January 2008 / Volume 21#1 / Issue No. 240 StorageNewsletter

THE INTERNATIONAL MONTHLY NEWS REPORT ON THE WORLDWIDE STORAGE INDUSTRY

GEORGE TEIXEIRA, STORAGE START-UPs: DATACORE’s CEO : “WE WILL PROVIDE A FRAMEWORK INVESTORS TO INTEGRATE SAN AND NAS” TIGHT-FISTED IN 2007 StorageNewsletter: Why did you choose , a From 2006 to 2007, the total number of financial tourist state with very few storage and IT compa- rounds for storage start-ups fell from 62 to 52, for a nies, rather than , Colorado or Massa- total amount of $477 million. chusetts? Teixeira: It turns out that Florida was actually the home This figure is down 29%, since just as significantly, the to a lot of the space program. And the original founders average investment per round also dipped from $10.8 of Datacore were from the space program and the million to $9.2 million, the lowest figure since 2003, the aerospace industry. We used to work for a company year we began undertaking this yearly survey. called Systems Engineering Labs, which became VCs are still interested in storage technology, but they Encore. And we were the group that did nuclear power are looking more closely before they take out their plant control, we did telemetry for the NASA space checkbooks. On the other hand, there have never been shuttle, so what we learned was if you're doing nuclear as many IPOs (6) as there were this year. power control, you learn how to do fail-over. If you NUMBER OF STORAGE START-UPs know how to do telemetry, you know how to do high- LAUNCHED EACH YEAR SINCE 1996 speed I/O. So what we though, as a bunch of scientists 93 who wanted to use high-speed I/O and fault tolerance, where do you apply it? Storage was a natural, that's how we got into it. Now it also turned out that we were, our office in Fort Lauderdale is right next to Citrix. And 58 the reason Citrix and Datacore are there is because 55 IBM, in Boca Raton, was the founding of the PC, so 47

many of our engineers also come from the same world 37 there. 29 29 What was wrong with your company that led you to downsized and undertake an MBO? 20 13 13 What was wrong? It's very easy, we were a small com- 9 pany, and after the dot.com crisis, every small compa- 5 ny suffered, everybody in the business world wanted to 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 buy from IBM, HP, they wanted to go safe. So the (continued on page 7) (Source: StorageNewsletter)

THE MOST SURPRISING HDD A RECORD 832GB 2.5-INCH FLASH HITACHI, FUJITSU AND TOSHIBA ANNOUNCEMENT FOR THE NEW YEAR: DRIVE FROM BITMICRO FOR 3Q08 TOGETHER FOR A NEW CONGLOMERATE 1.3-INCH FROM SAMSUNG x 10 x 12 IN HDDS? x 15 500GB IN A NOTEBOOK HDD, TANDBERG’S HH LTO-4 FOR 1Q08, WITH TWO PLATTERS FROM SAMSUNG QUANTUM NOW x 12 MARKET REPORTS AND THREE FROM HGST x 10 PAT CLARKE PROMOTED CEO TOP TEN IDC STORAGE IMATION KILLS ULYSSES x 11 OF TANDBERG DATA x 13 PREDICTIONS FOR 2008 x 16 EMC FIRST TO ENTER ENTERPRISE IBM VENTURING INTO STORAGE GRID HOT CZECH FLASH DRIVES WITH STEC x 11 FOR CAS WITH BYCAST x 14 DISK STORAGE MARKET x 16 INSIDE 2007 Start-ups THE FIVE START-UPS FOUNDED IN 2007 (KNOWN THUS FAR)... NAME (LOCATION) ACTIVITY AND COMMENTS Drop.io (New York, NY) Web site to store and share files online OnPATH (Marlton, NJ) switch technology purchased from Brocade created by former employees of McData Nirvanix (San Diego, CA) online storage services optimized for media affiliated with MediaMax Seval Systems (Palo Alto, CA) IBM's spinoff; new RAID architecture with two or three dimen- sional array or "cube" for video and streaming; in stealth mode Storspeed (Austin, TX) products that the increase network storage performance in stealth mode ... AND THE EIGHT FROM 2006 Adesto Technologies (Sunnyvale,CA) venture-backed fabless semiconductor company working on a new type of computer memory; in stealth mode Anobit Technologies (Herzelia, Israel) fabless semiconductor company developing novel solutions for the flash market; in stealth mode Blade Network Technologies spun-out of Nortel (Santa Clara, CA) 10Gb Ethernet switchesin blade form factor Cofio Software (San Diego, CA) VTL software for an iSCSI server Fusion-io (Salt Lake City, UT) SAN on PCI with flash memory Matrix Appliances (Marseille, France) D2D appliance StorMagic (Bristol, UK) backup iSCSI software and solution; also in Bloomington, MN UbiStorage (Boves, France) Ethernet backup appliance (Source: StorageNewsletter)

We tallied only five new start-ups 1%, although it could change with with all these figures at their lowest founded in 2007, but the figure the emerging economies of coun- levels since 2003. Why? Well for must be taken with a grain of salt, tries such as China and India. one thing, it strikes us that in recent and could easily increase, given the France's strong performance may months, there have been fewer possibility of companies still in have something to do with the fact “hot” or “hyped” technologies in stealth mode, which do not wish to that this newsletter is published in which to invest. appear in our study - fear not, we Paris, and our start-up detecting As usual, storage software is the will find them eventually, and add skills are particularly attuned to this winner with 43% of the rounds for them to our database. market. Note, however, that apart the storage sector in 2007 (58% in So it was this time last year, when from Atempo (whether it's French is 2006), ahead of subsystems with we had only smoked out two, debatable), Arkeia and to a lesser 34% (48% in 2006). merely to find another six come extent Seanodes, and only recently, The largest amount received by a crawling out of the woodwork later these firms have hardly any interna- single start-up was $40 million for a in the year. Nevertheless, the num- tional profile. group headed by Seagate's chair- ber of storage start-ups founded man Steve Luczo, Xiotech, a former each year has been in steady decli- More Wall Street than VCs ... Seagate (big surprise!) subsidia- ne. We will probably never see the 2007 was thus a mixed bag for ry that acquired certain pieces of likes of 2000, a banner year with a storage start-ups: there was less just before the record 93. investment from VCs, but more deal. In 2006, the winner was Pillar IPOs. Seen in a different light, Wall with the same amount. In second 276 start-ups alive, 75% in U.S. Street has a better feeling about the place, MAID company COPAN According to our figures, there are storage industry than private inves- drummed up $32.4 million last year. currently 276 storage start-ups in tors, something that is slightly odd, 18 start-ups received $15 million operation throughout the world, since at the end of the day, much of and more, compared to 14 in 2006. and their geographic spread gives the money comes from the same The all-time record, not about to be an indication of the various levels of pockets, only via different struc- broken any time soon, is still held R&D underway in the different tures. by Cornice, a one-inch HDD manu- regions. 75% are based in the U.S., facturer that got individuals rounds hardly a surprise. Next comes Lower VC investments of $54 million in 2004 and an enor- France (with 18), Canada (12), Israel We counted 52 financial rounds for mous $97 million in 2005, which (11), the U.K. (9) and Australia (4). storage start-ups over the past year sadly did not prevent it from thro- Europe accounts for 14% of the (see table, p. 4-6) for a total of $477 wing in towel early last year. As for total, but curiously enough, Asia is million raised and an average of those still operating, and only those almost entirely absent, with only $9.2 million per financial round, for which we know total invest-

