Infrastructure Tag


Pivot3, Inc. announced a $55 million equity and bank financing closing today.

The funding will accelerate the company’s growth and enable it to bring to market the most extensive suite of hyper-converged and flash storage solutions with predictable performance that is available today. Pivot3NexGen_0127

Argonaut Private Equity and S3 Ventures are providing funding for this round.

The support for Pivot3’s strategy and growth record from existing investors as well as the interest from new investors are indicators of Pivot3’s future business success.

We are dedicated to investing in market-leading companies that deliver innovative solutions for real world problems, and Pivot3 exemplifies our mission,” said Steve Mitchell, MD, Argonaut Private Equity. “Hyper-converged infrastructure and flash storage are two emerging markets that are experiencing unprecedented growth. Pivot3 is poised to become an unparalleled presence with truly differentiated solutions that address the cost and complexity of the modern IT data center in a far broader and more comprehensive way than its competitors.”

As part of this financing, Pivot3 will move its banking relationship to Square1 Bank, the emerging leader in technology financing.

The insight to future technology needs and the aggressive movement to market opportunities that we see in Pivot3 make it a great customer for Square1 Bank and our team of technology bankers,” said Ken Fugate, founder and MD, Square1 Bank. “We expect to grow over the years with them.”

In February 2016, Pivot3 acquired NexGen Storage, provider of PCIe flash arrays with storage QoS and dynamic provisioning capabilities. The two companies combined capabilities allow customers to apply the right infrastructure and priority to each workload, application or business service according to its business value and to guarantee the appropriate level of service.

The latest round of funding will accelerate the integration of the combined NexGen and Pivot3 product set, development of new products and advancement of the go-to-market plan.

Click Here for more.

What Happens Now? Hitachi Data Systems Acquires Sepaton

21 Aug 2014, Posted by Jeska Rayboy in Blog

More consolidation happening in the storage industry, as Hitachi Data Systems acquires Sepaton. George Crump, an IT analyst whose firm focuses on data storage and virtualization, wrote an interesting article outlining why he believes this is a win-win for both sides:

Hitachi Data Systems (HDS) announced they had acquired Massachusetts-based Sepaton, an established manufacturer of purpose built backup appliances (PBBAs) that use advanced de-duplication to shorten backup times and minimize backup appliance “sprawl”. The company will become a wholly-owned subsidiary of Hitachi Data Systems, which is a division of Hitachi Ltd, of Japan.

Who is Sepaton?aquire

Founded in 2001, Sepaton was one of the early entrants into the disk-based, de-duplication backup market and originally focused on replacing tape-based backup systems (Sepaton’s name is actually “No Tapes” spelled backwards). But as disk backup and de-deduplication became more mainstream, Sepaton rightly shifted their focus to the advantages of their data reduction technology, building a base of some 3000 customers.

Leveraging their ‘DeltaScale’ technology, Sepaton’s PBBAs deliver some of the fastest backup and recovery performance on the market (up to 80TB per hour) in a modular, scalable, architecture. Using byte-level de-duplication Sepaton’s systems provide some of the highest, most consistent data reduction ratios regardless of data type, enabling multiple-PB, single-system capacities.

 Did Sepaton need to do this?

Sepaton participates in the fiercely competitive purpose-built backup appliance market. They have had the advantage of focusing on enterprise-level customers with a highly scalable, high performance feature set that typically appeals to that market. Their challenge, similar to any startup or small company selling to the enterprise, is building the credibility to effectively compete. While they may have had a product that some considered better suited to the enterprise, they were at a distinct disadvantage when going up against the likes of EMC.

They also faced the reality that many of their partners eventually became competitors. For example, HP was an early advocate and OEM of Sepaton’s, but now competes directly with their StoreOnce technology. The advantage of being part of HDS is that Sepaton gets instant credibility in the market and access to HDS’s resources, channel and sales organization.

Why did HDS do this?

For their part, HDS had no serious offering in the disk backup appliance market while most of their competitors did; including HP, IBM, EMC, Dell and even Oracle. HDS does have an enterprise sales organization and providing them with a quality disk backup appliance that is differentiated from their competition should be an immediate benefit. And Sepaton does create some synergies with HDS’s existing product line. HDS has also been providing the hardware platform for Sepaton’s S2100, with their AMS2100 SAS RAID-6 based storage system.