The SAN Book 3.0 (Storage Area Networks) United...

Un

ite

d S

tate

sH. Clinton [email protected]

John C. [email protected]

Joseph Wana415-951-1804

Scott McBride415-951-1829

Michael Cadiz415-951-1671

E Q U I T Y

R E S E A R C H :

U N I T E D S T A T E S

Data Storage Infrastructure

October 22, 2001

The SAN Book 3.0(Storage Area Networks)Everything You Ever Wanted to Know AboutStorage (but Couldn’t Find the Answer)

➤ This book examines the intricacies andevolutions of today’s data storage market thatinvestors need to know, including storagesubsystem technologies, file system technology,virtualization, emerging software “killerapplications,” switching architectures, iSCSI, andInfiniBand.

➤ We also detail a bunch of large corporations’ ITinfrastructures to provide real world storageexperiences, trends, and expectations.

➤ Storage networking is here! The debate hasmoved from if it’s going to happen, to how.

➤ We expect storage networking and software tolead and drive the broader storage industry’sgrowth.

➤ We believe that storage will be an outperformingindustry.

The SAN Book III – October 22, 2001

2

= Client: PC and UNIX workstations

= Server: Mainframe, UNIX and NT

= Disk Subsystems: RAID and JBOD

= Tape Subsystems: Drives and Libraries

= Network Attached Storage

= Storage Area Network

NAS

SAN

LAN

Traditional Architecture

LAN SAN

SAN Architecture

LAN

NAS Architecture

NAS

COMPUTER STORAGE ARCHITECTURES

Source: Salomon Smith Barney


3

Bottom line: Data continue to grow. We believe that this

fundamental principle will continue to drive storage industry

growth over the long term. In addition, we expect to continue

seeing applications — such as B2B, CRM, ERP, and supply chain

software — become more data intensive. This growth in data will

require greater management and newer technologies; thereby,

offering opportunity to companies that can add value through

innovation.

We believe SANs will drive storage growth.Just as Local Area Networking (LAN) drove growth in the 1990s for PCs andservers and increased the use of computing environments, driving significantinfrastructure investments in the process, we believe Storage Area Networking(SANs) will increase the use of data and drive storage growth over the next decade.

We believe that storage networking and software will lead anddrive the industry’s growth.We believe the storage networking market is less than 10% penetrated and willoffer excellent growth in the years to come. In our opinion, the storagesoftware market is on the cusp of delivering the killer applications that willunlock many of the benefits of networking storage. Both of these trendscombined will drive the adoption of newer technologies and enable storagesuppliers to create and deliver added value to customers for many years (i.e.,storage is not a commodity).

We expect to see an abundance of new technologies sweep themarket.We expect to see leading players continue to gain momentum due to theincreasing complexity of storage technology. This should bode well forindustry leaders EMC, Veritas, and Network Appliance. This should also givelegs to Fibre Channel, although IP storage is clearly on the way. We alsoexpect startups to help shape the storage industry of the future due to theirintense focus on emerging technologies.

Replication should play an increasing role.While the past year has been focused on increasing capacity utilization ratesand lowering overall storage cost, we expect the upcoming years (2002 andbeyond) to focus on replication which, in effect, will double the demand fordata by requiring multiple copies.

Reading tips for this report.We have designed this report to be an easy read for beginners and an intriguingone for experts. Even though this is our third edition, we truly believe there issomething to be learned in every section of this book for every level of reader.

Special thanks to Heather King, our summer 2001 intern, who made hugecontributions to this report.


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Executive Summary.................................................................................................................................... 3

DEMAND DRIVERS................................................................................................................................ 5

State of the Storage Market ....................................................................................................................... 6

Demand Drivers: The Real World ......................................................................................................... 14

Demand Driver Analysis .......................................................................................................................... 30

Data Sheet.................................................................................................................................................. 45

SAN AND NAS..................................................................................................................................... 47

What Is a SAN?......................................................................................................................................... 48

What Is NAS?............................................................................................................................................ 62

SAN and NAS Convergence ..................................................................................................................... 67

What Is Server Clustering?...................................................................................................................... 72

SUBSYSTEMS..................................................................................................................................... 77

Subsystems: The Heart of Storage ......................................................................................................... 78

Disk Drives to Subsystems........................................................................................................................ 82

RAID and Beyond..................................................................................................................................... 90

NAS Subsystems...................................................................................................................................... 104

RAID Is No Good Without Core Software ........................................................................................... 112

SOFTWARE ....................................................................................................................................... 133

The Magic Word Is Software.................................................................................................................. 134

Software Applications............................................................................................................................. 147

NETWORKING................................................................................................................................... 171

Storage Networking ................................................................................................................................ 172

Storage Networking I/O: HBAs and ICs............................................................................................... 178

Storage Networking Equipment ............................................................................................................ 194

PROTOCOLS ..................................................................................................................................... 225

Protocols: The Language of SANs........................................................................................................ 226

The Basics of I/O Interfaces ................................................................................................................... 231

Fibre Channel: Networking Storage .................................................................................................... 236

Fibre Channel Versus Ethernet ............................................................................................................. 239

Potential Future IP Storage Iterations.................................................................................................. 249

The Future Band: InfiniBand ............................................................................................................... 255

Recent Company Developments ............................................................................................................ 266

COVERAGE UNIVERSE..................................................................................................................... 273

Companies in Our Universe ................................................................................................................... 274

Coverage Universe .................................................................................................................................. 275

PRIVATE COMPANIES...................................................................................................................... 281

GLOSSARY........................................................................................................................................ 367

TABLE OF FIGURES.......................................................................................................................... 391

Table of Contents


5

Demand Drivers

State of the Storage MarketDemand Drivers: The Real World

Demand Driver AnalysisData Sheet


6

➤ We continue to view storage as a great place to invest. We believe itis an excellent infrastructure play and expect it to be an outperformerwell into the future.

➤ We expect to see storage networking and software lead theindustry’s overall growth.

The Storage Market in 2001 and BeyondEven in a global economic slowdown, information is still an organization’s mostvalued and critical asset. We think of it as the oxygen, or the life-blood a companyneeds to survive and make sound business decisions in an increasingly competitiveenvironment. Today in a typical organization, information comes from manysources: Internet applications, e-mail, data warehouses, and mission-criticalapplications such as enterprise resource planning software (ERPs). Clearly,managing this growing data is a daunting task for any Information Technology (IT)department. After all, information only has value if it is stored, can be found,retrieved, and used. Storage provides the infrastructure to manage data and isessential for building successful businesses in today’s information age.

Opportunities in StorageAside from the sheer growth in data, we expect to see SANs drive storage growth.Just as Local Area Networking (LAN) drove growth in the 1990s for PCs andservers and increased the use of computing environments, driving significantinfrastructure investments in the process, we believe Storage Area Networking(SANs) will increase the use of data and drive storage growth over the next decade.

Below in Figure 1, we have illustrated PC growth in the 1980s and ‘90s. Growthsignificantly accelerated throughout the 1990s, due to (we believe) the advent ofLocal Area Networking (LANs). Users increasingly demanded more from ITinfrastructures in order to remain competitive and/or get a competitive edge. TheseIT investments enabled greater productivity and more efficient use of companies’human capital.

State of the Storage Market

Information is like corporateoxygen — the life-blood a

company needs to operateefficiently and make sound

business decisions in anincreasingly competitive

environment.

SANs will increase theuse of data and drive

storage growth over thenext decade, in our view.


7

Figure 1. PC Unit Shipments (1981–99)

0

10,000

20,000

30,000

40,000

50,000

60,000

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

PCUnitsShipped(000s)

Windows3.1

IntelPentium

Windows3.0

Windows95

Source: IDC, Bloomberg, and Salomon Smith Barney

An argument could be made that the Internet also had quite a bit to do with PCgrowth in the 1990s... and we agree. So, we tried to factor this out by looking atcorporate PC growth. Figure 2 below illustrates the growth of PC shipmentsbetween 1995 and 2000 to large institutions, whose computers are mostly attached toLANs. These large institutions include large businesses, medium businesses, andthe government. We believe this illustration further validates our belief that SANswill increase the use of data and points to storage growth through the advent ofSANs.


8

Figure 2. PC Shipments to Large Customers

Units in Thousands

0

2,000

4,000

6,000

8,000

10,000

12,000

1Q95

3Q95

1Q96

3Q96

1Q97

3Q97

1Q98

3Q98

1Q99

3Q99

1Q00

3Q00

1Q01

17.3% CAGR

Source: IDC

Storage Networking and Software: Show Me the Money!While we believe that many aspects of the storage industry — such as subsystems— will continue to offer excellent longer-term investments, we expect to see storagenetworking and software be the relative outperformers in the group.

Networking

Storage networking is an emerging trend that is going to unfold in the current decade(much like the year of the LAN evolved over many years). We believe it is a veryimportant technology alternative to throwing expensive headcount at the ongoingchallenge of managing more data. We believe the storage networking market is lessthan 10% penetrated, going to 85%–90%. In other words, you ain’t seen nothingyet. Dataquest projects the storage networking market will grow at a 67.0% CAGR,to $16.9 billion in 2005.

We expect Brocade to continue leading the industry’s growth with its dominantmarket position and Inrange to be the market’s up-and-comer by focusing more on atotal solution in the high end with its unique direct sales force. We also believe thatMcData will continue to put up solid growth with its end-to-end product focus,covering both the high-end and low-end markets.

We expect to see excellent growth from the HBA players QLogic, which also has aswitch business that has chalked up some impressive growth, and Emulex, whichhas been aggressively penetrating new market segments and customers.

Software

Storage software is an evolving and expanding market that we expect to be anindustry outperformer. We believe the storage software market is undergoingconsolidation (which we would have characterized as “rapid” if IT spending were

We believe the storagenetworking market is

less than 10%penetrated, going to

85%–90%.


9

healthier). That is to say, the three leading storage software players control ameager 57.9% of the market with unnamed white box vendors capturing 15%–20%(EMC with 25.5%, Veritas with 16.3%, and IBM with 16.1% market shares in 2000according to Dataquest).

We expect EMC and Veritas to continue increasing their respective positions in thissegment; and consequently, to also continue to intensify their head-to-headcompetition. Also, we wouldn’t count out Legato, which has a new managementteam in place and has been making strides with its partnering approach to themarketplace.

Subsystems

Storage subsystems are at the heart of storage and we expect that they will continueto be the major influence in the broader storage industry. We expect EMC tocontinue to dominate this segment, although other high-end suppliers, such as IBMand Hitachi Data Systems (HDS), should continue gaining traction as well. Weexpect the mid- and low-end markets to continue to be led by Compaq (which isscheduled to be acquired by Hewlett-Packard) and NetApp (the industry’s clearNAS leader) and believe that Dell and Sun Microsystems will play more importantroles going forward.

Commodity?We do not see storage becoming a commodity and find evidence of this at recentindustry events. EMC’s August 1-2, 2001 analyst day (with a full day dedicated totechnology tutorials) attracted over 300 investors. Brocade’s first storagenetworking conference on June 11–13, 2001 attracted over 500 end users andpartners. Veritas’s VISION 2000 on October 24, 2000 attracted over 2,500 people,(mostly end users and partners: up by about 1,000 from a year earlier and 500 fromtwo years earlier) to learn about its new direction into storage networking.

In short, we find it hard to believe that an industry with this much innovation andthis much interest in learning about new developments is quickly on its way tobecoming a commodity. Commodity markets are the result of mature industries inwhich there is very little product differentiation. We do not see storage moving to acommodity market for many years.