2 StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 2007 Start-ups

INVESTMENTS IN STORAGE START-UPs SECTOR BREAKDOWN FOR OVER THE LAST FIVE YEARS THE 52 STORAGE START-UPS (in US$ millions) GETTING FUNDS IN 2007 No. of Total invested Average investment per Software 43% Year startups during the year firm during the year Subsystems 34% 2003 53 593 11.2 Connectivity 13% 2004 76 820 10.8 SSP 11% 2005 73 738 10.1 Storage and security 6% 2006 62 671 10.8 Fundamental technology 4% 2007 52 477 9.2 Infiniband 2% TOTAL 316 3,299 10.4 Note: Total exceeds 100% due to (Source: StorageNewsletter) certain start-ups' classification in ment, we get 153 companies in all, there have only been 16 since more than one sector (Source: StorageNewsletter) for $3.207 billion, or a total avera- 2000, and merely one for each of ging $21 million received. START-UPs ACQUIRED IN 2007 Among those start-ups still running, Total Price in those that received the greatest Company funding Buyer US$ millions amount of financing since their Archivas 28 HDS 100-120 inception continue to include Pillar Acopia 85 F5 210 ($250 million) and BlueArc ($204 Arsenal Digital 101 IBM NA million). If once again, we take into Berkeley Data Systems 1.9 EMC 76 account all the start-ups counted EqualLogic 52 Dell 1,400 and for which we know total invest- Evault 24 Seagate NA ment since the dawn of time, we FileKeeper NA Yosemite NA get an aggregate total of $7.94 bil- Illuminator 5 EMC 10 lion for 288 firms, or an average Neopath 29 Cisco NA $26.6 million for each. NeoScale 51 nCipher 1.95 PolyServe 73 HP NA Six IPOs in 2007 Siafu NA Hifn NA Of course, the main event in 2007 SiliconStor 12 LSI 55 was the long-awaited return after Silverback 51 Brocade NA many years' absence of the U.S. Zantaz 125 Autonomy 375 stock market's interest in storage (Source: StorageNewsletter) start-ups. There were six IPOs in 2001, 2004 and 2005, with none at 2007 - compared to four in 2006 - SUCCESSFUL IPOs all in 2002 and 2003. an enormous increase, given that Amount IPO It was Compellent that raised the THE GREATEST FINANCIAL Company raised* year largest sum last year, $144 million, ROUNDS IN 2007: StorageNetworks 2000 260 ahead of Netezza ($124 million), $15 MILLION AND MORE BakBone 2000 NA then Data Domain ($111 million), (in US$ millions) McData 2000 350 Mellanox ($102 million), 3PAR ($95 Xiotech 40 FalconStor** 2001 - million), and Voltaire (only $47 mil- Copan Systems 32.4 Xyratex 2004 48 lion). ONStor 27 Rackable 2005 75 And of course, this new trend Fabrik 24.9 CommVault 2006 161 towards IPOs may not end with the GlassHouse Technologies 23.5 Double-Take 2006 50 two firms currently set to go at the Atempo 22 Isilon 2006 108 starting line: Omneon seeking $115 Sepaton 22 Riverbed 2006 86 million and GlassHouse $100 mil- Expand Networks 21 lion. There are other potential IPO 3Leaf Systems 20 3PARdata 2007 95 candidates (or for an acquisition ExaGrid Systems 20 Compellent 2007 144 such as EqualLogic's by Dell): Verari Systems 20 Data Domain 2007 111 BlueArc, which has been mulling Woven Systems 20 Mellanox 2007 102 over the idea for the past few years Exanet 18 Netezza 2007 124 (and even filed in September for Anobit Technologies 17 Voltaire 2007 47 $103 million, although the transac- Mimosa Systems 17 tion was ultimately postponed, per- Blackwave 16 * in US$ millions haps until this year?), as well as Akorri 25 ** became public via a merger with DataDirect, Diligent, ONstor, Left- Omneon Video Networks 15 Network Peripherals hand, SEPATON or Xiotech. (Source: StorageNewsletter) (Source: StorageNewsletter) Recall too that one year ago, our (continued on page 6) StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 3 2007 Start-ups e division; ound Systems; grid chives documents online otecting data; de-dup net video; ed by Sun ces; e; formerly Quadratec; e nia as ASIC Design Consulting in 1995 outes, and ar ecovery esour ovider es, r e softwar e and appliance; also in Carlsbad, CA; e; formerly a part of EMC softwar e solutions for Inter estor es, stor estor onization softwar ed by EMC in 2007 for $76 million e files online e for disaster r e-backed fabless semiconductor company e ecovery softwar eb; acquir e and shar , a backup and r ced service that captur e platform for storage service pr e monitoring storage and server r eb site to stor ACTIVITY AND COMMENTS in stealth mode; ventur backup and r storage grid portable backup and synchr outsour D2D backup using MAID technology; formerly Flow Engines enterprise D2D backup and r working a new type of computer memory founder Rich Corley started Pirus Networks acquir in stealth mode formerly Knox Softwar also in Palo Alto, CA formerly Acinion; in stealth mode also in Israel technology to take the complexity out of storing and pr data management softwar I/O virtualization NAS; founded by former Zambeel employees; formerly StorAD softwar softwar fabless semiconductor company developing novel solutions for the flash market; Time Navigator backup on the W storage and delivery infrastructur W formerly Inspection Systems; formed by employees of HighGr intelligent switches, and then encryption solutions; formerly MaXXan Systems Flash disk solutions; incorporated in Califor 7 20 51 21 65 otal NA NA NA NA 9.8 3.3 1.9 1.2 123 88.4 46.5 32.5 38.5 38.2 31.4 T funding 6 3 5 3 3 20 13 15 17 22 16 10 20 0.5 1.9 1.2 9.3 11.5 32.4 10.5 2007 funding 2004 2006 2003 2002 2005 2006 1991 1996 1992 2005 2005 2000 2005 2002 1998 2002 2001 2007 2002 1995 Foun- ded in .com o.com .com op.io chivesystems.com WEB SITE 3leafsystems.com adestotech.com agami.com agematis.fr akorri.com anobit.com ar arkeia.com atempo.com bitmicr blackwave.tv ciphermax.com cleversafe.com copansys.com cya.com diligent.com dmailer dr exagrid.com TION) e echnologies echnologies ough, MA) echnologies ork, NY) ANY (LOCA AN Systems A emont, CA) estbor op.io chive Systems rumbull, CT) 3Leaf Systems COMP (Santa Clara, CA) Adesto T (Sunnyvale,CA) Agami Systems (Sunnyvale, CA) Agematis (Mérignac, France) Akorri (Littleton, CO) Anobit T (Herzelia, Israel) Ar (Fairfield, NJ) Arkeia Softwar (Pantin, France) Atempo (Courtaboeuf, France) Berkeley Data Systems (American Fork, UT) BiTMICRO Networks (Fr Blackwave (Acton, MA) CipherMax (San Jose, CA) Cleversafe (Chicago, IL) COP (Longmont, CO) CY (T Diligent T (Framingham,MA) Dmailer (Marseille, France) Dr (New Y ExaGrid Systems (W

4 StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 2007 Start-ups om oposed IPO in 12/2007 , NY ech in 2007 for $43 million oduct line fr filiated with MediaMax ork City ovider; founded by former executives of o Security Devices; es in storage and backup technologies om Micr oviding encryption; f fr eb storage pr e; tape technology e; also in India; shut down 2007? echnologies eated by former employees of McData; formerly Intellipath e for NAS; also in New Y e and design to implementation; pr e; spin-of ch 2007 the UCS connectivity pr dian T ovider A; cr T ed the consumer business of SimpleT eplication (CDP); formerly Abhai Systems; also in India osoft Exchange chiving softwar net channel adapter; formerly Banderacom obably 3Com's partner chitectur ovider with a SaaS platform ed NAS; formerly Agile Storage and then ClariStor ed by nCipher for $1.95 million 2007 A RAID, MAID and ILM storage systems chased in Mar T ough ar ocade/McDA oposes to maximize the featur AFS acceleration appliance ACTIVITY AND COMMENTS online backup pr home storage server and W pr encryption softwar storage pr data de-duplication appliance ; acquir thr formerly PC Guar and file-level r acquir Br fixed data ar storage security appliance pr 10Gb Ether virtualization softwar W appliance-enabled enterprise-class combination of block CDP for Micr SA online storage services optimized for media; af video networking and storage systems pur IP SAN; pr cluster data classification softwar 5 49 51 77 55 74 40 otal NA 3.6 8.5 106 58.5 19.5 10.5 17.3 34.1 14.5 88.7 17.4 T 57.2? funding 2 5 8 8 10 18 21 10 17 11 12 15 27 2.7 8.5 5.9 7.0 24.9 23.5 13.5 2007 funding 2000 1998 2005 2001 1994 1997 2001 2000 2003 2003 2000 1999 1999 2007 1998 2006 2000 2000 2004 2005? Foun- ded in or 2007 .com .com fect.com dianedge.com onis.com WEB SITE exanet.com expand.com fabrikinc.com glasshousetech.com guar hi-stor inmage.net intransa.com intr mimosasystems.com neoscale.com netef nexsan.com nirvanix.com ocarinanetworks.com omneon.com onpathtech.com onstor oodrive.com scentric.com TION) echnolo. T fs, NJ) echnologies T , NJ) ideo Networks echnologies echnologies echnologies etta, GA) ANY (LOCA fect TH dianEdge A onis T Exanet COMP (Ra'anana, Israel) Expand Networks (New Jersey Fabrik (San Mateo, CA) GlassHouse (Framingham, MA) Guar (San Francisco, CA) Hi-Stor T (Colomiers, France) InMage Systems (Santa Clara, CA) Intransa (San Jose, CA) Intr (Englewood Clif Mimosa Systems (Santa Clara, CA) NeoScale Systems (Milpitas, CA) NetEf (Austin, TX) Nexsan T (Thousand Oaks, CA) Nirvanix (San Diego, CA) Ocarina Networks (San Jose, CA) Omneon V (Sunnyvale, CA) OnP (Marlton, NJ) ONStor (Los Gatos, CA) Oodrive (Paris, France) Scentric (Alphar

StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 5 2007 Start-ups (continued from page 3) predictions for stock offerings were 3PAR, Acronis, Compellent, Data Domain, Diligent, EqualLogic and Lefthand. Our success rate? Four out of seven, which isn't too shabby.

Acquired start-ups

(Source: StorageNewsletter) For the young sprouts, the other means to profit for founders and investors is to find a wealthy buyer, preferably a com- puter giant. There was no question for the past year, it was iSCSI EqualLogic,

echnology's subsidiary; acquired by Dell for the now well- known sum of $1.4 billion. Thirteen other start-ups fell into the hands of more or less large companies. As usual, EMC stuck out as the only company to buy two of them during the year, Illuminator and Berkeley Data Systems (Mozy). e; in stealth mode connect servers and storage systems Analyzing the track records of all the start-ups in our database, we conclude outers; R&D center in Herzeliya, Israel; IPO 2007; e for MySQL that a storage start-up has a 3% chan- ce of going public, 18% chance of fol- ession appliance; R&D in Israel ease network storage performance; in stealth mode ession appliance ding, 21% of being sold and 58% chance of continuing on its current ea network) softwar net switch to inter path for another year, which isn't all that bad, even if they don't strike gold. It's a tough job trying to come up with oup led by Steve Luczo invested $40 million in 2007. A data compr

T the next killer idea in the storage indus- oducts that incr AN (File Ar ACTIVITY AND COMMENTS SA founded by former execs Larry Genovesi and Bill Elliot of Network Engines; in computer and storage blades for Unix clusters raised only $47 million a gr 10Gb Ether online data compr Linux backup softwar virtual tape appliance; formerly SANgate Systems F pr platform-independent blade-based computing and storage solutions TCP/IP to InfiniBand r SAN and virtualization in the box; former Seagate T storage grid under Linux; formerly Storagency try. Many are tempted, quite a few have tried but only a few make it in the end. J.-J. M. 3 35 15 13 10 13 75 otal NA NA 90.6 77.5 11.5 T funding COMPLETE STORAGE 9 9 3 8 20 22 10 13 20 10 40 6.5 START-UP DATABASE 2007 funding For any storage professionals interested in our storage start-up database, we offer the

NA complete package for US$390. 2004 2003 2002 2000 2005 2007 2004 1996 1997 1995 2005 Foun- ded in With more than 450 start-ups listed, inclu- ding 276 still active (i.e. currently not acquired, failed or seeking a public offe- ring), with the following data: - company name, .com - headquarters, e.com - web site, ewize.com - CEO, WEB SITE seanodes.com sepaton.com smapper stor storspeed.com storwize.com terascala.com verari.com voltair wovensystems.com xiotech.com zmanda.com - year founded, - business activity, - yearly financial funding since 2003 and total received.

TION) It is also possible to search into the data- base by activity sector (software, subsys- tems, security, SSP, connectivity, funda-

echnologies mental technology, Infiniband). To order this unique database (in Excel ough, MA) ANY (LOCA e format), send your enquiry to: TON ewize

A [email protected] oven Systems von, MA) for an invoice by return mail. erari Systems oltair erascala Seanodes COMP (Colomiers, France) SEP (Marlbor SmApper T (Kufstein, Austria) Stor (San Jose, CA) Storspeed (Austin, TX) Storwize (San Jose, CA) T (A V (San Diego, CA) V (Billerica, MA) W (Santa Clara, CA) Xiotech (Eden Prairie, MN) Zmanda (Sunnyvale, CA)

6 StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 Teixeira (continued from page 1) investment… Now what's very diffe- did with VMware, they already unders- any machine that is virtualized has rent about us is that almost all of the tood working in a virtual world. And if storage. That is not the same as taking dot.com companies died. Datacore, you think about it, Citrix makes termi- storage that is in an entire company instead, because we were founded by nals that float, they're kind of virtual, and turning it into a tool that you can a group of people that went for a year and you can apply them where you thin-provision and apply to different without salaries, when the market need to. What VMware does is it people. So it's a very different idea. went bad, even though we It's like saying that when you George S. Teixeira, 51, downsized, our people deci- emulate a PC on a Mac, yes, president and CEO of ded that we believed and you're doing virtual storage, had enough passion in our Datacore Software, co- but it's not the same. company, in our products, founded the company But given that VMware is that we bought our company after ten years of senior an EMC company, there is back, so I think that we are management experience a risk… an exciting and wonderful at Encore Computer Of course. But the truth is story. Corporation, where he we've been in business 10 Why did Hitachi Ltd, along played a major role as a years, 10 years ago, if I look- with HDS (already in virtua- team leader of OEM mar- ed back, we were so far lization) and Intel Com- keting and sales to advanced, and we are still munications, invest in Amdahl, IBM, and DEC. His work culminated in the advancing, but the truth is it Datacore? $185 million sale of Encore's storage control busi- took the recognition of prod- I think for obviously their own ness to Sun Microsystems. He also held a number of ucts like VMware in the mar- reasons, but I think in ket for people to understand senior management positions at the Computer Hitachi's case, Hitachi reali- the benefit of products like zed that virtualization was Systems Division of Gould Electronics. Teixeira is a Datacore. And the difference very strategic. And frankly by native of Madeira, a Portuguese island off the coast today is that at the time we working with us, they reco- of Africa. He earned his MBA at Florida Atlantic talked years ago, we were gnized that we were one of University, after joint B.S. degrees in Chemistry and lucky to be doing a few hun- the top innovators of all the Biology. His hobbies include cycling, eating good dred a year. Today we're technologies, because we French food, and most of all playing racquetball, doing three, four, five hun- were doing thin-provisioning, sometimes with his grown twin sons, both of whom dred per quarter of these storage domains, hot-swap, are opera singers. Although proud of his sons' systems. And it's following storage pools, fault tolerance accomplishments, Teixeira does not enjoy opera. the wave of the VMware- in software, and frankly by type people. working together, they learned a lot. makes the CPUs, so you can apply I have heard on occasion that it's And Intel? CPUs where you need them. Or you risky to use your proprietary soft- Intel, I think, was a more obvious can apply the memory. What Datacore ware installed on a standard server thing. Intel recognized that, just like does is it takes the chain or the anchor with a large volatile cache. with VMware, this virtualization was to direct storage, and makes it a virtual I don't know why, because if you look going to sit on top of Intel platforms. storage, so that our storage now can at VMware or Citrix… So I think they wanted to learn about float to where you need. So we are I am talking about your product. On it. I also believe that they saw that part of this whole virtualization move- a standard server… every time we sold a Datacore, we ment to get CPUs, memory, disk and On any server… were selling another Intel platform, so storage that you can apply where you It's very dangerous to use proprie- it was a good thing. need. tary software on a standard server Ultimately, were you saved by Okay but when you speak with an IT because you need high availabili- VMware, which made virtualization manager on virtualization, he will ty… popular? always say VMware. Don't you think But it is high availability… It's interesting. I hate to say saved. But that storage needs another word, And you use a lot of volatile RAM VMware has made a huge difference. since the two technologies are real- cache, which is also dangerous. What actually occurred: prior to the ly different? The simple answer is how do you VMware, we had actually found that To me no. In fact, I would tell you it is make a high-availability server? Well the resellers we were working were a bit different, but from the standpoint the way you do it is you take two com- storage resellers. And those storage of the technology, what we've done is puters. So how do you make a high- resellers don't understand software. turn storage into an icon, that is hard- availability Datacore? You take two All they know is how to move a box. ware independent, and which gets Intel servers, you connect them with What we started working actually was better utilization of storage. Well, what an Internet, Ethernet or Fibre Channel, not VMware, but with Citrix resellers, does VMware do? It turns machines and they run independently. And yes, so CEMA in Germany was a good into icons that are independent of the we have cache on both sides, but it is example, and those resellers unders- hardware. In fact, our tagline to our no different of a design than if you go tood the software model. When partners is 'Datacore does for storage inside an Hitachi or EMC. EMC is an VMware came along, what we reco- what VMware and Citrix do for servers example, if you look inside , gnized very quickly, and this is three and desktops.' there are two processors, which are years ago, that if people could do vir- Yes, but now VMware has storage older Intel, there is Windows NT tual terminals, like they did with Citrix, virtualization software. Embedded, running the operating sys- or understood virtual servers, like they They do, and they don't. They have, tem, they call it Flare OS, and then you

StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 7 Teixeira

have disks. I mean, what is different, Company DataCore Software Corp. it's pretty much the same model, HQ Ft. Lauderdale, Florida architecturally there is no difference. Where is the best place to have Founded in 1998 storage virtualization? In-band, Financial rounds 1998: $2 million out-of-band, embedded in a direc- 1998: $6 million (first round) tor or in the disk array, eventually 2000: $35 million (second round) with your software? 2001: $37 million (third round) The truth is it has changed. The ans- 2004: $7 million (fourth round) wer to me is in-band, and the reason 2005: MBO (60% employee owned) it has to be in-band is because other- Total funding $87 million wise you can't impact performance. CEO George S. Teixeira What we do is we accelerate the per- Activity Storage virtualization software formance of the storage by using No. of patents Half dozen memory to make the I/Os faster. But Acquisitions RTware in 1999 (at the origin of SRM the truth is with Datacore, we always software SANmaestro), believed that portability is key, so we Demand Technology Software in 2000 were the first to - I can take a blade, I can take a server or I can take a VM, (monitoring software systems) and I can run Datacore on any of Sales $20 million to $30 million a year those right out of the box. So I can Net income NA (profitable since two years) take SANMelody, SANSymphony, I No. of employees 100 can run it on two VMs, on two diffe- Offices Reading, Berkshire, UK; rent virtual machines, and I now have Munich, Germany; a high-availability server that does Sidney and Melbourne, Australia; not even have hardware. Tokyo, Japan; Yes, but if you embed that in the Seoul, Korea; Taipei, Taiwan director, you are in the heart and No. of licenses shipped Approaching 4,000 flow of the data. Isn't that better? No. of customers Over 2,000 From a technology stand-point, there Average price $199 (home), $1,000 (virtualized SAN for SMBs), is no reason that it's better. The rea- per licence $10,000 (disaster revovery and high-availability) son depends on what you need to $20-100,000 (SANmelody) run storage applications today. In the old days of IBM, it took a million lines Biggest customers IKEA (100 systems around the world), Axa of code. When EMC came along, you OEM NEC Soft went to two million lines of codes. No. of reseller partners 130 including 80 in Europe Today to do thin provisioning and Biggest ones Alternative Technology, CEMA, Centia, these kinds of features, it's many mil- Kramer & Crew, Magirus lions of lines of code. What that Main competitors EqualLogic, IBM (SVC), NetApp means is you have to run on top of an operating system, because you need when we founded the company, that the “Go Green” kind of movement, memory management, etc. Now what was going to be able to do because the big problem is that we that really means is it has become an this, I still don't see it. Veritas was have, with our hospitals for example, application that is sitting on top of an going to be there, it's still not there. So because of doing things like PACS, operating system, which is sitting on the reality is that the idea is obvious, where they're doing the x-rays and top of either a VM or hardware. What and I do believe it will become part of turning those digital, they're growing Datacore does, and we're proud of it, the operating system eventually, but at such phenomenal rates that doing is we turn the storage control into a how long is eventually? thin provisioning is a huge advantage. portable application. What VMware You've said you're proud of thin Last year, you launched virtualiza- did was turn machines into a portable provisioning. How do you explain tion software for iSCSI SANs for application. What Citrix does is the that thin-provisioning is so popular under $1,000. What was the mar- same thing. So if you believe that now that the prices of hard disk ket's response? VMware can be successful and is the drives are going down drastically? It's been our most successful product way to go for machines, that is no dif- Independent issues. Thin provisioning ever. Of course. We shipped over 500 ference from what we're doing for the makes better use of a disk drive. The licenses within the first six months. storage. fact that the disk drives are now avai- More importantly, most of those grow, Don't you think, in the end, that ser- lable at better cost doesn't stop you because people realize that the capa- ver and storage virtualization will still from wanting better use. This is bility… one of the problems, to give be included in the OS and that like saying why do you faster proces- you an example, is that people wanted consequently, Microsoft, Unix, sors on a PC when you really don't to learn about thin provisioning, but to Linux or Apple OS will be the final need them. People still want the maxi- get thin provisioning today, you have winners? mum utilization. The big advantage of to buy a Hitachi or a 3PAR. How much Absolutely. I do believe that. But it will thin provisioning is that four terabytes are those? Plus the hardware. take years as it always has. And there of storage can look like ten terabytes. Datacore, you can go to our website. will be people who will evolve the pro- So if you look at, I would actually You can download thin provisioning, duct. We all though, ten years ago argue that it's also very powerful for that iSCSI software for $1000, you can

8 StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 Teixeira download and try it for 30 days. So benefits. can run on a blade, we are already after 30 days, what we found was Your percentages for software and being run in some research projects people were just buying it. Now that services? as if are grid computing. they understand thin provisioning, and It's at least 80% product. We try to do You already have CDP. When will realized its advantages, we saw the as much of the service through our you add de-duplication for primary growth of the market. partners, so our business is really and secondary storage? And you have a $199 product. licensing product. We have some stuff in the works, but What's that? Between OEM and the channel? it's probably too broad of a question, It's a smaller, it's a version that only Very small OEM, and we do no direct. is my problem. There are products out supports up to 2TB SAN, it's iSCSI, it Even though the company started there for instance like Windows does not include thin provisioning and in 1998, do you still consider Storage Server which does single-ins- it has a smaller cache. Datacore as a start-up, looking at tance. It's just to virtualize. an IPO, trying to be acquired or But that's not really de-dup. It's just to virtualize, it supports maybe staying private? You're talking at the disk or block 4 drives, so it's really just for home Oh boy. I don't know what we are now, level? We've been looking at it, but use. in reality. We have the agility and the have no dates yet. On which storage platforms do you passion of the start-up, but we have Do you intend to enter the archiving sell the most? the experience of a ten year-old com- market? The most common is probably the HP pany. We are profitable, we can run Not directly, there are many products MSA. Mid-range is the most common. the business at this point and grow out there already. We will interface to Again it depends, the issue I have is from our own profits. So I'm not it, or we will do the CDP… my revenues are equal between dependent on being bought out. Roadmap? SANSymphony and SANMelody. But No, but you observed that Wall The roadmap is actually to create a my unit count is four times as many Street is beginning to pay attention framework which will integrate NAS SANMelody's because of the price. to storage… and SAN underneath us… So I sell a lot more on top of HPs, but I mean obviously from our standpoint, Because today you don't manage on SANSymphony, it typically is an we are in the business of maximizing NAS... EMC, Hitachi or IBM that is behind our shareholder value, so if something That's correct. We will provide a fra- SANSymphony, so it's a different arises. Our plan of record is to go to mework, and we will announce some class. an IPO. From that point of view, we of that in the first quarter that will inte- What is the percentage of your are a start-up. grate NAS and SAN, and will allow us sales on FC and iSCSI? You don't know when? to cache the NAS as well, so that we Still very much more fibre channel. I No, it depends on the market, and give performance, because otherwise would say 75% fibre channel, but it is revenues and everything else. you can't scale, but more importantly, changing. It's very obvious because Will you enter tape virtualization as the idea is that you can add our we're selling all of these $1000 SANs, FalconStor did? Traveller like CDP, so it can also do so the percentages are starting to We can, and in fact we have in our lab CDP for the NAS as well as the SAN. change. and all that, but I don't see a real So you will go from block virtualiza- The percentage of your sales asso- benefit for us as a separate product. tion to file virtualization… ciated with virtual servers? The reason I say that is because we We'll do both. We'll make an announ- It's probably, new sales, I have to be have a product called Traveller that cement in the beginning of the year… careful, new sales is over 50%. does CDP. And in the CDP arena, we Did I miss an important question? In Europe, U.S. and Asia? will probably do some form of virtual You covered a lot… no, I think the big- Europe is about 60% of our business, tape, but it's because if I look at sto- gest thing is the impact of the virtual the U.S. is about 30%, and then ring the data, I may choose to store it server stuff. What I've seen is that obviously 10% is Asia. where the line goes from disk to tape, something like 85 of the virtual servers Why do you think you better in I make it blurry, and now they can do need a SAN. The problem is if you get Europe? it. But the truth is there are people out a SAN, it's expensive, so most of the I like the food better… there with VTL, and at this point, I small businesses can't afford it. What I think you told me once that in don't want to go and compete in an we've found is this whole idea that we Europe, they don't like to be locked area that's not our expertise. can run on the hardware, we can run into one company as much, do you What's you opinion on FAN? on the VMs, and then the $1000-type still believe that's true? I read the marketing, I don't know that SAN or 10,000 fail-over SAN brings If you want the truth, I think I would much about it, to be honest. To be the price, and that what's really driving actually modify that and say that we honest I don't even know some of our growth right now. It's really to your found the level of the resellers and these words anymore, maybe I'm not first point, which is that once people integrators was better for software in technologist, NAS is a file system. A recognize VMware and start recogni- Europe. They were more trained, more file system by definition is virtualiza- zing that what you need to do things certified. I'll give you an example, tion. So I don't know, when they say like VMotion is really have products Germany is our biggest market, and I FAN, I think it's associated with span- with a SAN, it drives the need to look think it's because they do the certifi- ning multiple files… at our kind of solution. cation, there was a group that learned Will you offer a product for storage How many days of vacation did you how to do Citrix and VMware very grids? have this year? well, and we hooked up with them There is nothing… it's interesting, Two few… did I actually make ten? I fairly early, and we've reaped the because I can run on a VM, because I may have… it's not a good sign.

StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 9

Hard disk drives New 1.3

Max. per Total Access Rotational Retail Manufacturer Model Height # of Interface Production platter capacity disks/heads time speed price PATA, 30GB 30GB SAMSUNG A1 5mm 1/2 NA 3,600rpm CE ATA, 1Q08 $199 40GB 40GB USB The most surprising HDD announcement for the new year is this new 1.3-inch hard disk drive. Only two lines of devices in this form-factor have been ever launched: - The KittyHawk by Hewlett-Packard with Citizen in 1992 (14.4MB and 21.4MB) and in 1993 (42.8MB) - Two models (175MB and 350MB) in 1996 from PicoDisk, a start-up that has since vanished. All these products, however, failed to find a market. Aura Associates, Maxtor and MiniStor were also working on this form factor around 1992. As for the new Samsung product, its capacity (30GB or 40GB) and price ($199) can compete for now with flash drives, much more than one-inch units. LaCie has already chosen the model in its design for a tiny external drive, replacing previous units that integrated one-inch HDDs, and for good prices compared to Samsung: USB Key Max at e94.90 for 30GB and e124.90 euros for 40GB.

New 1.8 hard disk drive

Max. per Total Access Rotational Retail Manufacturer Model Height # of Interface Production platter capacity disks/heads time speed price MK1214GA 60GB 120GB 8mm 2/4 4,200rpm MK6028GAL 60GB 60GB 5mm 1/2 4,200rpm ATA-7, TOSHIBA MK8025GAL 80GB 80GB 5mm 1/2 15ms 4,200rpm LIF 12/07 - MK6014GAL 60GB 60GB 5mm 1/2 4,200rpm connector MK6015GAA 60GB 60GB 5mm 1/2 3,600rpm Only Hitachi GST, Samsung and Toshiba continue to manufacture 1.8-inch hard disk drives. For this form factor, the biggest buyer is Apple for its high-end iPod. Toshiba has already announced a 160GB 1.8-inch drive but at 3,600rpm only (SN 10/07), one of the first HDD using a 4K byte per sector. The new 120GB MK1214GAH, 60GB MK6028GAL and 80GB MK8025GAL are aimed at tablet, mobile PC, ultra-portable, ultra-mobile PC, the last one weighing only 45 grams. For CE products, the two 60GB MK6014GAL and MK6015GAA use 1KB-per-sector format optimized for CE applications.

New 2.5-inch hard disk drives

Max. per Total Access Rotational Retail Manufacturer Model Height # of Interface Production platter capacity disks/heads time speed price Travelstar 134GB 400GB SATA HITACHI GST 12.5mm 3/6 12ms 5,400rpm 2Q08 - 5K500 167GB 500GB 3Gb/s The company may have launched the first half-terabyte notebook drive in history, but its supremacy lasted only a few days (see below). Until now, the record for capacity in the 2.5-inch form factor was 320GB (already announced by Fujisu, Toshiba and ). But note that in one important specification, the Travelstar 5K500 differs from the majority of the notebook drives: its height, at 12.3mm rather than 9.5mm. Why? The 5K500 contains three magnetic disk platters, the others ones only two. In term of areal density, it's ultimately about the same: 167GB per disk for this model, 160GB per disk for 320GB 9.5mm high units. PC maker ASUS has already decided to integrate these 500GB drives into its M50 and M70 notebooks, the last one even containing two drives for a 1TB capacity. Not bad for a laptop! The Travelstar 5K500 drives also feature optional data encryption but with 1.5Gbs SATA interface. There is also another version, the Travelstar E5K500 for 24x7 operation aimed at blade servers, network routers, POS terminals and video surveillance systems.

Max. per Total Access Rotational Retail Manufacturer Model Height # of Interface Production platter capacity disks/heads time speed price Spinpoint SATA SAMSUNG 167GB 500GB 9.5mm 3/6 NA 5,400rpm 03/08 - M6 3Gb/s Samsung has traditionally been a follower in hard disk drive technology. Yet for the past two years, the contrary has been true in all categories of HDDs except enterprise units. At CES, the company has been in the habit of launching incredible HDDs that prove it. Here the Korean company announced a new 2.5-inch unit with a record capacity of 500GB in a smaller volume that the formerly announced Hitachi GST Travelstar 5K500. Up to now, all the 9.5mm note- book units could contain a maximum of only two platters and four heads. Samsung has really done a great job to put three disks and six heads in that box.

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Hard disk drives

IMATION: ner Mountain Engineering or MP what unusual, since they compete ULYSSES’ LAST VOYAGE Tapes. According to Mary with each other. Odyssey, an The idea behind Ulysses (SN 9/05) Rawlings-Taylor, Imation's director Imation development that appa- was to put a 2.5-inch hard disk of communications: “We are not rently integrates some Ulysses IP, is drive into an LTO cartridge and continuing additional Ulysses deve- a dock that can hold a removable stack several such units in an auto- lopment.” 2.5-inch HDD, different from the loader or a tape library, with the In the sector of removable disks, RDX which it resells and is of disk cartridges read by a special Imation is nevertheless pursuing ProStor Systems provenance, tape emulator developed by part- two parallel lines, which is some- although the result is highly similar. Flash EMC FIRST TO ENTER ENTERPRISE FLASH DRIVES WITH STEC

