October 7, 2010 -- IBM made a slew of storage announcements in NYC today. At first glance, it looks like some winners on the disk array front, but there's one part of the announcements that may cause some confusion.
But first, let's take a step back. IBM recently acquired Storwize, which specialized in real-time data compression for primary storage. Big Blue has apparently scuttled the Storwize name as it applies to that company's products. The products now fall into the IBM Real-time Compression (note the url on that page) operation, and the products are generally referred to as IBM Real-time Compression Appliances for NAS, although IBM seems to be keeping the specific model names; e.g., the STN 6500 (up to 16 Gigabit Ethernet connections) and STN 6800 (up to eight 10GbE connections).
However, headlining today's product blitz was the IBM Storwize V7000 array which, at least for now, apparently does not have any of the technology associated with the products from the former Storwize company.
I thought I was missing something, so I checked in with Greg Schulz at The Server and StorageIO Group (formerly StorageIO), who was also confused on IBM's re-purposing of the Storwize moniker. Here's what Greg had to say:
"If IBM was trying to make a cloud storage announcement, they may have succeeded in creating a layer of fog around the renaming of the data footprint reduction (dfr) company formerly known as Storwize to Real-time Compression.
"That may be straightforward, but what's confusing, or foggy, is the use or recycling of the Storwize brand name, which was gaining ground and awareness around real-time compression for primary storage, to name an SVC-based storage virtualization system. Are they trying to say that using the V7000 is storage wise, or smart? Are they trying to differentiate from SVC, or storage virtualization, or virtual storage? Or trying to ride the growing awareness around the Storwize brand name?"
As mentioned, the confusing part is that the Storwize V7000 does not have Storwize's (the company) real-time compression technology, at least not yet.
The IBM Storwize V7000 is a mid-range storage system that incorporates elements of IBM's SAN Volume Controller (SVC), as well as Big Blue's Easy Tier technology and the XIV interface. (IBM claims that Easy Tier provides a performance improvement of up to 300% via automatic migration to solid-state disk drives, and the SVC functionality enables users to virtualize existing storage resources.) The Storwize V7000 also includes IBM technologies such as FlashCopy, Systems Director and thin provisioning.
Hardware specs of the 2U array include up to 24 2.5-inch drive bays or 12 3.5-inch drive bays, up to 24TB of capacity using 2TB SAS drives or 14TB using 600GB SAS drives, eight Fibre Channel host ports and four 1Gbps iSCSI host ports, and a RAID controller that supports up to nine storage expansion units.
In his blog post (which is a good one) on the Storwize V7000, IBM employee and SVC specialist Barry White says that the V7000 integrates:
"Something old (SVC)
Something new (the controller and enclosure)
Something borrowed (DS8000 RAID)
But it's ALL BLUE!"
For another good blog on the Storwize V7000, check out this Storage Buddhist post.
Shipments of the Storwize V7000 are slated for mid-November.
Particularly if you're an SVC fan, the V7000 may be a very cool product -- and it is Blue through and through -- but I'm still scratching my head over the Storwize branding.
"They seem to like the name Storwize so much that they've elevated it," says the Taneja Group's Arun Taneja. "The V7000 is the first in a series of products that could replace IBM's entire mid-range arrays. This is a very strategic product, but the question is: How high can it scale?"
Also at the event in NYC today, IBM introduced the high-end System Storage DS8800 array, which IBM claims is 40% faster than the DS8700. As are its high-end competitors, IBM has moved away from 3.5-inch disk drives, going only with 2.5-inch, 6Gbps SAS drives on the DS8800, which can be configured with up to 1,056 drives for a total capacity of 634TB. The array can also be configured with SSD drives, and support for Easy Tier is expected next year.
Showing posts with label Storwize. Show all posts
Showing posts with label Storwize. Show all posts
Thursday, October 7, 2010
Wednesday, August 11, 2010
Top 10 storage acquisitions of 2010
UPDATED August 16, 2010 – I originally posted this Top 10 acquisitions piece last week, with EMC's acquisition of Greenplum in the #1 spot. Today's announcement that Dell plans to acquire 3PAR for a whopping $1.15 billion clearly catapults that deal into the #1 position. As such, here's my revised list of the Top 10 storage acquisitions of 2010, in ascending order:
#10: EXAR – NETERION
This one probably wouldn’t have made the Top 10 list except for the fact that it’s Exar’s second storage-related acquisition in the last year, indicating that this relatively unknown vendor is up to something in the storage market.
The acquisition of Hifn last year put Exar in the storage optimization market with data deduplication, compression and encryption technology. Which put them into discussions that include Storwize (acquired by IBM, see below), Ocarina Networks (acquired by Dell, see below) and Permabit.
