LAS VEGAS — Before their merger, EMC and Dell were active buyers of storage companies. In the past year, neither has made an acquisition. That’s understandable, considering the price that Dell paid for EMC and the monster transition the combined company has gone through over the past year.
When I saw Michael Dell at VMWorld 2017, I asked him if we can expect to see Dell EMC start buying storage companies again. His answer is bad news for storage startups looking to be bought.
“We have a lot of storage. We don’ need more storage,” Dell said.
Translation: we just spent more than $60 billion on the biggest storage company in the world, and you expect us to buy more?
He instead talked about how Dell EMC is spending heavily on R&D, indicating it will look to build rather than buy. But historically EMC and Dell preferred buying their storage platforms rather than building their own.
“If we need any more storage, we’ll get it,” Dell said.
Veeam Software open to acquiring startups
Speaking of acquisitions, Veeam Software CEO Peter McKay said the backup vendor could get into the game for the first time in 2018. McKay said his profitable company now has the money and the executive team needed to make and integrate small acquisitions.
“It will be part of our strategy for 2018,” McKay said. “We have a sizeable war chest of cash. I think we’re ready for it now. Everything we’ve done until this point has been organic growth. Our goal now is to add inorganic growth to the mix without affecting overall growth. We want to scale to $2 billion or $3 billion in revenue, organically or inorganically.”
McKay said Veeam has invested in a few startups. They include N2W, which makes data protection software for Amazon Web Services EC2. “We’re looking mostly for add-ons,” he said of Veeam’s acquisition and investment strategy.
Rubrik takes home best of VMWorld 2017, scales up advisory board
Besides winning the official Best of VMWorld 2017 award for its Alta secondary storage product, startup Rubrik also scored the unofficial “Best Marketing Gimmick” award for the show. Rubrik introduced its newest investor and board adviser, Kevin Durant, and brought him onto the VMworld 2017 expo show floor to sign autographs for star-stuck attendees.
At 6-foot-9, Durant is probably the tallest man to invest in a Silicon Valley company and he’s the only man with an NBA championship ring to put money into a storage company. But outside of name recognition—which startups can always use – how much can Durant do for Rubrik?
When USA Today asked the Golden State Warriors start about his interest in tech companies, Durant said: “Being in Silicon Valley, I play in front of (tech executives) and run into them at restaurants.”
Durant has also invested in on-demand delivery service startup Posmates and mobile investment platform company Acorns.
vSAN reaches adulthood
There was no major vSAN news at VMworld 2017, but lots of talk about the technology. That’s a sign that vSAN has matured from concept to a central data center tool. Over the past few VMWorlds, VMware concentrating on introducing its new hyper-converged software and then making product upgrades adding key features missing from early versions. Now the focus is largely on how people are using it now, mainly as a replacement from some or all of their traditional storage systems.
VMware did add an HCI Acceleration Kit at the show, a move designed to make it easier to use vSAN in remote and branch offices.
VMware’s goal for vSAN is to give IT generalists greater control over storage for their virtual machines.
“They’ve taken on the storage,” Lee Caswell, VMware’s VP of storage products, said of the generalists. “We think they can take on backup and data protection, and they can take on files, too. This is a massive data consolidation play.”
VMware is also working on adding support for Kubernetes and Docker Swarm container orchestrations with the open source “Project Hatchway” initiative. The Hatchway goal is to allow developers to use storage better, making features such as snapshots, cloning, encryption, deduplication and compression available at the container volume level.
Pure Storage CEO Scott Dietzen resigned unexpectedly Thursday, as the all-flash pioneer named former Cisco executive Charlie Giancarlo its new leader.
Dietzen will stay at Pure as chairman, although his exact role has not been determined. Dietzen said the CEO change was his idea, and there is no reason to suspect he was pushed out. The move was disclosed during Pure’s earnings report, which beat expectations for revenue growth.
As Pure Storage CEO, Dietzen built the flash vendor up to a projected $1 billion in revenue for 2017, close to 1,900 employees, and 3,700 customers.
“This was my call,” Dietzen said on the Pure earnings call. “I had a wonderful run, thanks to an extraordinarily gifted team. I’ve been in the job seven years and we have done some great things. And as I look to the road ahead for Pure, I felt we needed a different class of experience in operating at scale.”
