Factory revenue for backup appliances soared to $1.05 billion in the fourth quarter and $3.35 billion for 2015 – up 2.5% over 2014 – according to statistics released last week by International Data Corp. (IDC).
IDC Research Manager Liz Conner said the fourth-quarter figure marked only the second time that revenue from what IDC calls the Purpose-Built Backup Appliances (PBBA) market has hit $1 billion for a quarter. The $1.05 billion represented a 4.1% increase over fourth-quarter revenue for 2014.
Conner said via a prepared statement that backup appliance vendors have been adapting to industry trends by “putting greater emphasis on backup and deduplication software, meeting recovery objectives, [offering] the ability to tier to the cloud” and improving ease of use.
Worldwide PBBA capacity grew to 1,160 petabytes (PB) in the fourth quarter, a spike of 25.6% compared to the same period in 2014, according to IDC. Annual capacity rose to 3.3 exabytes, a 23.1% increase over 2014.
EMC continued to dominate the backup appliance market, generating more than one-third of its total annual revenue in the fourth quarter. Its fourth-quarter revenue of $707.9 million represented 67.7% market share and 10.6% growth over Q4 in 2014. For 2015, EMC’s revenue exceeded $2 billion, as the company captured 61.4% market share.
Symantec was a distant second with $479 million in annual revenue and 14.3% market share in 2015. Symantec closed out the year with $125.1 million in fourth-quarter revenue – an 8.1% increase over the same quarter in 2014. In January, Symantec completed the sale of its Veritas division, which includes the NetBackup and Backup Exec products, to The Carlyle Group.
Rounding out the top five in annual revenue were IBM ($165.7 million), Hewlett Packard Enterprise (HPE, with $150.3 million) and Barracuda ($88.1 million). IBM’s revenue was down 19.5% compared to 2014, but HPE (11.7%) and Barracuda (32.6%) saw substantial growth.
Behind EMC and Symantec in the fourth quarter of 2015 were IBM ($41.6 million), HPE ($40.7 million) and Dell ($23.6 million). Dell’s revenue grew 16.5% in Q4 2015 versus Q4 2014.
For its PBBA market sizing, IDC includes products that integrate the data movement engine (backup application) with the appliance as well as products that serve only as a target for incoming backup application data.
Commvault Systems Inc. this month rolled out the latest version of its backup and data management portfolio to add support for Hadoop, Greenplum and IBM’s General Parallel File System (GPFS).
It also extended support for its Commvault IntelliSnap product to include NEC and Nutanix Acropolis.
The company’s portfolio is comprised of Commvault Software for data protection, recovery and archiving, and the Commvault Data Platform, formerly known as Simpana. The Data Platform is an open architecture that supports APIs throughout the stack and focuses on making copies of data readily accessible in their native format for third-party applications. It allows customers to access native copies of data without having to wait for a restore from a backup repository.
Chris Van Wagoner, Commvault’s chief strategy officer, said customers can use Commvault Software to manage big data configurations. It can also recover data across the whole system or across selected nodes, components or data sets.
“The architecture of GreenPlum, Hadoop and GPFS are node-based,” he said. “They are distributed rather than a vertical stack. Our platform is more for traditional data centers. So we had to do some work on our architecture. We had to make changes to our platform to mirror the multi-node architecture.”
The company also extended API support for Amazon S3, REST and NFS interfaces. The Commvault Data Platform also now offers customers a scale-out storage option that can run on any commodity hardware to support petabyte scale environments.
“We introduced the ability to provide search and index support for data without having to move the data,” Van Wagoner said. “If some uses Salesforce.com, we can go out through connectors and index data in the Salesforce application without dragging the data back to our platform. We can index and search in place without having to move it.”
Commvault also can protect data inside VMware, Hyper-V, Xen, Red Hat Enterprise Virtualization (RHEV) and Nutanix Acropolis hypervisors, and protect workloads as the move from hypervisors to the Microsoft Azure and Amazon AWS public cloud.
