Welcome!

Microservices Expo Authors: Stackify Blog, Aruna Ravichandran, Dalibor Siroky, Kevin Jackson, PagerDuty Blog

Related Topics: Containers Expo Blog, Industrial IoT, Microservices Expo, Open Source Cloud, @CloudExpo, CRM

Containers Expo Blog: Blog Feed Post

Congratulations Imation and Nexsan

Are there any independent storage vendors left?

Last week Imation, the company that is known for making CDs, DVDs, magnetic tape and in the past floppy disk (diskettes), bought Nexsan, a company known for the SATA and SAS storage products.

Imation also (or should be) owns the TDK and Memorex names (remember is it real or is it Memorex? If not Google it). They also have had for several years removable hard disk drive (RHDD) products including the Odyssey (I am in the process of retiring mine), as well as partnership with the former ProStor for RDX and having acquired some of the assets of ProStor namely their RDX based InifiVault storage appliance. Imation has also been involved in some other things including USB and other forms of flash-based solid state devices (SSD), as well as a couple of years (2007) they launched cloud backup with DataGuard before cloud backup had become a popular buzzword topic.

Imation has also divested parts of its business over past several years including some medical related (X-ray stuff) to Kodak who occupies part of the headquarter building in Oakdale MN, or at least last time I looked when driving by there on way from the airport. They also divested their SAN lab with some of the staff going to Glasshouse and other pieces going to Lion bridge (an independent test lab company). Beyond traditional of data protection, backup/restore and archiving media or mediums from consumer to large-scale enterprise, Imation has also been involved in other areas involving recording. Imation also has done some other recent acquisitions around dedupe (Nine Technologies).

For its part, Nexsan has extended their portfolio from SATA and SAS products, AutoMaid Intelligent Power Management (IPM) which gives benefits of variable power and performance without the penalties of first generation MAID type products. Read more about IPM and related themes here, here and here. Nexsan also supports NAS and iSCSI solutions in addition to their archive and content or object storage focused Assureon product they bought a few years ago.

This is a good acquisition for both companies as it gives Imation a new set of products to sell into their existing accounts and channels. It also can leverage Nexsan's channel and solution selling skills giving them (Nexsan) a bigger brand and large parent for credibility (not that they did not have that in the past).

Here are is a link to a piece done by Dave Raffo that includes some comments and perspectives from me. To say that the synergy here is about archiving or selling SSD or storage would be too easy and miss a bigger potential. That potential is Imation has been in the business of selling consumable accessories for protecting and preserving data. Notice I said consumable accessories which in the past has meant manufacturing consumable media (e.g. Floppy disks or discs, CD, DVDs, magnetic tapes) as well as partnering around flash and HDDs.

In many environments from small to large to super-sized cloud and service providers, some types of storage systems including some of those that Nexsan sells can be considered a consumable media or medium taking over the role that tape, CDs or DVDs have been used in the pat. Instead of using tape or CDs or DVDs to protect the HDDs and SSDs based data, HDD based solutions are being used for disk-to-disk (D2D) protection (part of modernizing data protection). D2D is being done as appliances, or in conjunction with cloud and object storage system software stacks such as OpenStack swift, Basho Riak CS, CloudStack, Cleversafe, Ceph, Caringo and a list of others, in addition to appliances such as EMC ATMOS among others than can support 3rd party storage device as consumable mediums. Keep in mind that there is no such thing as a data or information recession, and people and data are living longer and getting larger, both for big data and little data.

The big if in this acquisition which IMHO is a fair price for both parties based on realistic valuations is if they can collective execute on it. This means that Imation and Nexsan need to leverage each other's strengths, address any weakness, close gaps and expand into each other's markets, channels and sell the entire portfolio as opposed to becoming singular focused on a particular area tool or technology. If Imation can execute on this and Nexsan leverages their new parent, the result should be moving from the roughly $85M USD sales to $100M+ then $125M then $150M and so forth over the next couple of years.

Even if Imation keeps maintains revenues or a slight increase, which would also be a good deal for them, granted the industry pundits may not agree, so let us see where this is in a few years. However if Imation can grow the Nexsan business, then it would become a very good deal. Thus, IMHO the price valuation for the deal has the risk built into, something like when NetApp bought the Engenio business unit from LSI back in 2011 for about $480M USD. At that time, Engenio was doing about $705M USD in revenue and seen by many industry pundits as being on the decline, thus a lower valuation. For its part, NetApp, has been executing maintaining the revenue of that business unit with some expansion, thus their execution so far is being rewarding for taking the risk.

