Feeds

Xiotech gets $10m funding fillip

For 2010 product building on Emprise and ISE

Beginner's guide to SSL certificates

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.