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2002, May week 3a, news archive

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Eden Prairie, Minn.- May 20, 2002 - XIOtech Corporation, a SAN pioneer, today announced its NAS offering. XIOtech's MAGNITUDE hardware platform can now be deployed as a storage foundation for both NAS and SAN environments, delivering unsurpassed flexibility and simplicity to end-uses. Using an integrated model for a complete storage foundation provides greater benefits than simply being locked into one approach. Whatever storage model companies choose, SAN, NAS, IP storage, XIOtech's virtualized architecture provides an effective networked storage foundation for the future, allowing organizations the necessary flexibility to adjust to business conditions, regardless of the network plumbing attached to it. XIOtech has already announced a solution connecting the MAGNITUDE hardware platform to an Ethernet network to serve as a NAS device, using VERITAS ServPoint™ NAS for Solaris 8. Later this quarter it will also announce a NAS solution with Novell. ...Xiotech profile

Foothill Ranch, California - May 20, 2002 - Aristos Logic, the industry leader in Intelligent Storage Processors, announced today that Joe Colgate has been named the Vice President of World Wide Sales, reporting directly to Aristos Logic CEO, Anil Gupta. Colgate brings over 24 years of industry experience to Aristos Logic, with 13 of those as a senior sales executive with companies such as Vixel, Arcxel and StorageTek.

"Aristos Logic is very pleased to add an individual of Joe's caliber to the Aristos management team," said Anil Gupta, CEO of Aristos Logic. "Joe is a seasoned sales executive, and he brings with him a wealth of experience with storage OEM customers and end users. We look forward to building a strong customer base under his leadership," added Gupta.

As Vice President of Sales, Joe Colgate will be responsible for building and expanding customer base and creating a sales infrastructure for future growth. Most recently, he held the position of Vice President of Sales, Americas, at Vixel Corporation where he led the company's transition to embedded switch products and secured key OEM business. Prior to that, he was Vice President of Sales & Marketing at Arcxel Corporation, a start-up that was later acquired by Vixel. Colgate also spent 18 years at StorageTek, where he rose through the ranks and became Vice President of Sales for Western Region, consistently delivering to revenue targets. ...Aristos Logic profile

SAN DIEGO – May 20, 2002 – Overland Data, Inc. the fastest growing supplier of mid-range storage solutions, will continue to supply the new Hewlett-Packard Co. with its mid-range tape automation products previously supplied to Compaq Computer Corporation and sold under the StorageWorks brand, as communicated in the product roadmaps published recently by the new HP.

Christopher Calisi, president and CEO of Overland Data, said, "We are gratified to be able to continue our relationship with the new HP, and we will be working during the next 60 days to define their future requirements for our relationship." ...HP profile, ...Overland Data profile

Editor's comments:- there will be a lot of nervous Compaq suppliers waiting to see what happens to them now, especially if HP is an alternative source.

COSTA MESA, Calif. - May 20, 2002 - Emulex Corporation announced today that IDC has ranked Emulex the #1 supplier of Fibre Channel HBAs, in terms of revenue for the third consecutive year in 2001. In addition, Emulex was also ranked number one in HBA units shipped for the second consecutive year in 2001. IDC recently released preliminary Fibre Channel HBA data that will be published shortly within its upcoming bulletin, "2002 Worldwide Fibre Channel Host Bus Adapter Forecast and Analysis, 2000-2006." This data states that Emulex grew its #1 share of the Fibre Channel HBA market to more than 40% of the total supplier revenue and 38% of the total units shipped in 2001. The IDC data also indicates that Emulex's unit growth of 33% in 2001 was faster than that of the total HBA market.

"Emulex was the market leader in terms of both revenue and unit shipments last year," said Eric Sheppard, Senior Research Analyst with IDC and author of the report. "According to our research, we expect Emulex will retain its leadership position in 2002."

Also in the preliminary data, Emulex captured 47% market share of the merchant supplier revenue in 2001. The merchant HBA market is a sub-set of the total market and excludes sales of HBAs manufactured by systems suppliers. This 47% represented an increase of more than 4 percentage points from the previous year. ...Emulex profile, ...IDC profile

May 20, 2002 - a whitepaper called "SANs Data Security & Fabric Management" has been released today on by Datalink Corporation . SANs using Fibre Channel technologies have become the storage solution of choice for data access and management in environments where data is growing exponentially. SANs offer data centralization, high performance, and easy-to-manage data access. They are designed to allow multiple applications, in heterogeneous or homogeneous environments, to share the same storage resources. However, when multiple applications share the same storage resources, data corruption could result. The "SANs Data Security and Fabric Management" white paper discusses measures that can be deployed to resolve data security and fabric management concerns in SAN environments. ...Datalink profile

