3PARdata is Ready

3PARdata Inc. has taken its next big step towards the virtual storage market by announcing the hire of two key executives (see 3PARdata Appoints New Execs).

The move is yet another indication that 3PARdata may be pulling ahead of other so-called next-generation storage networking startups who are seeking a slice of the market now owned by EMC Corp. (NYSE: EMC).

3PARdata and its would-be competitors are developing storage virtualization equipment (see Virtual Reality?). These platforms combine features of SAN and NAS devices, providing hardware and software that allows multiple storage arrays (often those from different vendors) to be managed as single entities. This brings higher capacity to customers while cutting costs, experts say.

3PARdata is moving aggressively to gain traction in this still-nascent sector (see Top Ten Private Storage Networking Companies, page 7). In July, the company scored $100 million from a small army of investors (see 3PARdata Snags $100M), including Oracle Corp. (Nasdaq: ORCL), Sun Microsystems Inc. (Nasdaq: SUNW), and Veritas Software Corp. (Nasdaq: VRTS).

3PARdata won't quantify the size of the stake that these three particular investors have made, but one spokesperson says it's "considerable." And analysts have stated that having the backing of the leading database vendor, the leading storage software vendor, and a key equipment supplier could be key to the startup's ongoing success.There are several reasons for this. Not only are Oracle, Sun, and Veritas influential suppliers to key storage service provider prospects, but the three are acting as more than just investors and helpmeets. They are also assisting 3PARdata in designing its wares.

With friends like these, competitors such as Cereva Networks Inc. have much to consider. At the very least, 3PARdata's backers are a tough act to follow. Indeed, as this went to press, Cereva was still pounding the pavement for its next round (see Cereva Closes In On Round Three).

In the meantime, 3PARdata is moving on. It has appointed William H. Kurtz to be chief operating and financial officer. Kurtz was formerly CFO at Scient Corp. (Nasdaq: SCNT), a company he helped to take public in 1999. He resigned from Scient in April 2001 and left in June, claiming he didn't want to relocate from San Francisco to Scient's new headquarters in New York. Also coming aboard is Farhad Kashani, who's taking the post of senior VP of operations, a job he formerly held at content networking company CacheFlow Inc. (Nasdaq: CFLO).

For his part, Kashani is also a veteran of public companies, having overseen operations first at Wyse Technology, then at headset supplier Plantronics.

Both men's backgrounds, particularly Kurtz's, fit 3PARdata's ambitions to go public. But before anything like that can occur, the vendor must produce its product. According to spokespeople, 3PARdata is talking to storage service providers about its developments and plans to start beta tests within the next two months. Product rollout is still slated for the first half of 2002.Despite all of 3PARdata's good news, nothing is guaranteed. But storage companies appear to be in a favorable position, despite the current market downturn (see Storage Stocks Weather Monday's Selloff