This morning Netapp announced plans to acquire Bycast, Inc., a privately held company in Vancouver BC. I can see wanting an office in Vancouver, so congrats to Netapp on that front. Also congrats for sticking it in the eyes of storage competitor, HP - and probably their N-Series partner, IBM, - who have been acting as the OEM sales channel for Bycast.
Here are the main points:
- Bycast is private, which means EMC won't be able to force a stockholder interruptus, like they did with DDUP a year ago.
- It's a cash deal, which is really good for Bycast stockholders, but it leaves Netapp with less leverage with Bycast employees after the deal closes.
- Netapp will need to replace whatever revenue stream Bycast had through their OEM agreements with HP and IBM. That's not just a simple matter of selling.
- Netapp bought an archiving technology company, but is trying to re-cast Bycast as object storage, possibly confusing everybody with nerd-spin.
Here is how Bycast decribes itself (from their Company Overview page):
Bycast is the leading provider of advanced storage virtualization
software for large-scale digital archives and storage clouds. For
organizations whose business depends on access to vital data, Bycast
protects and preserves digital assets over their lifetime. Bycast
StorageGRID® software simplifies the management of massive
fixed-content storage systems and enables organizations to optimize
their storage infrastructure and ensure the integrity and availability
of their valuable data assets. StorageGRID also enables the formation
of archives that can scale to petabytes of data across hundreds of
sites. StorageGRID is sold globally through OEM relationships with two
of the world’s major storage vendors. Bycast Inc. is a privately held
company headquartered in Vancouver, BC.
The company's
market leadership is illustrated by a global customer base, a vibrant
application partner ecosystem, and strategic partnerships with
industry-leading storage vendors IBM and HP. Bycast StorageGRID is
unique in that it is proven to address the needs of both centralized
and distributed organizations, across heterogeneous hardware
environments.
StorageGRID has won numerous industry
awards including 2006 Storage Product of the Year and the Frost &
Sullivan Healthcare Technology Innovation award. By providing a storage
virtualization layer that sits transparently between enterprise
applications and industry-standard storage hardware, StorageGRID
addresses the needs of key, high-growth segments of the digital
archiving market:
- Multi-site enterprises with archives distributed across multiple data centers
- Regional archives with independent organizations sharing common data centers
- Small and medium sized businesses that require a robust digital archiving platform
- Service providers delivering long term data archiving as a service
Here is the full text from Netapp's press release today: (Skip past the italics if you've already read it or don't like reading press releases)
NetApp (NASDAQ: NTAP) today announced that it has entered into a
definitive agreement to acquire Bycast Inc., a privately held company
headquartered in Vancouver, British Columbia, Canada, in an all-cash
transaction.
Bycast is a leading developer of object-based storage software
designed to manage petabyte-scale, globally distributed repositories of
images, video, and records for enterprises and service providers.
Customers whose business depends on access to critical data across
geographically distributed locations rely on Bycast to better share and
retain content anywhere, any time to quickly respond to their changing
business requirements. Founded more than 10 years ago, Bycast has
helped more than 250 customers worldwide dramatically improve their
operational efficiency and reduce the administrative burden of managing
massive quantities of data across multiple geographies.
Bycast extends NetApp's leadership position in unified storage by
adding an object-based storage software offering. Object-based storage
is a new and emerging approach to storing and accessing data based on
object names and rich metadata that describes the content in greater
detail, which simplifies the task of large-scale object storage while
improving the ability to quickly search and locate data objects.
For example, a media company can use an object-based storage
solution to provide its graphic artists around the world with the
ability to simultaneously access data and collaborate on common
projects. Object-based storage interfaces greatly simplify the
administration of the storage used for this purpose. With the
acquisition of Bycast, NetApp broadens its capabilities in serving key
verticals such as digital media, Web 2.0, healthcare, and cloud
services providers and helps customers create even greater efficiencies
across data centers around the globe.
"Bycast extends our unified storage strategy and enhances our
solution for shared storage infrastructure by adding new capabilities
for global data access and mobility," said Manish Goel, executive vice
president, Product Operations, NetApp. "The addition of Bycast's
products enables NetApp to offer our enterprise customers and service
provider partners a complementary solution that enables them to
efficiently build and manage a very large-scale global repository of
data central to many IT-as-a-service offerings."
Portfolio and People Synergy
Bycast enables NetApp
to expand into new opportunities and markets for petabyte-scale,
billion-object content repositories. In addition to its products,
Bycast brings to NetApp valuable technology and talented employees.
Bycast employees' technical expertise, experience, and support of their
customers create powerful synergies with the NetApp culture, values,
and commitment to customer success. Bycast's Vancouver headquarters
will become a technology center for NetApp and will be responsible for
existing Bycast products and future product development.
As a proven market leader in the storage industry, NetApp provides
Bycast immediate enterprise credibility. In addition, NetApp's global
sales organization and partnerships will expand the delivery of the
Bycast portfolio and enable broader market reach to enterprise
customers, service providers, international markets, and additional
vertical markets to drive adoption and success of its products.
"We are excited and look forward to joining the NetApp team," said
Moe Kermani, CEO of Bycast. "We share a complementary vision and a
common dedication to excellence. Together we will offer customers the
best-in-class content repository solutions that further their drive
toward a unified storage infrastructure."
The acquisition is expected to close in May 2010, subject to the satisfaction of customary closing conditions.
Normally, I wouldn't publish another company's press release, but I wanted to make things easier for readers. If you search these two distinct descriptions you will find Bycast describes itself using the words "archives or archiving" seven times. Netapp avoids the word altogether. Conversely, in describing Bycast, Netapp uses the word "object" nine times, whereas Bycast left it out completely.
Here is a little scoreboard for all the storage spin fans out there:
- Bycast + Archiving = 7 Bycast + Object = 0
- Netapp + Archiving = 0 Netapp + Object = 9
And so the spin win goes to Netapp! The company assuming all the risks.