This announcement could drastically change storage industry. Flash drives were already offered as these new flash disks will add controllers with BitMICRO, M- an option to replace magnetic hard around 10% to the Symmetrix. Systems (acquired by SanDisk), disk drives for notebooks, for There are two kinds of flash memo- SST and Targa Systems Division, example by Dell with Samsung's ries: SLC (Single-Layer Cell) and STEC has designed flash disks with units. But nobody thought that they MLC (Multi-Layer Cell). EMC chose different interfaces (IDE, SCSI and could replace or even complement faster and more robust SLCs but then SATA, SAS and FC). enterprise drives so rapidly. With they are more expensive than For its last financial quarter ending the recent announcements from MLCs, which we will now find more in December, STEC expects reve- EMC and STEC, the time has and more present in consumer pro- nues between $48 million and $51 come. ducts (MP3 players, USB keys, million, to be compared to $44.7 EMC will offer the possibility to etc). million in 3Q07 and $43.7 million in have three tiers on its Symmetrix The choice of STEC by EMC is not 2Q07. The firm is currently opening DMX-4 enterprise storage array: surprising. There are only three a brand new manufacturing plant in very fast (but expensive) flash companies in the world capable of Malaysia. disks, enterprise HDDs rotating at designing FC controllers for flash Reaction 15,000rpm, and low-cost, slower disks: BiTMICRO Networks (4Gb from EMC's competitors but high-capacity SATA drives. FC up to 16TB), Memory with We are now waiting for a reaction Of course, HDDs will continue to its RAMSan-500, a 4U rack contai- from HP, HDS, IBM, NetApp and co-exist with flash, which cannot ning one to two terabytes of flash others. They will have to follow, the compete in terms of per gigabyte memory with a 4Gb FC host only question is when and with cost at higher capacities, but you controller with incredible speed which flash subcontractors. can now expect that flash disks will (and pricing!), and lastly STEC. Another company that will not progressively enter disk arrays and None of these firms are manufactu- appreciate EMC's latest choice is replace hard disk drives as the ring flash chips (STEC uses Seagate Technology, its largest price of flash chips goes down fas- Samsung's chips), but instead the hard disk drive supplier. Seagate ter than HDDs. And for a good rea- controllers that manage them, as has already entered flash technolo- son: with all their mechanical parts, hard disk drives are also managed gy for notebooks with hybrid disks magnetic disk drives cannot com- by controllers containing ASICs, that integrate both an HDD and a pete with flash for speed, especial- processor and RAM. flash buffer simultaneously, but ly with access time of HDDs limited Who or what is STEC? these products have yet to show to 7 to 10 milliseconds while flash Founded in 1990 as Simple much sign of life. But this time, it's are more in the hundreds of micro- Technology and based in Santa a drive offered by its best customer seconds range. The rotation speed Ana, CA, STEC entered flash with flash memory only... of Winchesters, the key for the controllers following the acquisition If this doesn't spell the end of the transfer rate of data, has stalled at of Cirrus Logic (then named Lexar) HDD industry outright, flash has 15,000 rpm for many years now, in 1994 and then SiliconTech in already eliminated the smallest and even increasing this speed will 1998. After an IPO in 2000, the form factor HDDs, it is entering por- not be that big a factor in enhan- company changed its name to table PCs and now even enterprise cing the flow of data. SimpleTech a year later. Others arrays. Today, HDD has only one A number of big users of main- acquisitions: SSD company Mem- argument left up its sleeve: its price frames are ready to pay a premium tech in 2005 and Gnutek in 2006. per gigabyte for a minimum capaci- to get a faster way to access their Last year, Simpletech became ty, around 20GB today, but more data for online transactions and STEC and sold its external disk and more tomorrow. they will jump on flash memories, drive business to start-up Fabrik. Nevertheless, we will have to wait a even if EMC said that the price for One of the pioneer in flash disk decade to see a 1TB flash drive at

StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 11

Flash the price of a 1TB magnetic disk Egan, a former Intel general mana- massive solid-state cache for unit, currently at less than $300, not ger, was attracted by the opportu- excellent performances. One stora- far from what a flash unit with only nity to sell add-on memory to the ge veteran told us that at the time 16GB costs. It's worth noting that rapidly growing minicomputer mar- EMC was not primarily selling EMC, STEC or any other flash ketplace. EMC's first product was a disks, but cache. The successful manufacturer for that matter always 64KB solid-state memory board, its period in the history of EMC hard- seems reluctant to give the exact most recent a 73/146GB solid-state ware was based on one word: SSD. price of their high-capacity units. disk. For its CLARiiON line the story is Return to the source Recall too that the company killed slightly different, however, since it To conclude, it's odd to see EMC IBM mainframe disk arrays in the doesn't use more RAM than the coming back to solid-state drives. old days, with the emergence of its competition - of course, this pro- It was founded by Richard Egan first Symmetrix, not only because duct was originally designed by and Roger Marino in Newton, MA in they used the smaller and cheaper Data General (acquired in 1999), August 1979. 5.25-inch form factor but also a not EMC. A RECORD 832GB 2.5-INCH FLASH DRIVE FROM BITMICRO FOR 3Q08 BiTMICRO Networks plans to laun- 2004 behind. But today, only the flash ch an 832GB version of its E-Disk Its flagship product, the E-Disk disks of a maximum capacity of Altima E2A3GM SATA flash drive, SSD, is offered with SATA, SCSI 128GB are effectively competing in with MLC chips, in 2.5-inch form Narrow and Wide, IDE/ATA and FC term of price with 2.5-inch hard factor, with sustained transfer rate interfaces in 2.5-inch and 3.5-inch disk drives for the current biggest of up to 100MB/s and up to 20,000 hard disk drive footprints, and 19- market for flash disks: notebook I/Os. Sampling is expected to begin inch rack mount configurations PCs. BiTMICRO didn't give any in 2Q08 and shipping in volume by scalable up to several terabytes of price for its new 832GB unit, proba- 3Q08 in capacities ranging from pure solid state storage. bly to avoid the comparison with a 32GB to 832GB. BiTMICRO launched last year a hard disk drive of a comparable BiTMICRO is really a technology high-end 1.6GB SSD device, twice capacity. leader in flash disk and a pioneer in the capacity compared with the this field with already around 37 new Altima E2A3GM flash SSD, but • Flash is invading everywhere, models announced since 1999. in a 3.5-inch form factor and with even blades now. SiliconSystems The firm claims to be the first to 4Gb FC interface and an impressi- has launched one of the first SSD market the following flash drives: ve 55,000 I/Os per second. drive for embedded storage appli- - 2.5-inch EIDE (up to 4GB) in 2000, The others capacity leaders in this cations, the USB Blade, at capaci- - 3.5-inch Ultra Wide SCSI LVD market are STEC (512MB in 1.8-, ties of 512MB, 1GB and 2GB. (48GB) in 2000 2.5- and 3.5-inch), Fusion-io For its BladeCenter, IBM has also - 2.5-inch Ultra SCSI (up to 4GB) in (640GB of flash memory in a PCI introduced a solid state drive, a 2000 card). Texas Memory reaches 2GB, new option available as a single - 3.5-inch Differential SCSI (19GB) but in a big 4U rack. 2.5-inch 2-watt 31.4 GB drive. - 2.5-inch ATA/UDMA-66 IDE (up to Biggest companies like SanDisk or SATA compliance enables the drive 17GB) in 2002 Samsung (up to 64GB), and to connect directly into Blade- - Ultra320 SCSI (up to 155GB) in Toshiba (up to 128GB) are far Center. Tapes TANDBERG's HH LTO-4 FOR market during 2008.” nent purchases as well as produc- 1Q08, QUANTUM NOW For its 3Q07, the manufacturer of tion of modules with higher compo- Tandberg Storage has confirmed HH LTO devices increased LTO-2 nent cost to secure the volumes in that its half-height LTO-4 cartridge shipments significantly but LTO3 is the channel,” comments Tandberg tape drive will be on the market in shipping at lower volumes than Storage. 1Q2008 and its development is expected, even if the volumes have Net loss before taxes was NOK 6.8 based on the LTO-3. steadily increased during the quar- million in 3Q07. Furthermore, the company finally ter. For this period, its operating has some hope with respect to its revenue reached NOK 72.3 million • Meanwhile, Quantum announced O-Mass activity. “A special part of compared to NOK 52.2 million in the availability of its own HH LTO-4 the O-Mass technology has shown 3Q06. Its gross margin, however, is device (800GB, 120MB/s) with AES some interesting potential in other still unacceptable. This reduced 256-bit native encryption and markets than it originally was margin is a consequence of earlier WORM cartridge support, at MSRP designed for. The company be- low production volumes in 1H07 beginning at $3,849. These techni- lieves that there is a possibility that and increased demand in 3Q07 cal specs are the same as the one or more of these products can above expected levels. “This requi- StorageWorks Ultrium 1840 Tape be developed and brought to the red additional short term compo- Drive from Hewlett-Packard.