The acquisition of Neterion this year (reportedly for $10 million to $11 million) puts Exar in the 10GbE/FCoE adapter space, and might get them a place in conversations typically focused on vendors such as Emulex, QLogic, Brocade, Broadcom and Intel.
“We see a lot of synergy between Neterion’s virtual I/O technology and Hifn’s data compression, security [encryption] and data deduplication technologies,” said John Williams, vice president of Exar’s datacom and storage business.”
Interesting, but does an engineering-focused company have the marketing might to compete with the big boys? Well, Neterion OEMs include EMC, HP, IBM, Fujitsu and Hitachi, so the company at least knows how to play with the big boys.
See “Exar to acquire Neterion”
#9: SOLARWINDS – TEK-TOOLS
As with Exar, this one made the Top 10 list in large part due to the surprise factor: Few in the storage world had ever heard of SolarWinds, which specializes in network and applications management software.
Tek-Tools has for a long time specialized in storage resource management (SRM) tools, and SolarWinds plans to integrate Tek-Tools’ Profiler SRM suite into its Orion portfolio by the end of this year. Sounds like a good fit, but since when did any acquisition-driven integration project get completed on schedule?
SolarWinds paid $42 million for Tek-Tools. And if that seems steep, consider the fact that Tek-Tools partners and resellers include 3PAR, AdviStor, Agami, Bell Micro, Brocade, CA, Cambridge Computer, CDW, Dell, EMC, GlassHouse, the Harding Group, HP, IBM, Kisdata, LSI, the Microsoft Developer Network, MySQL AB, NetApp, Novell, PC Mall, Quantum, Red Hat, Siemens Business, Sun, Syncsort, Techmate, VMware and Xiotech.
See “SolarWinds acquires Tek-Tools for SRM”
#8: PMC-SIERRA – ADAPTEC
Throughout the 1990s, Adaptec was synonymous with SCSI, and had a lock on the SCSI controller/adapter market. The company reached its heyday when it racked up revenues of about $800 million in fiscal 2000. But Adaptec didn’t see the winds of change blowing. PMC-Sierra acquired Adaptec for $34 million.
In addition to Adaptec’s technology and products, PMC acquired Adaptec’s extensive channel, where it is still strong in RAID adapters.
The interesting thing about this acquisition is that it puts PMC-Sierra in even more intense competition with arch enemy LSI. Now PMC will compete in the channel with LSI at the board level, whereas previously the battle was fought on the semiconductor front.
See “PMC-Sierra to buy Adaptec’s channel storage business”
#7: NETAPP – BYCAST
The terms of this deal were not disclosed. According to our original article on the acquisition: “NetApp is advancing its efforts in the cloud storage market with the acquisition of Bycast, a developer of object-based storage virtualization software that turns multiple storage devices across geographically dispersed locations into a single pool for storing fixed content data.”
See “NetApp to acquire Bycast for cloud storage software.”
NetApp plans to leverage Bycast technology to go after markets such as digital media, Web 2.0, healthcare, and cloud services providers.
Bycast’s flagship product is its StorageGRID virtualization software. It will be interesting to see what happens to some of Bycast’s existing OEM deals, which include partnerships with IBM and HP.
#6: EMULEX – SERVERENGINES
Prior to acquiring ServerEngines, Emulex was in a dicey position: The company licensed critical technology, including 10GbE ASICs, from ServerEngines and that technology was key to Emulex’s (at the time) risky gamble of betting the farm on 10GbE – a market owned largely by Broadcom and Intel.
The position was dicey because a competitor could scoop up ServerEngines, thus pulling the rug from underneath Emulex’s (at the time) loose footing. Emulex paid a high price for ServerEngines, but there wasn’t any choice.
According to our original article on the acquisition: “Emulex will acquire ServerEngines for $78 million in cash and eight million shares of Emulex stock. Based on Emulex’s closing price of $10.11 last week, those eight million shares would translate into an additional $81 million, bringing the total to almost $160 million.”
But wait, there’s more: “In addition, Emulex will issue four million shares of stock if ServerEngines meets certain business objectives by the end of 2011. Emulex also agreed to assume ServerEngines’ debt, which is currently $25 million. As such, the deal could eventually exceed $200 million.”
See “Emulex to acquire ServerEngines.”
The bet, and the acquisition, seem to have paid off. Emulex has racked up a number of OEM design wins for its 10GbE/FCoE/iSCSI converged network adapters (CNAs), most notably with HP. This puts Emulex at the table with Intel and Broadcom (which it beat out for the HP business) and may strengthen its position vs. QLogic and Brocade. In addition to HP, Emulex has design wins with vendors such as Dell, EMC, HDS, HP, IBM and NetApp.
ServerEngines was founded in 2004 by former Broadcom engineers that were previously with ServerWorks, which was acquired by Broadcom in 2001. In early 2009, Broadcom launched an unsuccessful hostile takeover of Emulex.
