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XOsoft Turns Back Time: Page 3 of 4

XOsoft will also release an enhancement to its existing WANSync software next week. Version 3.5 of the software enables asynchronous or synchronous replication of data and is optimized for wide-area networks. The software also allows customers to resynchronize their replication jobs even after the network connecting two sites has gone down for a while, Shtilman says.

WANSync and Data Rewinder integrate well together, Shtilman claims, pointing out that by combining the two software products, customers can avoid replicating bad data. "I was thinking, something should be done to stop people from replicating garbage," he says. [Ed. note: Sadly, no one has been able to stop George Lucas from doing this yet.]

The question, of course, is whether the new version of WANSync will be able to stand up to formidable competitors like Veritas Software Corp.'s (Nasdaq: VRTS) Storage Replicator, Legato Systems Inc.'s (Nasdaq: LGTO) RepliStor, and NSI Software's DoubleTake. "It's always a challenge for any small company to find a distribution channel and customers," says Aberdeen's Hill.

XOsoft, however, claims to have already sold thousands of licenses for the previous version of its WANSync software, which it has been shipping for about a year. It says its customers include financial institutions, governmental agencies -- including the Federal Reserve -- and insurance companies. WANSync 3.5 costs between $2,000 and $4,000 per server, depending on which application it's running.

XOsoft, which has 30 employees based in the U.S. and Israel, was founded in 1999. It has received four rounds of funding from JK&B Capital, Draper Fisher Jurvetson Gotham, Neurone Ventures, Seed Capital Partners, Janney Montgomery Scott LLC, GS Private Equity Group, and The ComSor Funds.