Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

System Startups Get Fresh Funding

A vigorous storage market is being eyed hopefully by startups, who have new grounds for their optimism. Compellent and Ario Data -- two vastly different storage systems vendors -- have picked up funding they predict will take them to profitability next year.

Compellent received $15 million today and Ario will disclose an $8 million round Tuesday. (See Compellent Picks Up $15M.) The funding comes in the wake of IPOs of CommVault and Riverbed last week that show going public is no longer a pipedream for storage companies. (See CommVault Swims in Public Pool and Riverbed Comes Out at $9.75.)

Compellent now has a total of $53 million over three funding rounds. The lead investor in the new round is Japan-based Nomura International.

The company clearly has its eye on IPO, although it is still tiny compared to many SAN competitors. A source familiar with the firm says Compellent projects $25 million in revenue this year, up from $10.5 million last year. Compellent marketing VP Bruce Kornfeld says the company has had a few profitable quarters and hopes for "consistent profitability" in 2007.

According to Kornfeld, Compellent's growth is based on beating larger SAN vendors on price and smaller ones on functionality. For instance, he claims a Compellent Storage Center SAN costs half as much as a corresponding EMC Clariion CX3 with the same amount of capacity. As for other privately held competitors, such as 3PAR, Xiotech, and iSCSI vendors EqualLogic and LeftHand Networks, Kornfeld says Compellent's edge is offering Fibre Channel and iSCSI in the same system.

  • 1