#5: DELL – OCARINA
Rumored to be in the $150 million ballpark, Dell’s acquisition of Ocarina came as a surprise to almost everybody. And this one (along with #4, see below) confirmed that storage optimization (data deduplication and/or compression) of primary storage is The Next Big Thing.
According to my original blog post on this acquisition (see “Dell to acquire Ocarina for data deduplication”): “Until the announcement of its embeddable, OEM version of its software, Ocarina was known primarily as a vendor of data reduction technology for primary storage. But the embeddable version is applicable across the storage spectrum, from primary storage to backup and archive.”
That led some analysts to predict that Dell is pursuing a one-size-fits-all approach to data deduplication where Ocarina’s technology will be used across the storage spectrum. If true, that would be bad news for Dell dedupe partners Symantec, CommVault and maybe even EMC Data Domain. But I don’t think that’s Dell’s game plan, at least not for the foreseeable future.
I think Dell will initially leverage Ocarina’s technology in specific image-intensive, fixed-content applications, and only on primary storage. That space is where, so far, Ocarina has made its mark, with large wins at companies such as Kodak. Dell will continue to use Symantec, CommVault and Data Domain where those companies’ technologies make more sense, or where customers demand it.
Besides, the Ocarina technology could be used in conjunction with deduplication technology from vendors such as Symantec and CommVault.
And in a related Top 10 acquisition . . .
#4: IBM – STORWIZE
This one had been rumored for weeks before IBM made it official, so it ranks low on the surprise factor but high on the industry influence scale. Even more than the Dell-Ocarina deal, and even more than NetApp’s evangelizing, IBM’s acquisition of data compression specialist Storwize put data reduction for primary storage in the #1 spot among Hot Storage Technologies.
Rumors put this deal in the range of $140 million.
IBM didn’t lay out specific plans, and it already has some good data reduction technology, but it looks like Big Blue will apply the Storwize technology to its high-end XIV system, Scale-Out Network Attached Storage (SONAS) platform, System Storage Easy Tier, and maybe even its ProtecTIER deduplication products.
Storwize’s data reduction technology differs from some of its competitors in that it is in-line, real-time compression, as opposed to data deduplication.
It’s certainly not an understatement to say that being acquired by IBM was the smartest thing Storwize did since changing its name from Storwiz.
Read the full story on InfoStor partner site Enterprise Storage Forum: “IBM to Buy Storwize for Real-Time Data Compression.” And check out Kevin Komiega’s blog post: “IBM to Acquire Storwize.”
#3: VISION SOLUTIONS – DOUBLE-TAKE
This one ranked high on the surprise factor (because Vision Solutions isn’t exactly well-known in the storage community) and it also ranked high on dollars, being valued at $242 million. Those two factors earned it the #2 ranking, although IBM-Storwize and Dell-Ocarina may be more interesting and certainly got a lot more ink.
The $242 million amounted to about $10.55 per Double-Take share. Double-Take went public in 2006 at about $11 a share.
Prior to the Vision Solutions announcement, it was well known that Double-Take was on the block, but the smart money was on vendors such as Dell and HP as potential acquirers.
Vision Solutions specializes in data protection software for IBM systems, while Double-Take’s strengths are in backup, replication, disaster recovery and high availability software, primarily for Microsoft platforms.
See “Vision Solutions to acquire Double-Take”
#2: EMC – GREENPLUM
I never did find out exactly what EMC paid for Greenplum, a data warehousing and analytics specialist, but my (questionable) sources tell me that the acquisition payment would easily put the deal near the top of this list. And besides, what would a Top 10 Storage Acquisitions list be without an EMC entry?
Greenplum claims more than 100 customers, including NASDAQ OMX, NYSE Euronext, Skype, Equifax and T-Mobile.
In addition to its massively parallel processing (MPP) Greenplum Database, the company has Greenplum Chorus, a cloud platform for collaboration and data sharing. Greenplum will become the foundation of a new division within EMC’s Information Infrastructure business.
So it’s a nice fit with EMC’s private cloud initiatives, but it also roughens up the competition between EMC, Oracle, IBM and Sun. Do you have a feeling that there’s at least one more big – very big – acquisition on the way?
See “EMC acquires data warehousing vendor Greenplum.”
#1: DELL -- 3PAR
At approximately $1.15 billion, Dell's planned acquisition of 3PAR is in the same ballpark as EMC's acquisition of Data Domain last year, both of which qualify as game changers.
Dell has commenced a tender offer to acquire all outstanding shares of 3PAR stock for $18 a share, or about an 86% permium over 3PAR's closing price on Friday.
That hefty price tag suggests that there were other bidders for 3PAR. And if anyone doubted that Dell wants to be a real (as opposed to reseller) player in the storage space, the 3PAR acquisition should assuage those doubts.
