HP Bags Polyserve

Hewlett-Packard has purchased network file virtualization vendor Polyserve for an undisclosed sum. (See HP Acquires Polyserve.)

The deal, expected to close within 60 days, is the latest milestone in a two-year OEM relationship between HP and Polyserve. It comes just days after HP announced HP StorageWorks EVA File Services, an HP gateway and PolyServe software bundled for shipment in March with several HP SAN arrays to create a file- and block-based solution for corporate data centers. (See HP Boosts Enterprise NAS.)

The move also comes as HP attempts to rally its slumping storage revenues by reorganizing storage products and reviewing its channel options. (See HP Targets SMB Backup and HP's New Unit Meant to Spur Storage.) Polyserve will become part of HP's StorageWorks division.

"We see a lot of opportunities in combining Polyserve's capabilities with HP's larger business areas, such as Proliant, SAN, and blade products," says Donovan Nickel, VP, NAS, for the HP StorageWorks division. "Combined, we felt we'd offer a stronger combination as we go to market with various sales and support partners around the world."

Neither HP nor Polyserve will comment on the fate of the partnerships Polyserve already has with EqualLogic, 3PAR, Verari, DataDirect Networks, and others. For now, it's all systems "go," Nickel says. No changes.Polyserve raised at least $70 million in several funding rounds, the latest being a series E in August 2006. (See PolyServe Pulls in $19.5M, PolyServe Lands $20M, Talks IPO, and Isilon, PolyServe Pick Up Funding.)

Polyserve is based in Beaverton, Ore., with 117 employees. The company claims more than 500 customers. Nickel says most of the employees are expected to stay and will continue to work at their present headquarters.

Polyserve CEO Michael Stankey will stay on board for a short time during the integration period. "Then I'll be moving on to the next opportunity," he says.

At least one analyst thinks HP's buy is a solid one. "HP can hopefully extend the technology which includes both scalable NAS capabilties as well as database consolidaiton and migration software from Polyserve," says Greg Schulz of the StorageIO consultancy.

Schulz notes that Polyserve isn't as well known for database consolidation and migration as it is for NAS file serving and NAS clustering on Windows and Linux. Still, the technology should work well for HP as it attempts to round out new NAS offerings in the mid-market, where HP has lots of Windows-based business, he notes.Another analyst, who asked not to be named, isn't so sure. When asked whether this will help HP in its efforts to advance its storage cause, he said a simple "no." It's also likely, though, that HP will acquire at least two to four software companies in the near term, he believes.

Stay tuned for more, including comments from executives at HP and Polyserve, as this story unfolds.

Mary Jander, Site Editor, Byte and Switch