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storage history - 2003, November week 1

Megabyte's selection of storage news
Megabyte loved reading news stories
about the storage market
... Fast Purge flash SSDs
Debunking Tier 0 Storage
After SSDs... What Next?
flash SSD Jargon Explained
the Top 10 SSD Companies
RAM Cache Ratios in flash SSDs
3 Easy Ways to Enter the SSD Market
Overview of the Notebook SSD Market
SSD Myths and Legends - "write endurance"
How Bad is the Fallout from Choosing the Wrong SSD Supplier?
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SanDisk Joins NASDAQ-100

SUNNYVALE, CA - November 7, 2003 - SanDisk Corporation today announced that SanDisk has been added to the NASDAQ-100 Index.

The NASDAQ-100 Index is composed of premier, non-financial, growth companies and has become a financial benchmark for global investors. Inclusion in this elite list of companies will be effective November 13, 2003. SanDisk invented Flash storage cards fifteen years ago, and through its intellectual property and patents has the rights to manufacture and sell all of the popular flash card formats sold today. ...SanDisk profile

DataPlay Awarded 6 Strategic Patents

Boulder, Colorado - November 6, 2003 - DPHI, Inc. (aka DataPlay) announced today that it was granted six patents from the U.S patent office, underscoring the innovation of its small form factor optical storage device.

The six patents are in addition to six patents previously awarded. Additionally, DPHI has acquired the services of IP Partner LLC in order to utilize the licensing revenue opportunities the patents represent. The two companies have already been working together for over two months. As the small form factor optical market emerges, DPHI's patents will enable the company to establish compelling advantages and acquire new licensing revenue. The patents cover the areas of optical data storage devices, optical head alignment, optical recording mediums with writeable capabilities, and access control of writeable mediums. ...DataPlay profile

StorageTek Partners with IXOS on ECM

LOUISVILLE, Colo. and MUNICH, Germany - November 6, 2003 - StorageTek today announced a worldwide strategic alliance to integrate a branded IXOS e-mail archival solution and resell IXOS' archiving and Enterprise Content Management software with StorageTek's storage management solutions.

The combined IXOS-StorageTek solution will enable companies to retain an unalterable archive of email for a fixed period of time, helping them comply with regulatory requirements. StorageTek will offer its customers an entire ECM solution which includes storage devices and professional services.

"Together, StorageTek and IXOS can offer customers one integrated storage archive platform for all of their Enterprise Content and e-mail archiving needs - eliminating the need to work with multiple vendors. This alliance enables StorageTek to continue to build out its extensive hierarchy of Information Lifecycle Management solutions," said Angel Garcia, StorageTek corporate VP of Global Services and International Operations. ...article re Email Archiving, ...StorageTek profile

SBS Launches First PMC InfiniBand Adapter

Albuquerque, NM - November 5, 2003 - SBS Technologies introduced the IB4X-PMC-2 Host Channel Adapter.

This is the first InfiniBand HCA to be provided on a PCI mezzanine card (PMC), bringing the advantages of high-speed InfiniBand technology to the world of embedded computing. Each of its two 4X InfiniBand Channels offer 20 Gb/s -10 Gb/s in each direction - bandwidth and low CPU utilization. The PMC HCA is ideal for embedded applications that need a high-speed, low latency data mover.

With dual 20 Gb/s 4x InfiniBand ports, the IB4X-PMC-2 HCA is a second-generation product designed to take advantage of the full performance of high-speed InfiniBand fabrics in embedded environments. This HCA includes application support for Sockets Direct Protocol (SDP), Internet Protocol over InfiniBand (IPoIB) to enable TCP/IP to run over InfiniBand links, and SCSI Remote Protocol (SRP) initiator to enable SAN. The IB4X-PMC-2 HCA is available now. Pricing starts at $2,195. ...SBS Technologies profile

Kashya's Products Get Worldwide Support

SAN JOSE, Calif. ­ November 5, 2003 ­ Kashya today announced that it has chosen IBM to provide its customers with global technical support for its new data protection and software products.

IBM will implement an around-the-clock call center with integrated help desk technical support for Kashya customers worldwide. IBM will provide flexible level call tracking and problem management solutions that are available ­ no matter where a customer is located or what language the customer speaks. IBM will also offer global support for users for the KBX4000, Kashya's data replication appliance. ...IBM profile, ...Kashya profile

FalconStor's Quarterly Revenue Up 43%

MELVILLE, N.Y. - November 5, 2003 - FalconStor Software, Inc. today announced financial results for its third quarter ended September 30, 2003.