Dietzen said he expected a search for his successor as Pure Storage CEO to take longer than it did, but “Charlie came to the top quickly. Charlie has phenomenal experience operating at scale having been part of Cisco when it went from $1 billion to well over $40 billion in revenues. And he’s an entrepreneur, having built a start-up, having participated in hyper-growth at Cisco, having been on the boards of great companies like ServiceNow and Arista through their growth phase. So, I think he is exactly the right leader at the right time.”
On his blog, Dietzen called the choice to step down “without a doubt, the hardest decision I’ve made in my career.”
Giancarlo did not tip his hand on his plans as the Pure Storage CEO. He made a statement at the start of the earnings call but did not take questions.
“I have considered many CEO opportunities over the past couple of years,” Giancarlo said. “What inspired me about the Pure vision was the opportunity to contribute to build a great multibillion-dollar and independent public company, which has the opportunity to become the global leader in data platforms. I expect to do a great deal of listening in these next few weeks and months. While I will not be taking questions on today’s call, I look forward to sharing details about my observations and priorities in the next earnings call.”
Giancarlo has spent more than 30 years as an executive and director at IT vendors, mostly with networking and telecom-related companies. Most notably, he worked at Cisco from 1994-2008 as executive vice president, chief development officer and president of its Linksys division.
Giancarlo was considered a candidate to replace John Chambers as Cisco CEO but he left in 2008 after Chambers said he intended to stick around for years. Chambers stayed on as CEO until 2015, turning the position over to Chuck Robbins.
After leaving Cisco, Giancarlo became interim CEO at telecom vendor Avaya for six months in 2008 and remains on Avaya’s board. He has been a managing director at private equity firm Silver Lake Partners since 2008, and sits on the boards of Accenture, Arista Networks, Attivo Networks and ServiceNow. Before joining Cisco, he founded Telecom Systems and Adaptive Corp., and went to Cisco from Ethernet switching company Kalpana through acquisition.
Pure Storage CEO swap follows positive revenue quarter
Pure’s revenue of $224.5 million last quarter grew 38% from last year and came in near the high point of its guidance. Pure executives said they remain on track for $1 billion in revenue for the year and they expect the fourth quarter of 2017 to be their first profitable quarter. Pure still has a ways to go on profit, however, after losing $62 million last quarter.
Besides trying to achieve profitability, Giancarlo will face other challenges as Pure transforms from startup to a large storage company. While Pure rode a flash wave that has taken over networked storage, it now faces another set of disruptors that threaten all storage vendors. These include the cloud, hyper-converged infrastructure and software-defined storage.
Emerging storage technologies pose challenges to new Pure boss
Pure’s cloud strategy is to sell the underlying storage for cloud providers, and to help enterprises build private clouds and connect their on-premises storage to public clouds in hybrid setups.
Pure claims more than 600 cloud providers as customers, contributing more than one-quarter of its revenue. Dietzen said Pure is also working on adding the capability to allow enterprise customers to stream applications between on-premises arrays and public clouds.
“Pure is delivering the data platform for the cloud era,” Dietzen said.
Dietzen brushed off the threat of hyper-convergence, saying hyper-converged appliances address different types of use cases than Pure’s all-flash arrays. He said for now, there is plenty of room for both.
“There is no question, I think hyper-converged and Pure have been the two big disrupters in the market,” he said. “But I will say we are mostly operating in different segments. If you add up all of our competition with hyper-converged infrastructure, we are seeing them in less than five percent of our engagements.”
Dietzen also played down the need for software-only products, pointing out that software is the key to Pure’s technology but its customers want it packaged on the right type of hardware.
“A pure software packaging is hard to achieve today because there is still a great amount of variability in the underlying flash,” he said. “Each new generation of flash even from a single fab changes in behavior pretty significantly, and so we are constantly tuning our software to take best advantage of each generation of the flash technology.”
Giancarlo faces other issues as Pure Storage CEO. They include whether the vendor should expand beyond its FlashArray block storage and FlashBlade unstructured data platforms, and if it should explore acquisitions to grow. Pure execs so far have refused to address those questions, leaving them for the new guy.
Druva today said it has raised another $80 million in funding, bringing its total investments into the range of $200 million for the fast-growing data management software vendors.
The Sunnyvale, Calif.-based company claims to have more than 4,000 worldwide customers that include NASA, Pifzer, NBC Universal, Marriot hotels, Stanford University and Lockheed Martin. The latest funding round was led by Riverwood Capital but Sequoia Capital India, Nexus Venture Partners and Tenaya Capital also participated.
