IBM Sees Promise In Marlborough Firm
IBM's appetite for the growing data storage market recently prompted the computer giant to purchase Marlborough-based Storwize for an undisclosed sum.
"Buying Storwize gives IBM an opportunity to change the conversation about data storage," said Brian Babineau, a senior consulting analyst for Enterprise Strategy Group in Milford, a technology research firm. "Most hardware companies want customers to just keep saving more and more data. IBM is really helping customers save less."
Storwize is a 50-person venture-backed data storage optimization company founded in Israel. Ed Walsh, the company's CEO, said his firm holds 35 patents for technology that allows users to increase data storage efficiency by up to 80 percent.
According to Babineau, Storwize fits within the data optimization niche, but the compression technology that the firm uses is different from the de-duplication technology offered by most competitors. The compression model, Babineau explained, means that the storage device is eliminating unnecessary information in each file that is saved. De-duplication only deletes redundant information.
Bits And Bytes
Other companies specializing in data storage, namely Hopkinton-based EMC and Hewlett Packard, each have their own data optimization programs. HP's, Babineau said, focuses on a data de-duplication model, whereas EMC, he said, is developing both de-duplication and compression programs.
IBM's purchase of Storwize allows it to plug a hole in its offerings, according to Babineau.
"It's a key innovative component that IBM doesn't have to build itself, so that's an R&D savings upfront. Plus it allows them to take a little bit of a different tone in marketing," he said.
The data storage industry is booming. Backing up that claim are statistics from Framingham-based IDC, which predicts that the amount of information companies store will grow at a 49 percent compound annual rate in the coming years.
Storwize's technology also compresses the data in real time, as it is created, allowing customers to interact with the stored data without sacrificing usability.
"The ability to provide primary in-line compression, with StorWize technology, should place IBM ahead of many of its competitors in this endeavor," a recent IDC report about the transaction noted.
The purchase follows a long list of acquisitions by IBM in the data optimization market.
Financial terms of the deal were not released. Israeli media reports have said the Storwize deal was worth $140 million, but neither company has confirmed that figure.
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