Feeds

Xiotech gets $10m funding fillip

For 2010 product building on Emprise and ISE

Application security programs and practises

Seagate spin-off Xiotech has raised $10m in a funding round along with a $10m credit line. It will use the cash for product development.

Xiotech bought the Advanced Storage Architecture Group from Seagate, and got access to the Integrated Storage Element (ISE) sealed canisters of disk technology used in its Emprise systems, in November 2007. This was funded with a $40m investment raised a month later by an investor group led by Stephen Luczo, Seagate's then chairman and now CEO.

So, 22 months later, with Emprise systems selling alongside the preceding Magnitude storage arrays, and with 1,000 Emprise products sold, Xiotech has had to return to the funding well for another ten million in equity financing. If that's not enough there's another ten available as a loan.

Kudos to Xiotech for being able to raise the cash, albeit from undisclosed investors. It's going to use the cash to bring new products to the market in 2010 that are complementary to the Emprise and its ISE technology and build on that product line.

It says: "The new financing is designed to build on the company’s vision for the next generation of storage architectures, in which organisations can more easily increase storage capacity or storage management functionality without being locked into the closed storage systems sold by most large IT vendors today."

Casey Powell, Xiotech's President and CEO, said: “We believe the positive reception the marketplace has given the Emprise product line indicates that customers recognise storage systems should be able to largely manage themselves, and should be expandable in increments. They should not require expensive and disruptive ‘forklift upgrades.’ That’s why we’re going to continue to advocate for our storage vision, and this additional funding will help us realise these goals.”

The positive reception to Emprise is all very well, but obviously not enough for planned developments. It's $10m - $20m short of what Xiotech now needs to develop the product concept further. We're not looking at an incremental improvement to Emprise, but we might be looking at Emprise mark II.

Back in July, Eric Lomascolo, Xiotech's director of product management, wrote a blog that could be taken to mean, as we wrote at the time, that Xiotech wanted to introduce a product with self-configuring ISEs which have different personalities and can be mixed and matched in the same system under a central management facility.

Something's bubbling in Xiotech's product development pot but it isn't quite ready and needs another infusion of cash before it can raise its head above the parapet. Let's hope it's worth the wait and delivers the revenue bucks Xiotech needs. ®

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*
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
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
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.