SOURCE: Permabit


December 14, 2009 09:00 ET

Permabit Revisits 2009 Predictions: Was There a Fundamental Shift in Storage Industry Behavior?

CAMBRIDGE, MA--(Marketwire - December 14, 2009) - Permabit Technology Corporation, the industry's leading innovator of scalable, data-reduced storage, today issued a review of its 2009 data storage industry predictions. Back in January, Permabit predicted 2009 would be the year when businesses would stop treating the symptoms of storage problems and instead addressed the cause of its data storage problems. We boldly predicted the industry was in store for some fundamental changes that would dramatically impact how storage was acquired and utilized. Twelve months later, check out how we did.

-- Prediction: Primary Storage gets Devalued and Right-sized. The demand
   for a systematic change to the way companies store critical data has
   been increasing for several years and yet the solutions offered by the
   storage industry has continued to be throwing more legacy hardware at
   the problem.

   Reality: Primary storage was greatly devalued in 2009! Vendors
   dramatically dropped prices on high-priced Tier 1 storage in an attempt
   to maintain account control and associated revenue. Emerging storage
   vendors countered with space optimization technologies, such as data
   deduplication, and gained market share as customers looked for smarter
   ways to store more data in a smaller footprint at a more cost-effective
   price point.

-- Prediction: Forget Virtual Sprawl, Here Comes Dedupe Sprawl. Businesses
   will feel the pain of the deduplication "threshold" where dedicated
   hardware appliances and virtual tape libraries (VTLs) fill up, requiring
   additional purchases of expensive hardware or forklift upgrades.

   Reality: Dedupe vendors who focused on backup continue to battle
   scalability limitations. Even their "higher capacity" models are limited
   in scalability. Their first generation architectures simply cannot scale
   to meet the demands of large scale enterprises. Dedupe 2.0 addresses
   this problem by making dedupe ubiquitous and providing massive
   scalability that is necessary for today's increasingly larger data

-- Prediction: RAID Gets Exterminated. As multi-tiered storage continues to
   evolve, SANs will become more complex, unified networks will emerge and,
   as newer and larger drive technologies such as 1TB drives take root,
   RAID as a data protection technology will become irrelevant.

   Reality: We are ahead of the curve here. 1TB and 2TB drives were
   introduced in 2009. Larger capacity drives continue to make RAID
   obsolete as an effective data protection technology. Increasing
   recovery times and bit errors on rebuild using RAID technologies have
   prompted many industry analysts to call for new data protection
   approaches that can scale and deliver the protection needed for today
   and into the future.

-- Prediction: Regulatory Pressures Accelerate. Regulations will continue
   to increase and emerge as a result of the fallout from the Wall Street
   crisis and anticipated pressures from the new administration to hold
   more data and for longer periods of time.

   Reality: While many new regulations did not get finalized in 2009 due
   to the economic climate, many are in the development stages for
   healthcare and financial services. Pressure to retain data will continue
   to build in these two markets and increase the need for flexible,
   compliant storage that can adapt rapidly to evolving regulations.

-- Prediction: Cost becomes the driving issue. IT will look beyond the
   traditional, high-cost storage vendors. Smart companies will put a
   premium on, and may limit their purchases to, flexible, innovative,
   and easy-to-deploy solutions that deliver immediate cost-savings.

   Reality:  Increasingly businesses are adopting a "flight to efficiency"
   model that moves beyond the implied safety of buying from the
   traditional high cost storage suppliers that can immediately and
   dramatically impact their bottom line costs.

Supporting Quotes:

"Cost efficiency and storage optimization were the drivers for storage innovation and adoption in 2009. The drive for cost efficiency we saw in 2009 will accelerate in the coming year."

~ Tom Cook, President & CEO, Permabit

Supporting Resources:

Permabit Media Center


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About Permabit

Permabit delivers next generation disk-based archiving solutions that dramatically reduce primary storage costs by greater than 10 times. Enabled by patented storage technology, the Permabit Enterprise Archive™ provides a massively scalable disk archive. The resulting storage costs are a fraction of what it takes to manage tape or optical storage. Permabit Enterprise Archive provides advanced data protection and reduction technologies that offer decades of reliable information access. Permabit was founded in 2000 by a technical and business team from Massachusetts Institute of Technology and has been deploying industry leading archive solutions since 2004. For more information, visit:

Permabit, the Permabit logo, Permabit Enterprise Archive, and Scalable Data Reduction are trademarks of Permabit Technology Corporation, Inc. in the U.S. and other countries.

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