Dave Packer, Druva’s vice president of product and alliance marketing, said the money will be used to further expand its sales, marketing, research and development as it moves into the growing cloud data management market. Druva scored $51 million in new private financing back in October 2016, and used that to diversify its cloud backup platform and accelerate global marketing and sales.
“A lot of that has not been spent,” Packer said of the previous funding. “A large portion of the (newest) investment is going to ramp up engineering. On an engineering standpoint, (we want) to supply a single control plane for end-to-end backup, recovery and resilience.”
Druva sells two branded cloud backup products that will serve as the foundation for its data management software portfolio. The enterprise-level Druva inSync product is for endpoints and it backs up data across physical and public cloud storage. The Druva Phoenix is a software agent used to back up and restore data sets in the cloud for distributed physical and virtual servers. Pheonix applies global deduplication at the source level and points archived server backups at a cloud target.
Last February, Druva upgraded inSync with tools to detect ransomware attacks and help recover clean data. The endpoint software detects strange behavior patterns. The company recently announced its Druva Cloud Platform that provides a unified control pane for data management across endpoints, servers and cloud data. It works as a service model.
“This will allow for a more on-demand model,” Packer said of the Cloud Platform. “Instead of providing two different products, they can be put under a single control plane. A consolidation of services also provides a greater level of capabilities. Users can have a single point of access to all the data.”
Parker said in the last six years companies have seen even more silos and disparate locations data stores that have gotten even more complicated with cloud adoption, driving up the need for data management software.
“What happened with organizations over time is you have all these disparate silos of data which are not connected,” he said. “Your organization is growing but at the expense of a centralized data plan. They have not been able to reconcile that. In fact, the data center is no longer the center of their data. So we need centralized policy management.”
In the past two years, Druva has set up subsidiaries in Japan and Germany and opened offices in the United Kingdom, Australia and Singapore. The data protection vendor set up Microsoft Azure and Amazon Web Services (AWS) cloud data centers in Canada, the United Kingdom and Hong Kong.
The company has positioned its data management software to go up against traditional backup vendors CommVault and Veritas Technologies, which also are transitioning into broad-based data management players. It’s also competing with startup Rubrik, which has raised a total of $292 million in funding since 2015 for cloud data management.
Druva executives have stated their goal to do an Initial Public Offering (IPO) by the end of this year, assuming they hit their revenue targets. Druva in 2015 claimed its revenues grew more than 100% year-over-year for five straight years.
Cisco re-confirmed its hyper-converged infrastructure strategy today by acquiring its HCI software partner Springpath for $320 million.
The Cisco HyperFlex HCI appliance consists of Springpath software bundled on Cisco UCS servers. Cisco became an investor in Springpath and signed an OEM deal with the startup in 2015, and launched Cisco HyperFlex in 2016. Cisco claims more than 1,800 HyperFlex customers.
Springpath sells software that powers hyper-convergence and competes with HCI software stacks from VMware (vSAN) and Nutanix.
The Cisco-Springpath deal should put an end to rumors that Cisco will buy market leader Nutanix, which would cost billions of dollars.
While disclosing the Springpath deal, Cisco identified hyper-convergence as the fastest growing data center market. It is also highly competitive. Cisco HCI rivals include Nutanix and the other major server players, Dell Technologies, Hewlett Packard Enterprise and Lenovo. Dell has the greatest HCI presence of server vendors. It owns VMware, sells vSAN-based Dell EMC VxRail appliances and also sells Dell EMC XC appliances running Nutanix software through an OEM deal. Lenovo has a similar OEM deal with Nutanix and resells other HCI software on its servers, and HPE acquired SimpliVity for $650 million last January for its ProLiant-based HCI platform.
Cisco expects the Springpath to close by the end of October. The Springpath team will become part of Cisco’s Computing Systems Product Group.
Liz Centonti, SVP and GM of the Computing Systems Product Group, addressed the acquisition in a blog today.
“The acquisition of Springpath is strategic to our data center portfolio as we transition to delivering software-centric solutions to our customers,” she wrote. ‘‘As one team, I am excited for the synergistic possibilities ahead to redefine hyper-convergence further and deliver seamless multi-cloud experiences for our customers.”
