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RagingWire Does DR With 3PAR

Managed service provider RagingWire Telecommunications Inc., is gearing up to install 3PARdata Inc.'s rapid database recovery software on the storage system it acquired from the startup last year.

The idea, RagingWire says, is to remove most of the burden of disaster-recovery planning from its customers, enabling them to get on with running their businesses.

The two-year-old managed service provider (MSP) offers managed data replication, backup and recovery, and virtual private networking (VPN) services to businesses in the Sacramento, Calif., area. Its customers include BlackRock Inc., a division of the PNC Financial Services Group; Photronics Inc.; Hitachi Data Systems (HDS); and Flextronics Corp. (Nasdaq: FLEX), which outsourced its entire ERP supply chain management and back-office systems to RagingWire. The MSP says it has 20 clients and that 80 percent of its overall revenue comes from Fortune 1000 companies that have multiyear, multimillion-dollar contracts with the firm.

It's a business model few people have the nerve to defend these days after so many MSPs, storage service providers (SSPs), and application service providers (ASPs) have gone bankrupt. Not RagingWire: It claims to have found a way to make money at this game.

The prevailing wisdom says the trouble with the outsourcing model is that a service provider can't effectively leverage its resources across multiple customers. According to this school of thought, an xSP must create prepackaged solutions that don't meet the needs of most prospective customers -- which is the reason so many of them failed.

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