On SearchStorage.com, my buddy Tony Asaro recaps the latest Storage Acquisition Frenzy
It has always been the case in fast pace technology areas that you can't tell the players without a program card, andthis is especially true for storage.
When analyzing each acquistion move, you need to think of what is driving it. What are the motives?Having been in the storage business 20 years now, and seen my share of acquisitions, both from within IBM,as well as competition, I have come up with the following list of motives.
Although slavery was abolished in the US back in the 1800's, and centuries earlier everywhere else, many acquisitionsseem to be focused on acquiring the people themselves, rather than the products or client list. I have seen statistics such as "We retained 98% of the people!" In reality, these retentions usually involve costly incentives,sign-in bonuses, stock options, and the like. Desptie this, people leave after a few years, often because ofpersonality or "corporate culture" clash. For example, many former STK employees seem to be leaving after their company was acquired by Sun Microsystems.
If you can't beat them, join them. Acquisitions can often be used by one company to raise its ranking in marketshare, eliminating smaller competitors. And now that you have acquired their client list, perhaps you can sellthem more of your original set of products!
Symantec had acquired Veritas, which in turn had acquired a variety of other smaller players, and the end result is that they are now #1 backup software provider, even though none of theirproducts holds a candle to IBM's Tivoli Storage Manager. Meanwhile, EMC acquired Avamar to try to get more into the backup/recovery game, but most analysts still find EMC down in the #4 or #5 place in this category.
Next month,Brocade's acquisition of McData should take effect, furthering its marketshare in SAN switch equipment.
Prior to my current role as "brand market strategist" for System Storage, I was a "portfolio manager" where wetried to make sure that our storage product line investments were balanced. This was a tough job, as the investmentshad to balance the right development investments into different technologies, including patent portfolios.Despite IBM's huge research budget, I am not surprised that some clever inventions of new technologies comefrom smaller companies, that then get acquired once their results appear viable.
- Value Shift
The last motive is value shift. This is where companies try to re-invent themselves, or find that they are stuck in acommodity market rut, and wish to expand into more profitable areas.
LSI Logic acquisition of StoreAge is a good exampleof this. Most of the major storage vendors have already shifted to software and services to provide customer value,as predicted in 1990's by Clayton Christensen in his book "The Innovator's Dilemma". The rest are still strugglingto develop the right strategy, but leaning in this general direction.
I hope that provides some insight.[Read More]
Chris Anderson, of Wired magazine, wrote a great article called The Long Tail
This article became a book by the same name published earlier this year, and I just discovered it on a recent visit to Second Life. A lot of IBMers are now alsoSecond Lifers, and I suspect it is just a matter of time before we are conductingour customer briefings there, and getting our year-end bonuses paid directly in Linden bucks.(Those of you not familiar with Second Life can watch this 3-minute video fromthe folks at Text100)
Anyways, the Long Tail describes the new economy of entertainment thanks to digitalstorage. Here are some of the key insights.
- In the past, entertainment was all about hits: hit songs, hit movies,hit novels, and this was primarily because of the economic realities restricted byphysical space. Chris writes: "An average movie theater will not show a film unless it can attract at least 1,500 people over a two-week run; that's essentially the rent for a screen. An average record store needs to sell at least two copies of a CD per year to make it worth carrying; that's the rent for a half inch of shelf space."
- Things have changed. To drive the point home, Robbie Vann-Adibe (CEO of eCast), poses the trick question"What percentage of the top 10,000 titles in any online media store (Netflix, iTunes, Amazon, or any other) will rent or sell at least once a month?" The answer will surprise you. Write down your guess first, then go read here. His digital jukeboxes are able to play from a list of150,000 songs, not the few hundred you'd find at the Tap Room which is rated as having the best jukebox in Tucson.
- The phenomenon is not just limited to music. "Take books," Chris writes, "The average Barnes & Noble carries 130,000 titles. Yet more than half of Amazon's book sales come from outside its top 130,000 titles. Consider the implication: If the Amazon statistics are any guide, the market for books that are not even sold in the average bookstore is larger than the market for those that are..."
