Post Holiday IT Shopping Bargains, Dell Buying Exanet?

For consumers, the time leading up to the holiday Christmas season is usually busy including door busters as well as black Friday among other specials for purchasing gifts and other items. However savvy shoppers will wait for after Christmas or the holidays altogether perhaps well into the New Year when some good bargains can become available. IT customers are no different with budgets to use up before the end of the year thus a flurry of acquisitions that should become evident soon as we are entering earnings announcement season.

However there are also bargains for IT organizations looking to take advantage of special vendor promotions trying to stimulate sales, not to mention for IT vendors to do some shopping of their own. Consequently, in addition to the flurry of merger and acquisition (M and A) activity from last summer through the fall, there has been several recent deals, some of which might make Monty Hall blush!

Some recent acquisition activity include among others:

  • Dell bought Perot systems for $3.9B
  • DotHill bought Cloverleaf
  • Texas Memory Systems (TMS) bought Incipient
  • HP bought IBRIX and 3COM among others
  • LSI bought Onstor
  • VMware bought Zimbra
  • Micron bought Numonyx
  • Exar bought Neterion

Now the industry is abuzz about Dell, who is perhaps using some of the lose change left over from holiday sales as being in the process of acquiring Israeli clustered storage startup Exanet for about $12M USD. Compared to previous Dell acquisitions including EqualLogic in 2007 for about $1.4B or last years Perot deal in the $3.9B range, $12M is a bargain and would probably not even put a dent in the selling and marketing advertising budget let alone corporate cash coffers which as of their Q3-F10 balance sheet shows about $12.795B in cash.

Who is Exanet and what is their product solution?
Exanet is a small Israeli startup providing a clustered, scale out NAS file serving storage solution (Figure 1) that began shipping in 2003. The Exanet solution (ExaStore) can be either software based, or, as a package solution ExaStore software installed on standard x86 servers with external RAID storage arrays combining as a clustered NAS file server.

Product features include global name space, distributed metadata, expandable file systems, virtual volumes, quotas, snapshots, file migration, replication, and virus scanning, and load balancing, NFS, CIFS and AFP. Exanet scales up to 1 Exabyte of storage capacity along with supporting large files and billions of file per cluster.

The target market that Exanet pursues is large scale out NAS where performance (either small random or large sequential I/Os) along with capacity are required. Consequently, in the scale out, clustered NAS file serving space, competitors include IPM GPFS (SONAS), HP IBRIX or PolyServe, Sun Lustre and Symantec SFS among others.

Clustered Storage Model: Source The Green and Virtual Data Center (CRC)
Figure 1 Generic clustered storage model (Courtesy The Green and Virtual Data Center(CRC)

For a turnkey solution, Exanet packaged their cluster file system software with various vendors storage combined with 3rd party external Fibre Channel or other storage. This should play well for Dell who can package the Exanet software on its own servers as well as leverage either SAS or Fibre Channel  MD1000/MD3000 external RAID storage among other options (see more below).

Click here to learn more about clustered storage including clustered NAS, clustered and parallel file systems.

Dell

Whats the dell play?

  • Its an opportunity to acquire some intellectual property (IP)
  • Its an opportunity to have IP similar to EMC, HP, IBM, NetApp, Oracle and Symantec among others
  • Its an opportunity to address a market gap or need
  • Its an opportunity to sell more Dell servers, storage and services
  • Its an opportunity time for doing acquisitions (bargain shopping)

Note: IBM also this past week announced their new bundled scale out clustered NAS file serving solution based on GPFS called SONAS. HP has IBRIX in addition to their previous PolyServe acquisition, Sun has ZFS and Lustre.

How does Exanet fit into the Dell lineup?

  • Dell sells Microsoft based NAS as NX series
  • Dell has an OEM relationship with EMC
  • Dell was OEMing or reselling IBRIX in the past for certain applications or environments
  • Dell has needed to expand its NAS story to balance its iSCSI centric storage story as well as compliment its multifunction block storage solutions (e.g. MD3000) and server solutions.