Market ProjectionsWe believe data storage is one of the most attractive long-term infrastructure plays.According to Dataquest projections, the overall storage market for multi-user serversis expected to grow from $36.0 billion in 2000 to $92.0 billion in 2005 in aggregate,representing a 20.7% CAGR (2000–05).

We find it hard to believethat an industry with this

much innovation andthis much end user

interest in learning aboutnew developments isquickly on its way to

becoming a commodity.


10

Figure 3. Storage Industry Projections

CAGR(Revenue in $millions) 1998 1999 2000 2001 2002 2003 2004 2005 2000-2005RAID $22,287 $25,593 $29,424 $29,841 $33,176 $38,756 $47,080 $58,399 14.7% Internal $4,762 $5,818 $7,064 $7,269 $7,223 $6,987 $6,427 $5,704 (4.2%) JBOD $5,083 $5,704 $4,582 $3,887 $3,162 $2,459 $1,824 $1,289 (22.4%) External $12,093 $13,491 $16,330 $16,735 $19,270 $23,963 $31,327 $41,063 20.3% NAS $349 $580 $1,448 $1,950 $3,521 $5,347 $7,502 $10,343 48.2%Networking $159 $518 $1,300 $2,140 $3,610 $7,360 $13,330 $16,880 67.0%Software $2,890 $4,088 $5,252 $6,641 $8,456 $10,709 $13,396 $16,729 26.1%Total Projection $25,336 $30,199 $35,976 $38,622 $45,242 $56,825 $73,806 $92,008 20.7%YoY Growth -- 19.2% 19.1% 7.4% 17.1% 25.6% 29.9% 24.7% --

Source: Dataquest (August, 2001)

Storage Spending Quickly Outpaces Server SpendingWe anticipate storage spending growth, excluding software, to outpace serverspending growth by more than 3:1. Dataquest projects storage spending, excludingsoftware, to reach $60.4 billion by 2004 (representing an 18.4% CAGR) and serverspending to approach $87.8 billion by 2004 (representing a 6.6% CAGR, 2000–04).We attribute this to a corporate spending focus on areas such as storage that generatehigh ROIs through cost reduction and increased operational efficiencies, andleverage corporations’ most valued asset, information.

Note: Below, in Figure 4, Dataquest is including internal and external-based RAID,NAS, and networking equipment. Software is not included as it is in Figure 3.These numbers are taken from a different report so they do not match other tables.

Figure 4. Total Worldwide Server and RAID-based Storage Revenues

($ millions)

010,00020,000

30,00040,00050,00060,00070,000

80,00090,000

100,000

1999 2000 2001E 2002E 2003E 2004E

Total RAID-based & Networking Storage Revenue Total Server Revenue

Server CAGR: 6.6%Storage CAGR: 18.4%

Source: Dataquest (July, 2001); and IDC

We foresee a corporatespending focus on capital

expenditures, like storage,that generate high ROIs

through cost reductions.


11

Data Growth: Doubling Every Year for the Foreseeable Future?A recent University of California, Berkeley research study pronounced a mega-trendin information growth, forecasting that the amount of new digital information will“double every year for the foreseeable future.” Close, but we do not expect this typeof growth in 2001. After talking extensively to storage end users we think datagrowth has slowed in 2001 from this trend of 100% growth to about 50%–60%,reflecting a slowdown in business transactions and new application spendingcombined with increased capacity utilization rates. In 2002 we believe informationwill almost return to its former growth rate of 100% as IT spending returns, morenew technology applications are implemented, and business transactions resume amore normal pace. Within our Real World case studies section, we highlight variousorganizations and their expected information growth in 2001 and beyond.

Storage: Where Are We and How Did We Get Here?We expect storage to continue to be an outperforming growth industry. We believestorage is an excellent longer-term infrastructure play. The economic realities in2001, however, have negatively affected the storage market in much the same wayas many other technology industries, which should have a dampening impact ongrowth in the near term. Longer term, we expect storage to resume above-averagegrowth.

In Figure 5, we track recent events and how we expect the storage industry torebound.

Figure 5. Data Storage and the Economic Pullback

$24.9%

CAGR (pr

ior projecti

on)*

Impact of aneconomic pullback

Resuming‘normal’industrygrowth rate

Time*Dataquest’s 5 year CAGR

20.3%CAG

R*

Flat to decliningstorage growth Recovery u

nderwayOrganic D

ata Growth

Organic & N

ew

Application

DataGrow

th


We expect storage tocontinue to be an

outperforming growthindustry; however, the

economic realities in2001 have negativelyaffected its near-term

growth.


12

The Storage Market: Where Are We?We expect the storage industry’s growth rate in 2001 to slow to about flat year overyear, down from our prior estimate of about 25% growth.

Based upon feedback from both storage companies and end users, we see bothpositive and negative trends for the storage market:

Positives:

➤ In this soft economy, storage companies have not been plagued by excessiveinventory levels similar to that of other technologies (i.e., PC and servermarkets).

➤ Data is still growing from mission-critical applications, the Internet, videostreaming, and e-mail. Information growth varies widely across theseapplications, but sometimes tops 100% per year in mission-critical applicationslike CRM, ERP, and data warehousing.

➤ Pricing of software and storage networking remains somewhat stable despiteincreased competition.

➤ We’ve uncovered some large deals and believe storage networking is the nexthigh growth area within the storage market. We expect IT executives to directtheir limited budgets toward technology investments, such as SANs, thatgenerate high ROIs within a short payback period.

Negatives:

➤ Storage deals are requiring more top management sign-off, pushing out thelength of the sales cycle.

➤ In the bull market economy, organizations overbought storage capacity inanticipation of high growth. Today, because of the economic downturn, we arenoticing companies defer storage purchases, by first using up their excessstorage capacity.

➤ We are seeing IT managers postpone storage purchases by increasing theirstorage utilization rates. By using say, 85% of available storage rather than50%, an organization can postpone its storage expenditures.

➤ Organizations are implementing tighter controls around their storage purchasesand are enforcing cost charge-backs to the business units. According to onesource, a year ago, storage purchases seemed to be unrestricted, but today,management is asking users to order only what is necessary.

➤ Europe does not appear to be a viable source of growth for storage companies inthe short term due to economic conditions.

We believe there are three essential reasons storage is an important future spendingarea for IT managers:

1 Spending is increasingly being focused on capital investments with the highestROI (return on investment). For example, investments in networked storageinfrastructures, such as SANs, are generating cost savings from increasedcapacity utilization, reduced hardware requirements, and lower labor costs. Our


13

real world case studies confirm this. For example, Intuit witnessed ROIs rangingfrom 123% to 525% on its SAN solutions, according to a KPMG consulting casestudy.

2 High-end applications like ERP and CRM continue to produce valuedinformation. As the critical information generated by these applications build,organizations will use data storage management to leverage information into acompetitive advantage.

3 We believe B2B expansion and corporate webification of larger, moreestablished companies should continue, ensuring demand for high availabilitysystems. Storage solutions ensure 24x7 availability of critical data, resulting ingreater customer loyalty and retention.


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➤ Get a grip on the real storage market from our detailed conversationswith many different end users ranging from Inuit to the SanFrancisco Giants.

Look at Me, I Need Storage!Before we dive into our storage demand drivers analysis, let’s start with an exampleof real data growth that everyone can understand. Recently having gone through astorage crisis myself, I thought it would be insightful to share the experience. As Igo through the example, think about how this applies to an IT manager and how itmight relate to their experiences.

I recently bought a digital camera that holds 64 MB (megabytes) of memory per diskor roll of film. I have found that with my digital camera I take many more picturesdue to the decreased cost of development. Below in Figure 6, Dataquest’s researchillustrates the attraction of digital photography.

Figure 6. Digital Camera Usage

What Happens To Picture Taking Activity AfterPurchasing A Digital Camera?

OtherResponse35%

Take MoreDigital Pictures

& LessTraditional50%

Take MoreTraditionalPictures15%

Source: Dataquest

After going through a few film cards and downloading them onto my personalcomputer with a 20 GB (gigabyte) hard drive, I realized that at the rate I was going, Iwould fill up my disk storage space in a year (I already have a lot of otherapplications on my PC). At that time, I would either have to start deleting data orpictures, or buy a new computer. As an alternative I could have replaced the harddrive (I can easily buy up to 80 GB today), but that is quite painful and there is notelling what would happen if I let loose with a screwdriver on my computer to popthe lid off and start ripping out the drive and installing a new one. What wouldhappen to my old data? How do I transfer data from the old disk drive (out of thesystem) to the new disk drive? Wouldn’t the computer have to be reconfigured? For

Demand Drivers: The Real World

Let’s look at a real life,personal data storage

crisis.


15

Pete’s sake, I have a tough enough time upgrading my software...hardware is out ofthe question.

I soon realized that attaching external storage to my computer was the only viablesolution to create independent scalability (note the trend toward external storage). Ithought about tape or CD read/writable, but the thought of cluttering my home withanother piece of furniture that held CDs or tapes (i.e., removable media) was not tooappealing. In addition, I wanted to have my pictures organized and easily accessible(note the trend toward online data or data availability). So, I looked into a NASdisk drive appliance.

From Quantum I could get a SNAP Server 2000 for $1,400 or from Maxtor I couldget a MaxAttach 3000 for $950, both with 80 GB of storage. These storageappliances would cover my storage expansion for quite some time, even at the torridpace I was using my new camera (note that my computer would cost less than $900today and I was spending $1,000 on external storage; i.e., the trend towardincreased spending on storage relative to traditional computing). But, I was leavingmyself in a vulnerable position. What would I do if I was robbed and my computerwas stolen? Sure the insurance would replace my computer, but what about my data(pictures, etc.)? What would happen if there was a fire? Or an earthquake? Orlocusts?

I needed a backup copy, but without adding another piece of furniture, oh, andwithout taking too much time (note the shrinking backup window and need for twocopies of data). So, I looked into Snapfish.com, an online provider of filmdeveloping, printing, and storing photos. They could handle a second copy of myphotos (note the trend toward multiple copies; i.e., data replication) and provide mewith other services too. That way if I were robbed I could go to Snapfish.com to getmy pictures online and I would still have my own copy on my computer. Perfect!

Illustrating the trendtowards 1)external

storage,

2) online data or dataavailability,

3) increased spending onstorage relative to

traditional computing,and

4) multiple copies; i.e.,data replication.


16

Figure 7. Online Photo Sites

Source: PC Data

Conclusions➤ Data is important and increasingly so; for example, if my pictures are this

important to me, imagine how important a company’s most important asset(data) is.

➤ Data is growing in many new areas and the need to store it, replicate it, and backit up is increasing exponentially.

➤ Spending is shifting toward storage.

➤ Storage is moving to be external and networked (i.e., accessible).

➤ Information technology managers want their data online and replicated (i.e.,more than one copy).

Now Check This Out!Snapfish.com saw its storage grow more than 28 terabytes in the first year ofbusiness and expects it to double again in 2002. Snapfish has several competitors,including AOL and Kodak. If each competitor witnessed data growth comparable towhat Snapfish expects, the combined storage demand would increase by at least 500terabytes annually. That alone could fit on EMC’s top 25 customer list.

Driving the point home: if AOL’s “You’ve Got Pictures,” an online digital photoservice, gets just 5% of its customers from existing subscribers and each customertakes roughly 25 pictures per month and stores it using AOL, we estimate that coulddrive over 200 terabytes of storage demand, annually.


