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Overland Overtakes Zetta

Overland Storage Inc. (Nasdaq: OVRL) has shelled out $9 million cash for Zetta Systems Inc. and will release a disk-based appliance for primary storage by the middle of October 2005 (see Overland Buys Zetta).

The buy is Overland's latest bid to offset losses in tape products. The question is whether disk-based revenues will come fast enough.

Overland shopped for months and considered about a dozen companies before settling on Zetta (see Overland Sights Startup). Overland CEO Christopher Calisi says the nature of the search changed early on. "We realized hardware was not the value here. It's software that protects the data the minute it's written out that makes the difference."

Overland will use Zetta's software in a line of primary-storage appliances aimed at the low-end iSCSI and FC NAS market, competing with the likes of EqualLogic Inc., Intransa Inc., and Network Appliance Inc. (Nasdaq: NTAP).

Calisi isn't put off by this competition. As he sees it, Overland's tape and secondary backup customers that formerly opted for generic RAID gear or turned to a competitor won't be able to resist what Zetta brings: continuous data protection (CDP) and thin provisioning across Windows, Linux, and Mac OS systems running on commodity Intel-based hardware.

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