Merger promises improvements for RAID
Merger promises improvements for RAID
Aug 01, 2005: Xyratex has bought nStor to advance expertise and improve RAID technology for organisations looking to purchase systems at the entry level are of the market.
Steve Barber, the CEO of Xyratex, said that the proposed acquisition would strengthen Xyratex's proven technology in the critical area of Entry Level RAID controller technology.
"This emerging high growth segment presents an exciting new opportunity for Xyratex. We believe that the combination of Xyratex's existing intellectual property base with nStor's RAID and software technology enables us to extend our leadership position and acquire new customers."
Using data provided by IDC, Xyratex estimates that the market opportunity for this segment is approximately US$1.9 billion in 2005, growing to over US$6.3 billion in 2008.
One of the key business strategies of Xyratex is to expand its technology base to incorporate more captive RAID controller technology into its product offerings within the external storage systems market.
nStor has invested heavily in low cost storage systems, including dual active RAID controllers developed around a stable firmware core, which fits in perfectly with the Xyratex's strategy.
Todd Gresham, the CEO of nStor, added that he thought the business combinations complements the company's global strategy to provide cost effective storage solutions to OEM and solutions integrator customers.
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