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EMC revenue down, employees asked to take pay cut; Cisco shops look ahead to FCoE

Headlines: EMC revenues are down sharply and the company is trying to cut costs to maintain margins, but sales of the Celerra multiprotocol arrays continued to grow in Q1; Cisco customers say FCoE makes sense as they try to centralize IT and keep data center sprawl to a minimum.

Storage channel news roundup for April 23-29, 2009

EMC revenue down, employees asked to take pay cut

The global economic downturn hit EMC Corp. last quarter, as the storage giant reported that its revenues declined 9% and profit declined 23% compared to a year ago.

EMC CEO and President Joe Tucci said there'll be no more layoffs beyond the 2,400 announced at the start of the year, but he has asked employees to take a 5% pay cut for the remainder of the year.

Tucci said he thinks IT spending has hit the bottom and that storage has been affected less than the network and server areas, but EMC execs don't forecast an uptick until the third quarter.

EMC's first quarter revenue of $3.15 billion was down from $3.4 billion in the same quarter a year ago, and below the company's internal goal of $3.2 billion. Net income was $194.1 million, down from $251.6 million in last year's first quarter.

"I believe we are at or near the bottom" of IT spending for the year, Tucci said.

Get analyst reaction to EMC's revenue predictions.

Cisco shops look ahead to FCoE

Storage administrators for Cisco Systems Inc. customers Lafarge North America Inc. and East Carolina University see Fibre Channel over Ethernet (FCoE) as the next logical step in data centers where storage and networking is already rapidly consolidating.

The construction materials supplier and the university use Cisco's MDS director switches and Ethernet gear, and are watching the development of the networking vendor's Nexus FCoE switches. Cisco has been the most aggressive vendor in pushing FCoE as a way to run FC and Ethernet on the same network. Brocade, its main switch rival, said it fully supports FCoE but thinks adoption will be slow. Brocade also remains committed to advancing FC gear to 16 Gbps and beyond.

While many storage insiders agree with Brocade that FCoE is years away from widespread adoption, some IT administrators are already planning for it.

Read the full story on Cisco customers' plans for FCoE.

Data Domain takes data deduplication to the enterprise with backup system

Data Domain, coming off 50% year-over-year revenue growth, is now trying to take over the enterprise with its data deduplication backup system.

Data Domain last week reported revenue of $79 million last quarter. While that was at the low end of the company's forecast, it was up from $52.7 million last year -- impressive growth considering the year-over-year decreases suffered by EMC Corp. and IBM Corp.'s data storage business.

Competitors and critics said while Data Domain has dominated dedupe in the midmarket because it was first to market, its systems aren't built for enterprise data centers. The biggest knock on Data Domain is it lacks global deduplication -- the ability to cluster its controllers to work as one large system.

Data Domain CEO Frank Slootman said clustered systems are coming, but the size and speed of his company's single-controller systems are more than sufficient for the enterprise.

Read the full story on Data Domain's plans to take data deduplication to the enterprise.

ONStor embraces ZFS, goes multiprotocol

ONStor Inc. introduced its first integrated storage system built on the open-source Zettabyte File System (ZFS) last week. The Pantera LS 2100 series supports iSCSI and network-attached storage (NAS), as well as solid-state drives (SSDs), and is targeted at small and mid-sized enterprise (SME) customers.

ZFS creates an integrated storage pool that the entire network draws upon, and adds native iSCSI to ONStor products for the first time. Narayan Venkat, vice president of marketing at ONStor, said customers don't have to manage partitions, create volumes or carve-out logical unit numbers (LUNs). The controller sees all of the storage behind it as one hybrid pool.

Get advice for selling network unified storage platforms.

Texas Memory Systems rolls out all-flash disk array

Texas Memory Systems Inc. launched the RamSan-620, an all-flash version of its memory-based disk arrays in an effort to sweeten the solid-state drive (SSD) deal for customers concerned about cost.

At $88,000 for a 2 TB model and $220,000 for 5 TB, the array costs more than most hard drive-based disk arrays, but it's less expensive than DRAM-based RamSan offerings such as the $1.5 million RamSan-5000. Texas Memory Systems claims the RamSan-5000 can achieve up to 1 million IOPS, while internal testing of random writes using 4 K blocks on the RamSan-620 resulted in 250,000 IOPS.

The RamSan-620 is the first product from Texas Memory Systems without DRAM, which brings down the price.

Learn how to guide customers toward a choice between flash-based SSD and DRAM-based SSD.

Hitachi Data Systems targets holistic management

Hitachi Data Systems (HDS) Corp. is broadening its data management software with three new applications this week, including one that monitors data storage resources along with network and server devices.

HDS rolled out the Hitachi IT Operations Analyzer monitoring tool, the Hitachi Virtual Server Reporter and the Hitachi Storage Command Portal. HDS sells the Virtual Server Reporter through an OEM deal with privately held Aptare Inc., and developed the other two products in-house. The software applications are designed to manage Hitachi's enterprise and midrange storage arrays.

Read the full story on Hitachi's new data management software.

Permabit makes secondary storage its primary goal

Permabit Technology Corp. has increased the performance and scale of its data center archiving system, allowing it to more quickly move more data off other vendors' tier 1 storage arrays.

Last week's launch of the Permabit Enterprise Archive Data Center Series Model 4010 is an upgrade to the higher end of its two storage platforms. The new systems are a speeds-and-feeds upgrade. Permabit switched to new Intel Corp. Xeon quad-core processors that increase performance by 280% over their previous systems, and moved to 1 TB Seagate Technology LLC SATA drives to double the capacity of storage nodes to 4 TB.

The 4010 supports up to 48 nodes per grid for a maximum of 144 TB of raw capacity per grid.

Check out our data archiving topics page for more archiving-related resources.

CA adds deduplication, virtual server backup to Recovery Management

CA Inc. has revamped its data backup and replication products with the release of version 12.5 of Recovery Management, a suite that contains ARCserve Backup, XOsoft High Availability, and XOsoft Replication.

The ARCserve Backup update adds integrated block-level data deduplication, features to support virtual server data protection, storage resource management (SRM), encryption and key management, and Active Directory integration.

ARCserve incorporates data deduplication for backups to disk and tape, giving customers the choice of "reinflating" data on writes to tape or copying data directly from deduplicated disk. One CA customer said deduplication is the most exciting addition to 12.5.

In beta tests, Tom Hannum, president of consulting firm Hannum Computer Service, said the new dedupe had reduced the amount of data he's backing up each night by approximately 30%.

Read the full story on CA's Recovery Management.

Indianapolis Colts hand off data backups to Venyu

Venyu Inc., the company formed out of online backup service provider AmeriVault Corp. and data center disaster recovery managed service provider NTG, has added another team to its roster of NFL clients based on AmeriVault's reputation in the league.

The Indianapolis Colts last week became the fourth team to publicly announce it is outsourcing backups to Venyu. Director of football information systems Ryan Fannin said he evaluated competitive services, but went with a vendor already known in the NFL.

Read the full story on the Indiana Colts' use of Venyu online backup services.

DataCore enhances its partner program

DataCore Software, maker of SANmelody and SANsymphony storage virtualization software, announced updates to its SANvantage partner program this week, with new lead registration incentives and an "open-door" model, which the company says simplifies the sales process for first-time partners .

The company said the lead registration incentives now apply to all software product sales -- new customers, upgrades and follow-on sales. The company also established "SAN starter" promotions for its business continuity and disaster recovery packages.

For more information, visit DataCore's partner portal.

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Find last week's storage channel news roundup here.

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