17

And Then Add This!Of course AOL is increasing its subscriber base, in fact it doubled over the last twoand a half years, to (now) 30,000,000 users, according to AOL. Also digital camerasales have just begun to ramp. In fact, IDC projects worldwide digital camerashipments could reach 38.7 million by 2005, representing a 20.7% CAGR (2000–05).

Figure 8. Worldwide Digital Cameras

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

Ship

men

ts (0

00s)

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Valu

e of

Shi

pmen

ts ($

M)

Value of Shipments (Right Scale)10.4% CAGR 2000-2005

Unit Shipments (Left Scale)20.7% CAGR 2000-2005

Source: IDC (May, 2001)

And that is just digital photo imaging; medical imaging is also an expanding storagemarket. The University of California, Berkeley estimates that there are roughly 180million chest x-rays and mammograms taken annually in the United States. Atroughly 8 MB per x-ray, that represents potential annual storage demand of over1,400 TB. Again this annual storage demand is equivalent in size to three of EMC’stop customers.

While we focused our discussion above on potential digital photography storagedemand, we could have chosen many other areas, including:

➤ mission-critical applications such as ERP (enterprise resource planning) andCRM (customer relationship management)

➤ e-mail and the growing popularity of instant messaging

➤ wireless content and handheld devices, including Research In Motion pagers

➤ digital audio (digital music downloading)

➤ digital data archiving including e-mail archiving

➤ streaming video

➤ set-top boxes, Web TV and other digital TV services

We believe the conclusions we summarized above apply to all of these, and other,emerging technologies.

IDC projects worldwidedigital camera shipments

could reach 38.7 millionby 2005, representing a20.7% CAGR (2000–05)


18

Storage: The Real WorldWe thought it would be helpful to provide some insight into our regularconversations with IT (information technology) executives; to hear their real worldstories on what is driving information growth and the demand for storage.Throughout this section we provide excerpts from our conversations with ITexecutives from a variety of industries.

Note: While many IT managers cited data growth rates to be below 100% goingforward, most of these are only organic projections and do not include newapplication growth, which we believe counts for the bulk of storage growth in ahealthy market.

Figure 9. Our Featured Storage End Users

National ClimaticData Center (NCDC)

OtherStorageEnd-Users

Source: The Internet and companies

There is a consistent theme to what we are hearing from a diverse group of storageend users including those shown in Figure 9 and others remaining anonymous(which we have labeled Company X and Company Y):

1 Data is growing. The biggest drivers of data growth are mission-criticalapplications, the Internet, video streaming, and e-mail with large mediaattachments. Growth rates vary from 30% to 100%-plus in some of the morecritical applications.

2 Data growth, however, is slower in 2001 than 2000. A slowing economymeans fewer transactions and declining new application deployments.Consequently, storage capacity bought in 2000 lasted longer than expected,reducing 2001 storage expenditures. We believe information growth in 2001could fall in the range of 50%–70% (for capacity, not revenues). Beyond 2001,we expect data to return to its former trend of 100% growth per year.

3 Storage capacity utilization is rising. IT managers are using up their excessstorage capacity, by squeezing as much out of their IT infrastructure as possible.This has resulted in delayed storage purchases in 2001. Storage Area Networks(SANs) also lead to higher utilization rates because of their centralized

To hear about real ITmanagers’ real worldexperiences, read on.


19

architecture. Most end users expect to maintain these higher levels of storageutilization beyond 2001, which has a dampening (but not crushing) effect onstorage growth going forward.

4 Price per megabyte of storage is declining. End users are telling us they areseeing (or forecasting in the case of post 2001) price declines of approximately:

Pre-2001 35%2001 50%After 2001 40%


5 SANs (storage area networks) generate high ROIs — largely from laborsavings, floor space reduction, and reduction of file server hardware andmaintenance to support that hardware. The decision to migrate to a SAN from aDAS (direct-attached storage), however, must be driven by a strong businesspurpose.

6 SANs target market is large. Several end users we talked with (many notmentioned by name) were small businesses with less than 8 TBs of data. Whatinterested us, was that almost all of them were using or were planning toimplement SANs. This could mean broader SAN adoptions than most anticipate.

7 Data replication will increase in 2002 and beyond. Driven by decliningstorage and bandwidth prices, and advances in software technology, we expectdemand for replication to continue to grow well into the future. (Veritas’sReplicator and EMC’s SRDF are the two leading products in this area).

8 Companies’ information infrastructures are closely protected assets.Throughout our discussions, we noted that an increasing number of IT managerseither could not discuss their storage environment or did not want to bementioned by name for competitive reasons. We find the fact storageinfrastructures are being treated as a tightly protected corporate asset, as a veryencouraging sign for future emphasis on spending in this area. Increasingly,things such as discussing how many terabytes a company has, how they aremanaging it, how they are growing it, and what they expect to do going forwardto better manage and use their information, is becoming a secret (i.e., acompetitive advantage).

Below we provide more details of our conversations with IT executives.

Intuit: A SAN Success StoryIntuit aids in the filing of over 32 million U.S. taxpayer returns and has 60 terabytesof data, growing at roughly 50%–60% per year; with some of its mission-criticalapplications growing at more than100% per year. Intuit is a great SAN successstory: The company implemented a SAN two years ago and realized a return on itsinvestment that ranged between 123% and 525%, depending on the storage solution.Payback period ranged from two to nine months! (see Figure 10 below).

Now sit back and imagine you’re an IT executive of a company that is responsiblefor the online submission of tax data for millions of U.S. taxpayers. Your busiest

Within two years ofimplementing a SAN,

Intuit realized a return onits investment that

ranged between 123%and 525%.


20

time of year is in the month leading up to the tax filing deadline and you have anarrow window of opportunity to perform your system backups. Unfortunately, theactual time required to do the backup keeps increasing due to system load. Just twodays before the critical April 15 tax deadline it takes 26 hours to complete thebackup. This happened to Intuit just three years ago and during those 26 hours, thesystem was unavailable to its online customers.

Because of this event and the advances in technology, Intuit implemented a robustcentralized storage area network (SAN), one that would provide it with the systemreliability, availability, and scalability the company was not getting from its direct-attached storage (DAS) infrastructure. The old DAS environment had subsystemslinked to over 1,000 servers and was difficult and inefficient to manage. KPMGConsulting, which conducted an extensive ROI (return on investment) analysis onIntuit, found that Intuit’s SAN ROI ranged from 123% and 525%, as shown inFigure 10 below.

Figure 10. Intuit’s SAN ROI

Solution

Return on Investment

Payback Period

Storage Consolidation 296% 4 monthsBackup/Restore 123% 9 monthsSystem Availability 525% 2 months

Source: KPMG Consulting and Brocade Communications Systems Inc.

Here we highlight the key improvements in Intuit’s IT infrastructure as a result ofthe SAN implementation and the factors fueling the high ROIs:

➤ Capacity utilization: Intuit’s storage capacity utilization improved to 85%throughout most of the SAN infrastructure. This was a significant increase overthe 50% utilization rates found in the pre-SAN environment, according toIntuit’s IT executives.

➤ Reduced server hardware requirements: Intuit reduced its server hardwareand maintenance costs by 50% in its SAN environment, according to KMPGConsulting and Intuit executives.

➤ Increased system reliability and availability: In the SAN environment, Intuitnow conducts a daily backup of its system without disrupting the Internetcustomers. In the past, backups could only be performed once a week, becauseanything more than that created too much system downtime.

➤ Labor cost savings: Intuit reduced the number of employees managing thebackup and restore environment from five to six people (working all night) totwo people (leaving by 8.00 p.m.). In the “old days,” employees joked that theyneeded roller skates to keep up with the task of changing the storage tapes. Thestaff now manages 5x–10x more data in the post-SAN environment with muchless effort.

➤ Faster Testing and Development: In the SAN environment, multiple copies ofdata can be made available for production and testing by software developers.


21

This has increased the time to market for new software applications, a keyadvantage in a competitive business environment.

“Company X” — A BIG Corporation with TerabytesAround the WorldCompany X’s product development business unit, which tests new softwareenhancements for its mission-critical billing system, has consolidated its data centersby 50%, and cut the workload of its IT staff by one-third because of its migration toa SAN, according to conversations with Company X IT executives and a KPMGConsulting study.

As an early adopter of a SAN in its product development group, Company Xprovides great insight into the benefits of a SAN. Below we highlight key pointsfrom our conversations with Company X’s IT executives regarding its SANenvironment:

➤ Consolidation of testing and production environments: The flexibility of theSAN architecture allowed Company X to consolidate its testing anddevelopment environments from four to two locations. The group witnessed asignificant reduction in the hardware and management costs previously neededto replicate data from these various sites.

➤ Multiple storage vendors: SAN infrastructures opened the door for CompanyX to use multiple vendors resulting in greater pricing leverage.

➤ Reduction in server hardware: SANs enabled Company X to consolidate itsservers and reduce future server expenditures by an estimated 50%. As a result,the IT staff workload was cut by almost one-third, allowing staff to beredeployed to more strategic areas.

➤ Data center — physical space cost savings: As a result of the SANarchitecture, Company X reduced its file servers by about 50%, andconsiderably reduced the amount of floor space needed in the data center.

➤ Capacity utilization: In the SAN environment the business unit of Company Xwill typically strive for a 75% utilization rate (25% of storage capacity on theshelf), a significant improvement from DAS levels, which were closer to 50%.

“Company Y” — A Company Within the TechnologyHardware and Equipment SectorWe talked to one large company within the technology hardware and equipmentsector with more than 500 terabytes of managed data, 30% of which is housed in aSAN. To give some perspective of the magnitude of data, five hundred terabytes isequivalent to all of the printed material in 50 Libraries of Congress or 25,000 milesof bookshelves. Prior to 2001, the company’s data storage roughly doubled everyyear, but this year growth is expected to be flat, because of the slowing economy(fewer transactions) and cost-cutting measures. The company expects storageexpenditures to be cut 60% in 2001 and to be more disciplined about storage andhardware spending in 2002 and beyond.

Company X hasconsolidated its data

centers by 50% and cutthe workload of its IT

staff by one-thirdbecause of its migration

to a SAN.


22

Here are some details of our conversations with this company’s senior ITexecutives:

➤ Backup reliability: Imagine the emotional strain on an IT department if databackup and replication processes fail every night. This is what the companyfaced in its nightly data migration to the supply chain management reportinggroup. After the problems were escalated, the company looked to EMC’sTimeFinder to perform backups quickly, frequently, and without disruption.Today, 22 months after implementing TimeFinder, systems run virtuallyuninterrupted.

➤ Data growth is slowing in 2001: Prior to 2001, the company’s storage roughlydoubled every year, but this year it expects growth to be flat, because of theslowing economy (fewer transactions) and cost-cutting measures (no newapplication deployments and a reduction of some older data). The companyexpects to be more disciplined about storage and hardware spending in 2002 andbeyond.

➤ Storage spending in 2001: The organization expects to cut storage spending by60% in 2001, as part of its cost-cutting program. To do this the company willincrease its storage capacity utilization, clean up storage files by deletingoutdated and duplicate files, and restrict storage capacity for each business unit.

➤ On the technology wish list: reliable and proven virtualization software from areputable storage vendor.

NASA: Rocket Scientists Need Storage TooThe Goddard Space Flight Center (GSFC) is a NASA field center dedicated tooperating unmanned spacecraft and managing many of NASA’s earth observationmissions. In 1998, GSFC launched the Earth Observing System (EOS) which is aseries of spacecraft and supporting data systems that study the interactions of theatmosphere, land, and oceans. EOS will develop a 15-year database to focus on theEarth’s climate change. After reading about this program and hearing Veritascomment about the strong growth in sales to the government sector, we thought itwould be interesting to talk to NASA about its storage infrastructure at GSFC.