For the third quarter of 2003, revenues increased 43% to $4.1 million, compared with $2.9 million for the same period a year ago. Operating expenses increased only 9% from $5.7 million in the third quarter of 2002 to $6.2 million. Net loss for the third quarter decreased to $1.9 million compared with $3.6 million for the same period a year ago. For the first nine months of 2003, FalconStor recorded revenues of $11.9 million, an increase of 64% compared with the same period a year earlier.

"The management team has taken a long range view since the inception of our business," said ReiJane Huai, Chairman and CEO, FalconStor Software, Inc. "We have made significant investments in nurturing strategic partnerships, building innovative products and establishing a scalable sales/support infrastructure. Based on our ability to successfully execute strategic OEM product designs, worldwide product acceptance and a growing sales pipeline, we are confident we can transform our early investments into Company value." ...FalconStor Software profile

Toshiba's New 40GB 1.8" Hard Drive

IRVINE, Calif. - November 5, 2003 - Toshiba Storage Device Division today announced its newest family of 1.8-inch embedded hard disk drives available in 20GB and 40GB capacities.

Digital entertainment and business devices continue to drive demand for robust storage in a mobile footprint as people want to take their digital content with them when travelling between the office, home, school and car.

"Toshiba continues to build on the 1.8-inch product line to deliver high-capacity drives capable of storing everything from digital music and photos to videos and presentations," said Amy Dalphy, manager, HDD business unit, Toshiba SDD. "We've been expanding our manufacturing capabilities in an effort to address this burgeoning demand as products are selling faster than the drives can be produced."

Products based on 1.8-inch technology include mobile entertainment devices, MP3 players, handheld computers, ultraportable notebooks, portable handheld GPS units, automotive jukebox systems and other specialized digital devices. Measuring 54 mm wide and 78.5 mm deep, and weighing 51 and 62 grams respectively, Toshiba's 20/40GB drives are smaller than a credit card and lighter than a pager - helping manufacturers create small form factor, more portable digital products. The 1.8-inch drives can withstand operational shock of up to 250g and non-operating shock up to 1,000g, providing a rugged, durable storage solution for today's mobile devices. ...Toshiba profile

SimpleTech Returns to Profitability

SANTA ANA, Calif. - November 5, 2003 - SimpleTech, Inc. today announced its financial results for the third quarter and the nine months ended September 30, 2003.

Revenues for the third quarter of 2003 were $57.5 million, an increase of 29% from $44.7 million for the second quarter of 2003, and an increase of 58% from $36.5 million for the third quarter of 2002. Revenues for the third quarter of 2003 increased from the same quarter of 2002 due to revenue growth from all major product lines, including an increase of $9.2 million, or 399% in sales of stacking memory products. In addition, Flash revenues grew $8.4 million, or 66% in the third quarter of 2003 compared to the same period in 2002. This marks the fifth consecutive quarter of 55% or greater quarterly growth in Flash revenues when compared to the same period in the prior year. Net income per share for the third quarter of 2003 was $0.01.

"...We believe that we are well positioned to take advantage of our improving industry conditions and company-generated opportunities. As component pricing for both DRAM and Flash memory has remained stable during the third quarter and into the fourth quarter of 2003, demand for both our customized and open-standard memory solutions has increased. Based on current semiconductor market trends, we presently expect that our revenues for the fourth quarter of 2003 will grow 10% to 15%..." said Manouch Moshayedi, CEO of SimpleTech, Inc. ...SimpleTech profile

Topspin Communications Secures $20 Million in Funding

MOUNTAIN VIEW, Calif. - November 4, 2003 - Topspin Communications today announced that it has secured a $20 Million third round of funding.

The over-subscribed round was led by Meritech Capital Partners and included all investors from prior rounds, including Accel Partners, Advent International, Duff Ackerman & Goodrich, Presidio Venture Partners, and Redpoint Ventures. Topspin has raised over $67 Million to date. ...Topspin Communications profile

Cypress Webinar Tackles Soft Errors in Memory Devices

SAN JOSE, Calif. - November 4, 2003 - Cypress Semiconductor and semiconductor distributor Avnet Cilicon, today launched "A Hard Look at Soft Errors," a free "view-on-demand" net seminar addressing bit errors in memory device manufacturing.

"Soft errors" are caused by the bombardment of alpha particles and cosmic rays during manufacturing, and are an increasing source of device failures as process linewidths shrink below 0.15 µm. This seminar explores the causes of soft errors and presents some steps being taken by memory manufacturers to counteract soft errors and minimize their effects. Participants are introduced to the concept of "Soft Error Rate," the metric used to quantify device susceptibility to these errors, and process and design improvement techniques are considered. The presentation also includes a comparison of soft error rates for 90-nm and 130-nm processes. It is presented by Ritesh Mastipuram an applications engineer in Cypress's Memory Products Division, who has been involved with Cypress's Soft Error Task Force, new product definition and system analysis for the past two years ...view seminar, ...Cypress Semiconductor profile, storage reliability

Best SAN Backup Software Award

SAN DIEGO, CA - November 4, 2003 - BakBone Software today announced that it has been awarded 'Best SAN Backup Software' by Storage World Australia 2003.