Why Exanet?
Why Exanet, why not one of the other startups or small NAS or cloud file system vendors including BlueArc, Isilon, Panasas, Parascale, Reldata, OpenE or Zetta among others?

My take is that probably because those were either not relevant to what Dell is looking for, lack of seamless technology and business fit, technology tied to non Dell hardware, technology maturity, the investors are still expecting a premium valuation, or, some combination of the preceding.

Additional thoughts on why Exanet
I think that Dell simply saw an opportunity to acquire some intellectual property (IP) probably including a patent or two. The value of the patents could be in the form of current or future product offerings, perhaps a negotiating tool, or if nothing else as marketing tool. As a marketing tool, Dell via their EqualLogic acquisition among others has been able to demonstrate and generate awareness that they actually own some IP vs. OEM or resell those from others. I also think that this is an opportunity to either fill or supplement a solution offering that IBRIX provided to high performance, bulk storage and scale out file serving needs.

NAS and file serving supporting unstructured data are a strong growth market for commercial, high performance, specialized or research as well as small business environments. Thus, where EqualLogic plays to the iSCSI block theme, Dell needs to expand their NAS and file serving solutions to provide product diversity to meet various customer applications needs similar to what they do with block based storage. For example, while iSCSI based EqualLogic PS systems get the bulk of the marketing attention, Dell also has a robust business around the PowerVault MD1000/MD3000 (SAS/iSCSI/FC) and Microsoft multi protocol based PowerVault NX series not to mention their EMC CLARiiON based OEM solutions (E.g. Dell AX, Dell/EMC CX).

Thus, Dell can complement the Microsoft multi protocol (block and NAS file) NX with a packaged (Dell servers and MD (or other affordable block storage) powered with Exanet) solution. While it is possible that Dell will find a way to package Exanet as a NAS gateway in front of the iSCSI based EqualLogic PS systems, which would also make for an expensive scale out NAS solution compared to those from other vendors.

Thats it for now.

Lets see how this all plays out.

Cheers gs

Greg Schulz – Author The Green and Virtual Data Center (CRC) and Resilient Storage Networks (Elsevier)
twitter @storageio

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Summer Weddings: EMC+Datadomain and HP+IBRIX

Storage I/O trends

Are you friend or family of the bride or groom?

Here’s comes the bride! (Audio)

That’s a question me and Mrs. Schulz were asked recently when we attended a wedding.

Summer months particularly June and August are known as wedding months (Hmmm, more merger & acquisition activity to come?). Summer is a nice time of the year for marriages at least in the U.S. and how ironic that we have already seen two well publicized IT data storage industry unions in the past couple of weeks, not to mention other smaller less publicized ones.

In one case, the California based bride (Datadomain-DDUP) had two courtiers (Massachusetts based EMC and California based NetApp, plus rumors of others). Fortunately one of those had a prenuptial that earned them a cool $57 million for their efforts (NetApp-NTAP) when EMC won the bride. Read more including some of my comments and perspectives among others about EMC, NTAP and DDUP here and here.

Yesterday, on a mid-July Friday, when things are normally quiet, in true wedding industry forum, news was released (here and here) that California based HP announced that it had bought Massachusetts based data and storage management software vendor IBRIX.

That’s a lot of activity involving California and Massachusetts in the past couple of weeks, not to mention the tornado sightings in the vicinity of EMCs Hopington Massachusetts headquarters coincidently around the same time the marriage to DDUP was formerly announced! What’s’ next, Aerosmith is out on tour, perhaps the Del Fuegos or Boston will perform at one of these wedding parties?

Within the data storage industry, publicly traded Datadomain (DDUP) is fairly well known to many for their role in helping to popularize the data footprint impact reduction technique refereed to as de-duplication (e.g. normalization, commonality factoring, intelligent compression, etc.). Adding to the awareness of DDUP was the recent highly public courtship with EMC eventually out-bidding NTAP with a dowry of about $2.1B USD. That type of press coverage and monetary amounts might normally be expected for the likes of a Madonna, Brittney Spears, Michael Jackson-RIP, Paris Hilton, Elizabeth Taylor or other celebrity unions covered by paparazzi with a similar number of attorneys involved.