Below are some excerpts from our conversations with a senior computer scientistand head of the SAN study at GSFC.

➤ Data growth: GSFC currently has about one petabyte (PB) of data, and in2001, data is expected to grow at a rate of 250 terabytes (TBs) per year orroughly a 25% annual growth rate. In 2002, IT executives expect GSFC willgenerate more than 500 TB of data per year, increasing to a 40% data growthrate.

Most of the current growth can be attributed to the EOS system, which generatesabout 1.2 TB of data per day over seven distributed active archive centers (ofwhich GSFC is one) throughout the United States. Over a 15-year period, theEOS system will generate significant amounts of data, which the U.S.government intends to keep forever for future scientific observation. Figure 11below details the storage demand that could be generated by the EOS system


23

through 2010; assuming an annualized 50% growth rate. Note: This assumes nonew application deployments.

Figure 11. Annual Storage Demand for GSFC EOS Satellite System

Projected EOS Annual Storage Demand

1,500

38,443

5,063

17,086

0

10,000

20,000

30,000

40,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(in terabytes)

50% CAGR (2002-2010)

Source: NASA and Salomon Smith Barney

➤ Disk versus tape storage: Today, roughly 15% or almost 150 terabytes ofGSFC’s data is stored on disk with the remaining 85% housed in a tape archive.The disk storage is the primary archive and GSFC uses caching to improveaccess time to critical data. As disk prices decrease, GSFC expects to migratemore data to disk from tape, which will improve access time and allowresearchers to perform data mining/warehousing on archived data.

➤ Disk versus tape: GSFC is weighing the cost versus performance benefit oftape, enterprise performance disk, and IDE disk (desktop). GSFC will likely useall three solutions to manage its data economically and efficiently. For GSFC,tape is economical, reliable, portable, and secure — great for storing data whichis accessed less frequently. Enterprise performance disk is the best-performingbut most expensive of the options. It can be used very effectively in connectionwith tape, especially when disk is used only for storing critical data requiringfast access times. Finally, GSFC is also considering using IDE disk or desktopdisk, an option that has higher performance capability than tape and is aboutone-tenth of the price of enterprise disk. Of course, using three differentsolutions increases the complexity of the storage infrastructure. We willcontinue to monitor GSFC to see how its storage infrastructure unfolds.

➤ SAN implementation: GSFC has recently begun a SAN pilot implementation,and is looking to the SAN to provide high speed file sharing, high availability,and reliability. Initially GSFC will house only a small fraction of its disk dataon the SAN, but if the first phase goes as planned, GSFC expects that a largeportion of its disk-based data would eventually be migrated to the SAN. In theSAN environment, one of GSFC’s biggest concerns is data security.


24

Lawrence Livermore National Laboratories: from theHuman Genome Project to Nuclear WarheadsLawrence Livermore National Laboratories (LLNL) is a U.S. Department of Energydefense programs laboratory that uses advanced technology on projects to protectnational security: from human safety (human genome project) to maintaining theenduring nuclear stockpile.

Here are some highlights of our conversations with LLNL’s IT managers:

➤ Storage capacity growth 1997–2001: Currently LLNL has over 250 terabytesof disk storage and a tape archive with over 2,000 terabytes of capacity,representing an estimated 202% and 151% CAGR (1997–2001) for magneticdisk and tape storage capacity respectively. Note the trend of higher disk growthrates compared to tape.

Figure 12. Lawrence Livermore National Laboratories’ Projected Disk and Tape Storage Demand

1 250 350

2,000

20

2,000

4,000

10,000

0

2,000

4,000

6,000

8,000

10,000

12,000

1997 2001 2003 2005

Tera

byte

s

Disk Storage Tape Storage

CAGR 2001-2003:Disk: 85%Tape: 71%

CAGR 2003-2005:Disk: 139%Tape: 58%

Source: Lawrence Livermore National Laboratories and Salomon Smith Barney

➤ Storage capacity growth expected for 2001–05: Through 2005, LLNLexpects to increase its disk and tape storage to 2,000 and 10,000 terabytes,representing a 68% and 50% CAGR ( 2001–05), respectively.

➤ Storage capacity utilization: In the disk environment, storage capacityutilization varies between 50% and 85%, depending on the resource.

➤ Drivers of information growth: Programs simulating various physicsscenarios are generating tremendous amounts of data, roughly 95%–98% ofLLNL’s total storage usage. Maintaining various inventories is driving 159%and 117% CAGRs (1997–2005) in LLNL’s disk and tape storage, respectively.

➤ Most significant problems in moving/sharing data: bandwidth betweenmultiple large computing resources, reliability of file systems, followed bymanageability.

➤ Benefits of advanced storage architecture: With the advent of NAS(networked attached storage) and NFS (network file systems) servers, LLNL has

Through 2005, LLNLexpects to increase its

disk and tape storage to2,000 and 10,000

terabytes, representing a68% and 50% CAGR

(2001-05), respectively.


25

been able to provide common home directories for its scientific computing userson all platforms. In the future, LLNL expects SAN/NAS capabilities will allowthem to have an enterprise-wide file system that scales in terms of bandwidth,capacity, and manageability (resolving its most significant problems, see above).LLNL plans to deploy this type of technology in a three- to four-year timeframe.This architecture will allow LLNL to have only one copy of the simulation dataand present that data on the computational engines, visualization resources, andlong-term tape archival resources.

➤ Data storage budgets are increasing: Currently, storage spending, includingdisk and tape, is about 25% of LLNL’s total IT budget. LLNL expects thestorage budget to increase in 2002 to 35%, to support a new super computingdevice.

iVillage: Effective Centralized Tape BackupiVillage is a leading online women’s Web portal which has storage challenges thatare representative of many small to mid-size companies. The company manages alittle over 1.5 terabytes of data.

➤ Centralized tape backup helps: After implementing an automated tape robotin its SAN environment, iVillage was able to consolidate its tape libraries andcut back on its storage maintenance from one to two hours per day (server byserver, one by one) to roughly one to two hours per month (in aggregate).

➤ Data availability/reliability: improved significantly because of the tapeconsolidation. Today, backup failures occur infrequently compared to nightlyfailures in the old decentralized environment.

Duke University: Storage Is the “Killer App”For Duke University, storage is a driving factor in the research projects it undertakesand not the other way ‘round. New and advanced research projects would not bepossible without advanced storage architecture (i.e., SAN) and the declining price ofstorage. Duke University has about 15 terabytes of data spread between itsacademic and medical center units.

We talked to Duke’s Associate Chief Information Officer about recent SANimplementation and the drivers of information growth at Duke University:

➤ A SAN, backed up by a huge tape library: Duke recently implemented aSAN which has about 3 terabytes of disk capacity backed up by an IBM tapestorage device that has 42 terabytes of capacity and an automated tape robot.Benefits of this centralized storage setup include greater reliability of the nightlybackup process and a reduction in the physical size of the data center. Thecentralized SAN storage environment also allows researchers to share pooledinformation quickly and reliably.

➤ Data growth drivers: The biggest drivers of information growth at DukeUniversity are genomics data, digital imaging from research projects, and e-mailwith rich media attachments.

iVillage went fromspending one to two

hours per day for backupto one to two hours per

month simply byaggregating storage

resources.


26

➤ Storage — driving research initiatives: A recent brain imaging/cognitiveneuroscience project requires researchers to share access to thousands of digitalbrain images from test subjects. The sheer mass of required data storage,potentially up to 45 terabytes, would have deterred researchers from undertakingthe project if it were not for less expensive storage costs and Duke’s advancedSAN infrastructure.

Snapfish.com: Digital Imaging Is Doubling Every YearSnapfish.com, the online provider of film developing, printing, and storing photos,mentioned in our earlier digital photography anecdote, saw its storage grow 28terabytes in the first year of business, and expects data to double in 2001 andbeyond. Here are some of the storage insights we got from Snapfish’s ChiefTechnology Officer:

➤ Digital Imaging Storage Market: Snapfish has several competitors includingAOL and Kodak. If each competitor witnessed comparable growth to whatSnapfish expects in 2002, storage demand would increase by more than 500terabytes annually.

➤ Storage utilization: Snapfish typically maintains high levels of storageutilization, up to 90% in the storage area network.

➤ Declining storage prices: Despite Snapfish’s expectation that data coulddouble next year, IT executives expect storage spending to be flat year over yearbecause of rapidly falling storage prices. Currently, storage represents roughly70%–80% of Snapfish’s IT spending.

National Climatic Data CenterThe National Climatic Data Center (NCDC) has over 550 terabytes of data in itsinternational archive facility for meteorological data, ranging from data collected byThomas Jefferson and Benjamin Franklin to data collected utilizing the most moderncollection systems and satellites. By the end of 2002, the NCDC expects to haveone petabyte of data in its facility.

Here is what we learned in our conversations with NCDC IT management:

➤ Data Growth: At NCDC, data is growing at a rate of about 40%–50% per yearand is expected to continue at this rate through 2005. Almost 100% of thefacility data is backed up to tape storage.

➤ A SAN Infrastructure: Despite a limited budget, NCDC will implement aSAN in 2001 in order to provide its scientists with fast and reliable access to themost frequently used, mission-critical information (roughly ten terabytes ofdata).

➤ Robotic Tape Libraries and Data Replication: Roughly 90% of NCDC’sdata is stored on tape. NCDC also plans to implement an automated tape libraryalong with the SAN, to ensure reliable data backup and lower storagemaintenance costs. The NCDC currently replicates 100% of its new data and by

Snapfish expects data todouble in 2001 and

beyond.


27

2005 expects to have replicated all of its data (projected at one petabyte) to tapefor disaster recovery purposes.

➤ Hierarchical Storage Management (HSM) Software: NCDC uses ahierarchical storage management software to determine what data should bedeemed critical and stored to the magnetic disk drives that provide faster dataaccess. As the price per megabyte of magnetic disk declines, the NCDC expectsto move a greater proportion of data to disk.

The San Francisco Giants: 40,000 Fans and SevenTerabytesPassing through the electronic, ticket-scanning turnstiles at the San FranciscoGiants’ Pacific Bell Park, we knew that our nation’s oldest pastime was nowgenerating and storing significant amounts of critical data. But what we found inour conversations with the Giants’ senior IT executives impressed us.

The Giants, one of Major League Baseball’s most tech-minded franchises, havemore than two terabytes of data growing at a rate of approximately 0.5 to 1 terabyteper year with seven terabytes of total storage capacity. Two seasons of digital videogame footage used for coaching and scouting has already generated a little over aterabyte of data. This number is expected to grow at about 50% per year; in fact, theGiants expect to store an “eternity’s worth of game footage” in their storageinfrastructure in order to garner a competitive advantage, according to a senior ITexecutive.

Figure 13. Barry Bonds of the San Francisco Giants: An Unlikely Storage End User

Source: [email protected]

The Storage Lineup

Enabled by a strong storage lineup, including a RAID 5 (redundant array ofindependent disks) configured 750 DVD jukebox (5.2 gigabytes per DVD) and OTG

The San FranciscoGiants have

approximately 7terabytes of data

capacity to supportvideo streaming and an

online ticket tradingplatform.


28

software, the Giants believe the information collected from their electronicturnstiles, e-ticket system, and video streaming will give them a competitiveadvantage, improve their win/loss record, and bolster their bottom line. With onlyseven out of the 30 Major League Baseball parks coming close to the Giants’ levelof technological prowess, we think they are right. As the business value ofinformation becomes apparent, the other parks are likely to follow suit. At seventerabytes of capacity each, Major League Baseball parks combined could havestorage requirements similar in size of say, Citigroup, one of EMC’s largestcustomers.

