NetApp’s gift of a T-shirt the other day made me think about all the other s.w.a.g. I’ve collected during my time in the storage industry – I’ve become something of a collector of odd trade-show tchotchkes. And I realized when I looked at the items I’ve kept, my desk has become a personal museum of now-defunct or acquired companies. So I thought a brief tour of my collection might be a fun Friday post.
Here are some of the things I’ve accumulated: Continued »
According to Symantec’s earnings call last night, updates to NetBackup announced at Symantec Vision in June helped keep its storage business strong this quarter. Storage and services revenue increased 20% year over year to $616 million, which COO Enrique Salem attributed in part to new NetBackup features such as continuous data protection (CDP) and integration with PureDisk data deduplication.
The ability to offer customers one throat to choke for storage management, archiving and backup has also paid off, according to Salem, as the sales force focused on selling across product groups. Enterprise Vault sales grew 30% year over year, and the product enjoyed some good publicity this quarter with selection to various analyst product rating lists and customers raving at Vision about its features. The Storage Foundation product line also “posted its best results in years,” according to Symantec, though numbers weren’t given.
Symantec has had a rocky time of it in the recent past, especially over the last year, following frequent managment shifts and its market share slipped in IDC quarterly tracker reports on the storage software market. As recently as last quarter, there was speculation that Symantec would sell off its storage business units.
But during last quarter’s earnings call, Symantec also reported good growth for its storage business units. Email archiving, backup, and storage management were among the product segments that posted double-digit year over year growth for Symantec’s fiscal fourth quarter.
There’s one dark cloud still threatening to rain on Symantec’s parade, however — its sales channel. Earlier this month it was reported that Symantec would be going direct with its largest customers, a report that was later contradicted by top Symantec channel executives.
That hasn’t stopped unrest among channel partners whose feathers were ruffled by the original report, and it hasn’t stopped Symantec competitors from swooping in to try to take advantage of the confusion. Following last night’s earnings call, skepticism over Symantec’s “conflicting channel messages” seemed to have spread to financial analysts, as well. According to a note to investors sent out by TBR:
Although Symantec defends the announcement by explaining that its strategy actually hasn’t changed, but that it only made its customers aware of the option to go direct, TBR believes the damage has already been done in the partner community. Symantec competitors wasted no time in stepping in to try to lure Symantec partners away, as Trend Micro and other smaller players made bids for Symantec’s partners by pushing their own channel programs during the confusion. Although the strategy would give Symantec more control over cross selling its portfolio in its largest accounts and potentially improve margins, TBR does not expect the change to make a big impact on either metric. However, greater involvement in large accounts from the direct sales force will give Symantec more control over cross selling products across its portfolio to drive new license revenue in existing accounts.
Just about all data deduplication vendors make claims about the dedupe ratios their systems provide, with the caveat that the ratios vary by data type and backup frequency.
Sepaton today says it’s willing to guarantee its ratio for Exchange. The VTL vendor said if customers don’t get a 40:1 ratio with its DeltaStor dedupe software in 30 days, it will throw in a free disk shelf with at least 7.5 TB of capacity – a $50,000-plus value.
There are some conditions. First, the customer must use Symantec NetBackup for now, because that’s the only backup software DeltaStor supports. And the customer must do daily full backups, which result in better reduction than incremental backups. The guarantee is part of what Sepaton calls a FastStart Deduplication Package for Symantec NetBackup, consisting of an S2100-ES2 library with 20 TB and DeltaStor.
Analysts who closely follow the dedupe market say Sepaton deserves credit for making the guarantee, but isn’t exactly sticking its neck out. Because Exchange includes a lot of messages sent to multiple recipients with attachments, it tends to have a great deal of duplicated data that can be reduced.
“To guarantee anything takes guts,” Arun Taneja of the Taneja Group said. “It’s a good marketing strategy for them to set the trend and draw a line in the sand. But for full backups for email for 30 days, 40:1 is very achievable. So I would say it’s not a very large risk.”
Glasshouse backup guru Curtis Preston agrees. “I think it’s a great idea and I doubt they would have done it if they hadn’t already done a lot of testing to verify they actually can get more than 40:1 in most Exchange environments,” he said. “There is a lot of duplicate data in Exchange.”
Sepaton director of product management Jim Shocrylas said the 20 TB system would give a customer with 4 TB of daily full backups a retention period of about half a year. He said the guarantee applies to full backups because Microsoft’s best practice recommendation for backing up Exchange is daily fulls.
“This is first of a number of guarantees we’ll be coming up with for specific data,” Shocrylas said. “Others will follow.”
NetApp has struck back in the ongoing catfight with EMC – this time in the form of a T-shirt.
According to an announcement made this morning, NetApp’s V-Series gateways can now dedupe storage from HDS, HP, Fujitsu, and 3PAR, among others, but with this promotion, they’ve chosen to focus on you-know-who:
Now I’m waiting for EMC to send me a “NETAPP SUCKS” coffee mug.
In an economic downturn, not everybody makes it through in one piece. Though the storage market has fared better than many (apparently the list of things in life you can count on has been expanded to three: death, taxes and data growth), it isn’t without its casualties. Ciprico and Agami are the two latest.
The Minneapolis-Star Tribune reports that storage controller startup Ciprico has filed for Chapter 11 bankruptcy. According to an analyst quoted in the Star-Tribune story, “Ciprico spent too much cash last year building a sales force to sell a radical new disk storage product that consisted only of software rather than a computer device…Ciprico had the funds and burned them up too quickly.”