BROOMFIELD, Colo. - May 20, 2002 - McDATA Corporation today announced its continued leadership in the Director-class market, shipping 91% of the Fibre Channel Director ports in 2001. Success is demonstrated with strong results in 2001 in both Directors and fabric switches, according to preliminary data by market research firm IDC. Within this preliminary data (which will be finalized shortly in IDC's 2002 Worldwide Fibre Channel Hub and Switch Market Forecast and Analysis, 2000-2006) IDC reported that McDATA remained the leading supplier of Fibre Channel Director revenue and ports in 2001. The data also shows that shipments of Director-class ports grew more than 90% in 2001, faster than any other segment of the entire Fibre Channel hub and switch market. Also shown in IDC's preliminary data, McDATA accounted for more than 7% of the loop and fabric switch market segment. This came after having only shipped those products for seven months in 2001.

Although not represented in the preliminary data, McDATA, through its OEM and reseller agreements, has shipped more than 1.4 million storage-networking ports to customers worldwide....McDATA profile

Editor's comments:- despite the bullish sound of this market share news, McData reported a 27% decrease in product revenue in the first quarter ending March 31, 2002 compared to the same period in 2001.

San Jose, Calif. – May 20, 2002 – Acirro Inc. today announced the company's technology partnership with FalconStor Software, Inc. FalconStor is a leading provider of network storage infrastructure software that has been validated by major system, storage and appliance vendors and system administrators. Acirro offers a unique storage network management software solution enabling organizations to lower their storage network management costs. The partnership will result in a combined solution that allows Fortune 5000 companies to aggregate both NAS and SAN devices easily and cost effectively.

"Our goal is to provide Fortune 5000 companies with tools that simplify management and lower costs associated with complex storage networks," said Rob Wilson, vice president of business development at Acirro. "Partnering with companies such as FalconStor who provide 'best in business technologies' is a key business strategy for Acirro. Through these alliances, we offer users a unique method to maximize their existing storage network infrastructure and reduce overall cost of ownership."

Acirro's flagship product, Acumula™, is a smart replication and storage management solution that allows organizations to manage storage networks from one location and give end users access at anytime, from anywhere, to mission-critical information. The combination of Acumula with IPStor, FalconStor's storage networking software infrastructure, allows companies to aggregate NAS and SAN devices regardless of where they reside. IPStor provides a NAS interface and storage from SAN devices to Acumula, while Acumula aggregates these devices and provides a single view of the files to users, administrators and applications. The Acumula/IPStor solution will be available in Q2 and sold through Acirro and FalconStor reseller channels. ...Acirro profile, ...FalconStor Software profile

PITTSBURGH, PA ­ May 20, 2002 ­ Spinnaker Networks, Inc. today announced that it has successfully raised $31 million in its Series B funding round. This second funding follows an initial funding round of $20.4 million in 2000. The second round of investment was led by Mellon Ventures, Inc., with GIC Special Investments also joining as a new investor. Series A investors Menlo Ventures and Norwest Venture Partners, also participated in the funding round.

"Spinnaker has great technology and market potential, along with a strong management team that will propel the company to the forefront of the increasingly important storage marketplace," said Charles Billerbeck, Senior Managing Director of Mellon Ventures. "We are extremely enthusiastic about what Spinnaker is bringing to market in terms of performance and scalability and how its Transparent Scalable Architecture offers a single point of on-line management to lower the total cost of ownership." ...Spinnaker Networks profile

BELLEVUE, WA. - May 17, 2002 - TeraCloud Corporation, a leading SRM software provider, announced today that it has closed $5.5 million in its first round of institutional funding. Boulder Ventures Limited, the lead investor, and Northwest Venture Associates financed the round, which will be used to expand the TeraCloud management team and help the company grow its base of Fortune 1000 customers. TeraCloud leveraged the expertise of Cascadia Capital, an investment bank based in Seattle, throughout the financing process.

Serving Fortune 1000 customers for more than 11 years, TeraCloud provides an integrated SRM solution for mainframe and distributed storage environments that allows companies to manage mission-critical data, maximize space use and improve capacity planning for the enterprise. The funds will be used to expand TeraCloud's sales, marketing and development teams in order to deliver next generation storage management solutions.