This announcement will probably once again call into question Dell's reseller partnership with EMC, but I don't see why. The Dell-EMC marriage will run its course one way or the other, but the outcome won't have anything to do with the 3PAR deal.
However, when you look at all of Dell's storage acquisitions (3PAR, Ocarina, EqualLogic, Exanet, Scalent and probably more to come), Dell and EMC could be on an accelerated path to splitsville. (Reportedly, Dell says that there is only about a 20% overlap between the 3PAR and Dell/EMC product lines.)
Historically, the summer months have been ripe for storage acquisitions so, given the prevailing climate, fasten your seatbelts. I may have to update this Top 10 list within the next two weeks.
#10: EXAR – NETERION
This one probably wouldn’t have made the Top 10 list except for the fact that it’s Exar’s second storage-related acquisition in the last year, indicating that this relatively unknown vendor is up to something in the storage market.
The acquisition of Hifn last year put Exar in the storage optimization market with data deduplication, compression and encryption technology. Which put them into discussions that include Storwize (acquired by IBM, see below), Ocarina Networks (acquired by Dell, see below) and Permabit.
The acquisition of Neterion this year (reportedly for $10 million to $11 million) puts Exar in the 10GbE/FCoE adapter space, and might get them a place in conversations typically focused on vendors such as Emulex, QLogic, Brocade, Broadcom and Intel.
“We see a lot of synergy between Neterion’s virtual I/O technology and Hifn’s data compression, security [encryption] and data deduplication technologies,” said John Williams, vice president of Exar’s datacom and storage business.”
Interesting, but does an engineering-focused company have the marketing might to compete with the big boys? Well, Neterion OEMs include EMC, HP, IBM, Fujitsu and Hitachi, so the company at least knows how to play with the big boys.
See “Exar to acquire Neterion”
#9: SOLARWINDS – TEK-TOOLS
As with Exar, this one made the Top 10 list in large part due to the surprise factor: Few in the storage world had ever heard of SolarWinds, which specializes in network and applications management software.
Tek-Tools has for a long time specialized in storage resource management (SRM) tools, and SolarWinds plans to integrate Tek-Tools’ Profiler SRM suite into its Orion portfolio by the end of this year. Sounds like a good fit, but since when did any acquisition-driven integration project get completed on schedule?
SolarWinds paid $42 million for Tek-Tools. And if that seems steep, consider the fact that Tek-Tools partners and resellers include 3PAR, AdviStor, Agami, Bell Micro, Brocade, CA, Cambridge Computer, CDW, Dell, EMC, GlassHouse, the Harding Group, HP, IBM, Kisdata, LSI, the Microsoft Developer Network, MySQL AB, NetApp, Novell, PC Mall, Quantum, Red Hat, Siemens Business, Sun, Syncsort, Techmate, VMware and Xiotech.
See “SolarWinds acquires Tek-Tools for SRM”
#8: PMC-SIERRA – ADAPTEC
Throughout the 1990s, Adaptec was synonymous with SCSI, and had a lock on the SCSI controller/adapter market. The company reached its heyday when it racked up revenues of about $800 million in fiscal 2000. But Adaptec didn’t see the winds of change blowing. PMC-Sierra acquired Adaptec for $34 million.
In addition to Adaptec’s technology and products, PMC acquired Adaptec’s extensive channel, where it is still strong in RAID adapters.
The interesting thing about this acquisition is that it puts PMC-Sierra in even more intense competition with arch enemy LSI. Now PMC will compete in the channel with LSI at the board level, whereas previously the battle was fought on the semiconductor front.
See “PMC-Sierra to buy Adaptec’s channel storage business”
#7: NETAPP – BYCAST
The terms of this deal were not disclosed. According to our original article on the acquisition: “NetApp is advancing its efforts in the cloud storage market with the acquisition of Bycast, a developer of object-based storage virtualization software that turns multiple storage devices across geographically dispersed locations into a single pool for storing fixed content data.”
See “NetApp to acquire Bycast for cloud storage software.”
NetApp plans to leverage Bycast technology to go after markets such as digital media, Web 2.0, healthcare, and cloud services providers.
Bycast’s flagship product is its StorageGRID virtualization software. It will be interesting to see what happens to some of Bycast’s existing OEM deals, which include partnerships with IBM and HP.
#6: EMULEX – SERVERENGINES
Prior to acquiring ServerEngines, Emulex was in a dicey position: The company licensed critical technology, including 10GbE ASICs, from ServerEngines and that technology was key to Emulex’s (at the time) risky gamble of betting the farm on 10GbE – a market owned largely by Broadcom and Intel.
The position was dicey because a competitor could scoop up ServerEngines, thus pulling the rug from underneath Emulex’s (at the time) loose footing. Emulex paid a high price for ServerEngines, but there wasn’t any choice.