This has incredible implications for the storage industry. For one, content providers are going to dig deep into their archives to digitize and deliver "long tail" offerings. If they don't have a deep archive, many will start to build one. Second, the need to search through that large volume of content will become more critical. Classifying and indexing with the appropriate tags and metadata will be an important task.
technorati tags: Chris Anderson, Wired, magazine, IBM, Secondlife, Linden bucks, Text100, Long Tail, Robbie+Vann-Adibe, eCast, NetFlix, iTunes, Amazon, Tap Room, Barnes Noble, deep, archive, metadata, tags
For those of you worried about my mysterious absence on the blogosphere, I am getting better. Sorry for not posting much lately, I have had more serious issues to worry about. I am awaiting results on whether I have Dengue fever from Brazil, Avian flu from Thailand, Malaria from Kenya, or perhaps it is just food poisoning from the otherwise fabulous French cuisine I ate last week in the South Pacific. Well, I am back in town for a while, and hopefully will recover to full health, and have some time to reflect my thoughts on storage topics.
Speaking of which, a lot has happened while I was out. Let's take a quick look.
- Following our introduction of the world's first encryption-capable tape drive, the TS1120, IBM now offers higher capacity 700GB cartridges, in standard 3592 format.
- The DS8000 Turbo disk system now is being offered with a flexible choice of warranty periods, 1-year, 2-year, 3-year and 4-year. Since IBM was the only one to offer 4-year warranties, it was sometimes difficult to compare apples-to-apples with our competition that offered lesser warranty periods. Now, we can match the warranty period you need, so the focus can shift on the added value the DS8000 Turbo provides at the right price.
- IBM's newest low-end half-high tape drive, the TS2230 Tape Drive Express Model H3L, part of our Express portfolio of offerings designed for small and medium-sized businesses (SMB). It supports the latest LTO Generation 3 specification, so fully compatible with our larger tape systems, as well as the LTO-based gear from HP and Quantum.
Stay tuned![Read More
Here we are again at Top Gun class.In between class topics, we often show short video clips.
This week, we saw IBM Executive Bob Hoey's wisdom on selling mainframe computers. Bob is the VP of Sales for our System z server line, but the lessons might also apply to high-end disk or enterprise tape libraries.
technorati tags: IBM, Top Gun Class, Bob Hoey, Mainframe, System z, high-end, disk, enterprise, tape, library
The TS3100 Tape Library
An astute reader brought this to my attention. The newest addition to our "IBM Express Portfolio"set of SMB-oriented offerings is the new TS3100 tape library. This has one LTO Gen 3 drive and up to 22 cartridges, which can be a mix of WORM and rewriteable cartridges,beautifully packaged in a small 2U high (3.5 inch) rack-mountable chassis. Each cartridge can hold up to 800GB uncompressed, or 1.6TB with typical 2-to-1 compression.
This tape library would be a great complement to TSM Express for backup, and to theDR550 Express for archive and compliance storage.
And now, for a limited time, there is a $1500 rebate, check website for details.
technorati tags: IBM, TS3100, Tape, Library, Express, Portfolio, WORM, LTO, LTO3, cartridge, Tivoli Storage Manager, TSM, DR550
Hey everyone, I'm having a great time in New York.
Here are a few webinars this week you might be interested in, related to tape, and tape encryption:
If regulatory compliance and protecting your data against security breaches is top of mind for you, I invite you to attend a webinar on a new enterprise encryption solution from IBM featuring the IBM System Storage™ TS1120 tape drive. On September 20, 2006 Jon Oltsik, Senior Analyst for Information Security with the Enterprise Strategy Group, will moderate a discussion on IBM’s encryption strategy and latest data security advances with a panel of our product and industry experts.
Securing your data – IBM Tape Encryption Solutions
I personally know Dianne McAdam, from the Clipper Group, so the following should be very interesting:
Tape vs. Disk Which Really Eats More Power[Read More]
A few years ago, I was the IBM portfolio manager for storage connected to BladeCenter solutions. I learned a lot about the BladeCenter design, and got to speak at various x86 server events.