Ciprico reported a loss of $3 million on $2 million in revenue for the first quarter of this year, then laid off 30 percent of its staff in March. Ciprico CEO Steven Merrifield told the Star-Tribune he hopes to sell off the company’s technology
Poor judgment in the spending department may have been a factor, but Storagezilla also attributes the downfall of smaller companies to the general economic climate. “During a downturn the bigger players get bigger while the smaller ones collapse or are picked off via acquisition,” he wrote – in the midst of reporting that NAS vendor Agami has folded.
I since received confirmation from an Agami source that it has indeed gone out of business, although its web site and phone system are still functioning. In today’s economic climate, it wouldn’t be surprising if more “on the bubble” storage companies bite the dust.
The turnover that often occurs when a large company buys a smaller one has begun at Dell/EqualLogic, about seven months after Dell closed its $1.4 billion acquistion of the iSCSI SAN vendor. The most visible of these departures was delivered via vlog by Inside IT blogger and Dell/EQL evangelist Marc Farley, who gave his reason for leaving as “I’m not much of a big-company guy. I don’t know if I’m allergic to them, or what.” Farley said he’d be going to work for a smaller storage vendor, but didn’t specify which.
This is similar to what I heard recently from Roman Kichorowsky, former director of PR for EqualLogic, whose name is on a Dell press release as recently as July 10 but who has now moved on to FalconStor.
It’s not unusual for employees to leave in these kind of acquisitions. There are real cultural differences with almost every merger, and you’ll always find people who smile big until the press coverage dies down, wait for options to vest, and then get out.
But Dell’s retention of EqualLogic’s service and support staff as well as channel partners were major concerns for EqualLogic customers after the acquisition. The departure of PR and marketing people almost surely won’t affect the customers. But it’s worth keeping an eye on who else chooses to exit.
Atempo has been busy lately working its archiving story. Over the last six weeks, the backup software vendor has released an email archiving application and forged partnerships with Nexsan, Nirvana and – as of today – Permabit.
Atempo and Permabit say they’ve completed interoperability testing of the Atempo Digital Archive (ADA) file archiving software solution with the Permabit Enterprise Archive disk-based storage system.
While such partnerships have become common for smaller storage vendors looking to take on larger players, a partner has to bring something to the table to make it worthwhile. For Permabit, Atempo adds support for user-initiated (along with admin-initiated) archiving and the ability to archive Mac and Windows files in the same repository.
“Now shops can have admins set policies as well as user-set retention rules, and they don’t have to step all over each other,” Permabit director of product marketing Louis Imershein said.
Imershein said while Permabit’s customers tend to be enterprises, most of them have Macs somewhere — usually in the art or graphics departments. He said ADA makes it easier to manage archives regardless of what type of applications are used. “It’s a nice way to re-direct users to the archive without having to go through a filter drive, they can make a direct hop,” he said. “In enterprises, you wonder how people can do without that.”
Analyst George Crump of Storage Switzerland agrees that Mac support is becoming important in large companies. “I’m seeing an uptick in use of Macintoshes, even in the enterprise,” he said. Crump is also seeing a need for simpler interfaces such as ADA’s in archiving. “Many applications are too heavy — for lack of a better word — and they bring more to the table than needed,” he said. “Disk-based archiving simplifies archiving compared to tape and optical archiving. But there wasn’t a simpler app to take advantage of the simpler interface.”
But with no shortage of archiving products in the market now, getting people to take a look at their simple products will be the hard part for little guys like Atempo and Permabit.
Last week I noted that EDS shareholders had filed suit to delay the closing of HP’s acquisition of the IT services company. The Wall Street Journal has since reported that HP and EDS will settle with those shareholders. As part of the settlement agreement, HP and EDS will delay the merger until Aug. 18. That allows investors to reap an additional 5 cent-per-share dividend. The companies have also agreed to turn over more information about the structure of the deal requested by shareholders.
Last week, we saw a good bit of rain falling on cloud storage’s parade. First there was another Amazon outage. Then it came to light that a cloud storage site called The Linkup (nee MediaMax) has completely failed, because of an apparent problem with data migration. At least that’s what it sounds like from their blog post about going out of business:
It was not possible to satisfactorily complete the move of files from MediaMax to The Linkup as we had expected, and as a result cannot offer a service that meets your expectations and our business requirements. This is a very disappointing outcome for us, and we know it has been a frustrating experience for many of our customers.
Maybe the owners of The Linkup could bounce back by taking Xdrive off AOL’s hands for the bargain price of $5 million and starting over.
Generally, I reserve judgment on the ultimate fate of cloud storage services. I know that online storage had a brief period of interest during the tech bubble but never went anywhere, and some believe this is more of the same. But I can be convinced, for now, that this time might be different. Small outfits such as The Linkup get trampled during the gold rush toward any new technology, and perhaps established service providers such as Amazon are going through growing pains. It’s still too early for these events to be anything other than a possible warning sign.
But things have sure looked ugly lately.
Want to avoid having to archive your emails? All you have to do is get elected President. Or, at least, be President Bush.
The overseer of unprecedented government snooping tactics on private citizens has taken umbrage at the suggestion that his email correspondence be similarly vulnerable to prying eyes, saying he’ll veto a bill passed by the House July 8 that would revise the Presidential Records Act and the Federal Records Act to address Presidential email records–specifically, the archiving and preservation thereof.
This all started last year, when a watchdog group claimed that members of the Republican National Committee used their RNC email addresses, which are supposed to be for campaign matters only, to conduct other business with the White House. When asked to turn over those emails, the Bush administration said, ““Oops.” Oh, and coincidentally, emails relating to the infamous Scooter Libby/Valerie Plame affair are also among the missing, according to CNN.com.
Now, what do you think would happen if the CEO of even the most powerful corporation attempted to respond that way to an e-discovery request?
That said, I don’t expect this legislation to pass anyway, if the track record of data privacy legislation is any indication.