets                          (4,485)    (1,381)
  Acquisitions, net of cash acquired                      (7,721)   (12,237)
                                                       ---------  ---------
Net cash used in investing activities                     (1,852)   (40,714)
                                                       ---------  ---------

  Cash flows from financing activities:
  Proceeds from issuance of common stock                   5,223      5,424
  Repurchases of common stock                                  -    (14,430)
  Repurchase of common stock from employees for
   payment of taxes onvesting of restricted stock
   units                                                  (2,079)    (1,046)
  Payment of consideration related to acquisitions        (1,160)    (1,175)
  Repurchase of convertible notes                              -    (19,188)
  Proceeds from issuance of convertible notes, net of
   issuance costs                                              -     77,369
  Repayment of debt assumed through acquisition              (30)         -
  Payment of principal under capital lease                  (887)      (896)
                                                       ---------  ---------
Net cash provided by financing activities                  1,067     46,058
                                                       ---------  ---------
Effect of exchange rates on cash and cash equivalents         58          1
                                                       ---------  ---------
Net increase (decrease) in cash and cash equivalents     (10,752)     3,323
Cash and cash equivalents at beginning of period          17,383     12,830
                                                       ---------  ---------
Cash and cash equivalents at end of period             $   6,631  $  16,153
                                                       =========  =========


                           CALLIDUS SOFTWARE INC.
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
         (In thousands, except for percentages and per share data)
                                (unaudited)

                                     Three months ended   Nine months ended
                                       September 30,        September 30,
                                    -------------------  ------------------
                                       2012      2011      2012      2011
                                    ---------  --------  --------  --------

Non-GAAP gross profit reconciliation

Gross profit                        $  11,919    $8,759   $33,083   $24,413

  Profit margin, as a % of total
   revenues                                50%       42%       47%       40%
Add back:
  Non-cash stock-based compensation       931     1,101     2,905     3,577
  Non-cash amortization of acquired
   intangible assets                      464       163     1,414       286
                                    ---------  --------  --------  --------
Non-GAAP gross profit               $  13,314   $10,023   $37,402   $28,276
                                    ---------  --------  --------  --------

  Profit margin, as a % of total
   revenues                                56%       48%       54%       46%


Non-GAAP recurring revenue gross
 profit reconciliation

Recurring revenue gross profit      $  10,610    $7,652   $30,081   $21,207
  Recurring revenue profit margin,
   as a % of recurring revenues            61%       48%       57%       46%
Add back:
  Non-cash stock-based compensation       353       731     1,282     2,523
  Non-cash amortization of acquired
   intangible assets                      472       163     1,378       286
                                    ---------  --------  --------  --------
Non-GAAP Recurring revenue gross
 profit                             $  11,435    $8,546   $32,741   $24,016
                                    ---------  --------  --------  --------
  Recurring revenue profit margin,
   as a % of recurring revenues            65%       53%       62%       52%


Non-GAAP operating expense
 reconciliation:

Operating expenses                  $  17,202   $13,170   $49,148   $35,355
  Operating expenses, as a % of
   total revenues                          72%       63%       70%       58%
Add back:
  Non-cash stock-based compensation    (2,581)   (1,711)   (8,102)   (5,317)
  Non-cash amortization of acquired
   intangible assets                     (360)     (246)     (962)     (566)
  Acquisition-related expense            (182)     (697)     (820)   (1,080)
  Patent litigation cost                 (166)     (494)     (786)   (1,072)
  Acquisition-related adjustment          (50)        -     1,787         -
  Restructuring                            53       (99)     (561)     (136)
                                    ---------  --------  --------  --------
Non-GAAP Operating Expenses         $  13,916    $9,923   $39,704  $ 27,184
                                    ---------  --------  --------  --------
  Non-GAAP Operating expenses, as a
   % of total revenues                     58%       49%       57%       44%


Non-GAAP operating income (loss)
 reconciliation:

Operating loss                      $  (5,283)  $(4,411) $(16,065) $(10,942)
  Operating loss, as a % of total
   revenues
                                          -22%      -21%      -23%      -18%
Add back:
  Non-cash stock-based compensation     3,512     2,812    11,007     8,894
  Non-cash amortization of acquired
   intangible assets                      824       409     2,376       852
  Acquisition-related expense             182       697       820     1,080
  Patent litigation cost                  166       494       786     1,072
  Acquisition-related adjustment           50         -    (1,787)        -
  Restructuring                           (53)       99       561       136
                                    ---------  --------  --------  --------
Non-GAAP Operating income (loss)    $    (602)     $100   $(2,302)   $1,092
                                    ---------  --------  --------  --------
  Non-GAAP Operating income (loss),
   as a % of total revenues                -3%        0%       -3%        2%


                           CALLIDUS SOFTWARE INC.
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
         (In thousands, except for percentages and per share data)
                                (unaudited)

                                     Three months ended   Nine months ended
                                        September 30,       September 30,
                                     ------------------  ------------------
                                       2012      2011      2012      2011
                                     --------  --------  --------  --------

Non-GAAP net loss reconciliation:

Net loss                             $ (6,464) $ (4,571) $(18,754) $(11,742)
  Net loss, as a % of total revenues      -27%      -22%      -27%      -19%
Add back:
  Non-cash stock-based compensation     3,512     2,812    11,007     8,894
  Non-cash amortization of acquired
   intangible assets                      824       409     2,376       852
  Acquisition related expenses            182       697       820     1,080
  Patent litigation costs                 166       494       786     1,072
  Acquisition-related adjustment           50         -    (1,787)        -
  Restructuring                           (53)       99       561       136
  Interest expense on convertible
   notes                                  703       874     2,110     1,265
  Amortization of convertible note
   issuance cost                          134       157       402       216
  Tax benefit from release of
   valuation allowance                      -      (572)     (224)     (572)
  Gain on extinguishment of
   convertible note                         -      (904)        -      (904)
  Impairment of asset                       -       375         -       375
                                     --------  --------  --------  --------
Non-GAAP Net income (loss)           $   (946) $   (130) $ (2,703) $    672
                                     --------  --------  --------  --------
  Non-GAAP Net income (loss), as a %
   of total revenues                       -4%       -1%       -4%        1%


Non-GAAP net income (loss) per share
 reconciliation:

Net loss per basic and diluted share $  (0.18) $  (0.14) $  (0.53) $  (0.36)
Add back:
  Non-cash stock-based compensation      0.10      0.09      0.31      0.27
  Non-cash amortization of acquired
   intangible assets                     0.02      0.01      0.07      0.03
  Acquisition related expenses           0.01      0.02      0.02      0.03
  Patent litigation costs                   -      0.02      0.02      0.03
  Acquisition-related adjustment            -         -     (0.05)        -
  Restructuring                             -         -      0.02         -
  Interest expense on convertible
   notes                                 0.02      0.03      0.06      0.04
  Amortization of convertible note
   issuance cost                            -         -      0.01      0.01
  Tax benefit from release of
   valuation allowance                      -     (0.02)    (0.01)    (0.02)
  Gain on extinguishment of
   convertible note                         -     (0.03)        -     (0.03)
  Impairment of asset                       -      0.01         -      0.01
                                     --------  --------  --------  --------
Non-GAAP net income (loss) per basic
 share                               $  (0.03) $  (0.01) $  (0.08) $   0.01
                                     --------  --------  --------  --------

Non-GAAP net income (loss) per
 diluted share                       $  (0.03)      - $  $  (0.08) $   0.02
                                     --------  --------  --------  --------


Basic and fully diluted shares
 reconciliation:

Basic shares                           35,853    32,327    35,070    32,826
                                     --------  --------  --------  --------
Add back:
  Weighted average effect of
   dilutive securities                      -    10,740         -     6,877
                                     --------  --------  --------  --------
Diluted shares                         35,853    43,067    35,070    39,703
                                     --------  --------  --------  --------

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The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
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 Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.