"Among Fortune 1000 companies, storage is a huge cost center, yet it represents a critical and massively complex system," says Todd Jaquez-Fissori, venture capitalist at Boulder Ventures. "TeraCloud offers those same companies' executives a software solution that will manage, analyze and increase utilization of data resources and change storage from a cost center to a profit center." ...TeraCloud profile

Austin, Texas - May 16, 2002 - Dell reported on their first-quarter (which ended May 3). Net earnings were $457 million, or 17 cents per share, on revenue of $8.1 billion. Results for the period were essentially identical to those for the first quarter one year ago.

Total storage capacity shipped by Dell during the quarter increased nearly 70% from one year ago. External systems grew to 49% of company storage revenue. Storage sales were up more than 20% sequentially and current demand suggests a higher rate of growth from Q1 to Q2. The category is both Dell's fastest growing and most profitable as a percent of revenue. ...Dell Computer profile

MINNEAPOLIS, MN - May 16, 2002 - Tricord Systems, Inc. and, the worldwide leader in corporate-sponsored e-publishing, today announced "The Definitive Guide™ to High-Availability NAS", an eBook that will be hosted on the Tricord Web site. Authored by industry expert, John Vacca, and published by Realtimepublishers, the eBook will discuss network-attached storage and the high-availability options available today.

The Definitive Guide™ to High-Availability NAS will be published on a chapter-by-chapter basis, as it is written. Chapters are available for free download. Registered readers will receive email notifications as each installment of the eBook is available for download, and it is currently anticipated that one chapter will be made available every month. ...Tricord Systems profile

Editor's comments:- it's possible that the eBook will be the only tangible legacy of a company which has had a staggeringly high cost of sales in the past (about $98 of cost for each $2 of revenue).

Later... Tricord Systems, Inc. (Nasdaq:TRCD) announced on May 17 that it has received an additional notice of non-compliance from Nasdaq. This notice indicated that the company is no longer in compliance with the requirement to sustain a minimum level of net income, stockholders equity, net tangible assets or market capitalization. Tricord had previously received a notice of non-compliance with respect to the $1.00 minimum bid requirement.

LOUISVILLE, Colo. - May 15, 2002 - StorageTek today announced the VSM Disaster Recovery Solution for its industry leading Virtual Storage Manager (VSM) system. The VSM Disaster Recovery Solution significantly improves off-site vaulting because customers need to manage fewer tapes due to VSM's data stacking capability. This also reduces customer vaulting and transportation costs. Using the VSM Disaster Recovery Solution, customers can manage electronically vaulted data for uninterrupted, real-time backup and fast business resumption.

"The introduction of the VSM Disaster Recovery Solution is in direct response to increasing customer requirements for business continuance and resumption functions capable of handling nearly any scenario," said Gary Francis, StorageTek corporate vice president and general manager, Automated Tape Solutions. "VSM Disaster Recovery allows customers to seamlessly incorporate the manageability and flexibility of virtual tape storage in their business continuity activities to insure the availability of their most valuable asset - information."

The VSM Disaster Recovery Solution is available immediately to customers worldwide. ...StorageTek profile

SANTA BARBARA, Calif - May 15, 2002 - An exclusive survey of over 400 storage IT managers was conducted by Peripheral Concepts, Inc. and Hattras, Inc. revealing that two out of three data centers with over one terabyte of disk storage capacity currently deploy a SAN, and this ratio will grow to three out of four by the end of 2003. Companies with at least one NAS deployed today will grow from 38% to 60% during the same time period. A significant percentage of the companies surveyed own more than one SAN and remain cautious in their consolidation plans.

The slow economy has not significantly impacted the user's appetite for data and storage. Companies operating on reduced budgets have attempted to better utilize their current disk capacity. However, the improved disk management has had little ongoing impact on the need and requirement to add SAN and NAS. In the past 18 months, disk capacity has continued to grow but at a slower pace than previous months. Increased Disk capacity has resulted in greater externalization of disk space.

Storage networking is at a crossroad, with the two architectural models battling for supremacy. Performance emerges as number one on the list of the most desired features. Who buys SAN's and why? What do IT managers like and dislike? Why did some IT managers decide not to purchase NAS? These are just some of the questions that are addressed. Also, learn what keeps IT managers awake at night and for which solutions or services are companies willing to pay extra.

Over 300 questions were asked. The results are analyzed in a report titled "Storage Networking- A Market Analysis" to be issued in June 2002, priced at $3,950. This extensive survey sheds new light on IT operations - demographics for servers, hardware and software storage vendors, switch and hub products, as well as storage services, segmented by operation size. ...Peripheral Concepts profile

Editor's note:- on the SAN versus NAS issue, I checked the mouse site web stats which show that 63% more readers go to our NAS page (the #2 product area on STORAGEsearch) than the SAN page. You'd expect more interest in NAS because the deployment costs are lower. In case you're wondering Backup software, HSM & SRM is still #1, and the #3 page is Solid state disks.

