Veritas acquires Invio
By Dave Simpson
Adaptec recently completed its acquisition of privately held Snap Appliance in a deal valued at approximately $100 million ($91 million in cash and $9 million in assumed stock options). Mark Delsman, vice president of business strategy at Adaptec, predicts that the deal will generate more than $40 million in new revenue for Adaptec over the next 12 months.
Snap is the leading vendor of NAS appliances in terms of unit shipments. (In terms of revenues, Network Appliance and EMC lead the pack.) Snap also sells storage applications that fall into the backup, disaster recovery, anti-virus, replication, and management software categories.
The Snap acquisition is the latest move in Adaptec's strategy to broaden beyond its core components business, particularly into external storage devices. Adaptec acquired Eurologic last year and began shipments of an external iSCSI-based disk array (the iSA1500) in February.
Snap recently announced support for iSCSI and combined file/block I/O in the 3.0 release of its Linux-based GuardianOS operating system (see "Users, vendors combine NAS, iSCSI," InfoStor, June 2004, p. 1). Most of Snap's NAS competitors in the low-end and midrange markets—such as Dell and Hewlett-Packard—sell NAS appliances based on Windows.
GuardianOS runs on all of Snap's Snap Server NAS appliances, including the recently introduced model 15000. Running GuardianOS 3.0, Snap's servers can be used for traditional NAS file serving, as block-level iSCSI SAN arrays, or a combination of the two architectures. Snap's NAS appliances range from entry-level devices for workgroups to high-end configurations with up to 29TB. At the low end of its NAS product line, Snap runs the proprietary SnapOS operating system.
"There is a bit of overlap between the Eurologic product line and Snap's, but like others we're forecasting a convergence of block and file I/O on IP SANs," says Delsman.
In addition to Snap's NAS/SAN product line, Adaptec gains channel exposure with the acquisition. "Adaptec is very strong in the channel with its traditional component-level business," says Delsman, "but is not as strong in the channel with its external products, which is where Snap has strengths." In addition, Adaptec plans to leverage its strengths on the OEM front, which Snap had not focused on.
Snap is the latest in a line of acquisitions by Adaptec. In addition to buying Eurologic last year, Adaptec acquired RAID technology from IBM earlier this year. Other Adaptec acquisitions have included ICP Vortex and Elipsan.
Snap officials claim to have shipped more than 150,000 Snap Servers.
In other storage acquisition news, Veritas last month announced that it would buy Invio Software for approximately $35 million. Invio's process automation engine had already been integrated with Veritas' CommandCentral Service 4.0 software and is expected to play a role in Veritas' utility computing strategy.