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CreekPath Tries New Path: Page 2 of 4

“There’s a great deal of data our product collects,” Davis says. “There’s a level of analysis we can provide to customers that we don’t do enough of yet. We can do some more things this year, but it will take time to fully build out."

Meanwhile, he’s also looking to take a page from rival startup AppIQ Inc.’s book and strike OEM deals with storage vendors. “I believe there’s a lot of opportunity for us to help partners. It’s a priority of mine.”

That makes sense, because SRM is sold largely through storage vendors. Outside of Veritas Software Corp. (Nasdaq: VRTS), the top five SRM vendors are EMC Corp. (NYSE: EMC), Hewlett-Packard Co. (NYSE: HPQ), Hitachi Data Systems (HDS), and IBM Corp. (NYSE: IBM). The four systems companies combined for approximately 70 percent of the market last quarter, according to IDC.

That market itself is robust. IDC says it grew 14.1 percent to $682 million in the first quarter of this year. CreekPath, which Davis claims has “a couple of dozen” customers, mostly large enterprise accounts, has collected just a drop in the bucket. What's gone wrong?

One answer, experts say, has to do with CreekPath's resistance to adopting the Storage Networking Industry Association (SNIA)’s Storage Management Initiative Specification (SMI-S), an industry-approved protocol that ensures that SRM tools will work with hardware from different vendors.