My colleague John put together a nice webpage on storage for System x and BladeCenter servers:
IBM System Storage for System x
BladeCenterservers come in many flavors, including blades with Intel, AMD and POWER chipsets, and can be configured in Grid and SuperComputer configurations. Up to 14 blade servers can fit intoa single 7U-high chassis, making this twice as dense as standard 1U-high rack-mounted servers.
System x, the new "IBM Systems" name for our popular xSeries product line, support Intel and AMD chipsets. These come in both rack-mountedand tower configurations. These also are idea for clustered and SuperComputer configurations.[Read More]
Yesterday (September 7, 2006) the Eclipse Foundation
announced that it has approved the creation of the Aperi Storage Management Framework Project.
There's been a lot of confusion out there about Aperi, so I thought I would post some facts and opinions about this exciting new project. A few years ago, I was thelead architect for IBM TotalStorage Productivity Center, IBM's infrastructure management product that helped launch the creation of Aperi.
From the latin word for "open", Aperi is an open source project that aims to simplify the management of storage environments, using the Storage Management Initiative - Specification (SMI-S) open standardto promote interoperability and eliminate complexity in today’s storage environments.
Aperi should provide immediate value upon install with basic storage management capabilities, rather than just simply a collection of components that require costly integration. We've discussed requirements for functions such as:
- Resource discovery, monitoring, and reporting
- Fabric Topology mapping
- Event management
- Disk / Tape management
- Device configuration & LUN assignment
- SAN fabric management
- Basic asset management
- User Interface
The big confusion most people have is Aperi's relation to SMI-S and the Storage Networking Industry Association (SNIA)open standards group. The best way to explain this is to go backto your High School SAT college-entrance exams. Remember questions like this?
CRUMB : BREAD ::
(A) splinter : wood
(B) water : bucket
(C) cream : butter
(The answer: a crumb is to bread like a splinter is to wood.)
Aperi is an implementation of SMI-S standard, similar to MySQL or PostgreSQL areopen standard relational database implementations of Structured Query Language (SQL).These compete with proprietary database implementations such as IBM DB2 Universal Database,Oracle Database, Microsoft SQL Server, or Sybase.
Aperi: SMI-S ::
PostgreSQL : Structured Query Language (SQL)
It is often the case that the folks writing the code are different than the folks defining the standards. This is the case between the members of Aperi writing code, and the members of the SNIA writing standards. IBM happens tohave employees writing Aperi code, and other employees helping define SMI-S standards.What can I say, IBM is a big company and a leader in many areas.
A good analogyis how the Apache community has developed an awesome web server, and the Firefox Mozillacommunity have developed an awesome web browser, both of which are implementations of the HTTP/HTML standards adopted by the World Wide Web Consortium. Apache and Firefoxcompete with proprietary implementations, such as Microsoft Internet Information Services(IIS) web server and Internet Explorer web browser.
Aperi: SNIA ::
Apache : World Wide Web (WWW) Consortium
With this arrangement, Aperi and the SNIA will have very complementary roles in defining and driving standards across the entire storage market. To that end, Aperi will make extensive use of the SNIA’s Technology Center and SNIA’s “plugfests” to test the interoperability of the Aperi framework with the variety of 3rd-party storage offerings available. By providing a tested implementation of SMI-S, Aperi will drive broader industry availability of SMI-S, as well as offer the many benefits of an industry-backed open source community.
Check out this vote of confidence:
"Eclipse's Aperi Project will further advance the adoption of SNIA's SMI-S, benefiting the entire storage industry and IT community. Furthermore, the SNIA and Aperi will define plans to collaborate on new storage standards, standards testing programs, and storage interoperability programs."
--- Wayne M. Adams, chair, SNIA Board of directors
So, both proprietary and open source implementations have their place in the world.Proprietary products are needed for advanced, unique value-add, and opensource projects are for basic support focused on interoperability and flexibility.These can be combined, for example, proprietary "plug-ins" built on an open source base. The more choices the client has, the better.
Storage vendors benefit too. Vendors are tired of being in the "Y.A.C." business, building "Yet Another Configurator" for each new device developed, with basic functionsto carve LUNs, read performance stats, and so on. By shipping Aperi instead, storagevendors like IBM can invest their development dollars in real innovations, things thatmatter for the customer.