“We can pick up VMware workloads and restore it into the Amazon clouds,” Van Wagoner said. “We give customers the true promise of portability and the ability to move data between cloud providers and between private and public clouds. We now also support Nutanix and its hypervisor.”
Commvault snapped a string of four quarters of year-over-year revenue declines when it reported of $155.7 million last quarter, up two percent from the previous year, and its software revenue of $71.4 million increased 24% from the previous year. While Commvault continued to make money during its sales declines, its $13.2 million income last quarter was its highest take in a year.
Violin Memory is trying to push its all-flash arrays into the financial services market through a partnership with U.K. software vendor Stream Financial.
The vendors have combined to launch what they call a data appliance portal. The product, FlashSync, combines Violin’s Flash Storage Platform (FSP) arrays with servers and Stream’s Data Fusion federated query software. The target market is investment banks and other financial services firms that have to crunch billions of rows of data from various database sources. Violin and Stream Financial claim FlashSync is more efficient and cost-effective than pouring all of the data into a massive warehouse or doing everything in-memory where data is not persistent.
FlashSync has four configurations: Micro (24 CPUs, 7 TB capacity, 250 billion rows of data), Small (36 CPUs, 11 TB, 500 billion), Medium( 72 CPUs, 22 TB, 750 billion rows) and Large (144 CPUs, 44 TB, 1.5 trillion rows).
The systems will allow customers to access data at source and write to high-performance flash memory in a persistent manner. Data Fusion allows queries across various sources as if they were one system. The idea is to perform faster queries of data that helps make business decisions.
Carlo Wolf, Violin’s vice president of the Europe, the Middle East and Africa (EMEA) region, said the partnership came about after a bank tested Data Fusion and liked its performance but needed it to scale to billions of rows of data. “You just can’t do that with traditional disk arrays,” Wolf said.
FlashSync will be sold by Violin channel partners, with the array vendor providing support for the storage and Stream Financial tackling software support issues.
Wolf said a large U.K. financial services firm has done a trial with FlashSync, and the product will initially roll out in the U.K. He said he expects FlashSync to eventually hit the U.S. market but no U.S. channel partners have signed on yet.
Violin has been struggling financially and failed in an attempt to find a buyer for the company. CEO Kevin DeNuccio said Violin’s strategy will be to find partners to help bring products to market.
Despite slipping in the fourth quarter, overall worldwide storage revenue increased 2.2% in 2015.
External (networked) storage declined 2.3% for the year, according to International Data Corporation’s worldwide quarterly enterprise storage systems tracker. Hewlett Packard Enterprise (HPE) was the only major vendor with increases in the fourth quarter and 2015 overall. HPE finished the year second behind EMC in overall storage systems revenue and third behind EMC and NetApp in external storage.
Total 2015 revenue of $37.16 billion was up from $36.36 billion in 2014. EMC led the way with $7.13 billion for 19.2% market share, but EMC’s revenue fell 5.9% from 2014 and its market share slipped from 20.8%. HPE’s revenue of $5.77 billion increased 12.6% from 2014 and its share rose from 14.1% to 15.5%. Dell, IBM and NetApp completed the top five. IBM took the biggest hit with a 23.2% decline, partially because of the sale of its x86 server business to Lenovo.
Revenue from external storage – SAN and NAS — dropped 2.4% for the year to $24.08 billion in 2015. All of EMC’s systems revenue comes from external storage, and it had 29.6% market share – down from 30.7% in 2014. NetApp is also external storage-only, and its market share slipped from 12.7% to 11.1% after a revenue drop from $3.13 billion to $2.68 billion.
NetApp’s 14.3% decline was the biggest fall of all vendors for external storage. HPE improved 2.7% to $2.41 billion in external storage revenue, and its market share improved from 9.5% to 10%. IBM and Hitachi Data Systems completed the top five. External storage revenue from all other vendors rose eight percent and made up 31.5% of the market.
In the fourth quarter, total enterprise storage systems garnered $10.38 billion in revenues compared to the $10.62 billion in the same quarter of 2014, a 2.2% percent decline. The total worldwide external enterprise storage systems market generated $7 billion compared to $7.12 billion the previous year.
