Nemertes Impact Analysis:

Privately held Teneros is launching business continuity/disaster recovery (BC/DR) hosted solution for network and communication applications such as Microsoft (NASDAQ:MSFT) Exchange, RIM (NASDAQ:RIMM) BlackBerry, Active Directory (AD), and DNS. The service uses Teneros failover recovery and replication technologies that are non-disruptive to the Exchange environment (including DNS and AD) while providing real-time failover and fallback.

BC/DR should be part of every company’s security policy. Teneros is aiming their service at SMBs where a major stumbling block is the expense of a BC/DR facility. Managed hosting services address this issue by eliminating capital expense but currently only 37% of SMB – versus 70% of large business – is planning to use hosted BC/DR services.

Impacts:

Enterprises: Evaluate managed hosting BC/DR.

Vendors: This is an opportunity for email backup solution providers like Iron Mountain (NYSE:IRM) and privately held AmeriVault, Exabytes and MX Logic to team with Teneros to offer MSFT Exchange BC/DR.

Investors: This may be a boost for Microsoft Exchange failover solutions from privately held Neverfail and Quest Software (NASDAQ:QSFT).

Ted Ritter, Senior Research Analyst

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