According to our original article on the acquisition: “Emulex will acquire ServerEngines for $78 million in cash and eight million shares of Emulex stock. Based on Emulex’s closing price of $10.11 last week, those eight million shares would translate into an additional $81 million, bringing the total to almost $160 million.”
But wait, there’s more: “In addition, Emulex will issue four million shares of stock if ServerEngines meets certain business objectives by the end of 2011. Emulex also agreed to assume ServerEngines’ debt, which is currently $25 million. As such, the deal could eventually exceed $200 million.”
See “Emulex to acquire ServerEngines.”
The bet, and the acquisition, seem to have paid off. Emulex has racked up a number of OEM design wins for its 10GbE/FCoE/iSCSI converged network adapters (CNAs), most notably with HP. This puts Emulex at the table with Intel and Broadcom (which it beat out for the HP business) and may strengthen its position vs. QLogic and Brocade. In addition to HP, Emulex has design wins with vendors such as Dell, EMC, HDS, HP, IBM and NetApp.
ServerEngines was founded in 2004 by former Broadcom engineers that were previously with ServerWorks, which was acquired by Broadcom in 2001. In early 2009, Broadcom launched an unsuccessful hostile takeover of Emulex.
#5: DELL – OCARINA
Rumored to be in the $150 million ballpark, Dell’s acquisition of Ocarina came as a surprise to almost everybody. And this one (along with #4, see below) confirmed that storage optimization (data deduplication and/or compression) of primary storage is The Next Big Thing.
According to my original blog post on this acquisition (see “Dell to acquire Ocarina for data deduplication”): “Until the announcement of its embeddable, OEM version of its software, Ocarina was known primarily as a vendor of data reduction technology for primary storage. But the embeddable version is applicable across the storage spectrum, from primary storage to backup and archive.”
That led some analysts to predict that Dell is pursuing a one-size-fits-all approach to data deduplication where Ocarina’s technology will be used across the storage spectrum. If true, that would be bad news for Dell dedupe partners Symantec, CommVault and maybe even EMC Data Domain. But I don’t think that’s Dell’s game plan, at least not for the foreseeable future.
I think Dell will initially leverage Ocarina’s technology in specific image-intensive, fixed-content applications, and only on primary storage. That space is where, so far, Ocarina has made its mark, with large wins at companies such as Kodak. Dell will continue to use Symantec, CommVault and Data Domain where those companies’ technologies make more sense, or where customers demand it.
Besides, the Ocarina technology could be used in conjunction with deduplication technology from vendors such as Symantec and CommVault.
And in a related Top 10 acquisition . . .
#4: IBM – STORWIZE
This one had been rumored for weeks before IBM made it official, so it ranks low on the surprise factor but high on the industry influence scale. Even more than the Dell-Ocarina deal, and even more than NetApp’s evangelizing, IBM’s acquisition of data compression specialist Storwize put data reduction for primary storage in the #1 spot among Hot Storage Technologies.
Rumors put this deal in the range of $140 million.
IBM didn’t lay out specific plans, and it already has some good data reduction technology, but it looks like Big Blue will apply the Storwize technology to its high-end XIV system, Scale-Out Network Attached Storage (SONAS) platform, System Storage Easy Tier, and maybe even its ProtecTIER deduplication products.
Storwize’s data reduction technology differs from some of its competitors in that it is in-line, real-time compression, as opposed to data deduplication.
It’s certainly not an understatement to say that being acquired by IBM was the smartest thing Storwize did since changing its name from Storwiz.
Read the full story on InfoStor partner site Enterprise Storage Forum: “IBM to Buy Storwize for Real-Time Data Compression.” And check out Kevin Komiega’s blog post: “IBM to Acquire Storwize.”
#3: VISION SOLUTIONS – DOUBLE-TAKE
This one ranked high on the surprise factor (because Vision Solutions isn’t exactly well-known in the storage community) and it also ranked high on dollars, being valued at $242 million. Those two factors earned it the #2 ranking, although IBM-Storwize and Dell-Ocarina may be more interesting and certainly got a lot more ink.
The $242 million amounted to about $10.55 per Double-Take share. Double-Take went public in 2006 at about $11 a share.
Prior to the Vision Solutions announcement, it was well known that Double-Take was on the block, but the smart money was on vendors such as Dell and HP as potential acquirers.
Vision Solutions specializes in data protection software for IBM systems, while Double-Take’s strengths are in backup, replication, disaster recovery and high availability software, primarily for Microsoft platforms.
See “Vision Solutions to acquire Double-Take”
#2: EMC – GREENPLUM
I never did find out exactly what EMC paid for Greenplum, a data warehousing and analytics specialist, but my (questionable) sources tell me that the acquisition payment would easily put the deal near the top of this list. And besides, what would a Top 10 Storage Acquisitions list be without an EMC entry?
