Feeds

Data Domain readies de-duping IPO

Rival Quantum hopes to cash in

Combat fraud and increase customer satisfaction

Storage start-up Data Domain filed a registration statement with the SEC for an initial public offering late Friday.

Data Domain listed a proposed maximum offering of $100m but has not revealed a target share price or share number. It will seek a Nasdaq listing under the ticker DDUP.

The company has found a niche in the storage market with a focus on data de-duplication. The process removes redundant information as data is backed up or archived resulting in decreased capacity requirements.

But recently de-duping market has hotted up, and Data Domain faces some heavy-hitters in the field. Early this year Quantum rolled out its de-duping software borged from the ADIC acquisition. EMC and NetApp also have their foot in the door by eating up de-dupe software houses Avamar and Topio late last year.

Data Domain seems to recognize the adversity it faces. Under "risk factors" its listing warns:

"Many of our current or potential competitors have longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical, sales, marketing and other resources than we have."

Prior to the filing, Data Domain entered into a cross-licensing agreement with its biggest rival, Quantum. Under the terms of the agreement, Quantum received 390,000 shares of Data Domain stock (valued at approximately $3.3m) in exchange for Data Domain using Quantum's variable length de-dup process in its products.

Data Domain said a cross-patent licensing agreement made in March would prevent the company from asserting existing and future patent rights against Quantum.

The company has been growing rapidly but is yet to turn a profit. Data Domain lists its revenue in 2006 at $46.43m — a large jump from $8.12m the previous year. But Data Domain was still in the red by $4.02m in 2006 (although large an improvement from a $14m net loss in '05). ®

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Microsoft builds teleporter weapon to send VMware into Azure
Updated Virtual Machine Converter now converts Linux VMs too
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.