Revenue from flash inside storage arrays grew, however. The all-flash array market generated $955.4 million, a 71.9% increase from the previous year. Hybrid flash array revenue came to $2.9 billion, which is 28% of the overall market.
EMC had $2.23 billion revenue in the fourth quarter, giving it 21.5% share of the overall market and 31.7% of the external market. EMC’s revenue fell 5.2% from the previous year.
HPE, Dell, IBM and NetApp followed in overall storage. In external storage, IBM, HPE, NetApp and HDS rounded out the top five behind EMC in external storage. HPE revenue grew 7.9% overall and 2.6% in external storage in the fourth quarter.
NetApp took the biggest hit. Its revenue dropped 14.8% in the quarter and its external storage market share fell from 10.6% to 9.3%. External storage revenue from all other vendors grew 6.5% and their combined 30.1% share would rank second behind EMC.
Hyper-converged vendor Pivot3 closed a $55 million funding round this week to support expansion following a merger with flash array vendor NexGen Storage.
Pivot3 CEO Ron Nash said the bulk of the funding would go towards integrating NexGen technologies into Pivot3 products and vice versa. The two companies merged in January.
“We’re putting the biggest part of it in product development,” Nash said of the new funding. “We like the products NexGen has, but we like even more what we could do jointly given the base of both companies and both sets of technologies. We have a bunch of products we can put together.
“We have more things to play with and I want it to go faster.”
Nash said quality of service and dynamic provisioning are key NexGen technologies that you can expect to see in Pivot3 products, while Pivot3’s erasure coding could end up in NexGen arrays. Multiple hypervisor support is another roadmap item for Pivot3, which current only supports VMware ESX. Nash said the current headcount of around 230 will probably rise about 20% this year, and the vendor will keep “equal size” offices in Houston, Austin, Texas and Boulder, Colorado. “We’re not calling any of those offices headquarters,” he said.
Nash said funding will also be spent on sales and marketing.
Pivot3 has raised $247 million in funding since its inception in 2003, including a $45 million round in February 2015. Previous investors Argonaut Private Equity and S3 Ventures were involved in the current round along with several undisclosed investors. Nash said none of the funding came from strategic investors.
That funding total isn’t much compared to hyper-converged rivals such as Nutanix ($312 million) and SimpliVity ($276 million). SimpliVity raised $175 million in one round in 2015, and Nutanix raised $140 million in a 2014 round.
“Those companies put so much into sales and marketing,” Nash said. “I put a lot more in product development, playing for the long term. Hurling it into sales and marketing will be a short-term boost but you have to invest in products.”
Storage vendors often talk about this being a transformation period in storage. EMC, whose executives use that term as much as anybody, conducted an analysis of its customers to see just where they stand in the transformation.
EMC and its VMware subsidiary conducted IT transformation workshops across 18 industries to gauge their customers’ progress. The workshop focused on helping organizations identify gaps in their IT transformation, determine goals and prioritize their next steps.
- More than 90% are in the evaluation or proof of concept stage for hybrid clouds, and 91% have no organized, consistent way of evaluating workloads for the hybrid cloud.
- 95% say it is critical to have a services-oriented IT organization without silos but less than four percent operate that way.
- 76% of organizations have no developed self-service portals or service catalog – crucial pieces to building a private cloud.
- 77% want to provision infrastructure resources in less than a day, but most say it takes between a week and a month to do so.
- Only the top 20th percentile can do showback and chargeback to bill the business for services consumed, and 70% say they don’t know what resources each business unit is consuming.
So if so many organizations want to streamline their IT and build hybrid clouds, why have so few done so? If you guessed cost, you’re probably on the right track.
“There are usually two limiting factors,” said Barbara Robidoux, VP of marketing for EMC global services. “They’re all being told they have to hold costs down, especially on the legacy side. If they’re going to go forward and modernize any aspect, that costs money, yet they’re being told to hold costs down. So to some degree, you’re stuck. We’re hearing ‘We need help with ROI analysis to see how we can save money on infrastructure.’ The other thing is a lack of skills and know-how. That’s pretty disruptive.”
