Storage Insider: A tale of two storage acquisitions

07.09.2006

Is Emulex-Sierra Logic a match made in heaven? Sounds like it. Unfortunately I can't be as optimistic about the other recent deal: Tandberg Data's purchase of Exabyte for a pittance, about US$50 million if I read the buyer statements (http://www.tandberg.com/index.php?option=com_content&task=view&id=251&Itemid=60) correctly.

There's a lot I don't like about that acquisition. For starters, the two vendors' product lines have too much overlap -- they both offer autoloaders aimed at small datacenters, for example. Even more troublesome, they have competing proprietary tape formats (Tandberg's SLR and Exabyte's VXA), both regarded by each vendor as "the most reliable tape technology."

Will Tandberg be able to maintain its newly acquired jewels along with the old ones? I haven't seen any statement from Tandberg about their plans, and I'd wager that we probably won't see one soon, considering that a large chunk of the acquisition price will go to appease Exabyte creditors.

Nevertheless, I hope that Tandberg will soon make its intentions clear. There are many customers and prospects waiting to know whether this marks an ending point or a new start for Exabyte.