Figure 14. Potential Storage Demand for Major League Baseball

7

210 220

0

50

100

150

200

250

Giants MLB (potential) Citigroup

Storage Demand

Tera

byte

s


We think the Giants are a great example of how traditional old-economy businessesare beginning to store large amounts of critical information to gain a strategicadvantage. Who’s next? The NBA? The NFL? With this in mind, we highlight afew of the Giants’ innovative technologies that are driving their information growth.

1. Video Streaming Is Being Used for Coaching and Scouting

Today from a front-end platform in their clubhouse, players can query digital videogame footage from their last two seasons to analyze their performance. If BarryBonds wants to analyze video footage from a past at-bat from multiple cameraangles, he can — within seconds. The Giants’ storage infrastructure ensures that theplayers can access archived Giants game footage with high availability and speed.According to the Giants’ Senior IT executive, “the players won’t wait patiently atthe terminal to obtain the data. They expect the data and technology to be availablewithin seconds of sitting down, otherwise it has no use to them.”

2. E-turnstiles and E-tickets Are Generating Valuable Data

Today, approximately seven out of 30 ballparks use electronic turnstiles that providevaluable information about ticket holders. In the server room while the game isgoing on, the Giants can see how many fans are in the park, what seats are sellingout fastest, what kind of ticket holders are entering each gate, and the efficiency oftheir greeters at each turnstile.


29

Figure 15. Pacific Bell Park: E-turnstiles, 40,000 seats, and 7 Terabytes Storage Capacity

Source: [email protected]

In addition to the e-turnstiles, the Giants have also implemented an e-ticket systemin their luxury suite area which issues tickets after fans swipe their driver’s licenseor credit cards into the system. As a result, the Giants have access to a tremendousamount of essential demographic information on their luxury box ticket holders. Forexample, the Giants can analyze the number of Dodger games a fan attended, thepreferred day of the week, and whether s/he appears to like day or evening games.According to the Giants’ senior IT executive, “I can definitely envision a world inthe not-so-distant future where we are 90-plus% paperless.”

While there are no definite plans to expand this system on a stadium-wide basis, allsuites and season ticket holders could be using this paperless ticket system in thenext two years. At that point, the Giants could be managing demographic data ontheir fans at the level of a credit card company. Enabled by their strong storagelineup, this information would give the Giants tremendous insight into theircustomer needs and would greatly expand their sales and marketing capabilities.

3. Online Ticket Trading

Double Play Ticket Window (DPTW) facilitates online ticket trades for the Giants’30,000 season ticket holders. This technology is only possible because of the park’se-turnstiles, which ensure that no two people are allowed into the park for the sameseat. Through DPTW, the Giants collect valuable information on:

➤ average mark-up on traded ticket sales. For example, a St. Louis Cardinal’sticket (i.e., Mark McGwire) might sell at a 70% premium, while the FloridaMarlins ticket trades at face value. Analysis of the data gives the Giants theflexibility to develop a dynamic or variable ticket-pricing model in the future.

➤ historical ticket demand and pricing — which can be used for scheduling gamesto get the highest possible attendance.


30

To recap: First, we outlined our view of the current storage market, the marketprojections, and some of the positive and negative trends of the sector. We followedthis with a real world perspective of what is driving information growth and demandfor storage within various organizations.

Now we analyze the most significant factors driving demand in the data storagemarket. Since we believe this market is best understood by looking inside a datacenter, we relate much our analysis to excerpts from our Citigroup, New York casestudy.

Case Study: Citigroup, New YorkCitigroup, one of EMC’s top 15 customers, is a good representation of where thebroader storage market is headed. Citigroup’s storage capacity has grown to over220 terabytes in its New York area technology center.

Computer Storage Demand Drivers

We believe the demand for computer storage in 2001 and beyond is driven by thefollowing factors:

➤ storage capacity utilization

➤ data replication

➤ high returns on investment in storage technology

➤ information growth from:

— mission-critical enterprise applications

— the Internet (e-mail and e-commerce)

— emerging “killer applications” (for example, video streaming)

Storage Utilization and Data ReplicationBelow we discuss two conflicting drivers of storage demand:

Point: Higher Storage Utilization Rates Decrease Storage DemandBy increasing storage utilization (or the amount of storage capacity used),organizations can postpone their storage purchases. Based upon our conversationswith end users, we believe there is a current trend toward higher storage utilizationrates which will likely have a negative impact on storage demand.

A year ago, it was common for a rapidly growing organization to leave 50%–60% ofits storage capacity empty in preparation for anticipated growth. Internet datacenters, for instance, typically need to rapidly scale their capacity to capitalize on thesudden success of their site. Today, because of tighter budgets and slowing growth,IT managers are raising their storage utilization rates to cut back on their storagespending.

We believe higher storage utilization rates will have a negative effect on the demandin the near term for storage capacity, for the following reasons:

Demand Driver Analysis

We believe there is acurrent trend toward

higher storage utilizationrates, which could have

a negative impact on thedemand for storage.


31

➤ IT spending has slowed, so organizations are cutting down on storage purchasesby squeezing as much out of their technology infrastructure as they can. Forstorage subsystems, this means increasing the utilization rates from an averageof say, 50%, to perhaps 85%, as depicted in Figures 16 and 17.

➤ Storage Resource Management (SRM) software enables organizations to gainmore efficiency out of their storage infrastructure, yielding higher capacityutilization rates, and fewer storage purchases. We are seeing increased marketpenetration for SRM software indicating that storage utilization will be trendingupward. We discuss SRM in more detail in the “Software Applications” section.

Below in Figure 16 we illustrate how an increase in storage capacity utilization to85% from 50% negatively impacts storage demand. The bottom line for thehypothetical organization below: storage demand declines by roughly 40% inresponse to an increase in storage capacity utilization to 85% from 50% over anundetermined time. We expect this increase in capacity utilization to be workedthrough by the end of 2001, at which time data demand should begin to resume itsnormal growth trajectory.

Figure 16. Example of the Demand Effect of Increased Capacity Utilization

0.00

0.75

1.50

2.25

3.00

3.75

4.50

Time

Stor

age

Dem

and

(Ter

abyt

es)

50% Utilization 50% to 85% utilization 85% Utilization

Inflection Point: Storage demand drops as utilization increases from 50% to 85%. Demand

Effect: 40%

d li


SANs Increase Capacity Utilization Even Further

Furthermore, we expect greater increases in storage utilization as flexible storagearchitectures, such as SANs, show increasing market penetration. We draw yourattention to Figure 17 to illustrate this point. In a traditional direct-attached storage(DAS) architecture, technical limitations require companies to directly pair storagesubsystems with servers (i.e., server 1 with disk subsystem 1). Unused capacitycannot be easily moved to servers that require additional storage.

For example, on the left side of Figure 17, disk subsystem 2 is full and cannotborrow capacity from the other underutilized subsystems. Despite a 50% capacity


32

utilization in the DAS environment, the organization must purchase more storage ifserver two needs additional capacity. The SAN environment depicted on the right-hand side of Figure 17 has 4 TB (terabytes) of data, but only requires 4.75 TB ofstorage. This represents a 40% decrease from the 8 TB of storage required in theDAS environment, which could not exceed more than 50% capacity utilization.

Figure 17. Demand Effect of Increased Storage Capacity Utilization

LAN

Server 3

Server 2

Server 1

DiskSubsystem 1 2TB: 100%

utilization

1 TB: 50%utilization

1.5 TB: 75%utilization

Server 4

DAS: 50% Utilization

1) 50% utilization = 4TB data / 8TB of availablestorage capacity)2) Needs of disk subsystem 2 requires additional storagepurchase3) Excess capacity in arrays 1,3, & 4 cannot cover needs

SAN: 85% Utilization

Clients

LAN SAN

Server 3

Server 2

Server 1

DiskSubsystem 2

DiskSubsystem 1

SANManager

Server 4

1) 85% utilization = 4TB data / 4.75 TB of availablestorage capacity2) No wasted capacity with room to grow

.5 TB: 25%utilization

Result: Storage demand declines 40% with Utilization Increase

4 TB data =85%

utilization

Clients

8 TBavailable storage 4.75 TB

available storage

DiskSubsystem 2

DiskSubsystem 3

DiskSubsystem 4


Real World: In its SAN environment, Citigroup orders additional storage whencapacity reaches 90% compared to 50%–60% in its DAS environment. By simplyexpanding utilization rates, Citigroup tapped roughly 35% more storage capacitywithout spending a dime.

Counter-Point: Data Replication — Driving Storage DemandData replication refers to the duplication or “mirroring” of an organization’smission-critical data for disaster recovery purposes, data migration, or businessoperations (i.e., development and testing). As data replication increases, so shouldthe demand for storage. We believe the increasing market penetration of datareplication initiatives should, in the long run, have a profound affect on the storage


33

market and should offset some of the negative demand effect of higher utilizationrates.

For some organizations, like Citigroup, regulatory rules require the maintenance ofmuch of the company’s mission-critical information in a disaster recovery facility toensure high availability. For others, like Intuit (discussed above), replication of dataensures faster and more accurate testing of new software enhancements, sincedevelopers can quickly access a reliable and updated copy of data.

We believe that the projected declines in storage subsystem and bandwidth pricesand the advances in data replication software are all pointing to future demand fordata replication.

Note: We explain replication in more detail in the “Software Applications” section.

Data Replication Software Revenues Are Projected to Rise

Data replication software, which is designed to create image copies of data viamirrors, clones, and snapshots, is projected to grow to $3.3 billion in 2005 from$967 million in 2000, representing a 28% CAGR (2000–05). This rising demand fordata replication software points to an increase in the demand for new storagecapacity to house new copies of data.

Figure 18. Data Replication Software Revenues

0

5001,000

1,5002,000

2,5003,000

3,500

1999 2000 2001 2002 2003 2004 2005

$ M

illio

ns

28% CAGR (2000-2005)

Source: Dataquest (May, 2001)

Storage and Bandwidth Price Declines Fuel Storage Demand

As the price of storage and communication bandwidth declines, we believe thedemand for data replication initiatives, such as remote disaster recovery facilities,could accelerate. Current Dataquest forecasts shown in Figure 19 below, areprojecting external hardware RAID storage prices to decline from $0.15 permegabyte (MB)/per array unit in 2000 to roughly $0.01 per MB/array unit in 2005,representing a negative 43% CAGR (2000–05).


34

Figure 19. Price Trends of External Hardware RAID Storage

0.00

0.10

0.20

0.30

0.40

0.50

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

$/M

B/Ar

ray

Unit

-43% CAGR 2000-2005

Source: Dataquest (July, 2001)

Bandwidth, which provides the communication link for synchronized datareplication, is also facing pricing pressure. A one-year contract that began on July 1of this year for OC3 bandwidth between New York and Los Angeles now trades forapproximately 31% of its January price. Because of cheaper storage and bandwidth,data replication should earn higher ROIs, ultimately driving the growth of themarket.

High ROIs in Storage Technology — We Give NumbersWe believe the high financial return earned from new storage technologies is fuelingdemand for storage. Innovative storage network architectures, such as SANs, andstorage resource management (SRM) software provide significant business andfinancial advantages and typically generate a high ROI (return on investment) forthe prudent user. The best part: The innovations keep coming — faster, bigger,cheaper, and better.