Greenplum claims more than 100 customers, including NASDAQ OMX, NYSE Euronext, Skype, Equifax and T-Mobile.
In addition to its massively parallel processing (MPP) Greenplum Database, the company has Greenplum Chorus, a cloud platform for collaboration and data sharing. Greenplum will become the foundation of a new division within EMC’s Information Infrastructure business.
So it’s a nice fit with EMC’s private cloud initiatives, but it also roughens up the competition between EMC, Oracle, IBM and Sun. Do you have a feeling that there’s at least one more big – very big – acquisition on the way?
See “EMC acquires data warehousing vendor Greenplum.”
#1: DELL -- 3PAR
At approximately $1.15 billion, Dell's planned acquisition of 3PAR is in the same ballpark as EMC's acquisition of Data Domain last year, both of which qualify as game changers.
Dell has commenced a tender offer to acquire all outstanding shares of 3PAR stock for $18 a share, or about an 86% permium over 3PAR's closing price on Friday.
That hefty price tag suggests that there were other bidders for 3PAR. And if anyone doubted that Dell wants to be a real (as opposed to reseller) player in the storage space, the 3PAR acquisition should assuage those doubts.
This announcement will probably once again call into question Dell's reseller partnership with EMC, but I don't see why. The Dell-EMC marriage will run its course one way or the other, but the outcome won't have anything to do with the 3PAR deal.
However, when you look at all of Dell's storage acquisitions (3PAR, Ocarina, EqualLogic, Exanet, Scalent and probably more to come), Dell and EMC could be on an accelerated path to splitsville. (Reportedly, Dell says that there is only about a 20% overlap between the 3PAR and Dell/EMC product lines.)
Historically, the summer months have been ripe for storage acquisitions so, given the prevailing climate, fasten your seatbelts. I may have to update this Top 10 list within the next two weeks.
Monday, June 14, 2010
IBM to acquire Storwize for $140 million?
June 14, 2010 (Updated June 15) – Rumors swirled this week around speculation that IBM is in talks to acquire startup Storwize, which specializes in data compression/reduction for primary storage, for a reported $140 million. I wasn’t able to confirm the rumor, but I have no doubt it’s true (the talking part, although not necessarily the acquisition part).
The potential deal makes sense for a number of reasons:
One: Data reduction for primary storage is going to take off big time this year. Heavyweights EMC and, more so, NetApp have capitalized on this trend with data deduplication techniques for data reduction. IBM has data deduplication for secondary storage via its acquisition of Diligent Technologies, but has been out of the picture when it comes to data reduction for primary storage. And buying Storwize (already an IBM partner) will get Big Blue into the game faster than developing the technology on its own.
Although it’s based on compression, not data deduplication, Storwize’s technology (Random Access Compression Engine, or RACE) can be used in conjunction with data deduplication products such as those from EMC and NetApp.
Two: IBM has plenty of experience acquiring Israeli companies. In addition to Diligent, IBM acquired Israel-based XIV in 2008. (Storwize’s R&D facility is in Israel, although the company now has U.S. headquarters.)
Three: IBM has already been reselling Storwize’s STN appliances, and has jointly presented Webcasts with Storwize and produced white papers legitimizing Storwize’s various claims, including the claim that its compression appliances can reduce capacity by 50% to 90% without negatively affecting performance.
Four: It hasn’t been a secret that Storwize has been shopping itself for some time. Getting acquired makes more sense than trying to go it alone in the primary storage optimization market, which will be ruled by the big boys – not startups (just my opinion, but I’m right.)
This acquisition would be interesting on a number of fronts.
--Would it lead to HP acquiring partner Ocarina Networks, a Storwize competitor?
--And let's not forget about other players in the primary storage optimization space. Exar (via its acquisition of Hifn) has data reduction technology that combines data deduplication and compression and handles those functions at the ASIC level. And GreenBytes has inline deduplication ttechnology that can be applied to NAS or SAN environments.
--Could IBM’s offer lead to a bidding war? Perhaps between Big Blue, EMC, NetApp and/or HP?
Further fueling the flames in this market was Permabit’s announcement of its Albireo technology last week (see “Permabit deduplicates primary storage”). Albireo is a software-only deduplication technology designed specifically for primary storage, and the company claims to have a number of design wins, with at least one rumored to be with a big vendor. Who could that be?
This could get even more interesting than last year’s NetApp-EMC bidding war for Data Domain.
Related articles:
Data reduction for primary storage: Benefits and options
Storwize upgrades compression appliances
Infineta unveils deduplication for inter-data-center traffic
GreenByes launches entry-level dedupe appliance
Nexenta debuts ZFS-based in-line deduplication
The potential deal makes sense for a number of reasons:
One: Data reduction for primary storage is going to take off big time this year. Heavyweights EMC and, more so, NetApp have capitalized on this trend with data deduplication techniques for data reduction. IBM has data deduplication for secondary storage via its acquisition of Diligent Technologies, but has been out of the picture when it comes to data reduction for primary storage. And buying Storwize (already an IBM partner) will get Big Blue into the game faster than developing the technology on its own.