May 15, 2002 - Arkeia Corporation announced today that its popular enterprise network backup solution has passed compatibility tests with Oracle 9i. Arkeia for Oracle RMAN was previously certified as compatible with Oracle 8i that allows online database backup. Arkeia for Oracle RMAN is an Arkeia module that interfaces fluidly with the Oracle Recovery Manager. This add-on makes it possible for network administrators to do online backup and restore of Oracle databases, a mission-critical activity in the evolving world of network technology. Arkeia conveniently schedules either full or incremental backup without interrupting 24 hour access to the database. The intuitive Arkeia GUI allows system administrators and database managers to use the Oracle modules without additional training.

"Arkeia provides the perfect online backup security tool for relational databases such as Oracle, a crucial activity of daily business management. Our solution is especially designed for today's complex heterogeneous networks using Oracle on Unix or Linux," stated Phil Roussel, Arkeia's CEO. ...Arkeia profile
Other news on this page

XIOtech Launches NAS

Aristos Logic Appoints Joe Colgate as Vice President of Sales

Overland Data to Supply Mid-Range Tape Automation to New Hewlett-Packard

IDC Ranks Emulex #1 in Worldwide Fibre Channel Host Bus Adapter Revenue for 3rd Consecutive Year

New SAN Data Security Whitepaper Released Today by Datalink

McDATA Leads Fibre Channel Director Market with 91 Percent Share of Ports and Quickly Gains 7 Percent Share of Loop & Fabric Switch Revenue

Acirro and FalconStor Enter Strategic Alliance to Simplify Management of NAS and SAN Infrastructures

Spinnaker Networks Raises Additional $31 Million in 2nd Round Funding

TeraCloud Raises $5.5 Million in First Round of Financing

Storage is Dell's Fastest Growing and Most Profitable Product Line

Tricord to Sponsor Realtimepublishers' Free eBook: "The Definitive Guide™ to High-Availability NAS"

StorageTek Announces Disaster Recovery Solution for Leading Virtual Storage Manager (VSM) System

400 IT Managers Express Their Opinion on SAN and NAS

Arkeia Announces Oracle 9i Compatibility for Relational Database Backup

earlier news (archive)
Fastest growing companies
Squeak! - The fastest growing profitable storage companies in the US - 2002.
For a pro, like Megabyte, picking winners was just a question of pulling the right handles.

Nibble: Is the Recovery Going to be Worse for Storage Vendors than the Recession?

In looking over the financial reports from hundreds of US storage companies in recent weeks, I couldn't help feeling a sense of unease. Those storage companies which are growing and making money are a rare breed.

Is the IT Recession really over?

Well, apart from some headline basket cases, it seems that way. There are more disk drives being shipped than ever before, and there are plenty of companies with very high revenue growth rates. The only problem is, that almost no one is making any money out of selling computer systems or storage. We're reporting daily on new rounds of VC investments going into storage companies, so that's another sign that the market is on an upward curve. I worry that we could be heading into a kind of doomsday scenario where demand for storage grows, and the amount spent on storage increases but still no one manages to make any profit.

Organizations do crazy things sometimes. In World War I, after years of trench warfare produced no gain in territory, the allies made the cynical calculation that if they continued to pour men into bloody battle at the same rate as the Germans, they would still win the war, simply because they could afford to lose more men.

There are more companies than ever fighting for market share in every product category. That's good for buyers because they can shop around for bargain products which exactly suit their needs. Most startup storage companies are finding that the new, unique product ideas which they thought up two to three years ago when writing their business plans, were also thought of by maybe a dozen or so other companies. And some of those other startups have already been acquired by bigger more established vendors. So the clock to gain market share is ticking.

The lesson of Dell can't be ignored. You can gain market share and be profitable by being the low cost supplier. But most companies haven't got the time to reach profitability, or become the most efficient producer, and will be tempted to use learning curve pricing on its own to crank up their revenue. That will only work as long as their cash keeps flowing.

As the size of the storage market increases, and the prize of winning market share becomes more tempting, there's a growing risk that companies will do crazy things equivalent to sending more troops over the top in WWI. It wasn't worth it then, and it's not worth it now. Managers in storage companies should look hard at what they're doing and start focusing more on profitability than revenue. Otherwise their companies won't have a future.

LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications and storage semiconductors for applications that access, interconnect and store data, voice and video.

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