Below we highlight the cost savings and benefits from a SAN as seen in ourCitigroup case study.

Factors Driving SAN ROI:After lengthy conversations with end users and our own research, we believe SANshave a high return on investment and are an unstoppable trend.

1 Reduced data center floor space requirements: SANs’ increased connectivityallows organizations to consolidate servers and storage subsystems and typicallyresults in cost savings on real estate (fewer servers require less data center space).

Citigroup’s direct-attached storage (DAS) environment requires more floorspace to house its decentralized server and storage hardware than in the SANenvironment. In the DAS environment, floor space costs $4.00/GB/month versus$0.50/GB/month in the SAN. Annually this results in estimated savings of $1.3million (for the SANs 32 terabytes of storage).

We believe the growingfinancial return from

storage technology isfueling demand for

storage technology.


35

2 Higher storage capacity utilization: In the traditional direct-attached storage(DAS) architecture, each server has its own dedicated physical storage, creatingindividual storage “islands,” where unused capacity cannot be easily moved.Conversely, a SAN’s centralized architecture has any-to-any connectivity, whereany server can communicate with any storage subsystem in the network. Thisarchitecture allows for greater utilization of storage assets as unused capacity canbe moved to fill storage demand. As an organization increases its utilization rate,it can delay its storage purchases and generate cost savings (see Figures 16 and17).

Citigroup utilizes anywhere from 50% to 60% of its storage capacity in its DASenvironment. In the SAN environment, the IT (information technology) grouppostpones storage purchases until capacity utilization reaches 90%. This hasresulted in a “storage on demand” ordering process and cost savings because ofdelayed purchases.

3 Simplified administration and management: The reduced hardwarerequirements attributed to a SAN result in lower management and administrationcosts and IT staff can typically manage 5x–10x as much data per person, leadingto reduced labor costs.

Citigroup can manage 10x more storage per person in the SAN (10 TB) than inthe DAS (1 TB) environment. As a result, IT storage managers are able to focuson strategic issues rather than just storage maintenance. Further, the SAN hasresulted in a more simplified storage procurement process. The order andinstallment process can be done in a week in the SAN environment, animprovement from what used to take six weeks.

4 High system availability: The SAN provides for greater system reliability andperformance and reduces system downtime and lost revenues. For businesses inintensely competitive environments, an unplanned outage in mission-criticalapplications could result in significant loss of revenues, and lower customerretention and loyalty.

Research indicates that a large financial organization, like Citigroup, has systemdowntime costs of up to $6.4 million an hour. Citigroup has noticed a significantimprovement in reliability and downtime in its SAN environment compared to theDAS. This is due to the SAN’s investment in the core infrastructure whereas theDAS investment is distributed and is not as robust. According to Citigroup ITmanagers, there are probably 10x–20x more outages in a DAS than in a SAN.

5 Reduced hardware requirements: A SANs any-to-any connectivity enablesorganizations to consolidate their server hardware and as a result, reduce capitalexpenditures and improve corporate cash flow.

In the centralized SAN environment, Citigroup estimates it was able toconsolidate servers and reduce hardware (i.e., servers, subsystems) purchases onan annual basis.


36

Storage Technology: Faster, Bigger, Cheaper, BetterWe expect storage technology will continue to generate high ROIs because it justkeeps improving. Below we provide a preview of new technologies in the storagemarket (a more detailed analysis is provided later in this book):

➤ Faster: This year’s fibre channel switches are expected to transmit data fromrates of 1 Gbps (gigabits per second) to 2 Gbps.

➤ Bigger: The highest port count is currently 128 ports, but is expected to go to256 by the end of the year. This reduces the need to use extra ports to link twosmaller switches together to get the same usable port count; thereby reducing theoverall cost per port used.

➤ Cheaper: Prices per port have dropped as competition increases andtechnology improves.

➤ Better: New features like security, management software, and commonstandards are making switches easier to use, especially with ones from differentmanufacturers, as well as making them more powerful.

Storage SoftwareFinally, we believe software advancements are fueling demand for storagetechnology. One of the most significant developments in this area is StorageResource Management (SRM) software, which enables IT managers to work withdifferent systems using one common interface, making the task of managing systemsfrom various manufacturers easier. The most compelling argument for purchasingstorage management software is that for every $1 spent on storage hardware, it takes$4–$7 to manage it per year.

Information Growth Is Driving Storage DemandThere are three areas that are the key drivers of information growth and support theprojected growth in demand for storage:

➤ mission-critical applications

➤ the Internet (including e-mail and e-commerce)

➤ emerging killer applications

Worldwide RAID storage, in terabytes, is expected to reach 6.7 million terabytes in2005 in order to meet the demands of this data growth, representing an 87% CAGR(2000–05), an improvement from the 81% CAGR for the period 1998–2000.

Using effective storagemanagement software

can reduce peoplemanagement costs by

4x–7x.


37

Figure 20. Worldwide Forecast for RAID Storage (in Terabytes Shipped)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,0007,000,000

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

CAGR 78% (1998-2000)

CAGR 83% (2000-2005)

Terabytesshipped

Source: Dataquest (July, 2001)

Information Growth from Mission-Critical ApplicationsApplications today are much more data intensive than yesterday. Specifically, threemission-critical applications that are generating significant amounts of data are:

1 ERPs (Enterprise Resource Planning),

2 CRMs (Customer Relationship Management), and

3 SCMs (Supply Chain Management)

These applications are growing in popularity. One key benefit lies in their ability toleverage the Internet to make businesses run more efficiently without the additionalexpense of more headcount; resulting in increased shareholder value. We believethe growing organizational reliance on these applications should fuel the demand forstorage in the future.

Enterprise Resource Planning: Projected 12% CAGR

These software applications help procure indirect goods (ones that are not directinputs) such as capital equipment and office supplies. Due to their enormousorganizational benefits, ERP applications sales are expected to grow to $46.1 billionin 2005 from $21.5 billion in 2000, representing a 16% CAGR. As can be seen inFigure 21 below, ERP applications will continue to grow faster than the overallbusiness applications market, which has a projected 12% CAGR (2000–05)

The growing reliance onmission-criticalapplications, such asERPs, is fuelinginformation growth anddemand for storage.


38

Figure 21. Revenue Growth of ERP and Business Applications

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1998 1999 2000 2001E 2002E 2003E 2004E 2005E

Reve

nue

($M

)

Business Application Revenue ERP Enterprise-Suite Application Revenue

ERP: 16% CAGR (2000-2005)

Bus App: 12% CAGR (2000-2005)

Source: IDC (February, 2001)

Customer Relationship Management

These software applications improve the sales process. They include such functionsas sales force automation (SFA), customer support, and partner relationshipmanagement. SFA is a powerful organizer that improves productivity by providingfunctions such as contact databases, prioritization of accounts, pipeline management,and forecasting.

Supply Chain Management

SCM software applications provide companies with a high-level view of theirtrading partners’ activities. For example, if a manufacturer is planning to increaseproduction, its suppliers will be notified via SCM software, thereby allowing themto manage their own production levels more efficiently, avoiding expensiveinventory costs.

Data Warehousing

The growth of data warehousing software, which combines different databases intoone, makes enterprise applications even more powerful, further driving the demandfor storage. Data warehousing provides organizations with the tools to create orderand make sense out of the chaos that can arise out of accumulated information.Figure 22 details the projected growth of data warehousing software: to $17.0billion in 2004 from $6.8 billion in 2000, representing a 26.1% CAGR.


39

Figure 22. Worldwide Data Warehouse Software Revenue Growth Projections

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

1999 2000 2001E 2002E 2003E 2004E

26.1% CAGR (1999-2004)

($M)

Source: IDC (December, 2000)

The Internet 2000 and BeyondWe believe the Internet is driving demand for storage because of the growingnumber of users, their increased reliance on e-mail, and the projected growth ofworldwide e-commerce.

E-Mail: Ten Billion Messages per Day in 2000, and Growing

We believe E-mail has a tremendous effect on demand for storage in today’s datacenter. In conversations with Citigroup IT executives, e-mail storage is growingrapidly because “it has become a formal way of doing business and every other e-mail has some form of attachment.”

According to IDC, on an average day in 2000, ten billion e-mail messages were sentworldwide. IDC estimates this will grow to 35 billion in 2005, representing a 29%CAGR.

Internet imaging and e-commerce data

collection are driving thedemand for advanced

data storage capabilities.


40

Figure 23. E-mail Messages Sent on an Average Day

05

10152025303540

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Worldwide North America

Worldwide

North America

(Billions)

Source: IDC (September, 2000)

Consistent with the Citigroup experience, more users today rely on e-mail to sendcontent-rich audio and video data, increasing the average size of e-mail and thestorage capacity needed to manage that information. As depicted in the figurebelow, it is evident that these new applications are going to require sizable databasesfueling the demand for more storage capacity.

Figure 24. Emerging Application Growth Projections

0

50

100

2000 2005 2010

Avg.ApplicationSize(TB)

Data Warehouse

E-Mail

Video Mail

Electronic Security

E-Medicine

Source: Horizon Information Strategies and StorageTek (1999)

E-Commerce: Projected Five-Year CAGR of 70%

A growing e-commerce business requires an IT infrastructure that has highavailability, and non-disruptive backup/restore processes. Today in a world wherethe customer does not sleep, 24x7 system accessibility is critical. Storage software


41

provides solutions to these needs, through its marquee functions such as data backupand data recovery. We believe, therefore, that e-commerce growth could drive thedemand for storage in the future.

Ease of accessibility to the Internet in the form of paid Internet access providers likeAmerica Online (AOL) and Internet Service Providers (ISPs) like AltaVista andNetZero has introduced an increasingly higher number of people to the Internet yearafter year. According to May 2001 IDC reports, 370 million devices were used toaccess the Web in 2000; a number that is expected to reach 1.3 billion by 2005 —reflecting a 28% CAGR. E-commerce spending, as shown in Figure 25, is projectedto exceed $5.03 trillion by 2005 up from $354 million in 2000 — a CAGR ofroughly 70%.

Figure 25. Emerging Application Growth Projections

0

200

400

600

800

1,000

1,200

1,400

2000 2001 2002 2003 2004 2005

Mill

ions

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$ Bi

llion

s

E-Commerce Spending ($Billions) Right Axis70% CAGR 2000-2005

Number of Internet Devices (Millions) Left Axis28% CAGR 2000-2005

Source: IDC (April, 2001)

Emerging Killer ApplicationsBeyond traditional storage needs, drivers for storage capacity in the future couldinclude emerging “killer applications,” such as:

➤ digital photography (see Figure 6)

➤ video streaming

➤ set-top boxes, and personal TVs. For example, one minute of telephone-qualityvoice is equivalent to 0.36 MB, and one minute of CD-quality sound isequivalent to 10.6 MB of data.

➤ video conferencing and voice (voice-to-text, text-to-voice, e-mail-to-voice,voice-to-e-mail, and language translation)

Beyond traditionalstorage needs, we

believe “killerapplications” couldexponentially drive

future storage demand.


42

➤ MP3 and MPEG-2 technology

Below we highlight one of the more significant “killer applications” that we believecould drive future demand for storage:

Enterprise Video Streaming: The North American Market IsExpected to Grow to $2.8 billion in 2005Although the adoption of video streaming is still emerging, we believe thistechnology is a killer application that could provide for potentially compellingopportunities in the storage world. As seen in our discussion with the San FranciscoGiants, on-demand streaming video requires a tremendous amount of storagecapacity to enable fast and reliable access to the archived digital data. In NorthAmerica, the enterprise video streaming market is expected to grow to $2.8 billion in2005 from $140 million in 2000, representing a 95% CAGR, according to JupiterMedia Metrix.

