Feeds

Cisco invests in NeoPath

Corporate dance

Maximizing your infrastructure through virtualization

Comment NeoPath Networks, a startup provider of file storage virtualisation, has announced it received $11m in a funding round that includes Cisco Systems and previous investors August Capital, DCM-Doll Capital Management, and Gabriel Venture Partners.

NeoPath indicates it will use the funds to continue customer and partner growth and to further enhance its products. NeoPath was founded in 2002, and offers a storage appliance that optimises file storage management. The product sits in the network and manages files stored across NAS systems in a single pool, using virtual namespace and load balancing. Customers include companies in the service provider space, as well as financial services, government, aerospace, and manufacturing industries. Cisco is NeoPath's first strategic investor, but it is not specified how much Cisco has contributed to funding.

The storage market continues to be a hot space, with many startups competing alongside industry giants in a space with double-digit growth. So too, is the file virtualisation space hot, and the number of startups is dwindling rapidly.

Cisco is not the first company to show interest in this space. When NeoPath got started, it was competing with Rainfinity, which is now part of EMC and sold as the EMC Rainfinity Global File Virtualisation appliance. NeoPath also competed with NuView, which was purchased by Brocade and is now part of its Tapestry family of software products. Other startups include Acopia Networks and Attune Systems.

File virtualisation will only continue to grow in importance. Networked storage became popular in the form of NAS and SAN when users had too much storage lurking on individual servers. It made more sense to store data in central locations. File virtualisation has emerged now that organisations must manage the islands of files stored throughout the network, especially as ILM approaches become more popular.

With ILM, storage managers try to match data or files to equipment with the appropriate costs and performance. With ILM, where information resides also depends on its age, so tiered storage is also causing information to move, driving up demand for file virtualisation. In essence, growing stores of information require better management and the vendors are doing their best to make sure their solutions have all the pieces, both through organic development as well as through acquisition.

Cisco has contributed to this latest round of funding but has refused to comment on any future plans, including possible OEM deals or an outright purchase of NeoPath. Nevertheless, the investment has sent the high-tech community into a buzz.

If Cisco believes that NeoPath is a good storage migration tool and wants to grow its presence in the virtualisation space for networked storage, then indeed the industry should have excitement about any movement the company makes.

We believe this bodes well for NeoPath in helping it in a market that has both startups as well as veterans competing in it. Any help from Cisco will give NeoPath broader exposure and help it be better positioned against smaller rivals. For Cisco, working with NeoPath at any level will help it build its capabilities.

Through its relationship with EMC, it does have exposure to Rainfinity, but NeoPath could become a partner for developing its own products and compete more against Brocade. The market will continue to watch these two in their corporate dance with great interest.

Copyright © 2006, IT-Analysis.com

Joyce Becknell is research director at The Sageza Group, addressing strategic and tactical issues for clients located in Europe. She works with vendors, business partners, regional and local ISV and channel partners. Prior to joining Sageza, Joyce has worked as an industry analyst covering IBM, Sun, HP, Cisco, Dell, Microsoft, and Compaq, and has worked for both Dell and Tricord.

The Power of One eBook: Top reasons to choose 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*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
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
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.