Storewiz Notches $9M

Data compression startup Storewiz has picked up $9 million in funding, underlining growing interest in alternatives to de-duplication technology. (See Storewiz Secures $9M and Data Compression: The Squeeze Is On!.)

The startup's story revolves around its ability to compress data as it travels from a server to a back-end array. By spreading the workload across multiple CPUs, the vendor claims to improve existing compression ratios for databases as well as CIFS and NFS files. (See Storewiz Bolsters Compression, Storewiz Intros STN-5000, and Storewiz Intros Product Line.)

Storewiz is touting this technology as an alternative to data de-duplication, which reduces the bulk of backed up data by compressing data that appears in more than one place. (See EMC Talks Disk & De-Dupe, NetApp De-Dupes, De-Dupe Deep Dive, Dealing With De-Dupe Doubts , and Analysis: Data De-Duping.)

The key difference with Storewiz, which made it onto the most recent Byte and Switch list of top 10 startups, is its ability to deal with all types of storage traffic. (See No Presto Change-o.) That comes from compressing data on the fly, as it travels from switch or server to storage.

In contrast, other vendors in this space, such as EMC, Asigra, and Symantec, compress data on a server before it is sent to backup. A third group, including FalconStor and Sepaton, compress data outside the data path, after it is written to the target disk. (See Sepaton Scores $22M.)The tradeoff for Storewiz is that the on-the-fly approach requires additional processing compared to alternative technologies.

Data Domain, Diligent, and Quantum take a similar approach to Storewiz, but these firms deal with backup and archiving, not primary storage. (See Sepaton Adds De-Dupe to VTL and Data Domain Unveils DD580.)

The Series B round, funded by Sequoia Capital, follows an undisclosed round from a group of private investors in Israel, and it is earmarked for growing the Storewiz workforce over the coming year. (See Storewiz Moves to Bay Area.)

The San Jose, Calif.-based firm currently has 75 employees in the U.S. and its R&D facility in Israel, although Jon Ash, the firm's vice president for North America, told Byte and Switch that this figure will swell to more than 100 within the next 12 months. "We're expanding -- we're adding sales, systems engineers, support people, and all the infrastructure that goes around that."

Despite intense competition from a pack of rival vendors, the startup's message appears to be getting through. Ash told Byte and Switch that Storewiz has shipped 200 of its data compression devices to 80 customers around the world, although he would not reveal the identities of these firms.The startup's initial customers were in the oil and gas industry, thanks to a reseller deal with systems integrator Landmark, which is part of Haliburton. Ash says this list has been expanded.

Storewiz has been picking up additional resellers at a clip over recent months, signing deals with WebHouse, Zycko, Unique Digital, and Redstor. (See Storewiz Signs Reseller, Storewiz Lands Reseller, Storewiz Signs Unique, and Storewiz, Zycko Team With Redstor.) The vendor has also expanded into the Asian market, clinching partner deals in Japan and Singapore. (See Storewiz Makes Announcement and Storewiz Inks Singapore Deal.)

With data compression gaining a toehold in the storage market, Ash said he expects the startup to reach profitability next year.

James Rogers, Senior Editor Byte and Switch