NetApp to acquire Akorri Networks

By Dave Simpson

The M&A fever of 2010 carried in to 2011 with NetApp’s announcement today that it has entered into a definitive agreement to acquire privately held Akorri Networks, which specializes in performance and capacity analytics software for virtualized environments. The company’s software can also be used in physical environments. The terms of the all-cash deal were not disclosed.

Akorri is among a handful of vendors in a product segment that the Taneja Group consulting firm refers to as virtual infrastructure optimization (VIO).

The company’s BalancePoint suite provides troubleshooting tools that enable administrators to identify performance bottlenecks, improve storage capacity planning, and manage relationships between virtual servers and storage resources. Although the agent-less software is focused on storage, it can also be used to analyze and optimize server, application and network environments.  The software is compatible with VMware, Hyper-V, Windows, Linux, AIX and HP-UX.

Akorri refers to BalancePoint as “the GPS of your IT infrastructure.”

NetApp plans to roll BalancePoint into the NetApp OnCommand management suite.

 “The ability to accurately predict and manage performance and capacity requirements has been a common obstacle for many customers wanting to transition to a virtualized environment,” said Manish Goel, executive vice president of product operations at NetApp. “Akorri further strengthens NetApp’s data management capabilities to achieve greater quality of service and performance in their virtual and cloud environments.”

In a research note on the acquisition, Aaron C. Rakers, an analyst with Stifel Nicolaus Equity Research, stated: “We believe this tuck-in acquisition will fit nicely with NetApp’s architectural/product positioning, which we believe is well positioned to take advantage of secular dynamics associated with the increased importance of storage in virtualized/cloud data center deployments (logical representation of data migrating from host/server to storage layers where dynamic application feature/functionality and efficiencies are increasing differentiators.”

Akorri claims to have grown its customer base by more than 100% in 2010.

The company currently has partnerships with vendors such as Brocade, Cisco, Dell/Equalogic, EMC, HP, Hitachi Data Systems, IBM and LSI, in addition to NetApp.

NetApp’s acquisition of Akorri, which NetApp positions as part of its cloud computing initiative, is expected to close early in NetApp’s fourth fiscal quarter (April).

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Akorri software optimizes virtual infrastructure

This article was originally published on January 12, 2011