Let us see if Imation can do the same thing.

Now, does that mean that Nexsan was the last of the independent storage vendors left?

Hardly, after all there is still Xiotech, excuse me, Xio as they changed their name as part of a repackaging, relaunch and downsizing. There is DotHill who supplies partners such HP, or Dothills former partner supplier InfoTrend. If you are an Apple fan then you might know about Promise, if not, you should. Lets not forget about Data Direct Networks (DDN) that is still independent and at around $200M (give or take several million) in revenue, are very much still around.

How about Xyratex, sure they make the enclosures and appliances that many others use in their solutions, however they also have a storage solutions business focused on scale out, clustered and grid NAS based on Lustre. There are some others that I am drawing a blank on now (if you read this and are one of them, chime in) in addition to all the new or current generation of startups (you can chime in as well to let people know who you are to be bought).

There is still consolidation taking place, both of smaller vendors by mid-sized vendors, mid-sized vendors by big vendors, big vendors by mega vendors, and startups by established.

Again congratulations to both Imation and Nexsan, let us see who or what is next on the 2013 mergers and acquisition list, as well as who will join the where are they now club.

Disclosure: Nexsan has been a StorageIO client in the past; however, Imation has not been a client, although they have bought me lunch before here in the Stillwater, MN area.

With Imation having their own brand name and identity, not to mention TDK and Memorex, now I have to wonder will Nexsan be real or Memorex or something else? ;)

Ok, nuff said.

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 2006-2013 StorageIO All Rights Reserved

Read the original blog entry...

More Stories By Greg Schulz

Greg Schulz is founder of the Server and StorageIO (StorageIO) Group, an IT industry analyst and consultancy firm. Greg has worked with various server operating systems along with storage and networking software tools, hardware and services. Greg has worked as a programmer, systems administrator, disaster recovery consultant, and storage and capacity planner for various IT organizations. He has worked for various vendors before joining an industry analyst firm and later forming StorageIO.

In addition to his analyst and consulting research duties, Schulz has published over a thousand articles, tips, reports and white papers and is a sought after popular speaker at events around the world. Greg is also author of the books Resilient Storage Network (Elsevier) and The Green and Virtual Data Center (CRC). His blog is at www.storageioblog.com and he can also be found on twitter @storageio.