For years we’ve seen storage vendors take systems designed for hard disk drives (HDDs) and add solid-state drives (SSDs) to them. Now Hewlett Packard Enterprise is taking hardware that ran all SSDs and allowing customers to use HDDs inside of it.
HPE’s new 3PAR StoreServ 20840 array uses the same hardware as the all-flash StoreServ 20850 launched in 2015. But while the 20850 only supports flash, the 20840 holds up to 1,920 HDDs. Both systems can use from six to 1,024 SSDs.
The 3PAR StoreServ 20840 scales up to eight controller nodes and includes 52 TB of cache, 48 TB of optional flash cache and 6000 TB of raw capacity. The system supports any combination of SAS, nearline SAS disk drives and SSDs.
“The system is the exact same hardware as the all-flash 20850 and we will keep that system around for customers who want to go entirely with flash. This 20840 is for our customers that happen to support spinning disk on the back end,” said Brad Parks, director of strategy for HPE storage. “The 20840 is flash optimized but not all-flash limited.”
The new 3PAR storage model is part of the HPE 3PAR StoreServ 20000 enterprise SAN family that the company launched in June 2015. In August 2015, HPE announced the 20450 all-flash system and the 20800 all-flash starter kit.
HPE last week also launched the enterprise-level StoreOnce 6600 and midrange HPE StoreOnce 5500 data deduplication disk backup appliances. Both are based on HPE’s latest ProLiant servers. The 6600 scales from 72 TB of usable capacity to 1728 TB, while midrange HPE5500 model scales from 36TB to 864 of useable capacity in a highly dense footprint designed for data deduplication in large and midrange data centers and regional offices.
HPE StoreOnce supports HPE Data Protector, Veritas NetBackup, Backup Exec via OST, Veeam and BridgeHead software. The systems work with the 3PAR StoreServ’s StoreOnce Recovery Manager Central, which takes application-consistent snapshots on the HP 3PAR StoreServ array and copies the changed blocks directly to any HP StoreOnce appliance. The process is known as flat backup.
“Snapshot data moves directly over the network to StoreOnce without engaging the third-party software,” Parks said.
Jason Buffington, senior analyst at Enterprise Strategy Group, said these latest models demonstrate that HPE is offering a consolidated approach for data protection in both data centers and remote sites.
“What we are seeing is organizations have multiple workloads with specify data protection solutions,” he said. “That is the macro trend that HPE is trying to address. StoreOnce is trying to address a way to centralize storage data protection.”
IBM recently rolled out a pair of new storage offerings: the “Gen 2” Storwize V5000 hybrid system, with upgraded Spectrum Virtualize software, and a “Platform Conductor” for Apache Spark data analytics.
The Gen 2 edition of IBM’s Storwize V5000 for the first time gives customers a choice of three models: the V5010, V5020 and V5030. The company sold only one V5000 model in the past, although the Storwize product line also includes a higher end V7000 and lower end V3700.
Eric Herzog, vice president of product marketing and management for IBM’s storage and software-defined infrastructure, said the V5000 targets the “lower end of the mid-tier market.” That includes small and medium businesses and remote offices and departments of large enterprises. Typical workloads include databases and virtual server workloads.
The Storwize V5010 and V5020 models each hold up to 264 drives, and the larger V5030 has a 504-drive limit, or 1,008 drives per clustered system. Herzog said customers can technically use all hard disk drives (HDDs) or all solid-state drives (SSDs), but most use the V5000 in hybrid mode with a combination of the two.
The flash percentage is typically 5% to 10% in a Storwize V5000 hybrid array, and the bulk of the HDDs are 7,200 RPM, according to Herzog. The new V5000 offers per-system cache options of 16 GB, 32 GB and 64 GB.
The Storwize V5000 bundles the latest version of IBM’s Spectrum Virtualize software, which was formerly known as SAN Volume Controller (SVC). The main new feature in last fall’s Spectrum Virtualize 7.6 release was data-at-rest encryption. The Spectrum Virtualize software in the V5000 can manage up to 32 PB, according to an IBM spokesperson.