Additionally, BakBone was named winner of the CRN Certified Program 2003 in the category of 'Best Backup and Recovery Vendor' by CRN Magazine Germany.

In presenting the Storage World Best SAN Backup Software award, BakBone came out on top in the following criteria: platform support, features, functionality and simplicity. Judges included leading information technology veterans from Terrapin, ZDNet and RMIT, as well as storage guru and author Jon Toigo.

The Storage World Best SAN Backup Software award in Asia Pacific builds on recent industry honors for BakBone's NetVault in the European channel, including the #1 position in the category of backup and recovery in the German CRN Magazine's CRN Certified Program 2003. In winning the annual CRN award, the publication stressed resellers had voted BakBone the channel partner leader as a result of the company's strength in the following key areas: product quality and reliability, price/performance features, technical support, and co-operative vendor marketing programs. ...BakBone Software profile

M-Systems Increases Manufacturing for DiskOnKey Devices

FREMONT, Calif. - November 4, 2003 - M-Systems has formed a relationship with Celestica (an electronics manufacturing services company ) to expand the worldwide manufacturing capacity for DiskOnKey devices.

"Celestica's tier one manufacturing capabilities and global manufacturing network allows us to meet the explosive demand for USB flash drives and provide us with the opportunity to fulfill our customers' orders sooner," said Ariel Rosenfeld, vice president at M-Systems and co-manager of its DiskOnKey division. "Announcing Celestica as an EMS partner is another important milestone in M-Systems' sharp growth in the USB flash drive market." ...M-Systems profile

Infineon Demonstrates 10 Gigabit Ethernet on Legacy Fiber

Munich, Germany - November 4, 2003 - Infineon Technologies today announced that it has demonstrated the industry's first 10 Gigabit Ethernet (GbE) XPAK-compliant transceiver module operating over 300 meters of low-bandwidth multimode fiber.

The XPAK optical transceiver used a 1310 nm laser with EDC (electronic dispersion compensation) technology to extend the distance over which 10 GbE data can be transmitted error-free. The demonstration proves the feasibility of using single-laser transceivers for high-speed transmission over the installed low-bandwidth fiber infrastructure, which preserves capital investment while increasing capabilities. The use of EDC-enabled transceivers to upgrade networks without replacing fiber will also help accelerate adoption of 10 GbE technology, with its greater bandwidth.

The EDC-equipped Infineon XPAK optical module has shown the ability to transmit 10 Gbps data over up to 300 meters of virtually any grade of legacy multimode fiber. According to the IEEE 802.3 High Speed Study Group, more than 80% of the world's current enterprise fiber infrastructure is based on this type of low-bandwidth multimode.

The EDC technology compensates for dispersion and other impairments that cause inter-symbol interference and performance degradation. Without EDC, end-users need to either deploy high-cost, high-bandwidth multimode fiber to reach 300 meters at 10 Gbps, or use a solution that requires multiplexing four separate lasers of different wavelengths, which results in greater complexity, higher power dissipation, increased costs and reduced reliability. The small-form-factor XPAK module with EDC gives users a compelling alternative to those approaches. First samples of Infineon's modules with integrated EDC will be available in the first half of 2004. ...Infineon Technologies profile

Editor's comments:-
this new type of GBIC will make it possible for many organizations to leapfrog the adoption of iSCSI and IP SAN backbones using their existing network cabling.

Network Appliance Acquires Spinnaker Networks

Sunnyvale, Calif. - November 4, 2003 - Network Appliance, Inc. today announced the signing of a definitive agreement to acquire Spinnaker Networks, Inc. for approximately $300 million in an all stock transaction.

Spinnaker is a pioneer in scalable system architectures, distributed file systems, next-generation clustering technologies, and virtualization. For Network Appliance, this is primarily a software technology acquisition that reaffirms the NetApp business model and extends NetApp leadership in scalability, simplicity, and total cost of ownership for enterprise storage systems.

The closing of the acquisition is subject to the satisfaction or waiver of customary conditions, including expiration of waiting periods under the Hart-Scott-Rodino Act, and if applicable, foreign antitrust laws, and is expected to occur by January 2004. ...Network Appliance profile, ...Spinnaker Networks profile

Editor's comments:-
3 years later - some of Spinnaker's founders resurfaced with the last of a new SSD accelerated storage appliance company called Avere Systems.

