LSI Sniffs Out StoreAge

As the intelligent switch market shows signs of a pulse, LSI Logic is preparing to add software virtualization to its portfolio by acquiring StoreAge for $55 million.

LSI would not comment on the possibility of picking up StoreAge, but several sources confirmed the sides are in the final stages of completing the deal, which was first reported by the Israeli financial news Website Globes.

Sources expect LSI would use StoreAge technology to help manage storage across its Engenio SAN systems sold through OEM deals with IBM, Sun, and other vendors, as well as incorporate it in LSI's components.

"It looks like it's going to happen, and it's going to happen soon," one industry analyst says. "Look for LSI to use StoreAge both inside its Engenio storage systems and other products."

StoreAge is among a handful of vendors that have developed software to virtualize block storage, either on intelligent switches or appliances. (See Virtualization Buyers Keep Exit Open and A Baby Step for Storage Virtualization.) StoreAge software is available on the QLogic SANBox 8200 intelligent switch, and the company is working to port its software to Cisco MDS switches. StoreAge software also works on out-of-band appliances sold mostly through resellers.