Quantum not buying Dot Hill. Takes the OEM, master disti path instead

Dare we say a truly win-win situation

Contradicting rumours we heard that it was buying Dot Hill, storage biz Quantum, already a Dot Hill OEM, is taking on master channel distribution rights for the network array maker's products.

Dot Hill manufactures storage systems for OEM customers such as Quantum and others, and has a focus on improving array performance with patented technology.

The company has recently turned its business performance around after a four-year slump.

What it has agreed with Quantum should enhance its sales and lower its costs further. In detail:

  • Dot Hill and Quantum have a global go-to-market partnership
  • Quantum will integrate Dot Hill's full line of enterprise-class disk storage systems into its tiered storage offerings (meaning, we understand, DXi and StorNext)
  • Dot Hill will extend its market footprint by using Quantum's channel, sales and marketing resources, and global service and support
  • Quantum-branded Dot Hill storage is available now from Quantum's worldwide network of resellers

Quantum already uses Dot Hill storage in the form of Quantum's StorNext QXS disk systems. It will incorporate Dot Hill's technology when meeting specialised storage needs in the media and entertainment, video surveillance, corporate video and HPC markets.

In the DXi deduping backup-to-disk array business Quantum will broaden DXi applicability by including tiering data within and across primary storage, backup and archive.

Beautifully canned quotes came from both company CEOs. Dot Hill’s Dana Kammersgard said: “Quantum has the global scale and scope to support a worldwide customer base, and will greatly accelerate and broaden the distribution of Dot Hill storage technology."

Jon Gacek from Quantum said: “Dot Hill has a strong set of products that ... make a great addition to Quantum's tiered storage portfolio.” Moreover, Dot Hill products will help with Quantum’s "continued focus on delivering specialised solutions that enable customers to maximise the value of their data by managing and protecting it throughout its lifecycle".

What do we think? Quantum will likely get Dot Hill product for a better price than it has paid previously. It will also hopefully profit from distributing Dot Hill kit to its resellers and so add then to Dot Hill’s overall channel.

This should boost Quantum revenues which are on a recovery growth path.

Dot Hill gets a large and decent set of Quantum resellers taking its kit and an enhanced OEM relationship with Quantum. The deal looks like one that really does merit a 'win-win' description.

It will be interesting to see if Quantum now makes moves into the Internet of Things area, as Dot Hill has useful technology for its arrays in that area. ®

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