Given Cisco’s relationship with Springpath, the acquisition is not surprising. Still, Springpath has not been Cisco’s exclusive HCI software partner. Cisco sells vSAN-based Ready Node appliances and also resold SimpliVity software before HPE’s acquisition. And before Nutanix became a public company, there were rumors that Cisco would acquire the HCI pioneer.
The Cisco-Springpath deal may affect VMware and Nutanix in the HCI market. Now that Cisco owns its entire HCI stack, it has more incentive to sell HyperFlex instead of UCS with vSAN software. Nutanix has partnerships with Cisco resellers to package its software on UCS boxes. That arrangement does not directly involve Cisco, but Nutanix CEO Dheeraj Pandey would like to to persuade Cisco to work more closely with his company. The Springpath deal doesn’t kill that possibility, but certainly doesn’t help it.
Strong all-flash sales and a new niche acquisition highlighted the NetApp earnings call this week. The vendor on Wednesday reported net revenue of $1.33 billion, up 2% year over year and above the midpoint of its guidance range.
The new pickup is Reykjavik, Iceland-based startup Greenqloud for an undisclosed sum. As with its pickup earlier this year of storage memory startup Plexistor, NetApp did not disclose acquisition details. Greenqloud’s Qstack self-service stack allows enterprises to build, deploy and manage branded cloud infrastructure across multiple hypervisors and locations.
NetApp’s all-flash business contributed $1.5 billion in revenues, reflecting a 95% growth in demand for its All Flash FAS, EF and SolidFire all-flash arrays. In prepared remarks, CEO George Kurian said NetApp has been able to “substantially outpace” the growth rate of competing vendor’s flash arrays, after NetApp initially was late to enter the all-flash market. NetApp ranks second in all-flash revenue to market leader Dell EMC.
“The industry is in the early innings of the move from disk-based storage to flash as customers modernize existing datacenters and build next- generation datacenters to lower the total cost of ownership while gaining greater speed and responsiveness from key business applications,” Kurian said.
Kurian said NetApp has secured committed NAND flash supplies to meet requirement for its fiscal year.
NetApp product revenues increase 10%, hyper-converged gear on the horizon
Consolidated gross margins of 63.8% and increased revenues helped boost NetApp earnings per share (EPS) to 62 cents, five cents higher than anticipated. Wall Street analysts estimated pegged NetApp’s revenue at $132 billion and its EPS at 55 cents.
NetApp product revenue was $723 million, which was up 10% and marks the third consecutive quarterly increase. Revenue from maintenance and services contracts fell 5% to $602 million, which NetApp blamed on changes to service pricing, several years of declining product revenue and on “renewal execution issues” in 2017, perhaps related to a disruptive software upgrade to its Clustered OnTap operating system.
Kurian took the helm at NetApp in 2015 and charted a strategy to expand its footprint in all-flash, converged infrastructure and hybrid cloud services. At the time, development of NetApp’s all-flash FlashRay scale-out product had dragged for years, appearing only as a single node in limited availability. NetApp scrapped FlashRay when it acquired SolidFire in 2015.
Since abandoning plans to build an EVO: RAIL system in partnership with VMware, NetApp also has been conspicuously absent from the hyper-converged market. Kurian said that will change later this year.
“We have already transitioned our business away from the declining segments to the data-driven, high-growth segments of all-flash arrays, converged infrastructure, and hybrid cloud,” he said. “We will further expand our opportunity with the general availability of our hyper-converged solutions,” based on SolidFire technology.
NetApp seems to have weathered being late in the all-flash and hyper-converged sectors. It closed the quarter with $250 million in operating cash flow, a 10% increase from the previous year, and free cash flow in the quarter of $214 million, or roughly 16% of net revenues. It is sitting on $5.3 billion in cash and liquid investments, and that’s after buying back $150 million in shares and paying out $54 million in cash dividends.
It also is using the money for strategic acquisitions. Kurian said Greenqcloud’s Qstack technology will “augment” development of NetApp Data Fabric for delivering hybrid cloud services.
Kurian used the NetApp earnings call to highlight a recently announced Microsoft partnership. Engineers from the two vendors are integrating NetApp’s Data Fabric to support automated storage tiering and backup technologies in Microsoft Azure, Azure Stack and Office 365. Joint product announcements with Microsoft are planned for the NetApp Insight user conference in October.
Estimates of NetApp earnings per share for the second quarter range from 64 cents to 72 cents. Net revenue is expected to range between $1.31 billion and $1.46 billion.
