Feeds

Storage firm Drobo gets mysterious cash injection

Ten million greenbacks for what exactly?

Application security programs and practises

Drobo, the supplier of stylish 4- or 8-bay add your own drives external storage boxes, has raised $10m in an E-round funding exercise.

Quite why is not obvious, since the company is shipping product like a tropical storm. It had 100 per cent worldwide sales growth in the second quarter of 2008, and has had double-digit growth in every 2009 quarter so far. In July we were told that more than 75,000 Drobos had been installed.

In September last year it raised $15m in its fourth funding round, adding to the $28m it had raised in three previous rounds. Total funding is now $53m.

Just when people were thinking of a possible IPO, along comes a fifth funding round. Isn't Drobo profitable? Isn't it self-funding? Presumably not. Existing venture capital investors piled in together with a new one, Focus Ventures, so they're all confident about pumping in more cash.

We're told that "Data Robotics will use this investment to accelerate research and development programs and expand global sales and marketing initiatives." The firm's CEO and founder, Dr. Geoff Barrall, who founded NAS supplier BlueArc, talked of "continued growth in current markets while rapidly expanding our reach into new opportunities."

It looks like the $10m will be used to accelerate development of the product and grow Drobo's sales side. The company must be thinking it needs to accelerate its growth and can't wait to fund the developments needed from revenue.

Competition in the desktop SME backup-to-disk market is hotting up: witness Iomega's StorCenter ix4-200d, a pre-loaded, 4-drive iSCSI and NAS box. Western Digital and Seagate are also expanding their desktop external disk storage offerings for consumers and SMEs, and there are products available from Buffalo, LaCie and others.

A potential expansion direction is to make a rackmount Drobo, although that would be a step away from its design centre of gravity. A development within this design area would be to downsize to 2.5-inch drives. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
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
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.