Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Networking
    • Small Business
    • Storage

    IBM Acquires Its Own Online Storage Provider

    By
    Chris Preimesberger
    -
    December 6, 2007
    Share
    Facebook
    Twitter
    Linkedin

      IBM announced Dec. 6 that it will acquire 10-year-old Arsenal Digital Solutions USA, a privately held online storage services and data protection company, matching moves by EMC and other storage players to add online storage services.

      Based in Cary, N.C., Arsenal Digital and all 100 employees will become part of IBM Global Technology Services, based in nearby Raleigh, N.C. IBM Global Technology services, at $32 billion in annual revenue, is IBM’s largest business unit. Financial terms of the transaction were not disclosed.

      Arsenal Digital, which has about 3,400 customers, serves mostly small and midsize businesses that want data protection and easy online access in response to increasing regulatory requirements and fast data growth. IBM had partnered with Arsenal for several years on specific orders.

      The move by IBM closely follows that of storage competitor EMC, which acquired online backup provider Berkeley Data Systems and its Mozy and Mozy Pro services line in September for $76 million. IBM’s move adds an online option for customers who tell IBM their data is growing at 40 to 50 percent per year and opens IBM to a market opportunity that is growing 30 to 40 percent every year, said Mike Riegel, IBM’s vice president of information protection services.

      More than that, IBM sees the acquisition in broader terms than the addition of online storage alone, Riegel said.

      “We see this as a convergence of storage, business continuity and disaster recovery,” Riegel said. “We think that will be the differentiator for IBM. We are now going to be able to go to new and existing customers and say, ‘Not only can we help you with your disaster recovery, but since we have your data, we can help you protect your data in a way that links to your business continuity plans.'”

      Arsenal brings production-tested capabilities in the online data protection market that will complement IBM Tivoli’s flagship data protection offerings and IBM System Storage software, Riegel said.

      Click here to read more about Google’s online storage plans.

      IBM has acquired 60 companies in the last five years and is moving its global services business from a traditional labor-based model to one that increasingly uses automated services like those of Arsenal Digital.

      “We’re really energized by this,” Brian Reagan, chief marketing officer for Arsenal Digital, told eWEEK. “As we looked at potential partners that could help us accelerate our growth, the idea of joining the worldwide leader in [IT] services was kind of a no-brainer for us. Our visions are aligned perfectly; it’s great for our employees, our customers and our partners. We feel like this is a home run.”

      This likely will not be the last such acquisition in this market, analysts say. Other online storage providers, such as Carbonite, AmeriVault and CommVault, must be considered takeover candidates, while companies such as Dell, Hewlett-Packard and Network Appliance might be in the market.

      “There is a great deal of activity in the backup services market,” Dave Russell, Gartner vice president of storage technologies, told eWEEK.

      “Just less than 12 months ago [in December 2006], Seagate [Technology] acquired EVault. EMC acquired Berkeley Data Systems in October 2007 and Symantec is preparing to launch their Symantec Protection Network in the near future.

      “This market is attractive because it has a nice combination of growth, unmet needs, and is a recognized purchasing area-making it enticing for vendors to expand in to,” Russell said.

      Amazon.com and Verizon already offer online storage services for businesses and consumers. Google has said it is considering expanding its own service.

      The acquisition is scheduled to be completed in the first quarter of 2008, an IBM spokesperson said.

      Check out eWEEK.com’s Storage Center for the latest news, reviews and analysis on enterprise and small business storage hardware and software.

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×