Feeds

Overland snatches Adaptec's Snap Server biz

Free at last with a virtual fire sale

Top three mobile application threats

Adaptec has finally got out of the loss-making Snap Server business and, by buying it, Overland Storage has gained a valuable addition to its ULTAMUS primary storage product line.

This is Overland CEO and president Vern LoForti's first acquisition since taking over the reins at Overland and represents a quite triumphant vindication of his turnaround efforts at Overland which was in dire trouble before he was appointed to replace the former CEO Chris Calisi.

Overland has bought the Snap Server network-attached storage (NAS) business for what is virtually a face-saving pittance.

The sale price is a snip, a mere $3.6 million for the Snap Server brand and all the assets related to Snap Server's networked and desktop storage appliance, which deliver about $18 million revenue to Adaptec a year - an amazing price. Overland will pay $2.1 million paid in cash upon closing of the transaction, with the remainder to be paid in 12 months. Adaptec will retain ownership of all iSCSI-based hardware and software products and assets, which will be rebranded and managed by Adaptec.

overland storageAdaptec acquired Snap Appliance, a maker of NAS appliances, for $100 million in 2004. When CEO Robert Stephens was replaced by S "Sundi" Sundarsh he decided to sell what was then Adptec's NAS division in October 2005. He couldn't find any takers. So he spent money on the line instead with an enterprise 500 line and new 100 series products in the range a year later. A year later still, in late 2007, and they seemed successful with customers like the Blue Cross charity using them and good reviews and awards in the trade press.

The success was a profitability mirage though and the investment seems to have been for nought with a $3.6 million price representing little recompense for the hundred million dollar plus cost of the products and their development.

Amazingly, given the price, Snap Server leads the NAS market with more than 200,000 units shipped. The acquisition will enable Overland to address the $1.2 billion SMB NAS market, which according to IDC continues to grow by at least 15 percent annually. The features and functions of the Snap Server product line position it well to target the three fastest growing market segments: distributed NAS, centralized data protection for remote sites and backup to disk.

Sundaresh is quoted thus: "The sale of the Snap Server business allows us to focus on strengthening our leadership position in the Unified Serial RAID controller business, leverage our iSCSI assets and continue to streamline the company's operations. We are extremely pleased to sell the Snap Server NAS business to Overland; its management team shares Adaptec's commitment to product quality, technology development and customer service."

What is Overland's take? LoForti said: "With the acquisition of the Snap Server storage appliances, Overland is well positioned to extend our end-to-end data protection offerings while also meeting our customers' and partners' growing needs for best-of-class, distributed NAS appliances. The award-winning Snap Server family complements our existing robust portfolio of disk-, tape- and SAN-based products to reinforce Overland's strength as a global leader in the growing data protection market. At the same time we are thrilled at the creative talent pool that will be joining our existing team in strengthening a truly world class organization."

The addition of the Snap Server business adds a best-in-class distributed NAS offering to the company's product portfolio, helping Overland achieve its goal of providing "end-to-end data protection solutions" to SMB customers and distributed enterprises.

High performance access to file storage

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
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
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
prev story

Whitepapers

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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.