Unitrends backup appliance products will go where some vendors have gone before — supporting the Nutanix Acropolis Hypervisor – while adding a cloud twist.
The company’s Recovery Series backup appliances and Unitrends Backup virtual appliances will feature integration for the Acropolis Hypervisor (AHV). Unitrends is extending its core data center backup and recovery capabilities for Nutanix to the purpose-built Unitrends Cloud.
That cloud backend separates Unitrends from other partners, said Joseph Noonan, vice president of product management. Unitrends also offers the flexibility to protect all hypervisors that run on Nutanix. In addition, Unitrends supports VMware, Hyper-V and Citrix XenServer hypervisors.
Organizations can back up from Nutanix appliances directly to Unitrends appliances or to an external NAS device.
Unitrends is looking to broaden its customer base with AHV support. Noonan said only a small percentage of Unitrends’ 19,000 customers use Nutanix. The Unitrends backup appliance line has a lot of midmarket customers, and Noonan said he hopes the AHV integration brings in more small to medium enterprises.
Noonan said he is seeing organizations that are early to adopt newer technologies going hyper-converged.
“It significantly reduces footprint for them,” he said. “It’s more about TCO and simplicity.”
He said customers are also looking to reduce infrastructure costs of VMware licensing.
Nutanix executives said at the vendor’s .NEXT 2017 user conference in June that using AHV can help customers save money by avoiding VMware enterprise license agreements, even if Nutanix HCI software and appliances are considered pricey. Nutanix offers AHV as part of its hyper-converged platform with no licensing costs.
On the cloud level, Unitrends backup appliance products also integrate with Microsoft Azure and Amazon Web Services. But there are gaps with the big cloud providers, especially as they relate to small and medium enterprises, Noonan said.
“We see the Unitrends Cloud being a better fit,” Noonan said, pointing to stronger service-level agreements, holistic support, scalability, and total cost of ownership and cost predictability.
Unitrends has been in the Nutanix Elevate Technology Alliance Program since October, supporting joint customers.
“Now we’re extending it more to integration,” Noonan said.
The Unitrends backup appliance integration with the Nutanix AHV will be available later this year.
Dell EMC’s Mozy has unlocked a new encryption key security feature for its enterprise backup product.
MozyEnterprise now provides support for the Key Management Interoperability Protocol (KMIP), which automatically generates per-user encryption keys that can be managed through an on-premises key management server (KMS).
The update features a “single pane of glass to manage all those encryption keys across all applications,” said David Hartley, product management consultant in research and development at Mozy.
MozyEnterprise now has more automated, granular encryption key management, Hartley said.
Mozy backup previously offered three other encryption key options:
• Mozy default encryption key: Mozy assigns an encryption key to users, stores and manages it.
• Personal encryption key: Each user manually creates a unique personal encryption key.
• Corporate encryption key: A Mozy administrator can create a key for all users in the company or a unique one for each user group.
MozyEnterprise backup customers most often used the corporate encryption key method.
The key management under Mozy backup had leaned traditional, but now it’s more isolated and controlled, said Robert Rhame, research director of backup technologies and storage for Gartner.
“This updates their methodology, silos individual users to protect them and gives them centralized control while having granularity,” Rhame said.
Dell EMC claims more than 900 customers for MozyEnterprise, a cloud backup product that includes file sync and mobile access. It’s aimed at large companies, ones with full-time IT staff and thousands of endpoints.
A couple of Mozy’s large customers had requested the KMS option. Hartley said Mozy was happy to oblige because of the trend in enterprise IT towards the centralized management of encryption keys across multiple applications using a KMS.
The KMS enables backup administrators to create and manage per-user local encryption keys.
“At-rest security is better because you have an encryption key per user,” Hartley said.
KMIP is now generally available for MozyEnterprise, for free, on Windows. Mac support is expected soon.
Mozy backup finds home in Dell EMC
Mozy is part of the Dell security suite, Hartley said. EMC bought Mozy backup in 2007. Dell bought EMC in 2016.
Rhame noted that Dell EMC does a solid job with its security overall.
“This is just an additional layer of isolation,” Rhame said of the MozyEnterprise update. “Key management was a little bit — but not much — behind.”
The Dell-EMC merger has worked well so far for Mozy because EMC had an enterprise focus, and Dell brings more consumers and SMBs to the table, Hartley said. In addition, Mozy is recommending SafeNet, a Dell technology partner, for the KMS aspect.