If you are unfamiliar withopen source, I highly recommend Eric Raymond's bookThe Cathedral and the Bazaar. It might just change the way you think aboutopen source usage in the workplace.
technorati tags: Eclipse, Aperi, IBM, TotalStorage, Productivity Center, open, storage management, Eric Raymond, open+source, SMI-S, SNIA, Cathedral, Bazaar
Dave Hitz from Network Appliance has a wonderful discussion of "branding": What do Marketing People Mean When They Say Brand?
A lot of people ask me about IBM branding, as we have recently changed brands. In the past we had two separate brands, one for servers (eServer) and one for storage (TotalStorage). These would be fine if we wanted to promote their independence, but customers today want synergy between servers and storage, they want systems that work well together.
Last year, in response to market feedback, we crated a new brand, "IBM Systems" and put all the server and storage product lines under one roof. Over time, we will transition from TotalStorage to System Storage naming. This will occur with new products, and major versions of existing products.
Two other phrases you will hear in the names of our offerings are "Virtualization Engine" and "Express". These are portfolio identifiers. The Virtualization Engine identifier was created to emphasize our leadership in system virtualization, and we have products that span product lines with this identifier.
The Express identifier was created to emphasize our focus on Small and Medium sized business (SMB). It spans not just servers and storage, but across other offerings from other IBM divisions.
Of course, just renaming products and services isn't enough. Systems don't work together just because they have similar names, are covered in similar "Apple white" plastic, or have similar black bezels. Obviously, thoughtful and collaborative design are needed, with the appropriate amounts of engineering and testing. IBM is aligning its server and storage development so that the IBM Systems brand keeps its promise.
technorati tags: Dave Hitz, NetApp, marketing, brand, TotalStorage, eServer, IBM Systems, Virtualization Engine, IBM, Express, SMB, Apple white, SMB
I've only had this blog since Sep. 1, and already it is listed in the Data Storage Bloggers wiki list.
In last week's System Storage Portfolio Top Gun class in Dallas, some of the students were not familiarwith Really Simple Syndication (RSS). For the uninitiated, this can be intimidating.I thought a quick overview of what I've done might help:
- Chose a "feed reader". I chose Bloglines but there are many others.
- Use Technorati to search other blogs for keywords or phrases I am looking for.
- When I find a blog that I like to continue tracking, I "add" it to my subscription list on bloglines. Just hit "add" and copy the URL of the blog you want to track. Bloglines will figure out the RSS keywords required.I track eight blogs at the momemnt, but some people with lots of time on their hands track 20 or more. It is easy to unsubscribe, so don't be afraid to try some out for a few days.
- Since I was actually going to run a blog of my own, I read a few books on the topic. One I recommend is "Naked Conversations" by Robert Scoble and Shel Israel, both experienced bloggers.
- Finally, I am not big on spell checking, but most places have the option to preview your post or comment before it actually gets posted, which is not a bad idea if you use any HTML tags.
For a quick taste of blogging, consider using Data Storage Blogger Feed Reader. This has a lot of blogs on the topic of storage, already added and categorized for your convenience, ready for your perusal.
I am sure there are many other ways to enjoy the Blogosphere, but this works for me.[Read More]
An interesting blog in "Channel Advisor" relates to the lack of trust in the storage industry:Education — Trust: Key To Survival In Today's IT World
and offers some advice to vendors and channel distributions.
I can't stress enough how important is credibility in a highly-competitive marketplace.[Read More]
I found this item today on the blogosphere: EMC-HP Storage Race Heats Up
In general, people agree that IBM, HP and EMC are the top three vendors in storage,with HDS, Sun and Dell rounding out the top six.
The fun begins when a respected analyst like IDC Corp. publishes their calculations,and individual vendors re-swizzle the results because they are not happy with theirfindings.
I thought it would be helpful to illustrate how this all works. First, you need to comeup with a defintion of what you are going to count. You could count units sold, revenue dollars, or capacity Terabytes, or some other generally accepted metric.