Although it’s based on compression, not data deduplication, Storwize’s technology (Random Access Compression Engine, or RACE) can be used in conjunction with data deduplication products such as those from EMC and NetApp.
Two: IBM has plenty of experience acquiring Israeli companies. In addition to Diligent, IBM acquired Israel-based XIV in 2008. (Storwize’s R&D facility is in Israel, although the company now has U.S. headquarters.)
Three: IBM has already been reselling Storwize’s STN appliances, and has jointly presented Webcasts with Storwize and produced white papers legitimizing Storwize’s various claims, including the claim that its compression appliances can reduce capacity by 50% to 90% without negatively affecting performance.
Four: It hasn’t been a secret that Storwize has been shopping itself for some time. Getting acquired makes more sense than trying to go it alone in the primary storage optimization market, which will be ruled by the big boys – not startups (just my opinion, but I’m right.)
This acquisition would be interesting on a number of fronts.
--Would it lead to HP acquiring partner Ocarina Networks, a Storwize competitor?
--And let's not forget about other players in the primary storage optimization space. Exar (via its acquisition of Hifn) has data reduction technology that combines data deduplication and compression and handles those functions at the ASIC level. And GreenBytes has inline deduplication ttechnology that can be applied to NAS or SAN environments.
--Could IBM’s offer lead to a bidding war? Perhaps between Big Blue, EMC, NetApp and/or HP?
Further fueling the flames in this market was Permabit’s announcement of its Albireo technology last week (see “Permabit deduplicates primary storage”). Albireo is a software-only deduplication technology designed specifically for primary storage, and the company claims to have a number of design wins, with at least one rumored to be with a big vendor. Who could that be?
This could get even more interesting than last year’s NetApp-EMC bidding war for Data Domain.
Related articles:
Data reduction for primary storage: Benefits and options
Storwize upgrades compression appliances
Infineta unveils deduplication for inter-data-center traffic
GreenByes launches entry-level dedupe appliance
Nexenta debuts ZFS-based in-line deduplication
Thursday, April 30, 2009
Welcome to the data dedupalooza
May 1, 2009 – I’ve been looking into data reduction (or capacity optimization) technologies for primary data storage recently, including data de-duplication, compression and others. Of course, compression and de-duplication are well-proven and now common on secondary storage devices such as VTLs and other backup/archiving systems.
However, despite the fact that vendors such as NetApp and Storwize have been selling (or, in the case of NetApp, giving it away for free) data reduction software tuned for primary storage for some time, end-user adoption has been relatively slow.
It looks like that’s about to change.
For one, EMC’s entry into the market with (free) data de-duplication and compression for its Celerra file servers lends legitimacy to data reduction on primary storage devices. See “EMC adds de-dupe, SSDs to NAS.”
Two, NetApp is seeing some real traction in this space. The company claims to have shipped more than 30,000 systems with its ‘NetApp deduplication’ technology. The question is how many of those customers have actually fired up the data de-duplication functionality. The answer is “at least 15,000,” according to Larry Freeman ( aka Dr. Dedupe ), senior marketing manager for storage efficiency at NetApp. And it’s probably a lot more, because the 15,000 are only the ones that NetApp can track via its autosupport feature, which not every customer uses.
Since NetApp can de-dupe across all of its storage platforms (including FAS, V-Series, and VTLs), the next question is: Of those 15,000+ systems that are actually running de-duplication, what percentage are primary systems? That one’s difficult to track, but Freeman estimates that “about 60% of those systems are de-duping at least one primary application.”
Interesting stats, but any way you slice it the entry of EMC, and the success of NetApp, in data reduction for primary storage means that this market is poised for takeoff – despite end users’ lingering concerns about performance and data availability and reliability issues which have, for the most part, been addressed by the vendors.
And a rising tide lifts all boats (maybe), which is good news for the smaller players and startups in this space, including vendors such as greenBytes, Hifn, Storwize and Ocarina Networks (which recently inked about six partnership agreements).
All of the vendors go about data reduction in very different ways, but the end goal is the same: A reduction in primary storage capacity, which results in cost savings and/or purchase deferments, as well as power, cooling and space savings. In this economic climate, who can argue with that?
More on this topic as I delve deeper, but for now . . .
The best article that InfoStor has posted on this subject is “Primary storage optimization moves forward,” by the Taneja Group’s Eric Burgener.
Also check out SNIA’s Data Management Forum’s Data De-duplication and Space Reduction Special Interest Group.
