There's been several people mentioning they don't understand how the pieces of the puzzle (in terms of technology) between $ADHC and Rebel fit together. Please understand this is meant as a cloud services introduction to give investors a simplified explanation on what the benefits are. This is based on my personal work experience and Internet research (I own a technology company in Western Canada and run cloud services for other businesses).
First of all, let's talk about the cloud. The cloud computing market is huge. Cloud computing allows businesses to outsource their Internet hosting and computing power requirements to someone who has already make a huge investment in equipment and resources. Companies like Google, Amazon, and Apple has invested billions of dollars into infrastructure to run their business. With recent advances in technology (namely virtualization - which allows one physical computer to run multiple virtual computers), companies like Amazon and Google discovered that they cloud consolidate a lot of their offerings onto less computers than they previously required. As a result, they had way more computing resources then they required to run their business. Rather than throw the investment they had made away, they decided to rent this extra space to other people to use. They devised billing and management software to allow users to sign up and rent as much or a little space as they need. This was the birth of what is commonly known as cloud computing - computer power that someone else provides and can be grown/shrunk as required.
Amazon currently offers cloud computing service (Amazon EC2) and will do $1.7 billion in 2011 and is projected to grow to $6 billion by Trefis (www.trefis.com) in the next 5 years. If you want the details, search Google for "Amazon cloud services revenue".
Google also offers cloud services. Their revenue specifically to cloud services is not as obvious as their whole system runs on a cloud architecture. The one article I found on Google Apps (one of their main cloud based services) said the estimated revenue in 2010 was over $300 million for that one application alone.
One of the main uses for cloud services is to offer mobile apps for iPhone, Blackberry, Windows Phone, and Android users. Typically, mobile phone app companies buy space from cloud providers (like Rebel Networks) to run the back end pieces that send information back and forth to the app. For example, iHub has an iPad app (using it to type this message). The have a system in behind that makes my iPad app receive real time updates including Level 2 (iHub should be thanking me for this). Most mobile app providers opt to use cloud services instead of their own as it's much lower risk for them starting up. If their app is a flop, they just cancel their cloud services and move on instead of being stuck with thousands of dollars of high performance computers.
The beauty of this mentality the mobile app makers have is once a mobile app is successful, it can be extremely difficult to move the back end systems due to the costs of executing the move. As long as the provider is making money, they would rather let someone else deal with the headache. ADHC has a mobile app they are building for the medical industry. IMO, they looked at their app, realized the computing power they would require, and decided they should look to a cloud provider for their computing needs. When they found Rebel, they figured out they could be like Amazon/Google and make money on both sides of the world. By acquiring Rebel, they have the computing power they need for their applications in house and can rent out the extra capacity they don't need. Its a win-win situation with huge revenue opportunities on both sides. $ADHC can not only sell the mobile apps to their customers, but can up sell Rebel's cloud computing services to their customer base and increase their revenues dramatically. Rebel probably have customers than can benefit from $ADHC current offerings, creating even more revenue.
The last piece of the puzzle that this all together is the partnerships with Citrix and OnApp. These are the technologies they have chosen that make the whole business model of renting out computer space an immediate source of income. Citrix builds the technology that does the virtualization mentioned earlier - running multiple virtual computers on one or more physical computers. The OnApp component provides the management and billing portion that allows customers to setup their rented space by themselves and grow/shrink it as necessary. These two partnerships show Rebel has the tools to make this thing happen.
So, there you have it. If you think Rebel is the real deal now, just wait. If they secure 1% of the cloud market, that's over a billion dollars a year in business. Putting these two gems together is a match made in heaven. If the rumors are true, everyone will be made aware of how good this match is next week.
THIS WILL BE HUGE!!!! DO NOT MISS OUT!!!
IMO...GLTA...DO YOUR OWN DD
GO $ADHC