On the other hand, IBRIX while known to some, is a lessor known entity compared to DDUP having taken a lower profile than even some of their close competitors. However for those who have been following and covering the clustered storage market (see here, here, here, here, here, here, here, here and here ), IBRIX is a well known entity.

IBRIX also has had ties to EMC having been involved in a pre-mari age affair with an reseller arrangement along with being "rumored" ;) to have been involved with ATMOS cloud or policy based storage solution formerly known as "Hulk". IBRIX has also quietly been involved with others like Dell as well as HP in similar to EMC reseller arrangements. Where IBRIX has been positioned is to address high performance, scale out parallel or concurrent clustered file system needs, both big and small I/O, sequential and random data storage and access. For example, in the media/entertainment and other industries along with enabling large Internet providers a bulk (low cost, high capacity) scale-out NAS (NFS & CIFS) option.

One of the reasons that IBRIX has been involved with the likes of EMC, Dell and HP among others is that unlike other vendors such as BlueArc, the once high-flying Isilon, NetApp, Onstor or Panasas, not to mention EMC Cellera NAS , is that those solutions are all bundled with proprietary hardware while IBRIX is software based. Where IBRIX Fusion fits is to enable NAS storage solutions using industry standard hardware (servers and storage) that are capable of being configured for both high performance compute (HPC) along with for low-cost general purpose bulk storage to support Web 2.0, social networking, home directories or on-line archives.

Consequently, and HP or Dell who just happen to sell servers, have had the ability of meeting large scale out and scale up NAS file serving applications by re-selling IBRIX installed on their servers or blade servers with either their own entry to mid-range lower cost, high performance and high capacity storage along with that of 3rd party vendors.

Ironically one of IBRIX’s competitors in the software NAS solution market was and remains PolyServe, software that HP acquired a couple of years ago to create their own scale out NAS solution (e.g. EFS). Other software based solutions include among others Lustre (Sun), CXFS (SGI), EMC ATMOS (I’m sure some will argue this is not scale out or NAS, will leave it at that for now) ;) not to mention those from IBM, Microsoft, Quantum (also re-sold by HP) or Symantec.

What does HP get with IBRIX?

Simple, the ability to own the IP (intellectual proprietary) that one of their competitors had been "rumored" to have been working with at one point, IP that their competitors had been reselling like themselves.

Thus HP gets more software IP that can and has been sold along with their hardware such as the Proliant servers and blade servers giving their customers choice, similar to what HP and other vendors do with their open servers. For example, HP had the ExDS9000 extreme storage system built on a blade server with high density, low cost, high capacity HP storage (e.g. HP Modular Disk System 600, HP MSA or even EVA).

This makes for a nice solution for bulk on-line and near-line storage applications where the emphasis is not as much on performance, rather massive scalability for storing on-line documents, archives, videos, images and other unstructured content which is where there is a lot of growth activity. The challenge is that the ExDS9x00 has only been available with the HP PolyServe software which works good for some environments, yet, for others, the clustered file system scale out capabilities of IBRIX were deployed.

With the addition of IBRIX, HP now should be able to provide their customers and prospects the choice of software to meet specific needs while maintaining an HP footprint, that is both hardware, software and services. HP has several different storage software stacks that they now own (e.g. Lefthand for clustered iSCSI, PolyServe for NFS/CIFS NAS, IBRIX for Clustered File system scale out NAS) not to mention those that it OEMS including among others Bycast (Medical Archive System) that is also OEM’d by IBM as their Medical Grid combined with IBM SOFS, Quantum StorNext and Microsoft Windows Storage Server and Sepaton (VTL and Dedupe) to name a few.

