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Acquisition of Sepaton by HDS

Getting long-term VTL partner

In an HDS blog entitled “HDS + Sepaton: Meeting Customers Data Protection Needs in the Modern Data Center” posted by Sean Moser, SVP, global portfolio and product management since 12 years, you can read: “With the importance of a sound data protection strategy in mind, I am pleased to announce that Hitachi Data Systems has acquired Sepaton, a leader in incredibly fast, scalable, and cost-efficient purpose-built backup appliances (PBBA). The addition of Sepaton as a wholly-owned subsidiary is part of a larger HDS data protection strategy that offers enterprise customers comprehensive data protection that is scalable and integrated. (…) These new offerings will enable customers to easily harness the power of deduplication without making radical changes to their computing environment. For example, unique and patented Sepaton deduplication technology can squeeze up to 25TB of data into only 1TB of storage.”

Born in 2000, Sepaton is among these old start-ups that never exploded, even if the company was supported by several VCs that ingest a total of $106.1 million on a lot of rounds. This deal – price not revealed – is probably a good one for Sepaton’s investors getting back some of their money.

In 2003, the firm changed its name from SANgate Systems to Sepaton (notapes if you read it upside down) and is concentrated on VLT based on HDDs with de-dupe to replace slow tapes, and able to work with Symantec NetBackup, TSM, EMC NetWorker, Gresham Enterprise DistribuTape or HP Data Protector. S2100-ES3 model based on DeltaScale architecture features a patented file system and performance-optimized 64-bit processing nodes to backup data at up to 80TB/hour deterministically – regardless of the data type. It’s scalable by adding HDD shelves up to 3.8PB before de-dupe. Recently the firm was offering migration promotion for IBM ProtecTIER customers.

HDS is not a big acquirer (see below) compared to rival EMC and realizes small deals but one ($600 million for BlueArc in 2021).

Here it is acquiring a long-term partner now Hitachi Data Systems TrueNorth Silver Partner being also formerly in parnership with competitor HP.

Other HDS Acquisitions

Year Acquired company Price* Activity of acquired company
2002 Comstock Systems 20 NAS management and SRM software
2007 Archivas 100 to 120 Hardware-independent CAS software
2010 Parascale (IP) NA Cloud storage software
2011 BlueArc 600 NAS filer
2011 Shoden Data Systems NA Storage distributor in South Africa and UK
2012 Cofio Software NA Software which unifying data protection,
workflow and compliance

* In $ million