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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.