Based in Israel, this small cap company is already playing tag with big players in technology industry. It has already established strategic relationships with Microsoft (MSFT), IBM, Oracle (ORCL), Hewlett Packard (HPQ), and CenturyLink (CTL). And it is emerging as a big player in the Big Data technology field.
The company is Attunity Limited (ATTUD, previously ATTUF.OB).
About Big Data's emergence
More and more businesses are managing social networking profiles on Twitter and Facebook (FB). They are also making sure to capture basic information such as email addresses and sometimes even phone numbers (especially reward accounts, like in a Toys-R-Us store) at the point of sale in the store itself.
These businesses are collecting thousands of terabytes of data regarding product and spending trends of their customers. The amount of data in their servers is exploding. The only way to analyze this data and convert it into business intelligence is by automating the integration and analytics process. And the technology that enables this integration and analysis of such data is what we call Big Data technology.
In fact, retailers have the potential to increase their operating margins by more than 60% if they use Big Data software, according to a recent research. Why only retailers - there is absolutely no limitation of sectors or industries when it comes to the application of Big Data technology. For example, an engineering company can use Big Data technology to analyze it's data coming out of a ton of experiments or test results that emerge from their quality management process.
Can you imagine how much value a company like Starbucks (SBUX) can derive if they are able to analyze and better, realize, the entire Chinese mindset about coffee, tea and snacks using a combination of social networking, point of sale information gathering and Big Data technology?
Now Back To Attunity
Found in 1988, Attunity Ltd. provides enterprise data integration software solutions. In simple terms, the company's product suite enables its clients, basically other companies, to connect to data sources, stream data across the enterprise and integrate a huge pool of heterogeneous information to help these companies achieve a high level view of their business.
Attunity's core product suite serves as a backbone for Big Data processing.
- Attunity Replicate - a high-performance data replication solution that enables low cost data movement across the enterprise.
- Attunity Stream (CDC) -allows companies to move large volumes of data.
- Attunity Connect - provides connectivity to a wide range of relational and non-relational data sources.
- Attunity Federate - allows organizations to create virtual data models that can be queried real time for business intelligence and reporting, from heterogeneous sources.
- Attunity RepliWeb - manages and simplifies the deployment of applications and content across server-based and cloud-based infrastructures.
- Attunity MFT - allows secure, automated and accelerated file transfers while managing security policies.
- Attunity EFR - a highly reliable, fast way to replicate, mirror, backup or migrate unstructured data, it is basically a file replication and synchronization software.
Attunity also has products specifically designed for certain clients like Microsoft.
Take a look at the recent press that this company has been getting.
- On July 26 2012, Attunity will be listed on the NASDAQ.
- On July 24 2012, Attunity teamed with EMC for Big Data replication and analytics.
- On July 23 2012, Attunity became Amazon Web Services (AWS) Partner to enable Big Data availability in it's Cloud platform.
- On July 20 2012, Attunity received the 2012 Best of TechEd Awards.
- On June 19 2012, an award winning design firm named DWP publicly praised Attunity's MFT solution. It stated: "Attunity's MFT solution enabled us to save $145,000 per year and expedite response time to clients."
- On June 13 2012, Attunity earned top distinction as Innovator in New Managed File Transfer Vendor Landscape Report.
In their most recent earnings call in April, Attunity reported sixth straight quarter of strong growth. They announced 106% growth in revenues. They announced a multi-year and multi-billion dollar deal with Microsoft. This article comprehensively covered the earnings of Attunity, and estimated a minimum (pre-split) range of $4, which now translates to $16, almost double of it's today's price.
Important Note: Attunity will announce it's second quarter 2012 results on July 25 2012.
As more and more paper content gets digitized and as more and more people adopt the internet across the globe, companies worldwide are bound to end up hoarding tons and tons of data on their servers. Data will become a predominant asset for all companies in all sectors and industries in the coming years.
As the broader market improves and IT spending increases, companies such as Attunity, EMC and VMWare (VMW) are bound to profit tremendously.
Big Data technology is already seeing a huge demand this year, and the Big Data revolution is not even at it's full speed yet. Attunity, with it's high quality strategic partners including EMC (the ultimate Big Data play) is poised for a meteoric growth in the next few years.
- Attunity is a relatively small player and its business is heavily dependent on a smaller group of clients. If global IT spending reduces greatly and Attunity's client base get affected adversely, Attunity's margins could be compressed.
- Also, if any of the technology giants in this client base develop Big Data processing in house, Attunity's revenues will be impacted.
I have no positions in any stocks mentioned, but may initiate a long position in ATTUF.OB over the next 72 hours.