Great Acquisition for Dell: Ocarina
Maybe the best start-up available in de-dupe
This is a Press Release edited by StorageNewsletter.com on July 20, 2010 at 3:51 pmDell, Inc. has signed an agreement to acquire Ocarina Networks. Ocarina’s storage optimization technology – including compression and deduplication – helps customers significantly reduce data management costs and streamline operations.
Ocarina’s groundbreaking content-aware optimization technology enables customers to dramatically reduce storage space requirements and the amount of redundant data. Unstructured data from the Internet, email, and images continues to proliferate in customer environments as retention requirements increase. Optimizing data across the IT environment drives substantial reductions in costs associated with disk capacity, network bandwidth, power and cooling, data center space, and management.
In the ‘Virtual Era,’ Dell continues to drive an open and integrated approach to data management. Ocarina brings a leading deduplication capability to complement Dell’s EqualLogic solutions. Dell’s intent is to drive increased efficiency with a goal of radically reducing data management costs. These savings can help Dell customers make room in their budgets for other strategic investments to help their business succeed.
Ocarina Networks was founded in 2007 and is headquartered in San Jose. Subject to customary closing conditions, Dell expects to complete the acquisition by the end of the month. After closing, Dell plans to maintain and invest in additional engineering and sales capability. There are no plans to move the current operations. Terms of the acquisition were not disclosed.
“Ocarina provides an important component of our data management portfolio and our EqualLogic ecosystem to provide customers the best value for their IT investments,” said Brad Anderson, Dell senior vice president, Enterprise Product Group. “Content-aware deduplication allows us to provide a true global approach to deduplication across the datacenter and has a tremendous ripple effect of cost savings that frees up budgets for strategic investments.”
“This is a great opportunity for the Ocarina technology, and for Ocarina customers and partners. Combining Ocarina’s capability with Dell’s leading storage portfolio, we plan to move the Ocarina solution well beyond what you’ve seen with other deduplication offerings to include ‘end-to-end’ optimization. This brings deduplication to not only primary storage, but also to key storage workflows including backup, replication, migration and tiering,” said Murli Thirumale, CEO, Ocarina Networks.
“As both an Ocarina and Dell customer, we see opportunity for Dell to take a great solution and expand the capabilities for our environment. We manage billions of unique image files, consuming petabytes of storage. Ocarina solutions are reducing our storage footprint by over 40 percent, over and above the existing JPEG compression, which is making a big impact on our storage and networking costs,” says James Goss, vice president, Operations, Photobucket. “I’m encouraged to see that Ocarina will now fit into my existing support structure with Dell and run on the same hardware already in my data center. I look forward to seeing how Dell can leverage Ocarina into its existing and future storage products.”
Comments
Dell is a not a voracious acquirer in storage - like partner EMC - but
has globally bought few companies, some of them with excellent technology. EqualLogic was
an excellent idea, Exanet an interesting one. Ocarina is a great choice,
probably the best start-up remaining and available today in de-dupe.
The price has not been revealed but we think it could be in hundreds
of million as Ocarina is one of the best competitor of Data Domain,
acquired last year by EMC for $2.1 million. Also for de-dupe, EMC
acquired Avamar in 2006 for $165 million, IBM got Diligent in 2008 for
around $200 million and is supposed to buy Storwize for approximately
$140 million.
The San Jose, CA-based Ocarina was founded in 2007 and got more than
$30 million in financial funding.
Its strength is based on a very efficient compression technology. It's
not an unique algorithm to de-dupe any kind of data. The company has
developed a special one for around 900 file types, including for video
already compressed. The process can be done on a dedicated appliance or
by software only, for primary (like NetApp) or secondary storage.
To begin, Ocarina's de-dupe will be a great addition to Dell's EqualLogic, a functionality that was dramatically missing. But we can imagine that the computer manufacturer will also apply it to its own storage products, some of them currently using de-dupe from CommVault, Data Domain and Symantec. And why not tomorrow for EMC CLARiiON?
Following this deal, Dell will probably lose some Ocarina's OEMs like HP
and HDS. Among its partners there are also BlueArc, DataDirect Networks,
EMC (for Celerra) and Isilon.
Storage acquisitions by Dell
Year/Company/(Price in $ million)/Activity
- 1999 ConvergeNet (340) Expertise in heterogeneous environment SANs
- 2007 Silverback Technologies (NA) Software to monitor computers, storage, security and networks
- 2007 EqualLogic (1,400) iSCSI SAN
- 2008 The Networked Storage Company (NA) UK IT consultant
- 2008 MessageOne (155) SaaS email continuity, compliance and archiving
- 2010 KACE (NA) Systems management appliances
- 2010 Exanet (12) Clustered NAS systems
- 2010 Ocarina Networks (NA) De-dupe appliance