What we're seeing is that general regulations filter into the audit and accounting world, which is telling its enterprise customers, "Hey, you guys need to think about this stuff." There are two factors in compliance. Public companies that must do it, and the real interesting piece non-public companies affected because their accounting firms are looking at it and making them consider and think of their futures as public companies.
It's hard to be told as a private or public company that you must follow guidelines. You need to present guidelines to the industry as best practices. Then it's hard to argue against them. The regulatory and compliance market is really a big educational force.
The flip side is the availability and affordability of solutions. That's related to the cost of standard hardware, storage, and servers coming down so dramatically. So in order to implement a [compliance] solution, customers don't have to spend a fortune. We offer solutions in partnership with companies like Dell and HP that already supply low-cost hardware. Bundling with them, we come in with an extremely affordable price.
Once you're looking at, say, a $10,000 high-speed tape drive, software, and a server, that's not a problem. Our performance from a throughput standpoint is multiples of tape drives...
One area that's interesting from the fundamental trends standpoint is that today, a lot of the market is split into host-based or subsystem-based products... Our gut opinion is that IBM, EMC, Hitachi, and other big players will end up owning the subsystem space.... We're positioning ourselves for growth, and there's a huge upside to being in the host-based segment, addressing the mid-tier. If a server is attached to the SAN, we protect all data on the SAN. Companies focused on subsystems will be eaten they're really positioning themselves to be acquired by one of the big players.
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AI may force enterprises to rewire parts of their data centers so they are fully optimized to run such workloads. The question is do you use Ethernet or InfiniBand?