Rhame said it’s refreshing to see this additional feature from Mozy.
“It gives you an indication that this product has legs inside the new Dell EMC,” Rhame said. Conversely, Dell EMC in April spun out its Spanning cloud-to-cloud backup to Insight Venture Partners.
Rhame said he sees Mozy positioning itself toward more remote and branch office (ROBO) backup.
“A lot of endpoint backup vendors are moving in that direction,” towards ROBO, Rhame said.
For example, Druva went ROBO with its Phoenix product.
Mozy backup products also include MozyPro for smaller businesses and MozyHome for personal use.
Any claims that “flash is on fire” at Flash Memory Summit 2017 this week drew awkward glances, nervous laughs or groans. That’s because one flash system literally caught fire, causing the exhibition hall at the Santa Clara Convention Center to close for the entire show.
The Innodisk booth caught fire hours before Flash Memory Summit 2017 opened Tuesday morning. Damage from the fire and water from the sprinkler system that doused it prompted fire marshals to order the exhibition floor closed for the entire three-day show.
The show went on, with meetings and dozens of keynotes and panel sessions discussing all things flash for three days. Product launches went out as scheduled but the shutting of the exhibit hall disappointed vendors who planned demos of new and emerging products.
Fire marshals have not identified the cause of the fire.
Demonstrations that were never demonstrated included the Kaminario K2.N NVMe array due to ship in spring of 2018 and E8 Storage’s shipping D-24 rack-scale NVMe array as well as its coming X24 arrays. Newcomer Liqid wanted to show off what it calls a bare-metal composable infrastructure system using hardware from OneStop Systems.
Other products scheduled for demos included Toshiba NVMe over Fabric software, several new Intel SSDs, Mellanox NVMe over Fabrics devices, Everspin 1 GB and 2 GB DDR4 form factor MRAM devices, and a host of Samsung products including a reference “Mission Peak” 1U server that can store 576 TB of SSD capacity with new form factor 16 TB drives.
“We wanted to show that we’re real, and our stuff is battle tested,” said Julie Heard, E8 Storage’s director of technical marketing.
Flash Memory Summit 2017 wasn’t a complete waste for E8. The team won a best-of-show award for most innovative flash memory technology and showed off its Game of Thrones-knockoff “Game of LUNs” poster.
— Zivan Ori (@ZivanOri) August 9, 2017
Other notable Flash Memory Summit 2017 award winners included Western Digital for NAND flash, CNEX Labs and Brocade for storage networking, Excelero for software-defined storage, and Attala Systems Inc. for storage system.
Primary Data has beefed up storage analytics and cloud migration in its DataSphere virtualization platform. Now the startup is ready to dip into a fresh stash of cash totaling $40 million to heighten its profile in enterprise data storage.
PrimaryData DataSphere 2.0, released this week in early access, builds on previous editions oriented mostly for application development. The latest version embeds an artificial intelligence-based storage analytics engine that automatically moves inactive data to Amazon S3-compatible cloud object stores.
If the data once again becomes active, DataSphere transparently retrieves it from the cloud for access on local storage.
“We are able to give storage awareness to an application. Normally, you would have to write (code) for that,” Primary Data CEO Lance Smith said.
A policy catalog in 2.0, known as Objective Expressions, allows customers to prescribe the characteristics that can be applied to all data or to an individual file. To move data between cloud platforms, users need to change only the objectives for the data. Primary Data DataSphere then moves the data to the appropriate storage target.
“We traditionally have gone after the development and testing space, which are usually small deployments. But people are finding that our technology is so powerful that many of them are putting it in production (as a way) to save lots of money” on storage, Smith said.
Data protection and cloud mobility highlight 2.0 release
Primary Data claims DataSphere can manage and move billions of files and objects. The software will consume a customer’s block storage and converts it to the file namespace.
The enhanced storage analytics examine historical usage patterns to determine which tier of storage best meets an application’s requirements. DataSphere determines the optimal data placement based on customer-defined attributes relating to cost, data primacy or performance.
Primary Data DataSphere 2.0 include assimilation of array-based snapshots, allowing customers to use the snapshots to both preserve changes in real time and to serve as a disaster recovery tool. DataSphere accesses snapshot APIs of underlying storage arrays to clone space-efficient copies on a WAN or public cloud. The vendor claims this feature allows it to mix and match different vendors’ storage in the same share. Additional data protection in 2.0 includes metadata backup and restore and portal protection.