IBM’s Spectrum virtualization software supports more than 300 arrays from a wide range of vendors, according to Herzog. Customers with maintenance contrasts can update to the new Spectrum Virtualize at no charge.
All models of the new Storwize V5000 product line include features such as internal virtualization, thin provisioning, data migration, multi-host support, snapshots, automated tiering and remote mirroring. The V5020 adds encryption and boosts performance, and the V5030 also tacks on clustering, compression, external virtualization and HyperSwap high-availability technology.
The Gen 2 Storwize V5000 supports 16 Gbps Fibre Channel (FC) and 12 Gbps SAS connectivity, unlike the prior version’s 8 Gbps FC and 6 Gbps SAS. The Gen 1 and Gen 2 products both support 10 Gbps iSCSI/Fibre Channel over Ethernet (FCoE).
List price for the V5010 is $9,250 including hardware, software and a one-year warranty, according to IBM.
IBM Platform Conductor for Spark
IBM also recently announced its Platform Conductor to help users deploy the open source Apache Spark engine for large-scale data processing. Apache Spark can run programs up to 100 times faster than Hadoop Map Reduce in memory, or 10 times faster on disk, according to the open source project’s Web site.
“Spark is a real-time analytics engine. These real-time analytics engines require parallel processing on the storage side” for performance, said Herzog. “Spectrum Scale provides the parallel file system and scales up to exabytes of capacity. We don’t care what storage hardware they use.”
The IBM Platform Conductor for Spark includes the Apache Spark distribution, workload/resource management software and IBM’s Spectrum Scale File Placement Optimizer.
“People were getting Spark, the platform computing and Spectrum Scale. They were putting it all together, or we were putting it together, or our business partners were putting it together,” said Herzog. “We saw this trend happening already, so it made sense just to bundle them up and make it more convenient.”
Herzog said Apache Spark originally gained a foothold in academic communities, but Spark usage has been spreading to more traditional enterprise customers. He said IBM is considering more pre-packaged bundles similar to the Spark offering.
The list price for IBM Platform Conductor for Spark is $6,250 per managed server, whether physical or virtual, inclusive of licensing and one year of support.
Violin Memory finished its hunt for a buyer without a deal. It did land a few partnerships, while shedding a quarter of its workforce and closing few sales of its all-flash storage arrays.
Violin Thursday night reported revenue of $10.9 million, down from $12.5 million the previous quarter and $20.5 million a year ago. Only $4.3 million came from product sales, despite playing in a rapidly emerging flash storage array market. Violin lost $25.6 million for the quarter compared to a loss of $46.8 million the previous year. For the full year of 2015, Violin’s revenue of $50.9 million declined from $79 million in 2014. Its 2015 loss of $99 million was actually less than 2014 when it lost $108.9 million.
Violin CEO Kevin DeNuccio blamed the poor quarter results partially on the company’s exploration of a sale. The plan now is to cut staff – a process already underway – and try to push sales through its Flash Storage Platform (SFP) 7000 arrays and new partnerships to achieve profitability in 18 to 24 months.
“The strategic evaluation process and related media coverage impacted sales as it created a wait-and-see-what-happens mindset with some customers,” DeNuccio said on the Violin Memory earnings call.
DeNuccio said Violin explored strategic relationships with at least 15 companies over the last four or five months, but received no formal offers acquisition offers. He said Violin did sign a formal partnership offer “with one of the largest technology bellwethers” that could lead to an OEM relationship. DeNuccio said he expects a formal announcement over the next few months. He added that there are three more “relationships in various stages of development” that might lead to reseller or OEM deals.
“We are concluding the formal review of our strategic alternative process and we will focus on these new relationships,” he said.
Violin reduced headcount by 25% since last Oct. 31, going from 349 employees to 263 with most of the reduction hitting the sales team.
DeNuccio said there is still time for Violin to turn things around because the flash storage market is still in its early days, but admitted 2015 was a rough year.