@MicroservicesExpo Stories
How is DevOps going within your organization? If you need some help measuring just how well it is going, we have prepared a list of some key DevOps metrics to track. These metrics can help you understand how your team is doing over time. The word DevOps means different things to different people. Some say it a culture and every vendor in the industry claims that their tools help with DevOps. Depending on how you define DevOps, some of these metrics may matter more or less to you and your team.
For many of us laboring in the fields of digital transformation, 2017 was a year of high-intensity work and high-reward achievement. So we’re looking forward to a little breather over the end-of-year holiday season. But we’re going to have to get right back on the Continuous Delivery bullet train in 2018. Markets move too fast and customer expectations elevate too precipitously for businesses to rest on their laurels. Here’s a DevOps “to-do list” for 2018 that should be priorities for anyone w...
If testing environments are constantly unavailable and affected by outages, release timelines will be affected. You can use three metrics to measure stability events for specific environments and plan around events that will affect your critical path to release.
In a recent post, titled “10 Surprising Facts About Cloud Computing and What It Really Is”, Zac Johnson highlighted some interesting facts about cloud computing in the SMB marketplace: Cloud Computing is up to 40 times more cost-effective for an SMB, compared to running its own IT system. 94% of SMBs have experienced security benefits in the cloud that they didn’t have with their on-premises service
DevOps failure is a touchy subject with some, because DevOps is typically perceived as a way to avoid failure. As a result, when you fail in a DevOps practice, the situation can seem almost hopeless. However, just as a fail-fast business approach, or the “fail and adjust sooner” methodology of Agile often proves, DevOps failures are actually a step in the right direction. They’re the first step toward learning from failures and turning your DevOps practice into one that will lead you toward even...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The goal of Microservices is to improve software delivery speed and increase system safety as scale increases. Microservices being modular these are faster to change and enables an evolutionary architecture where systems can change, as the business needs change. Microservices can scale elastically and by being service oriented can enable APIs natively. Microservices also reduce implementation and release cycle time and enables continuous delivery. This paper provides a logical overview of the Mi...
While walking around the office I happened upon a relatively new employee dragging emails from his inbox into folders. I asked why and was told, “I’m just answering emails and getting stuff off my desk.” An empty inbox may be emotionally satisfying to look at, but in practice, you should never do it. Here’s why. I recently wrote a piece arguing that from a mathematical perspective, Messy Desks Are Perfectly Optimized. While it validated the genius of my friends with messy desks, it also gener...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
The enterprise data storage marketplace is poised to become a battlefield. No longer the quiet backwater of cloud computing services, the focus of this global transition is now going from compute to storage. An overview of recent storage market history is needed to understand why this transition is important. Before 2007 and the birth of the cloud computing market we are witnessing today, the on-premise model hosted in large local data centers dominated enterprise storage. Key marketplace play...
The cloud revolution in enterprises has very clearly crossed the phase of proof-of-concepts into a truly mainstream adoption. One of most popular enterprise-wide initiatives currently going on are “cloud migration” programs of some kind or another. Finding business value for these programs is not hard to fathom – they include hyperelasticity in infrastructure consumption, subscription based models, and agility derived from rapid speed of deployment of applications. These factors will continue to...
Some people are directors, managers, and administrators. Others are disrupters. Eddie Webb (@edwardawebb) is an IT Disrupter for Software Development Platforms at Liberty Mutual and was a presenter at the 2016 All Day DevOps conference. His talk, Organically DevOps: Building Quality and Security into the Software Supply Chain at Liberty Mutual, looked at Liberty Mutual's transformation to Continuous Integration, Continuous Delivery, and DevOps. For a large, heavily regulated industry, this task ...
Following a tradition dating back to 2002 at ZapThink and continuing at Intellyx since 2014, it’s time for Intellyx’s annual predictions for the coming year. If you’re a long-time fan, you know we have a twist to the typical annual prediction post: we actually critique our predictions from the previous year. To make things even more interesting, Charlie and I switch off, judging the other’s predictions. And now that he’s been with Intellyx for more than a year, this Cortex represents my first ...
"Grape Up leverages Cloud Native technologies and helps companies build software using microservices, and work the DevOps agile way. We've been doing digital innovation for the last 12 years," explained Daniel Heckman, of Grape Up in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The Toyota Production System, a world-renowned production system is based on the "complete elimination of all waste". The "Toyota Way", grounded on continuous improvement dates to the 1860s. The methodology is widely proven to be successful yet there are still industries within and tangential to manufacturing struggling to adopt its core principles: Jidoka: a process should stop when an issue is identified prevents releasing defective products
Defining the term ‘monitoring’ is a difficult task considering the performance space has evolved significantly over the years. Lately, there has been a shift in the monitoring world, sparking a healthy debate regarding the definition and purpose of monitoring, through which a new term has emerged: observability. Some of that debate can be found in blogs by Charity Majors and Cindy Sridharan.
We seem to run this cycle with every new technology that comes along. A good idea with practical applications is born, then both marketers and over-excited users start to declare it is the solution for all or our problems. Compliments of Gartner, we know it generally as “The Hype Cycle”, but each iteration is a little different. 2018’s flavor will be serverless computing, and by 2018, I mean starting now, but going most of next year, you’ll be sick of it. We are already seeing people write such...
It’s “time to move on from DevOps and continuous delivery.” This was the provocative title of a recent article in ZDNet, in which Kelsey Hightower, staff developer advocate at Google Cloud Platform, suggested that “software shops should have put these concepts into action years ago.” Reading articles like this or listening to talks at most DevOps conferences might make you think that we’re entering a post-DevOps world. But vast numbers of organizations still struggle to start and drive transfo...
Let's do a visualization exercise. Imagine it's December 31, 2018, and you're ringing in the New Year with your friends and family. You think back on everything that you accomplished in the last year: your company's revenue is through the roof thanks to the success of your product, and you were promoted to Lead Developer. 2019 is poised to be an even bigger year for your company because you have the tools and insight to scale as quickly as demand requires. You're a happy human, and it's not just...
"Opsani helps the enterprise adopt containers, help them move their infrastructure into this modern world of DevOps, accelerate the delivery of new features into production, and really get them going on the container path," explained Ross Schibler, CEO of Opsani, and Peter Nickolov, CTO of Opsani, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.