And sign up to attend an upcoming InfoStor Webcast, titled "Leveraging Capacity Optimization to Reduce Datacenter Footprint and Storage Costs," Tuesday, May 12 at 10:00 PST, 1:00 EST. Presenters will include Noemi Greyzdorf, research manager, storage software, at IDC, and Peter Smails, senior vice president of worldwide marketing at Storwize. The Webcast will cover data reduction for all types of data, including primary, nearline and secondary data. To register, click here.
However, despite the fact that vendors such as NetApp and Storwize have been selling (or, in the case of NetApp, giving it away for free) data reduction software tuned for primary storage for some time, end-user adoption has been relatively slow.
It looks like that’s about to change.
For one, EMC’s entry into the market with (free) data de-duplication and compression for its Celerra file servers lends legitimacy to data reduction on primary storage devices. See “EMC adds de-dupe, SSDs to NAS.”
Two, NetApp is seeing some real traction in this space. The company claims to have shipped more than 30,000 systems with its ‘NetApp deduplication’ technology. The question is how many of those customers have actually fired up the data de-duplication functionality. The answer is “at least 15,000,” according to Larry Freeman ( aka Dr. Dedupe ), senior marketing manager for storage efficiency at NetApp. And it’s probably a lot more, because the 15,000 are only the ones that NetApp can track via its autosupport feature, which not every customer uses.
Since NetApp can de-dupe across all of its storage platforms (including FAS, V-Series, and VTLs), the next question is: Of those 15,000+ systems that are actually running de-duplication, what percentage are primary systems? That one’s difficult to track, but Freeman estimates that “about 60% of those systems are de-duping at least one primary application.”
Interesting stats, but any way you slice it the entry of EMC, and the success of NetApp, in data reduction for primary storage means that this market is poised for takeoff – despite end users’ lingering concerns about performance and data availability and reliability issues which have, for the most part, been addressed by the vendors.
And a rising tide lifts all boats (maybe), which is good news for the smaller players and startups in this space, including vendors such as greenBytes, Hifn, Storwize and Ocarina Networks (which recently inked about six partnership agreements).
All of the vendors go about data reduction in very different ways, but the end goal is the same: A reduction in primary storage capacity, which results in cost savings and/or purchase deferments, as well as power, cooling and space savings. In this economic climate, who can argue with that?
More on this topic as I delve deeper, but for now . . .
The best article that InfoStor has posted on this subject is “Primary storage optimization moves forward,” by the Taneja Group’s Eric Burgener.
Also check out SNIA’s Data Management Forum’s Data De-duplication and Space Reduction Special Interest Group.
And sign up to attend an upcoming InfoStor Webcast, titled "Leveraging Capacity Optimization to Reduce Datacenter Footprint and Storage Costs," Tuesday, May 12 at 10:00 PST, 1:00 EST. Presenters will include Noemi Greyzdorf, research manager, storage software, at IDC, and Peter Smails, senior vice president of worldwide marketing at Storwize. The Webcast will cover data reduction for all types of data, including primary, nearline and secondary data. To register, click here.
Tuesday, February 3, 2009
Consider data de-duplication plus compression
Data de-duplication gets a lot of ink and engenders a lot of debates, but the option of combining data de-dupe with real-time compression on primary storage is rarely discussed, maybe because there aren’t many vendors targeting compression for primary storage resources.
That’s what Storwize specializes in, and the company recently released the results of tests that suggest a serious look at combining de-duplication with data compression to further enhance overall data reduction.
Storwize claims that adding real-time compression can improve data reduction by more than 200%, based on its internal testing as well as customer deployments. (In the internal tests, Storwize used data de-duplication solutions from both Data Domain and NetApp.)
Storwize positions data de-duplication as being particularly advantageous for highly redundant backup data sets, but points out that using real-time data compression on the front end (primary storage devices) can significantly reduce de-duplication processing time and enhance throughput, in addition to reducing overall capacity requirements.
To assess the validity of the test results, check them out here
And if you’re among the early adopters of data compression on primary storage, respond below or email me at daves@pennwell.com and let me know what types of real-life data compression ratios you’re getting.
That’s what Storwize specializes in, and the company recently released the results of tests that suggest a serious look at combining de-duplication with data compression to further enhance overall data reduction.
Storwize claims that adding real-time compression can improve data reduction by more than 200%, based on its internal testing as well as customer deployments. (In the internal tests, Storwize used data de-duplication solutions from both Data Domain and NetApp.)
Storwize positions data de-duplication as being particularly advantageous for highly redundant backup data sets, but points out that using real-time data compression on the front end (primary storage devices) can significantly reduce de-duplication processing time and enhance throughput, in addition to reducing overall capacity requirements.
To assess the validity of the test results, check them out here
And if you’re among the early adopters of data compression on primary storage, respond below or email me at daves@pennwell.com and let me know what types of real-life data compression ratios you’re getting.
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