Next, you need to define what's in and what's out. For example, you can say "storage"which would include both disk drives and tape drives, both internal to servers, orexternal to servers, or you can choose a more narrow definition, say external disksystems, which might suit you better if you aren't in the tape business, and don't sell servers.
By some definitions, my Apple iPod, Motorolla cell phone, and Canon digital camera,could all be counted as external disk systems, as they all connect via USB cableto my IBM laptop, and act like a disk drive to my Windows operating system, allowingme to read and write data back and forth. It is necessary to define exactly what you plan to include,and what to exclude, based on the reported numbers available.
The last rule is that nothing gets double-counted. In our complicated industry ofmanufacturers and vendors, sometimes storage is manufactured by one company, but soldby another, typically under the vendor's brand, not the manufacturer's brand. Youcan either count manufactured units, or vendor units, but you can't mix and match.
IBM is both manufacturer and vendor. However, IDC only counts vendor units, so storagemanufactured by someone else, but sold by IBM is counted as IBM, and storage manufacturedby IBM but branded by someone else goes to that other vendor. Likewise, HP and Sun re-brandHitachi storage, and Dell re-brands EMC storage.
EMC would like to treat all EMC-manufactured storage re-branded by Dell as EMC vended storage,so that it can move up in the ratings. But Dell wants to count it too, so that it can appearin the top six. You can't have it both ways.
But are these ratings just "bragging rights"? Not always. When big purchases are planned fornew projects, or a client decides its time to throw out the current vendor and shop for a newone, the ratings could influence that decision. In that regard, IDC 4Q05 Storage Tracker reportedIBM as number one over all in storage hardware at the end of 2005, which includes both internal and external disk systems, as well as tape drives sold under the IBM brand, based on dollar revenues. By this method of counting, HP came in at number 2, EMC at number 3, and the rest round out thetop six as before.
In the end, this is just one factor when deciding which brand to choose for your storage needs.
technorati tags: IBM, HP, EMC, Dell, Sun, IDC, Apple, iPod, Motorolla, Canon, USB, laptop
This week I was in Dallas, Texas, teaching at the "System Storage Portfolio Top Gun" class.
Can you believe it was hotter and more humid in Dallas than in Tucson? I am glad to be home.
For those unfamiliar with Top Gun classes, it is our top level sales training, typically 4 to 4.5 days long. This year, I have taught Top Gun classes in USA, China, Mexico, Thailand, and Brazil.
The class is open to IBM sales, IBM Business Partners, ibm.com telesales, field support and our technology partners.
We have several more classes for 2006, in Canada and the USA. For more information, read here www.ibm.com[Read More]
For those who missed it, IBM announced last Tuesday encryption capability for the TS1120 drive, our enterprise tape drive that read and write 3592 cartridges. Do you need special cartridges for this? No! Use the sames ones you have already been using!
You can read more about it www.ibm.com/storage/tape.
technorati tags: IBM, tape, systems, 3592, cartridges, TS1120, drive, encryption
I have created blog categories, based on our System Storage offering matrix, which you can track individually:
- Disk systems, including the IBM System Storage DS Family of products, SAN Volume Controller, N series, as well as features unique to these products, such as FlashCopy, MetroMirror, or SnapLock.
- Tape systems, including the IBM System Storage TS Family of products, tape-related products in the Virtualization Engine portfolio, drives, libraries and even tape media.
- Storage Networking offerings, from Brocade, McData, Cisco and others, such as switches, routers and directors.
- Infrastructure management, including IBM TotalStorage Productivity Center software, IBM Tivoli Provisioning Manager, IBM Tivoli Intelligent Orchestrator, and IBM Tivoli Storage Process Manager.
- Business Continuity, including IBM Tivoli Storage Manager, Tivoli CDP for Files, Productivity Center for Replication software component, Continuous Availability for Windows (CAW), Continuous Availability for AIX (CAA).
- Lifecycle and Retention offerings, including our IBM System Storage DR550, DR550 Express, GPFS, Tivoli Storage Manager Space Management for UNIX, Tivoli Storage Manager HSM for Windows, and DFSMS.
- Storage services, including consulting, assessments, design, deployment, management and outsourcing.