Wall Street Transcript Interview with Jim Morris, Chief Executive Officer of GlobalSCAPE, Inc. (GSB)

Wall Street Transcript

67 WALL STREET, New York - September 20, 2012 - The Wall Street Transcript has just published its Data Hosting Centers and Data Storage Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Data Hosting Centers - Flash Memory - Cloud Computing Secular Trends - Internet Infrastructure Build - IT Consolidation Activity - Mobile Computing - Cybersecurity

Companies include: GlobalScape Inc. (GSB) and many others.

In the following excerpt from the Data Hosting Centers and Data Storage Report, the CEO of GlobalSCAPE discusses the outlook for his company for investors:

TWST: GlobalSCAPE is involved in several markets, including the managed file transfer market, cloud computing, backup and recovery and several others. Which are these larger segments, and which are fastest-growing right now?

Mr. Morris: Our largest segment is our enhanced file transfer server software for the enterprise. It represents roughly 75% to 80% of our total revenue both in product license and in maintenance and support. That is our flagship offering. The EFT Server solution comes in different sizes with different modules depending upon how the enterprise uses file transfer. Then we have adjacent space capabilities. We have taken this file transfer on-premises software solution, which is certified by the U.S. government as being secure, and have established a cloud-based delivery model as an additional path to the file-sharing market.

Here in San Antonio there is a company called Rackspace (RAX), which is the second-largest hosting cloud provider in the world, behind number one Amazon. Through our relationships with companies like Rackspace, we basically put the on-premises software into a cloud computing delivery model, which is significantly less expensive on a per device basis than an on-premises solution.

Rackspace provides all of the bandwidth, the hosting, the data center, a break/fix capability in case something fails, patch management, 24/7 monitoring and management of the network from the firewall, intrusion detection, and antivirus perspectives. It's fully outsourced. It's fully managed by us in one scenario, where we fully manage that cloud solution for file transfer.

And we also have another solution and delivery scenario, called Hosted EFT Server, in which we work with our partners to host the file transfer software, but the customer is responsible for the ongoing management of that software.

Besides Rackspace, we have another hosting cloud provider by the name of PEER 1 (PIX.TO), which gives us more global reach through its hosting facilities in the U.S., Canada and in the United Kingdom. Our cloud-based solution has been in the marketplace for two years. It is not a material contributor to our current revenue, but we think that it will be in the future.

We also have a solution known as Mail Express, a product which is an Outlook plug-in that allows users to send large files fully encrypted. When I say large files, they are up to 25 gigabytes, in single files or multiple files, and are fully encrypted. We also have a product known as WAFS, wide area file services, which is aimed predominantly at the architecture, engineering and construction industry, which relies on very large files on software systems known as CAD, computer-aided design. These files typically are too big to send over a network, so our WAFS solution has an innovative way of only transferring the blue line, delta, changes between file versions.

We recently entered the secure content mobility market through the acquisition of Seattle-based TappIn in December of 2011. Secure content mobility is essentially where information is stored on the hard drives of servers of PCs, netbooks, laptops, tablets or smartphones, and the information is securely exchanged over a Web browser without the need for paid cloud storage. We are currently in final testing and acceptance of a professional version of the TappIn solution that will have access, connectors, into cloud-based storage repositories, as well as the hard drives and other devices previously accessible. We have recently announced partnerships with leading manufacturers of storage hardware that have TappIn installed, so you can share the information on the hard drive with multiple users as opposed to just a single user. As you can tell, we have a lot going on.

TWST: How important are government contracts to GlobalSCAPE?

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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