Feeds

NetApp secures future with $272m Decru buy

Encrypted vision

  • alert
  • submit to reddit

Application security programs and practises

Looking to add more muscle to its compliance pitch, Network Appliance has picked up secure storage specialist Decru for $272m.

The deal gives NetApp a strong maker of encryption appliances that can plug into storage networks using more traditional direct attached products or complex NAS (network attached storage) and SAN (storage area network) systems. NetApp plans to operate Decru as an independent business unit should the acquisition meet standard approvals and close by October, as expected. The purchase price is made up of about 80 per cent stock and 20 per cent cash.

"In an era where data is a precious asset and security threats to that data are accelerating, encryption is a key element of any data infrastructure," said Dan Warmenhoven, CEO of NetApp. "Recent, highly public mishaps point to the need for companies and governments to more effectively protect sensitive business, employee, partner, customer, and intelligence data."

Decru, founded in 2001 on the back of $45m in venture financing, boasts more than 100 customers. It has been shipping product for two years and has systems aimed at the SAN, NAS, iSCSI and tape markets. It can encrypt data being sent between systems and then archive encrypted data on disk or tape. Such a service could be valuable to customers looking to meet high regulatory compliance standards for protecting information.

NetApp and Decru have already partnered together to win a US Department of Defense contract. In addition, Decru claims the likes of EMC, IBM and Hitachi as allies.

Decru brought in just $6m in revenue last year but expects to post $8m, $9m and $10m in revenue in its next three quarters, respectively. It has enjoyed a recent boost from government and corporate customers using the encryption technology on their tape archives. NetApp is pleased with Decru's revenue prospects and with what it sees as a large technology lead over the competition.

"We think they have about a two-year headstart over the competitors,"Warmenhoven said.

"I think the price was fair . . . This was an expensive acquisition, but we think it's justified."

Close to one-fifth of Decru's current business is done in partnership with NetApp. Other strong partners include StorageTek, IBM and HP.

These close ties to some of NetApp's rivals raise obvious questions about whether or not Decru can still be seen as an almost independent player.

"We are committed to maintaining and extending those relationships after the acquisition closes," Warmenhoven said.®

Related stories

Xen grows up with SMP server slicer
Larry Ellison's storage toy goes after EMC and NetApp
Storage software sales surge
StorageTek wants to fix your content with IntelliStore

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.