newScale Reports New Customer Wins and Cloud Adoption by Enterprises and Service Providers in 2010

SAN MATEO, Calif.--(EON: Enhanced Online News)--newScale^® Inc., pioneers of the self-service IT storefront for the enterprise, today announced record financial results and a dramatic increase in cloud computing adoption among new and existing customers in 2010. newScale sales from cloud-related customer deployments grew by 162%, with a 133% increase in new cloud computing customers, during the calendar year.

“Working with our customers, newScale has a front row seat for the transformation of enterprise IT and adoption of private clouds”

"Working with our customers, newScale has a front row seat for the transformation of enterprise IT and adoption of private clouds,” said Scott Hammond, president and CEO of newScale, Inc. “It’s a dynamic and rapidly evolving market, and the momentum is accelerating as we start 2011. In the final quarter of 2010, our cloud-related license revenue grew by 312% on a year-over-year basis.”

newScale’s growth was fueled by both new wins and expansion deals at customers including Ameriprise Financial, Bechtel Corporation, The Boeing Company, The Bosch Group, Cable&Wireless Worldwide, Capital BlueCross, Charles Schwab, Citizens Financial Group, Citrix Systems, Environmental Protection Agency (EPA), Federal Reserve, Gap Inc., Intel Corporation, Kimberly-Clark Corporation, Los Angeles County Government, Macy's, National Aeronautics and Space Administration (NASA), Nokia Corporation, PJM, The Saab Group, Sasol, SHI International, Siemens IT Solutions & Services, U.S. Army Corps of Engineers, Washington D.C. City Government, and XL Group plc.

“Cloud computing is an important new requirement for our customers, and SHI is opening a $25 million cloud services data center in 2011 to meet that need,” said Henry Fastert, chief technologist for SHI. “We chose newScale to provide the self-service and automation required for SHI’s next-generation infrastructure-as-a-service solution. newScale’s software delivers the enterprise-class functionality required for our demanding customers, with the flexibility and agility necessary to support a rapidly growing cloud business.”

Market research firm The 451 Group predicts that the infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) market will grow from $964 million in 2010 to $3.9 billion in 2013. Industry analysts and IT practitioners recognize that these cloud computing deployments require a service catalog for on-demand provisioning of applications, compute, storage, and network resources. newScale's software provides this Web-based "menu" of standardized service options, with dynamic self-service provisioning and lifecycle management for easy, yet controlled, access to IT resources – instead of waiting days or weeks.

As cited in a new independent analyst report (Enterprise Cloud Management Capabilities Road Map, Forrester Research, Inc., December 22, 2010), "The foundational elements of a private cloud are server virtualization and standardized templates for services. But that's not enough to call your infrastructure a private cloud: You must also automate common management processes and provide a self-service interface that lets customers deploy their systems from a standardized catalog.”

In 2010, newScale customers embarked on their cloud computing initiatives by providing IaaS on-demand – often starting with development and test environments – resulting in more newScale private cloud deployments in the last six months than in the prior 18 months combined. Throughout 2011, the company expects more enterprise cloud roll-outs including moving production workloads to the cloud, hybrid cloud deployments, and expansions to PaaS and desktop virtualization.

“We rely on newScale technology for both our internal private cloud and the cloud services we offer to Siemens clients in North America,” said Bruce Coughlin, vice president of portfolio & innovation for Siemens IT Solutions & Services. “newScale’s software is essential to our cloud computing strategy and provides key competitive differentiation for our infrastructure services, from the data center to the desktop.”

Highlights for newScale in 2010 included:

Another record-setting year for the company across all key financial performance targets, outperforming on revenue and cash flow targets.
In-production or active private cloud deployments at 25 newScale customers in 2010 – including many of the most well-respected Fortune 500 companies – with more than 50 new cloud opportunities already in the 2011 sales pipeline.
Several new cloud service providers – including Cable&Wireless, SHI, and Siemens – selected newScale software to power their IaaS, PaaS, and virtual desktop solutions.
Recognition as the “Best of VMworld” in the new category of private cloud computing, with judges citing newScale software’s “user-friendly interface that lets you order, receive and deploy applications in your private cloud infrastructure”.
Continued technology innovation with the release of newScale version 9 in early 2010, and the launch of new products including newScale LifecycleCenter™ and the recently introduced newScale Service Portal™.
Strategic relationships and technology support for leading infrastructure vendors including Amazon Web Services, Cisco, Citrix, NetApp, and VMware. In collaboration with Eucalyptus and rPath, newScale also established the NRE Alliance for private / hybrid cloud management.
New OEM agreements, including with one of the world’s largest technology companies. newScale also expanded its roster of regional resellers, with new channel partners Controlware GmbH, Empired, MomentumSI, World Wide Technology, and others.

About newScale, Inc.

newScale, Inc. is the leading provider of IT Service Catalog software. With more than two million users worldwide, newScale helps IT organizations and service providers offer a self-service storefront for both workplace and data center services – across physical, virtual and cloud environments. newScale customers – including 20 percent of the Fortune 50 – benefit from greater IT agility, increased user satisfaction, and tens of millions of dollars in savings. For more information, visit www.newscale.com.

Editor's Note: All newScale brand and product names are trademarks or registered trademarks of newScale Inc. in the U.S. and other countries. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.