Chairman Steve Munford will serve as interim chief at security and backup vendor
Carbonite uploaded a backup chief executive yesterday following the announcement that CEO Mohamad Ali is departing to join media and analyst firm IDG. Chairman Steve Munford will serve as the interim CEO while the backup and security vendor seeks a permanent replacement.
The Lowdown: Ali, who served as Carbonite’s CEO for nearly five years, surprised many with his decision to leave the thriving cloud services company to take charge of media and analyst conglomerate IDG. Carbonite recently announced the acquisition of security vendor Webroot, which will transform the business into an end-to-end data protection provider. Also, Carbonite posted strong quarterly growth in its earnings report released concurrently with the departure announcement. Ali is leaving on a high note, saying “I believe that now is the right time to make a transition.”
The Details: Munford, a five-year member and current chairman of the Carbonite board of directors, is serving as the interim CEO as the company seeks a permanent replacement for Ali. Munford is a veteran of the software and security industry, having served as the interim CEO of Absolute Software and former CEO of Sophos.
The Impact: Again, Ali is departing on a high note, as the company posted strong quarterly revenue growth of 56% year over year. The company posted quarterly non-GAAP revenue of $135 million – up 69% over the same period last year. The strong earnings offset analyst criticism of the company underperforming over the past year. Munford noted that Carbonite continues to struggle in its data protection business, but believes the combination of Webroot’s security offerings with Carbonite’s backup services will produce positive returns.
Background: Ali’s departure is just the latest in a series of major changes at Carbonite. Earlier this year, Carbonite announced the acquisition of security vendor Webroot in a bid to expand on its data protection value proposition. Earlier this month, Carbonite appointed industry veteran Craig Stilwell as the first chief revenue office (CRO). Stilwell most recently served as senior vice president of partner sales. Additionally, Carbonite appointed Webroot channel chief Carlie Tomeo to oversee the combined company’s channel program.
The Buzz: “We are confident that Steve’s experience as a leader in the security software industry will empower him to hit the ground running as interim CEO,” said Charles Kane, director and member of the Nominating and Governance Committee of the Board. “Steve understands both the Carbonite data protection business and our recently acquired Webroot security business. We expect his proven executive experience will make this a seamless transition.”
“I look forward to working with our talented management team to continue to advance Carbonite’s position in data protection and security software,” said Munford. “Carbonite is uniquely positioned to offer customers the integrated and robust data protection solutions they need to protect their essential business data, especially at the endpoint. The combination of Carbonite’s product portfolio and Webroot security software creates unique opportunities to deliver enhanced value to all of our stakeholders.”
“I am incredibly proud of all that we have accomplished together. Carbonite has a great team in place, and I believe that now is the right time to make a transition. I look forward to following the company’s continued success,” said Ali.
“We are very excited to welcome Mr. Ali as IDG’s CEO. Mohamad brings a deep understanding of the latest technologies and the power that data and insights can offer an organization and its customers,” noted Zhiqiang Lu, chairman of IDG. “IDG has always prided itself on being at the forefront of technology changes, and Mohamad’s expertise will position IDG for continued innovation and growth.”
“IDG has been the gold standard for technology media, research, and insights for more than half a century. I am honored to have the opportunity to lead IDG in its next chapter, and I look forward to working with my IDG colleagues to bring increased value to our clients, partners, employees, and shareholders,” said Ali IDG.