MUNICH, Germany - November 4, 2003 - Seagate Technology is now shipping its Momentus hard drives to Medion for use in its notebooks. Momentus is the first notebook hard drive to combine the high performance of a 5400-rpm hard drive with the low power consumption of a traditional 4200-rpm notebook hard drive. Seagate's patented SoftSonic fluid dynamic motor and new QuietStep ramp load technology make Momentus one of the quietest, most rugged notebook hard drives available. ...Seagate profile

Medion Qualifies Seagate's Momentus Drive

Nashua, NH . - November 3, 2003 - RAIDCore, Inc. today announced the availability of its first products, the high performance RC4000 Series RAID Controllers.

Based on the fast growing Serial ATA (SATA) standard, the RC4000 Series RAID Controllers are designed to deliver high quality, enterprise-level RAID storage solutions to all levels of businesses, significantly lowering the total cost of ownership for using RAID. RC4000 Series RAID Controllers offer many innovative, enterprise-class features, including the first 8-channel low profile (2U) RAID controller that fits where others cannot

"RAID solutions have been engineered around decade old technology, and current high-end, enterprise-level RAID has been hard to use and costly to maintain," said Tom Marmen, CEO, RAIDCore. "With the emerging Serial ATA technology, we saw an opportunity to offer the high performance and high reliability of RAID to an entirely new class of users. Our RC4000 Series RAID Controllers let server and storage VARs and resellers provide enterprise-class RAID to small and mid-sized businesses. And the significant performance benefits and low total cost of ownership make this an appealing offering to large enterprises as well."

In another announcement today, RAIDCore disclosed that Egan-Managed Capital and Longworth Venture Partners have committed $5 million in venture capital funding to the Company. The investment will support the company's push to bring the advantages of RAID storage technology to a wider range of users through RAIDCore's patent-pending Fulcrum Architecture. ...RAIDCore profile

Emulex and Vixel Announce Early Termination of HSR Waiting

COSTA MESA, Calif. - November 3, 2003 - Emulex Corporation and Vixel Corporation today announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 related to the tender offer Emulex commenced, through a wholly owned subsidiary, on October 15 to purchase the outstanding shares of Vixel at $10.00 net per share expired at 11:59 p.m. New York City time on October 31.

The termination of this waiting period satisfies one of the conditions for Emulex's acquisition of Vixel. ...Emulex profile, ...Vixel profile

IDC Reports Long-Awaited Turnaround in IT and Telecom Spending

FRAMINGHAM, Mass. - November 3, 2003 - A new report from IDC says that after two years of record declines and recession, the IT and telecom industries have gradually returned to positive growth in 2003, with continued recovery expected next year.

According to the 3Q03 version of the industry-standard IDC Black Book, to be released this week, worldwide IT spending is set for 5% growth to $916 billion in 2004, while spending on telecom services will show 4% growth to $1 trillion.

"Our forecasts are based on a relatively conservative set of economic assumptions," said Stephen Minton, IT spending analyst at IDC. "If the recent announcement of surging economic growth in the US is sustained, and the gradual improvement in international economies continues, we can look forward to a further uptick in IT spending expectations."

According to the new IT Black Book, which gathers IT spending data from 55 countries, total spending in 2003 will show a return to positive growth this year in the United States and emerging markets, although worldwide growth will remain inhibited by declines in Europe, Japan and Canada. ...IDC profile
Storage Industry gets Back to Revenue Growth
It looks like the 3rd quarter of 2003 was a turning point for the storage industry, with many companies reporting increased revenue compared to the same period in 2002.

There was a preview of this in my June article the Fastest Growing storage companies - in which the top 5 companies reported over 80% year on year revenue growth. But in recent years those were the exception rather than the rule.

In fact the high fallout of storage companies made our acquired, dead & merged companies page one of the top 5 pages visited by STORAGEsearch readers throughout 2003 - as customers tried to find out what happened to once-upon-a-time suppliers.

A number of companies in different product areas have recently announced revenue growth, and some even reported profits - which suggests that the blood bath and shakeout we've seen in recenbt years may be finally coming to an end.

Also the hardening of memory prices, and upbeat comments from semiconductor makers like Cypress Semiconductor's President and CEO T.J. Rodgers commenting on chip forcasts for 2004 - "...We shipped 160 million units in the quarter, a record, beating the 157 million units we shipped at the peak in Q3 2000. If these trends continue, we believe there is a strong possibility that the modest recovery of 2003 will turn into a boom in 2004-2005" - are good signs that the storage industry may be returning to a better state of health.

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