Zenith Infotech, the private cloud storage provider, and its bondholders remain locked in a court case, but Zenith Infotech CEO Akash Saraf told MSPmentor his company is still interested in working out a potential settlement with bondholders. Saraf also told MSPmentor that Zenith Infotech’s publicly disclosed financial records are consistent with information Zenith Infotech has shared privately with Bombay High Court.
Zenith Infotech defaulted on a bond payment in September 2011. Around the same time, Zenith Infotech sold Zenith RMM to Summit Partners, a private equity firm. Bondholders have since questioned the Zenith RMM spin-off and alleged that Zenith Infotech’s public financial statements don’t match private statements made to Bombay High Court. Saraf said the bondholder allegations are false.
The Zenith Infotech-bondholder case could take months to wind its way through the India court system. Saraf said Zenith Infotech’s stance has remained consistent — the company is willing to discuss a potential settlement with the bondholders.
In the meantime, Saraf said, Zenith Infotech’s business “is doing fine. It hasn’t dropped.” The company, which specializes in BDR (backup and disaster recovery) and private cloud storage solutions for MSPs and channel partners, has expanded its international strategy in recent months, pushing into South America, for instance.
MSPmentor has heard scattered reports about some MSPs — such as FAR — switching to rival cloud storage providers. But other partners, such as Heartland Technology Solutions, say they continue to run Zenith Infotech while monitoring the bond case.
Read More About This Topic
Share This Post
Posted In: Asia | Finance | North America | Partner Program
Tags: Akash Saraf | Backup and Disaster Recovery | BDR | FAR | Heartland Technology Solutions | Private Cloud Storage | Zenith Infotech
Interact: Add a Comment | Trackback Link | Permalink
Subscribe: RSS Feed
Take a look at our 
and the drama never ends. What is Zenith? Greece?
Osama
Osama,
Thanks for the continued looks inside your business. MSPmentor is trying to steer clear of the “drama” and stick to factual reporting on the Zenith Infotech situation. But yes, it’s an emotionally charged situation as bondholders and Zenith Infotech navigate the default.
-jp
What is very interesting Joe, is the opposite sides of the spectrum your article introduces. On one side you have FAR, a boutique, small operation, migrating away from Zenith due to its failure to deliver results. On the other side you have a large operation such as HTG, who are sticking to Zenith. It begs the following questions:
1. Why? Is it because the investment would be too debilitating to switch?
2. Is it because the Zenith exec team are telling their large partners something that they are not sharing with their smaller partners?
3. Why would a seasoned exec not respond to the email sent to him? Is it an admittance of fault?
4. With the disaster that MirrorCloud has turned into, what are large partners such as HTG going to do from a solution continuity perspective?
Osama,
I’ll avoid the temptation to speculate about a few of the issues you raised. But I will offer this: In the technology market, there’s rarely 100% agreement on anything. The rare exceptions are universal standards like TCP/IP. When it comes to vendor debates, there will always be multiple camps — those who stick with product A, those to jump to product B, etc.
-jp
OK Joe – I will stop trying to tempt you into speaking your mind
. I am but a humble student of the written word….
O.
Zenith is waste company
As a small MSP, you are very dependent on your RMM and it’s difficult to change in mid-flight. I am glad we choose not go to bed with Zenith. Of course I can’t say that any of of big “big dog” RMMs are any better.
Raghu@6: We welcome constructive criticism on MSPmentor but really push readers to share their hands-on experiences rather than taking blind shots at vendors…
Ben@7: I know software quality can range from company to company. And RMM is important. But at the end of the day, most “great” MSPs don’t spend all that much time focused on their toolbox. They focus on the customer.
-jp