Showing posts with label Violin Memory. Show all posts
Showing posts with label Violin Memory. Show all posts

Wednesday, November 17, 2010

SSDs hit mainstream stride

November 17, 2010 – You know a storage technology is hot when there are four significant (well, at least interesting) announcements related to that technology in a single day. Such was the case yesterday with announcements related to solid-state disk (SSD) drives from Hitachi GST (in partnership with Intel), LSI, Violin Memory, Anobit and Intel.

Hitachi Global Storage Technologies (GST) claims to be the first hard disk drive (HDD) vendor to ship both SAS and Fibre Channel “enterprise-class” SSDs, albeit in only limited quantities to OEMs, with production shipments ramping over the first half of next year.

See “Hitachi GST enters SSD market.”

LSI announced a PCIe accelerator card based on SSD technology this week, with shipments slated for the end of the month. With 4KB block sizes, LSI claims performance of 240,000 IOPS on sequential reads and 200,000 IOPS on random reads. At an MSRP of $11,500, LSI’s 300GB WarpDrive SPL-300 card isn’t cheap but the company has some cool technology that integrators can bundle, including MegaRAID CacheCade and FastPath software.

See “LSI ships SSD-based accelerator card.”

Violin Memory introduced cache appliances based on flash and DRAM memory that significantly boost the performance of NFS-based NAS systems. The secret sauce in the NFS caching software comes from Violin’s acquisition of Gear6 earlier this year.

See “Violin’s cache appliances accelerate NFS NAS.”

Also yesterday, Anobit announced that it had received $32 million in a funding round led by Intel Capital, Intel’s equity investment unit. That brought the total funding behind Anobit to more than $70 million. Anobit specializes in NAND flash memory and Memory Signal Processing technology.

It’s not surprising that so many vendors are trying to get a piece of the SSD market. Market researcher IDC predicts that the total SSD market will grow at a 58% CAGR in unit shipments and a 44% CAGR in revenues over the next few years.

However, the fastest growing segment of the overall market is enterprise SSDs, where unit shipment are expected to surge at a CAGR of 74%, and revenues are expected to grow at a 54% clip, through 2014.

IDC expects the total SSD market to exceed $7 billion in 2014.

Related article: “Vendor group develops standards for PCIe SSDs”

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.

Friday, June 18, 2010

"SSD week" recap

June 18, 2010 – I don’t think it’s purely coincidental, but there was an uncharacteristic amount of rapid-fire announcements related to solid-state disk (SSD) drives this week. Three SSD startups launched (with two based in Israel). There was one SSD-related acquisition. And one vendor trumpeted the now familiar tune, “MLC SSDs are as good as SLC SSDs.”

In short, four interesting SSD announcements in the course of three days. And all four articles covering those announcements made the Most Popular Articles list on infostor.com this week. The industry analysts must be right about increased end-user interest in SSDs, although 39% of infostor.com visitors have no plans for using SSDs because they’re still too expensive (see below).

A quick recap:

At the high end of the announcements, Kaminario launched with the introduction of the K2 (meant to conjure up an image of the mountain, not the skis). See “Startup claims 1.5 million IOPS on RAID array.” An entry-level configuration starts at $200,000 for 300,000 IOPS and 1TB of DRAM, but the system can scale to millions of dollars and IOPS. Since its system is based DRAM technology, Kaminario will compete most directly with vendors such as Texas Memory Systems (which has been selling DRAM devices since disco was popular) and Violin Memory.

Speaking of which, Violin bought Gear6 this week. You might (but probably not) know Gear6 as a supplier of a souped-up Memcached distribution, but that’s not why Violin plucked them. Gear6 also has NFS caching software. If Violin can orchestrate that code into its SSD arrays it will give Violin an entry into the lucrative NAS acceleration market (see “Violin to acquire Gear6 for caching software”).

Anobit (add another bit) was another SSD startup that launched this week, with an MLC-based array that the company says provides the performance and reliability (“endurance” in SSD parlance) of more expensive SLC SSDs. You’ll see a lot of similar claims in the months ahead, as the mathematicians at SSD vendors have come up with a variety of tricks to mask the inherent drawbacks of inexpensive MLC flash NAND technology. Anobit’s secret sauce is its Memory Signal Processing technology (see “Anobit claims MLC SSDs rival SLC SSDs”).

And on the PCIe front, Virident launched its tachIOn SSDs. (Weirdly enough, when you type “tachIOn” in Word it automatically gets changed to “tachyon” which, by the way, is a hypothetical subatomic particle that moves faster than light, although most of us old-timers think of it as a Fibre Channel controller chip). Virident is going head-to-head with Fusion-io, essentially trying to beat them at their own game (see "Virident ships SLC SSDs for PCIe").

Despite the rapidly falling prices of flash memory and SSDs, many end users still say SSDs are too expensive. In an infostor.com QuickVote survey conducted earlier this year, 24% of the respondents had planned to deploy enterprise-class SSDs in the first half of this year; another 26% planned to buy them in the second half of the year; but 49% had no plans to deploy SSDs, with 10% citing insufficient reliability and 39% saying SSDs were still too expensive.

If you’re really interested in SSDs, consider attending the Flash Memory Summit, August 17 – 19 in Santa Clara.