“In the technology startup world, this would have been a rocket ship takeoff,” he said. “However, for Violin, anyway you look at it, we have just completed a very challenging year. It has been a year of navigating through a completely overhauled product line transition coupled with the launch of high value producing software in an industry-leading management suite. Despite the challenges of the quarter and fiscal year, we have put in place a new base of technology and customers from which to build the Violin business.”
Seagate is demonstrating a new PCI Express (PCIe) flash drive this week at the Open Compute Project (OCP) Summit that it claims meets OCP specifications and delivers throughput of 10 gigabytes per second.
The new full-height, half-length PCIe add-in card – which Seagate expects to ship this summer – bundles multiple gum-stick-sized, energy-efficient, consumer-grade M.2 solid-state drives (SSDs). The Seagate PCIe card accommodates 16-lane PCIe slots and supports non-volatile memory express (NVMe).
To comply with OCP specifications, the Seagate SSD had to enable capabilities such as the bifurcation of PCIe lanes at boot-up, out-of-band temperature and performance measurements, and the management of airflow and fan control in out-of-band fashion, according to Tony Afshary, director of marketing for flash products at Seagate.
The OCP is a collaborative community that focuses on redesigning hardware to more efficiently support the increasing demands on IT infrastructure, especially in large data centers with thousands of servers. Facebook has been the primary driver behind the OCP initiative. Other members include Microsoft and Google, which disclosed today that it’s joining the OCP.
“There is an enormous amount of data that is being generated specifically in the public cloud space, but even within enterprises, that requires you to be innovative and build data centers differently. That’s what OCP is all about,” Afshary said.
He said Facebook was influential in the design of Seagate’s new PCIe add-in card, both with the NVMe and with the aggregation of M.2 flash form factor cards inside an OCP server. Small-form-factor M.2 SSDs were originally designed for power-constrained devices, such as laptops and tablets, and later saw use in the SATA form factor to speed the boot process in servers.
Afshary predicted that NVMe-based M.2 SSDs will move into different tiers of storage and compute. Enterprises often use flash drives with databases for primary storage, but Afshary said innovative cloud companies are considering flash even for cold storage.
In an August 2013 presentation at the Flash Memory Summit, Jason Taylor, now the OCP’s president and chairman and Facebook’s VP of infrastructure, raised the prospect of using SSDs for cold storage. Taylor suggested that solid-state technology could provide high-density storage and longer hardware lifespan at a reasonable cost. He challenged the industry to “make the worst flash possible – just make it dense and cheap; long writes, low endurance and lower IOPS/TB are all OK.”
Greg Wong, founder and principal analyst at Forward Insights, said that, with Seagate’s new PCIe add-in cards, the M.2 SSDs enable easy upgrade for capacity purposes.
In addition to the full-height, half-length PCIe add-in card, Seagate is also finalizing a smaller half-length, half-height card that has eight-lane PCIe slots and does not use M.2 SSDs, according to Afshary. Seagate claimed that model can deliver 6.7 GB per second on reads.
Seagate’s new PCIe cards currently support two-dimensional triple-level cell (TLC) and consumer-grade multi-level cell (cMLC) NAND flash. Seagate expects to support 3D TLC and cMLC within a few months, according to Afshary. He declined to disclose pricing but said the cards will be competitive in price with any NVMe-based SSD, regardless of form factor.
The new PCIe cards from Seagate will work in OCP-compliant servers as well as standard servers, all-flash arrays and hybrid storage arrays that also have hard disk drives (HDDs), according to Afshary. Seagate has yet to announce the name or capacity options for its new PCIe add-in cards. Details will be available at the time of the official product launch.
The eight- and 16-lane PCIe add-in cards are currently in testing with multiple large customers. Seagate’s own test system included a Quanta Leopard server with two Intel Broadwell processors and 32 GB of memory, running the CentOS 7 Linux distribution. The bandwidth tests used 256K sequential reads.
Afshary said the new PCIe cards primarily target large-scale cloud providers, but he expects they will also see use with “anyone who wants to have high-density, high-performance, competitively priced SSDs.” Potential use cases include Web applications, weather modeling and statistical trend analysis among enterprises processing data for object storage or in real time, where speed matters, according to Seagate.