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Diligent Technologies: Page 3 of 3

“At a time when money’s easing up a little, you have to say companies in this group have a chance to get some,” says analyst Steve Berg of Punk Ziegel & Co.

Even with new funding, turning a profit might not be so easy, particularly in the open systems arena. Even tape vendors such as Advanced Digital Information Corp. (Nasdaq: ADIC), Quantum Corp. (NYSE: DSS), and Storage Technology Corp. (StorageTek) (NYSE: STK) have disk backup products. Sepaton, Maxxan Systems,
and ATTO Technology Inc.
offer disk backup hardware; and Alacritus Software Inc.
and Neartek Inc.
have virtual tape software applications.

Yates claims Diligent's differentiator is that its open system software doesn't rely on a specific tape or appliance, but runs on servers consisting of Intel-based Linux boxes. “Our competition has associated themselves with hardware, either their own or somebody else’s. We look to others to do the hardware work." He says Diligent will work to increase channel partners from 13 to 20 by the end of the year to try and push sales along. EMC is one of the channel partners.

— Dave Raffo, Senior Editor, Byte and Switch