Primary Data DataSphere 2.0 supports cross-domain mapping and fully integrates with Windows Active Directory and Windows Access Control Lists, allowing mixed shares between Linux and Windows.
New investment earmarked for expansion of sales teams in U.S.
Along with DataSphere’s revamped storage analytics, the data management specialist announced up to $40 million obtained in separate funding transactions. The proceeds boost the startup’s total investment haul to nearly $100 million since its 2016 launch.
Primary Data received $20 million in venture funding in a Series B round led by Pelion Venture Partners, with participation from existing vendors Accel Partners and Battery Ventures. Up to $20 million in additional funding is available through a line of credit.
Smith said Primary Data will expand sales teams in growing markets, particularly Europe and North America.
“We have been hiring in North America and Europe since the start of this year to vastly grow our presence in vertical markets. We had been investing heavily in engineering up to now,” Smith said.
Created in the 20th century to sell storage to engineers, NetApp has survived for 25 years to remain the largest standing data storage company not tied to a server vendor. Founder Dave Hitz credits that survival to the company’s “enormous capacity to change” as the IT landscape changes.
“People ask me, why are you still alive after 25 years? That’s a very real question,” Hitz, currently a NetApp executive vice president, said during a press even last month. “NetApp has survived 25 years because we have an amazing ability for radical change when we need it.”
Hitz said his company has previously pivoted to survive disruptions caused by the rise of the internet, the internet crash and virtualization. He said all posed threats to NetApp when they first developed, and NetApp adjusted its storage to take advantage. Now the NetApp cloud pivot is the current adjustment that can make or break the company.
“Each of these transitions were things that were going to kill us,” he said. “Here we are again, possibly the biggest transition of all, into cloud computing and again it’s the thing that’s going to kill us. We hear, ‘We’re all doomed, everything’s going to move into the cloud, there’s no room for NetApp.’ I don’t think it’s true. It could be true if we don’t’ respond.”
Of course, you don’t have to be a bull-castrating genius to figure out the cloud is the key for today’s storage companies. Every large storage company has the cloud in its strategy and barely a month goes by when we don’t see a startup come along promising to provide cloud-like storage for enterprises, and to connect on-premises storage to public clouds.
So what is the NetApp cloud strategy?
Hitz said NetApp “way underestimated how pervasive the cloud would be on all enterprise computing,” just like it misjudged how flash would impact enterprise storage. (NetApp originally bet on flash as cache instead of solid-state drives in storage arrays before getting out its successful All-Flash FAS array in 2016.). But he said the NetApp cloud plan consists of doing what it does best — data management.
“We think data is the hardest part [of the cloud],” Hitz said. “It is very easy to go to Amazon or Azure, fire up 1,000 CPUs, run them for an hour or day or week, [and] then turn them off. It’s not easy to get them the data they need, and after they make a bunch of data, it’s not easy to get it back and keep track of it. Those are the hard parts. And that’s right in the center of our wheelhouse.”
Channeling NetApp’s history, CEO George Kurian said he saw his job when he took over in 2015 as leading the company through transition. “As the world around us changed, NetApp needed to change fundamentally,” he said.
He sees a strong NetApp cloud strategy as the key to initiating that change. “Many customers are engaged with us to help them build hybrid architectures, whether it’s between on-prem and public cloud, between two public clouds or migrating one of their sites to a colocation,” Kurian said.
Kurian cites SolidFire — an all-flash array platform built for cloud providers — as the “backbone of the next-gen data center.” NetApp acquired SolidFire in 2016 as much as a cloud platform as to fill a need for all-flash storage.
NetApp cloud software-defined storage (SDS) and services include Private Storage for Cloud, Ontap Cloud, Data Fabric, AltaVault cloud backup and others. NetApp also has a Cloud Business Unit, which includes development, product management, operations, marketing and sales.
Senior vice president Anthony Lye joined the company last March to run the NetApp Cloud Business Unit. “The whole purpose of my organization is to build software that runs on hyper-scale platforms,” Lye said. “The software can be consumed by NetApp or non-NetApp customers, on hybrid or multi-cloud environments.”
The NetApp cloud portfolio will go a long way in determining if the vendor gets to keep its survivor status.