12

People

• Pat Clarke, 42, has been promo- ment group) and as group presi- • Formerly at Dot Hill, industry ted CEO of Tandberg Data in order dent of the Altiris business unit. veteran Jim Wayda has been to attempt to get the company Janice Chaffin remains group appointed as VP software enginee- back on the rails, financially speak- president of the consumer business ring for iStor. He currently has twel- ing. “A broad but effective Steering unit. ve patents pending in the areas of Group will be set up to identify and snapshot and data replication. monitor plans and actions. I'm • From several U.S. sources, it eager to start getting the company appears that Tony Asaro has been • Secured Digital Storage hired back to black," said Clarke who recruited by Dell as director of pro- Jeff Pfeiffer as director of product was formerly executive VP and duct marketing and iSCSI evange- management. He most recently replaces Kristian Jacobsen. list. managed the Verizon channel part- The new CEO has seen a wide He is a well-known senior analyst nership for storage services provi- range of companies during his 15- from Steve Duplessie's Enterprise der Arsenal Digital Solutions. year career in the storage industry: Strategy Group, where not surpri- Pillar Data, BakBone, Overland, singly, he is no longer listed as an • We just learned that Dennis IBM and Quantum, after serving analyst. Asaro is an ardent suppor- Conner, who was previously a some years in the British Armed ter of iSCSI, and was running the reporter for IDG's Network World, forces. ESG lab. “All of the major storage last year launched SSG-NOW, an vendors will step up their invest- Austin, TX-based company that • Takayuki Nishioka is taking the ments in iSCSI,” he wrote in his provides a selection of briefs and position of CEO at Buffalo Tech- blog. And, as most already know, white papers on storage compa- nology USA, remaining on the Dell has just acquired iSCSI specia- nies and their technologies. board of Buffalo Japan, which he's list EqualLogic. held since 2001. Prior to being Asaro was a co-founder of I/O • EMC has named Kristian named CEO, Nishioka led the enti- Integrity developing a high-perfor- Thyregod as distribution director re Buffalo Japan sales team, after mance storage controller as a sys- for EMEA. Before coming to the joining the company twelve years tem on a chip. company, he was executive VP for earlier as sales manager. sales and marketing at FoursLeaf/ • nCipher appointed Ira Zalesin, LOGIX. • RELDATA promoted Dave 52, as executive director, chief mar- Arnaud Allouche, 36, was promo- Hubbard as the new president and keting officer and COO North ted director of global services at CEO, following on his role as COO America, along with Aidan Hegarty EMC France. He joined the compa- since February 2007. He replaces as VP of operations of the newly ny in June 2004, and previously Boris Anderer. Hubbard's 25-year acquired Neoscale storage security held the position of regional mana- career includes senior executive product lines. Richard Moulds was ger of customer service for the roles at QLogic, Inrange/Com- promoted from VP marketing to Southern Europe region. puterm, Computer Network Tech- executive VP product strategy. nology, and DEC. • Hitachi GST has promoted Additionally, the company appoin- • Formerly VP for channel sales at Karthik Laxman as country mana- ted storage veteran Jeff Helthall as Seagate's Evault, Dave Ferretti ger of India and the SAARC region. VP of sales, and added Bruce has been recruited as senior VP of Rudin as VP finance/controller. WW sales at StoredIQ. Many years • Patrick Cowden is the new GM ago he worked for Array of HDS Germany, reporting to • Symantec has a new COO, Technology, acquired by EMC in EMEA senior VP and GM Michael Enrique Salem, reporting to chair- 1994. Väth. He succeeds Richard Evans, man and CEO John Thompson, who will take a management posi- while Gregory Hughes has been • Coming From Evault, Dave tion at the international level. named chief strategic officer. Salem Loewith is the new VP engineering Cowden hails from Dell Germany, most recently served as group pre- for PowerFile. He formerly served where he worked from 2003 to sident for WW sales and marketing as VP of information protection at 2007 after experience with EMC as and Hughes as group president of Legato Systems and was a key fac- area sales manager. global services. tor in the latter's acquisition by Tom Kendra will remain group pre- EMC, after a stint as director of sto- • After stints at Addit and Storage- sident of the security and com- rage solutions at Amdahl. Tek, Andreas Fink has switched pliance group (previously referred Meanwhile, Keith Son has been from channel account manager for to as the security and data mana- named senior director of hardware Northern Europe at HDS to channel gement group). Greg Butterfield engineering. He comes to advisor at Overland Storage in will also continue in his interim role PowerFile from Marvell where he Germany. as group president for the storage was director of the storage control- and server management group ler business unit after being system • Iron Mountain has named Fred (previously data center manage- architect for NetApp. Pirat, 43, regional channel mana-

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ST file centra- lectro- costs, t were recei- People e auto- worse, ger for Southern Europe. In 2001, where he established manufactu- From 2001 to of 2004, Marmen was y later Pirat joined Connected, which was ring operations in Singapore, CEO of RAIDCore, sold to osure. acquired by Iron Mountain in 2004. Thailand, Malaysia, the PRC and Broadcom and served through April ight to India. For the past seven years, he of 2006 as VP and GM of • Siegfried Betke is the new is the president, chairman and CEO Broadcom's storage line of busi- Director Central Europe of of Fabrinet. In the company we ness purchased by Ciprico in June Datacore Software, where he's also find executives from Hitachi 2006. Prior to joining RAIDCore, he worked since 2000, along side Iris GST, IBM, Magnecomp, Maxtor, served as senior VP and GM of the Hatzenbichler, now promoted Read-Rite and Seagate. Fabrinet high-end storage division of marketing and operations manager began operations by acquiring a Quantum and VP of the enterprise for EMEA. 21,550 square-meter facility from solutions group at Adaptec, where Seagate Technology in Bangkok, he was responsible for that compa- • ONStor has recruited Kin Lai as Thailand and is now mainly a ny's RAID business. GM of Greater China and Singa- manufacturer of optical communi- pore, reporting to Tom Gallivan, cations components and modules. • EMC has added Akamai's presi- senior VP of global sales. The firm The company just filed a registra- dent and CEO Paul Sagan, 48, to will open an office in Beijing to tion statement with the SEC for a its board. He will also serve as a expand on their current operations $250 million IPO. member of the firm's mergers and in Japan. acquisitions committee. • David Cuyler has been named to • German VAD Digital Network the new position of director of • Mike Ruettgers, 64, previously Services has asked Ronald Kuffer membership development for CEO and then executive chairman to take charge of resale of Content Delivery and Storage of EMC, has been appointed chair- NetApp's VTLs. Association. man of British chip-maker Wolfson Microelectronics. • Who can forget Tom Mitchell, the • Formerly CEO of RAIDCore, Tom controversial companion of Al Marmen has been elected to the • Brocade former CEO Greg Re- Shugart and Finis Conner at board of Ciprico. Most recently, he yes has been sentenced to 21 Seagate Technology? He co-foun- was president and CEO of months in jail and a $15 million fine ded Seagate in 1979 and served as TimeLab, maker of a performance- for backdating stock options, but its president from 1983 to 1991, enhancing technology for PC chips. remains free pending appeal. OEM/Distribution Miscellaneous IBM VENTURING INTO STORAGE GRID FOR CAS WITH BYCAST IBM SHIPPED ITS 10,000th SVC CONTROLLER Although hardly news (it dates back Grid Archive Solution although the to July 2007), the story went largely OEM agreement will enable mul- IBM has shipped its 10,000th stor- unnoticed when it should have stir- tiple vertical applications. age virtualization engine, the SAN red great interest. IBM is venturing StorageGRID delivers a virtualiza- Volume Controller or SVC, in more into grid storage by OEMing a stor- tion and data protection layer that than 3,400 installations. age grid software published by a creates unified fixed-content stora- The milestone sale went to Able small Canadian company, ByCast, ge across hundred of sites and Body Labor, a mid-sized business whose product StorageGRID is heterogeneous storage hardware in Florida. SVC is now in version named IBM Storage Grid Access that can scale to petabytes. 4.2.1, with enhanced FlashCopy Manager Software to provide the A node can be added at any time and improved supported storage basis of its DR550, a competitor of and the grid automatically reconfi- capacity going from 2PB to 8PB. HP's Integrated Archive Platform gures itself to incorporate the new It also now supports new operating (formerly RISS) and EMC's Centera. node. environments with VMware ESX Since 2005, the two companies It also enables the storing of Server, Red Hat and SUSE Linux, have been jointly delivering the IBM objects on tape and optical media. and Novell Netware. Start-ups

• Established in 2001 in Marseilles, Paribas Private Equity and Alto • New York City-based Drop.io, a France, Dmailer, a provider of por- Invest. Since its launch in May Web site that allows people to pri- table back up and synchronization 2004, its flagship Dmailer V7 pro- vately store and share online pic- software for a range of mobile duct has sold over 20 million tures, video, audio, docs, etc has devices, has received e2.5 million licenses in 120 countries worldwi- announced a $1.2 million Series A in new funding from VC firms BNP de, according to the start-up. financial round.

