Feeds

Storage firm Drobo gets mysterious cash injection

Ten million greenbacks for what exactly?

Maximizing your infrastructure through virtualization

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. ®

The Power of One eBook: Top reasons to choose 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*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
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
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.