Mr. Corporate Computing Bureaucrat: Tear Down This Wall!
Gene J. is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Who knew that President Reagan’s famed late 1980s Berlin Wall speech, with the dramatic challenge, “Mr. Gorbachev, tear down this wall,” would one day serve as inspiration for a marketing meme for cloud computing?
The firm’s marketing materials this week sent to business journalists now include the tagline, “Mr. CIO. Tear Down These Walls,” a great play on Reagan’s evil empire ending speech.
Whether the words will have their desired effect – the end of walled, proprietary corporate data centers, and a new reliance on the freedom and flexibility offered by software as a service over the Internet, or, “through the cloud,” as the nerds now put it – remains to be seen.
But the company, and others like it in cloud computing, are making a good go of it.
Gartner Group, the research consultancy that follows IT, calls cloud computing something more than “a less expensive version of IT as it now exists.”
Many other IT companies, from IBM (NYSE: IBM) to Cisco (NASDAQ: CSCO), are also in this business of breaking down organizational and technological IT silos that have separated server, and computing, resources from networking and storage for their clients.
Like them, Datalink is growing. Revenues for the quarter that ended Sept. 30, increased 16% to $104.8 million compared to $90.1 million for the quarter that ended Sept. 30, 2011. Revenues for the nine months which ended Sept. 30, increased 30% to $343.9 million compared to $265.3 million for the nine months which ended Sept. 30, 2011. “We continue to see strong demand as evidenced by our strong pipeline of data center solutions prospects,” said Paul Lidsky, President and CEO of Datalink.
Datalink projects revenues of $125 million to $135 million for the fourth quarter of 2012 as contrasted with $114.7 million for the fourth quarter of 2011.
But, the company warns that the dour economic outlook – what many are calling the fiscal cliff caused by intransigent demands for a tax increase by the White House – could be a setback for Datalink and cloud computing in general. “Customers are delaying large capital expenditures because of the challenging economic environment,” said Lidsky.
GKoprowski has no positions in the stocks mentioned above. The Motley Fool owns shares of International Business Machines. Motley Fool newsletter services recommend International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!