14 StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240

Boardroom notes HITACHI, FUJITSU AND TOSHIBA TOGETHER FOR A NEW JAPANESE CONGLOMERATE IN HARD DISK DRIVES? This rumor is circulating across the Web, but awaits confirmation. We'll wait and see. We've outlined the potential consequences of such a deal. The truth is that HDD manufacturer - WD 22.0% examples in (optical) storage also: Hitachi GST was approached by - Samsung 8.9% NEC and Sony with Optiarc, Hitachi buyers such as Silver Lake Partners - /Excelstor 0.5% and LG with Hitachi-LG Data and others, given that it has been Any deal will be complicated. Storage, and also Toshiba and losing money since its acquisition Combining two companies is not Samsung with Toshiba-Samsung of IBM's disk business for more an easy job, but three? And which Storage Technology Corp.. than $2 billion in 2002. company will head the merger? The How will this affect the historical Hitachi GST, Fujitsu and Toshiba biggest one, HGST, even if it's and continuing war on prices? together would represent an enor- unprofitable? Will there be parity Probably not very much. In such a mous shift in the hard disk drive between Fujitsu and Toshiba, which competitive industry, even if there landscape, with only five HDD produce roughly the same number were only two HDD makers left manufacturers remaining on the of drives? And what about the standing, the boxing scheme would market if we add tiny Iomega/ restructuring? Which manufactu- still not change much. Excelstor, Samsung, Seagate and ring plants stay and which go? How It's hard to believe that leader Western Digital. will they combine R&D teams in Seagate and successful WD will not We have counted 192 HDD makers Japan and in California, not to men- try to do their best to avoid this that dabbled in the sector since the tion sales and marketing forces incredible consolidation, which will origin of the industry in 1956 by spread throughout the world? It will change the face of the worldwide IBM. Now only 5 remain! And only not be easy to find a new name for disk drive manufacturing industry two of these are actively engaged the entity: HGST-Fujisu-Toshiba entirely. And don't wait for any in manufacturing enterprise units - Hard Disk Drive Co.? It doesn't start-up to add players in this field. Seagate and the new Japanese exactly trip off the tongue. Why not Cornice and GS Magicstor, the last conglomerate. simply JapanDisk, since it will two to try entering the HDD sector Based on the best figures in the encompass all three remaining have both collapsed. For two rea- industry, provided by TrendFOCUS Japanese HDD makers in the mar- sons: 1) this activity needs a huge for 3Q07, the new venture will be ket. investment; 2) all the patents you not far off from Seagate in terms of Historically, large Japanese compa- need to design your first unit are units shipped: nies don't like to shake hands. And already owned by the current field - Seagate 35.3% these three compete in a slew of of manufacturers, and the price to - Hitachi GST + Fujitsu + Toshiba other product arenas, not just in IT. license them would be as high as 33.4% And there's no shortage of the Eiffel Tower.

• When Seagate Technology open a new substrate facility in NASDAQ listing from The Global acquired Maxtor, its CEO Steve Malaysia this year. Market to The Capital Market Luczo confirmed that “We aren't A second Seagate plant operating because the company fails to com- going to lay off any Seagate at nearby Springton will be unaffec- ply with the minimum $10 million employees.” ted. stockholders' equity requirement However, with the closing of one of The latter facility produces thin film for continued listing on the Global its two Northern Ireland manufactu- wafers for disk heads and employs Market. ring facilities, the HDD maker will 1,400. It is also, to our knowledge, now cut back around 900 of its own the last manufacturing plant in • Mountains West Exploration, workers and temporary employees. Europe to underake the assembly Inc. d/b/a Secured Digital Storage The 10-year old plant in Limavady, of HDD components. has filed an amendment to its County Londonderry, was manu- Seagate was considered the largest articles to change the company's facturing aluminum disk substrates, private-sector employer in Northern name to Secured Digital Storage a component of hard disk drives. Ireland. Corporation, following the acquisi- The activity is no longer profitable tion of the latter company last for the company, and it plans to • Ciprico has applied to transfer its November, 2007.

STORAGENEWSLETTER© is published monthly by Micro-Journal SARL de presse, 11 rue de Provence, 75009 Paris, France. Phone: +33 (0)1 42 46 30 56. Fax: +33 (0)1 48 24 22 76. Email: [email protected]. Web site: www.StorageNewsletter.info Jean-Jacques Maleval, Publisher-Editor; David Gardner, Translation and copyediting. All rights reserved. Reproduction of any or all information contained herein without prior permission is forbidden. Printed in Paris by Promoprint, Paris, France. Dépôt légal: 1Q2008. CP No. 1111 I 88595. ISSN 0988-3452.

StorageNewsletter© January 2008, Vol. 21#1 Issue No. 240 15

Market reports

TOP TEN STORAGE PREDICTIONS OF IDC FOR 2008

Demand for storage capacity conti- ced.” Among IDC's key predictions will begin to be divorced from stor- nues to grow at a rate of nearly for 2008 are the following: age subsystems, resulting in further 60% per year and IDC believes that 1) Online storage services (storage- commoditization of storage sub- during 2008 the industry will see as-a-service) such as online bac- systems. significant shifts in the way data is kup, archiving, and replication will 7) A growing number of enterprises stored, managed, and protected be accepted as a viable option. will adopt full-disk encryption according to its report Worldwide 2) New role-based storage systems within the datacenter to adhere to Storage 2008 Top 10 Predictions: will enable vendors to target speci- safe harbor provisions of many New Paradigms. The overarching fic storage and data management compliance regulations. theme of storage efficiency will issues, but will require tighter inte- 8) Vendors will create more attracti- intensify throughout 2008 and gration between the content-gene- ve ‘all in one’ solutions using an increase the industry's focus on vir- rating application and storage layer. integrated server and storage tualization strategies and green ini- 3) SSDs will become more viable approach to address the lucrative tiatives as well as information for mainstream storage solutions as SMB market. consolidation techniques like de- a result of declining price points. 9) Partial hardware refreshes that duplication. “In the past several 4) Virtual servers (e.g., VMware) will require nondisruptive expan- years, storage trends have tended emerge as the killer application for sions/replacements will be deman- to be tactical and focused on deve- iSCSI. ded by customers to up the ante on lopments in specific technologies,” 5) Vendors will create more attracti- ‘green’ initiatives said Benjamin S. Woo, VP of enter- ve ‘all in one’ solutions using an 10) De-duplication, single instan- prise storage systems at IDC. integrated server and storage cing, VTL, and thin provision will “2008 is likely to represent an approach to address the lucrative become standard options on stor- inflection point in the way applica- SMB market. age systems to enable customers tions and storage will be interfa- 6) Value-added storage services to become more ‘green.’

HOT CZECH DISK STORAGE MARKET TO HIT 10PB IN 2007 The buoyant Czech disk storage data management as a source of year on year to exceed $114 mil- market is expected to reach business value, digitization of all lion, with capacity increasing by 10,000TB of installed capacity in forms of media, and EU regulations almost 29% to nearly 8,000TB, 2007. According to a study from on data retention are fueling while shipments rose 1.8% to more IDC, Czech Republic Storage 2007- demand for enterprise storage sys- than 14,300 units. In 2007, the 2011 Forecast and 2006 Vendor tems. In 2006, the Czech disk sto- country’s market will pass $139 Shares, the growing importance of rage market grew more than 17% million in value.

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