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LSI buys OnStor, VCs take Bath: Page 2 of 2

In a continuation of the busy storage industry M&A season LSI has snapped up midmarket NAS vendor ONStor for $25 million in cash. While I'd consider selling DeepStorage Labs for $25 million a success; the venture capitalists that put over $130 million into OnStor over its 9 year life it was just a way to get away with something. At $25 million it may be a good deal for LSI but the waitresses on Sand Hill Road will take yet another hit on their tips.
Howard Marks
July 27, 2009

OnStor isn't the only midmarket NAS vendor that's fallen on
hard times.  NetApp gave up on the
StorVault line, Reldata fired their CEO a few months ago and poor Snap is on its
umpteenth owner having wasted all the name recognition they had from the days
when NAS meant NetApp, Auspex or Snap.

With OnStor LSI does get a decent NAS OS with a global naming
system and failover clustering on their Bobcat line and the newer Panteras that
run NexentaStor for ZFS with iSCSI for block storage.  Hopefully they'll be able to take advantage
of the volume their Enginio block storage systems, which by the way make up the
bulk of IBM's low end to midrange storage portfolio, to deliver NAS systems and
make a buck.

At $25 million it may be a good deal for LSI but the
waitresses on Sand Hill Road will take yet another hit on their tips.

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