Tacit Tightens Blue Connection

More arrangements between startup and IBM typify WAFS interest among big vendors

July 22, 2004

3 Min Read
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Tacit Networks Inc., a maker of wide-area file services (WAFS) software, has announced an agreement with IBM Corp. (NYSE: IBM) that illustrates the growing role of WAFS in storage networks and data centers (see Tacit Networks, IBM Team).

Tacit already had a deal for Big Blue to sell its appliances in Denmark. What's more, John Hufford, a senior technical staff member at IBM/Systems Group in California, is on Tacit's advisory board. The new agreement expands on this: IBM can add other locations worldwide to its Tacit distribution roster, and Tacit's gotten its products certified for use with IBM servers and storage gear, which should grease the wheels of potential sales. Tacit's also developing a rackmount version of its WAFS appliance for use with IBM's eServer xSeries servers, which run under Linux and Windows.

Tacit is one of a handful of suppliers that specialize in caching software for faster read/write access to multiple remote sites (see Watch Out for WAFS). And its relationship with IBM is akin to other partnerships that are helping WAFS vendors build their niche through arrangements with bigger fish.

Indeed, the need to consolidate and improve remote-site data connections has spawned a range of deals in recent months, including the purchase of Actona Technologies Inc. by Cisco Systems Inc. (Nasdaq: CSCO) for $82 million (see Cisco Acts on Actona) and over $30 million in funding for Tacit and rival DiskSites Inc.

Other players in the space, including Riverbed Technology Inc. and Signiant Corp., have announced executive appointments and partnerships (see Riverbed Names Sales Boss, Riverbed Teams With EMC , and Signiant Partners With GTSI).Table 1: WAFS Update

Vendor

Recent Finance/Corporate News

Actona Technologies

March 2004: Series C funding of $10M brings total to $23MJune 2004: Bought by Cisco for $82M

DiskSites

May 2004: New CEO, Series C funding of $3.5M brings total to $9M

Riverbed Technology

July 2004: New sales VP, William Messer (ex-Cisco)

Signiant

March 2004: New sales VP, Ivan O'Sullivan (ex-Clearswift)

Tacit Networks

May 2004: Series B funding of $16.9M brings total to $24.2MJuly 2004: Resale, support, and certification deal with IBM

Tacit's deal with IBM will probably be small potatoes moneywise. Indeed, though IBM now can resell Tacit products worldwide, Tacit spokespeople say the focus will probably stay on Europe at first, where use of high-latency satellite links has multiplied remote sites.

But the deal, while small, could be significant in terms of Tacit's future prospects. While there's nothing exclusive about the agreement (IBM didn't get back to us at press time on what other WAFS outfits it may team with), its server development work might speed Tacit's ability to port to IBM blade servers later on. Given that blades are the trend of the future for suppliers of storage and specialized IT software, that "in" could give Tacit an enviable headstart on any rivals.

None of this means WAFS is set to take the market by storm. Indeed, a passle of failed startups in this space, including Storigen and Zambeel, attest to the trickiness of the segment. But it looks as if larger vendors, such as Cisco, IBM, and EMC Corp. (NYSE: EMC), which has a relationship with Signiant (see Signiant Wins EMC's Love), view WAFS as important enough to strike deals with companies that specialize. That heralds ongoing, if limited, progress for a handful of qualified players.

Mary Jander, Site Editor, Byte and Switch0

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