Do I think this was a good move by HP?

Yes as it gives them control over IP that they had been reselling as had some of their competitors who left IBRIX to HP to grab up. HP now has the IP which they can package with their hardware similar to how they have been doing, and giving customers choices to align the right hardware and software technology to the task at hand.

Whether it be Bycast for medical archiving, PolyServe or IBRIX for scale out NAS, Lefthand for clustered iSCSI, Sepaton for VTL and dedupe, Microsoft, Quantum StorNext for shared block storage serving or any of the other software packages HP offers with their industry standard servers, the customer has options.

For IBRIX customers and prospects, this move will give them a boost in a confidence that their decisions and investments are safe.

Ironically, vendors like Symantec with their Scaleable File Serving (SFS) clustered NAS solution that is also software based and runs on anyone’s open servers including those from HP gets a potential shot in the arm with HP validating the model and approach for bulk-storage and clustered NAS (Oh Mr. Salem, Mr. Dell is holding on Line 1, Mr. Chambers is on line 2 and Mr. Ellison on line 3 ;) )

Who’s going to be at the alter next? IMHO, I would keep an eye on (and this all just pure speculation) Bycast, Symantec, EMLX (Broadcom was a wake up call), Quantum, Sepaton, STEC, StorMagic, or ACS, maybe even 3PAR among other possibilities (think outside of the lines). I would not rule out a major game changer such as someone buying NetApp or the likes of an HP buying an EMC or Oracle buying a CSC, maybe even a CSCO buying someone like NTAP, how about Oracle buying NTAP and putting some attorneys out of work, not to mention, who will MSFT hook up with? Anything is possible as we have seen and traditional M&A wisdom is out the window.

Have fun at the next wedding you attend, go easy on the cake and wedding punch, especially if you will be doing any dancing (please, no You tube videos of the chicken dance) and be careful throwing rice or other items.

Ok, nuff said.

Cheers gs

Greg Schulz – Author Cloud and Virtual Data Storage Networking (CRC Press), The Green and Virtual Data Center (CRC Press) and Resilient Storage Networks (Elsevier)
twitter @storageio

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Downloads for fall 2008 San Francisco Storage Decisions now available

The TechTarget Storage Media Group has posted on Bitpipe the session presentations from the recent fall (November 17-19th) 2008 San Francisco Storage Decisions event. If you have never been to a Storage Decisions event, it?s a great venue for meeting with IT and storage professionals as well as vendors who also show up to show their wares and meet with the attendees. Make no mistake about it, Storage Decisions is not a vendor to vendor meet and industry network event like SNW or a vendor sponsored user group like VMworld or EMCworld, rather, its focused on the IT and storage professional and encourages speakers to be frank and candid in their discussions of technologies, techniques and even of vendors and their solutions.

In addition to doing a keynote session Wednesday evening November 19th on ?Hot Storage Topics for Channel Professionals? at the Storage Strategies for Channel Professionals Dinner event, I also did two presentations at Storage Decisions one in the management and executive track Management and Executive Track on Green and Efficient Storage , an (updated version from what was covered in September 2008 at New York) timely theme given my new book ?The Green and Virtual Data Center? (Auerbach) along with another session in the Storage and capacity management track of  ?Clustered and Grid Storage — From SMB, to Scientific, to Social Networking and Web 2.0? (also updated from September 2008)

View the entire list of all Storage Decisions sessions here.

A big thanks to all who came out last week in San Francisco at Storage Decisions and who attended the sessions enabling great discussion and insight both during the sessions, as well as during lunches, breaks and exhibition hours.

Cheers gs

Greg Schulz – Author Cloud and Virtual Data Storage Networking (CRC Press, 2011), The Green and Virtual Data Center (CRC Press, 2009), and Resilient Storage Networks (Elsevier, 2004)

twitter @storageio

All Comments, (C) and (TM) belong to their owners/posters, Other content (C) Copyright 2006-2012 StorageIO and UnlimitedIO All Rights Reserved