Figure 26. North American Enterprise Video Streaming Market Opportunity

$0.1$0.3

$0.6

$1.2

$2.3

$2.8

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

2000 2001 2002 2003 2004 2005

(In $

billi

ons)

95% CAGR (2000-2005)

Source: Jupiter Enterprise Streaming Model (March, 2001)

Today organizations are using video streaming to improve communication bothinternally and externally for such areas as:

➤ executive addresses (earnings releases and annual meetings)

➤ employee education and sales training

➤ new product launches and marketing

➤ B2B collaboration

Video Streaming Growth Drivers

We expect growth in video streaming to be driven by:

➤ returns on investment generated from online training tools that use videostreaming to effectively communicate with employees. Organizations createcorporate value through less expensive (no travel) and more frequent trainingprograms;


43

➤ increasing bandwidth penetration by corporations and their employees broughtabout by the declining price and increasing availability of bandwidth (as shownin Figure 27).

Figure 27. Corporate Bandwidth Penetration

(in millions)

$0

$20

$40

$60

$80

1999 2000 2001 2002 2003 2004 2005

0%

20%

40%

60%

80%

100%

% o

f em

ploy

ees

w/b

road

band

Broadband Dial-up % of Employees with Broadband

( )

Source: Jupiter Internet Access Model (December, 2000)

Storage Opportunity in Streaming Video

Content distribution networks (CDNs) typically use caching for handling streamingvideo data in on-demand and live environments. Companies like NetworkAppliance offer both software and caching equipment to optimize the performanceof the networks handling streaming video data. In Figure 28, Jupiter Media Matrixprojects the storage opportunity within the streaming video market. Intranet cachingand storage/hosting within streaming video are projected to reach $522 million and$366 million respectively in 2005, representing respective CAGRs of 109.3% and71% (2000–05).


44

Figure 28. Storage Opportunity in Streaming Video

$0

$200

$400

$600

$800

$1,000

2000E 2001E 2002E 2003E 2004E 2005E

(in m

illio

ns)

Internet Caching/Multicasting Storage/Hosting

Internet Caching/Multicasting CAGR: 109.3% (2000-2005)Storage/Hosting CAGR: 71% (2000-2005)

Source: Jupiter Enterprise Streaming Model (March, 2001)

Penetration Rates of “Killer Applications”

Figure 29 illustrates the penetration rates of previous “killer applications” todemonstrate the increasing pace of adoption as consumers become more comfortableutilizing new technologies.

Figure 29. Previous “Killer Application” Adoption Rates

0%

20%

40%

60%

80%

100%

120%

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990

%ofUSHouseholds

Telephones

Radio Television Cable TV

VCRs

PCs

Online

Source: FCC, RAB, NAB, NCTA, EIA, IDC, and Salomon Smith Barney


45

Size TerminologyAs capacity of subsystems grows more each day, the terminology grows moreexotic. Here is a quick explanation of terms you may hear in the future.

Figure 30. Size Terminology: From Byte to Yottabyte

Term Size ExampleByte 8 bits A single characterKilobyte 1,000 bytes A very short storyMegabyte 1,000,000 bytes A small novelGigabyte 1,000,000,000 bytes Beethoven’s 5th SymphonyTerabyte 1,000 gigabytes All the X-ray films in a large technological hospitalPetabyte 1,000 terabytes Half the contents of all US academic research

librariesExabyte 1,000 petabytes 5 exabytes - all the words people have ever spoken.Zettabyte 1,000 exabytes As much information as there are grains of sand on

all the world’s beachesYottabyte 1,000 zettabytes As much information as there are atoms in 7,000

human bodies

Source: EMC and Salomon Smith Barney

Many forms of traditional media are being converted to digital form so they can bestored and copied onto computer storage systems. Figure 31 describes the storagerequirements needed for various media.

Figure 31. Sizing for Storage Applications

Source: Horison, Inc.

High Availability MetricsAvailability is an important criterion when talking about mission-critical data.Manufacturers are striving to improve the reliability of their data. Each minute ofdowntime translates into lost productivity for the organization. As the importance ofinformation grows, this becomes an increasing concern.

Data Sheet


46

Figure 32. High Availability Metrics

Source: Horison, Inc.

Data Is Mission CriticalJust how critical is information? As a company’s reliance on mission-criticalapplications grows, so does the value of the information residing within the storageinfrastructure. Downtime costs become exorbitant, especially for e-commercecompanies requiring 24x7 availability to their websites.

Figure 33. Downtime Costs

Application Downtime CostsFinancial Brokerage $6,450,000 / hrCredit Card Authorization $2,600,000 / hrHome Shopping $113,000 / hrCatalog Sales $90,000 / hrAirline Reservations $90,000 / hrTele-Ticket Sales $69,000 / hrPackage Shipping $28,000 / hr

Source: Fibre Channel Industry Association

Figure 34. Downtime Costs — Companies

Application Downtime CostsDell Computer $35M / dayIntel Corporation $33M / dayCisco Systems $30M / dayAmazon.com $4.5M / dayYahoo.com $1.6M / day

Source: Forrester Research USA


47

SAN and NAS

What is a SAN?What is NAS?

SAN and NAS ConvergenceWhat is Server Clustering?


48

➤ A SAN (Storage Area Network) is a storage networking architecturethat enables the more efficient use of storage capacity by decouplingserver and storage connectivity with a dedicated storage network.

What Is a SAN?A Storage Area Network (SAN) is a storage networking architecture that enables themore efficient use of storage assets by decoupling server and storage capacities witha dedicated network. Much like a Local Area Network (LAN), a SAN enablesgreater scalability and reliability for computer storage resources, making them lessexpensive to implement and easier to manage. Traditional storage subsystems attachdirectly to the back-end of servers (called Direct Attached Storage, or DAS). In aSAN, a dedicated storage network is inserted between servers and various storagesubsystems. The storage network is generally composed of a number of switcheswhich interconnect servers and storage.

Figure 35 below is an example of a traditional DAS architecture.

Figure 35. Traditional DAS (Direct Attached Storage) Architecture

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

Key Considerations

1)High cost of management

2)Full time data availabilityoften requires traversing theLAN

3)Does not have fast datatransmission when a serverhas reached its capacity

4)Does not provide any-to-any connectivity

5)Scalable at the cost ofestablishing unused capacity

Subsystem 2

Subsystem 3


Figure 36 below is an example of a SAN architecture.

3333333333333333333CQ

What Is a SAN?

A SAN (Storage AreaNetwork) is a more

robust and reliable dataarchitecture.


49

Figure 36. SAN Architecture

Key Advantages

•Reduces overall cost of

storage management

•High availability

•Any-to-any connectivity

•Frees server capacity

•Reduces LAN congestion

•Storage not dedicated toone server

•Increases data transferrates

•Enables serverless &LANless backup

•Heterogeneousconnectivity (typicallybetween UNIX & NT)

•File sharing

LAN SAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

Subsystem 2

Subsystem 3


Currently, in a SAN, a variety of servers connect to various storage devices via aFibre Channel cable, which can be optical or copper. The storage devices form apool and are externalized from individual servers, allowing the storage pool to beshared among multiple servers. This avoids placing additional I/O demand onexisting network data paths and negatively affecting server performance (alsoreferred to as CPU cycles).

Through a network of storage devices in a SAN, large numbers of users cansimultaneously access various storage subsystems through multiple paths. Thisarchitecture offloads the bandwidth used by data transfers between storage systemsfrom the LAN and servers. SAN storage devices can be disk subsystems, tapelibraries, optical drives, or networking equipment. In a SAN, the storage subsystemsare not dedicated to specific servers, as they are in traditional DAS architectures.

SANs differ from traditional DAS in that:

➤ The cost of management goes down as storage subsystems become centrallylocated and easier to manage.

➤ Redundancies are created; in other words, if Server 1 fails in a SAN architecture,the storage on Subsystem 1 can still be accessed via Server 2. Notice that SANscan do this without increasing LAN traffic.

➤ Backup or restore (disk-to-tape or tape-to-disk or disk-to-disk) can be donewithout involvement of servers and at higher speeds. Notice that SANs can dothis without increasing LAN traffic.

➤ File sharing can occur between servers due to any-to-any connectivity.

➤ SANs scale very efficiently as a result of being able to share storage. Excesscapacity can be allocated where needed in a SAN, instead of only being

The SAN architectureoffloads the bandwidthused by data transfers

between storagesystems from the LAN

and servers.


50

available to the server it’s directly attached to, as is the case with a traditionalDAS. In a traditional architecture, excess capacity often goes unused.

Robust SAN ProjectionsSANs are projected to be one of the fastest growing segments of storage. Dataquestprojects that SAN-attached storage (including external storage and NAS) will growto $41.3 billion in 2005 from $6.3 billion in 2000, representing a 45.7% CAGR.Dataquest projects that SAN networking (including routers, hubs, switches,integrated switches, Directors, and HBAs) will grow to $16.9 billion in 2005 from$1.3 billion in 2000, representing a 67% CAGR. Dataquest’s SAN softwareprojections (which we include as SAN/Device Administration, SRM, Virtualizationand Backup/Recovery Network) are projected to grow to $8.9 billion in 2005 from$2.2 billion in 2000, representing a 33% CAGR. These combined segmentsrepresent a 47% CAGR (2000–05).

Figure 37 below illustrates the growth of SANs.

Figure 37. SAN Market Projections

Revenue in millions

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

1998 1999 2000 2001 2002 2003 2004 2005

SAN Storage SAN Networking SAN Software

47.0% CAGR


SAN growth is expected to exceed that of DAS (which includes JBOD and externalstorage not attached to a SAN) and NAS in absolute dollars. Figure 38 belowapproximates relative growth of the architectures based on RAID-based disk storage.

SANs are projected to bethe fastest-growing

segments of storage.


51

Figure 38. RAID-Based Disk Storage in SAN, NAS, and DAS

Revenue in millions

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1998 1999 2000 2001 2002 2003 2004 2005

DAS

NAS

SAN

Source: Dataquest, 2001

Have No Fear, SANs Are HereA SAN architecture improves upon a DAS architecture in several ways includingaggregated tape backup, increased capacity utilization, better utilization of high-endsubsystems through fan-in configuration, centralized location, more storagemanaged per person, greater scalability, and higher availability (see Figure 39). Byunderstanding how these benefits can translate into positive returns for companies,an investor can better understand the ways in which SANs will progress and whichcompanies should benefit.

Figure 39 below outlines the reasons for SAN deployment in chronological order ofhow we expect they will be utilized.

Figure 39. Comparison of DAS versus SAN

DAS SAN

Available

Today in SAN?

1. Aggregate Tape Backup No Yes Yes2. Capacity Utilization ~50% ~85% Yes3. Fan-In No Yes Yes4. Centralized Location No Yes Yes5. GB Per Person Managed <100 >500 Yes6. Scalable architecture No Yes Yes7. High Availability No Yes NoSource: Salomon Smith Barney

1. Aggregate Tape BackupOne of the most tangible, real world benefits of SAN adoption we hear about oftenfrom IT managers is streamlining the tape backup process. Backing up data to tapeis a less expensive alternative to backing up to disk. Although it is slower, the costof tape per megabyte is often less than $0.01, or about one-fiftieth of the cost of a

A SAN architectureimproves upon a DAS

architecture in manyways.


52

megabyte of disk storage. Hence tape is often used to store data that is accessed lessfrequently or for archival purposes.

In a DAS environment, each server and storage subsystem must have its ownseparate tape device or drive (see Figure 40 below). The main disadvantage to thisis the management and collection process. In this layout, each tape drive could belocated far away from the other. (One IT manager jokingly suggested his employeesshould wear roller skates so they could collect all of the tapes located throughout theenterprise.) Since a single-tape drive can only store around 100 GB, tapes oftenhave to be replaced on a daily basis and filed into a Dewey Decimal type library.

Figure 40. Tape Backup Using DAS

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1TapeDrive 1Subsystem 1

Subsystem 2

Subsystem 3

TapeDrive 2

TapeDrive 3

LAN


Another alternative is to back up over the LAN, which we discuss in a later sectiontitled “The Future of SANs.”

In a SAN environment, the tape backup process is improved by being centrallylocated and thus easier to manage. The collection of subsystems on the network canback-up their data to an individual tape library instead of to geographically-dispersed, single-tape drives. Tape libraries are enterprise-level automated devicesthat hold multiple tapes and thus more total storage. For example, StorageTek’sPowderHorn 9310 tape library can store up to 360 TB of data (versus 100 GB in atape drive). Since it can hold more data than a single-tape drive, the tapes do nothave to be collected as frequently.

In a SAN environmentthe tape backup process

is improved by beingcentrally located and

thus easier to manage.


53

Figure 41. Tape Backup in a SAN

Client 1

Client 2

Client 3

Client 4

Server 2 TapeLibrary

Subsystem 2

Server 2 Subsystem 1


LAN SAN


2. Capacity UtilizationAnother benefit to SANs is higher capacity utilization. In a DAS environment, eachserver typically has its own dedicated subsystem. In talking with IT managers, wehave found 50% to be a typical capacity utilization rate (percentage of total availablestorage being used) in these environments.

In a SAN environment, multiple servers can store data on a single larger subsystem(see Figure 42 below). In a SAN environment, we have found 85% to be a typicalcapacity utilization rate. IT managers often allow higher utilization rates forsubsystems in a SAN environment because it is easier to monitor a single storageunit reaching its maximum limit versus many units in a distributed DASenvironment.

Figure 42. Better Capacity Utilization in a SAN

Server 1

Subsystem 1

SAN1 large subsystem,85% utilization

8.5 TB of storage used10 TB of storage capacity

Server 6


8 small subsystems,50% utilization each8 TB of storage used

16 TB of storage capacity

Subsystem 6

DAS



Server 2


Subsystem 2



Server2

Server 3

SAN


We have found 85% tobe a typical capacity

utilization rate in a SANenvironment versus 50%

in a DAS environment.


54

3. Fan-in Scale Leads to Higher ROIIn a DAS environment, for each server there is one subsystem. Hence, many smallersubsystems must be purchased to accommodate this requirement. In a SANenvironment, only a few subsystems are needed to accommodate many servers (seeFigure 43 below). We refer to the many (server)-to-few (subsystems) relationship as“fan-in” because of the “V” shape it resembles. For the same amount of money itwould take to purchase the many small subsystems needed in a DAS environment, acompany could choose to purchase fewer large subsystems, which typically havemore features than their smaller counterparts and at a lower cost per megabyte.Economies of scale make the larger subsystem less expensive while providinggreater functionality. Hence, by using a fan-in layout, an IT manager can get morefor each dollar spent.

Figure 43. Many-to-Few “Fan-in” Saves Money or Utilizes Higher-end Subsystems

Server 6


8 servers +8 smaller, mid-range subsystems

Subsystem 6

DAS



Server 2


Subsystem 2



Server 1

Server 2

Server 3

Server 4

Server 5

Server 6

Server 7

Server 8

Subsystem 1

SAN

8 servers +3 larger, enterprise subsystems

SAN

Subsystem 2

Subsystem 3


4. Centralized LocationAnother benefit to a SAN is the centralized location. In a DAS environment, serversare often located in multiple locations within an enterprise. Since DAS typicallyuses interconnects with a limited distance capability (e.g., Ultra 160 SCSI has a limitof 12 meters), the storage must be located close to the server. Hence, storagesubsystems must be located close to their respective server counterparts and cannotbe aggregated.

In a SAN environment, the storage can be located further away from the server sinceit is networked. For example, using Fibre Channel, storage can be located 10 kmaway. Additionally, by using channel extenders (devices that extend the length atwhich data can be transmitted), storage can be located as far as 200 km. As a result,all of an enterprise’s storage can be located in one central location. By locating allof the storage in one location using large, dense subsystems versus smaller ones, lessfloor space is taken up per megabyte. Additional cost saving can be realized by

Economies of scalemake the largersubsystem lessexpensive while

providing greaterfunctionality.

By locating all of thestorage in one location

using large, densesubsystems versus

smaller ones, less floorspace is taken up per

megabyte.


55

spreading the fixed costs of real estate (i.e., air conditioning, lighting, security) overmore gigabytes.

5. Low Cost of Management: More GBs Per PersonA SAN architecture maximizes the efficient use of each IT administrator through itsuser-friendly feature/functions and its design to be physically centrally located.StorageTek recently researched and measured the benefits of SANs and found that:

➤ In a distributed storage environment, each IT administrator can manageapproximately 30–100 GB of data, generating people costs representing anestimated 55% of the overall storage budget.

➤ In a centralized storage environment, each IT administrator can manage 500 ormore GBs of data, lowering people costs to an estimated 15% of the overallstorage budget.

Figure 44. Cost Advantage of Centralized Storage

0

1

2

3

DiskStorage

1978 1984 1995 2000

Source: IBM, Strategic Research Corp.

Cost with storagemanagement software

Cost without storagemanagement software

Person Cost

$/MB/MO

6. ScalabilitySANs scale very efficiently, which is not to say that traditional DAS does not scale.The advantage of a SAN is that it can allocate excess capacity where needed. InFigure 45 below, in a traditional DAS architecture, excess storage capacity onSubsystem 1 would go unused if Server 1 did not need it. In a SAN architecture,excess storage capacity on Subsystem 1 could be allocated to Server 2 if needed.

A SAN architecturemaximizes the efficient

use of each ITadministrator.

A SAN can allocateexcess capacity where

needed.


56

Figure 45. SAN Is More Scalable

SAN

Subsystem 1: Utilization 10%Subsystem 2: Utilization 100%

Subsystem 2 is full

DAS

Server 2


Subsystem 2

SAN

Subsystem 1

Subsystem 2

Subsystem 1: Utilization 55%Subsystem 2: Utilization 55%Neither subsystem is full

Server 2

Server 1


7. Future of SANs: Any-to-Any ConnectivityIn our view, one of SAN’s most promising features is any-to-any connectivity, theability for any server to talk to any subsystem. Any-to-any connectivity enables newapplications that create a high availability architecture that better utilizes servers,network and storage subsystems resources.

The same demands in a SAN architecture could be handled by using Server 1 andServer 2 simultaneously to access data on Subsystem 1, also known as loadbalancing (see Figure 46 below). In a SAN architecture, in theory, any server canaccess any storage subsystem. This is any-to-any connectivity.

Figure 46. Any-to-Any Connectivity

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2


Subsystem 2

Subsystem 3

SAN


One of SAN’s mostpromising features is

any-to-any connectivity,the ability for any server

to talk to any subsystem.


57

Automatic Failover Provides Greater Data AvailabilityThrough any-to-any connectivity, SANs help increase the ease and reliability of datarecovery through architecting multiple paths.

In Figure 47 below, we illustrate how a traditional DAS backup traverses computingdevices.

Note: The thick lines represent the data path in the figures that follow.

Figure 47. Traditional DAS (Direct Attached Storage) Backup

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

DAS(Traditional Storage Backup)

•In a traditional DASarchitecture, backup trafficmust traverse an alreadycongested LAN (often atnight or during non-businesshours).

•DAS backups involveapplication servers to run thebackup application software.

Subsystem 2

Subsystem 3


DAS backups require the involvement of application servers and are, therefore,interrupted when servers fail (see Figure 48 below).

Figure 48. Traditional DAS (Direct Attached Storage) Backup Stops when a Server Fails

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1


•In a tradit ional DASarchitecture, server andnetwork availability is vital.

•DAS backups cannot becompleted when a serverfails.

Subsystem 2

Subsystem 3


Through any-to-anyconnectivity, SANs help

increase the ease andreliability of datarecovery through

architecting multiplepaths.


58

The SAN architecture creates redundancies that result in the High Availability (HA)of data through any-to-any connectivity. For example, if Server 1 fails in a SANarchitecture, Subsystem 1 can still be accessed from Server 2. Notice that SANs cando this without increasing LAN traffic.

In a SAN environment, server failures do not interrupt data access. (see Figure 49below)

Figure 49. SANs Create Multiple Paths to Circumvent Server Failures

Server 2

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 1

TapeLibrary

Subsystem 1

SAN•In a SAN, a failedserver can becircumvented.

Subsystem 2

Subsystem 3


In a SAN environment, storage networking failures do not interrupt data access.(See Figure 50 below.)

Figure 50. SANs Create Multiple Paths to Circumvent Storage Networking Failures

Server 2

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 1

TapeLibrary

Subsystem 1

SAN•In a SAN, a storagenetworking failurecan be circumvented.

Subsystem 2

Subsystem 3


In a SAN environment, storage subsystems failures do not interrupt data access tomirrored data (i.e., an exact duplicate of the data) and data can be stored on multiplestorage subsystems as illustrated in Figure 51 below.

The SAN architecturecreates redundanciesthat result in the High

Availability (HA) of datathrough any-to-any

connectivity.


59

Figure 51. SANs Create Multiple Paths to Circumvent Storage Subsystem Failures

Server 2

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 1

TapeLibrary

Subsystem 3

Subsystem 1

SAN•In a SAN, data canbe backed up onmultiple storagesubsystems andmirrored data can beaccessed frommultiple storagesubsystems.

Subsystem 2


The SAN BrainWho controls the data traffic in a SAN? The most popular answer we have heard is“me.” Everyone wants to control the SAN. If SANs are going to be as great aseveryone we spoke with thinks they will (and we agree), the most value will beadded by whoever controls the SAN (see Figure 52 below).

Figure 52. Potential SAN Manager

LAN SAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

SANManager?

Subsystem 2

Subsystem 3


In our view, there are four viable contestants:

1 Application Servers: This is how traditional DAS has been controlled in thepast. This process has to change, however, because application servers are too

Who controls the datatraffic in a SAN? The

most popular answer wehave heard is “me.”


60

expensive to baby-sit data backups, especially since many companies havealready illustrated that less expensive servers (thin servers) can do it just as well.

2 Storage Subsystems: We believe this would be the tail wagging the dog. Bybuilding up the intelligence in storage subsystems, the cost is simply beingmigrated from application servers, without really enhancing performance. Thishas been a logical first step toward freeing up application server’s capacity.

3 SAN Appliance: We believe this is the most viable alternative: Install adedicated appliance that is simple to use in the middle of the SAN and let it bethe traffic cop via in-band or out-of-band management. Many startup companiesare betting their futures on this concept. We think this is a viable solution.

4 Networking Equipment: To many, this seems like a natural development. If aswitch or router, combined with server capabilities, was improved by addingvarious software and hardware features, many believe it could be a very effectiveSAN manager.

In the end, we believe multiple types of devices and appliances will offer variousfunctions toward the same goal: efficient data management.

SAN AdoptionDespite recent economic pressure within the industry, we are still firm believers inSAN adoption. We believe adoption rates are going to dramatically increase whenthe economy stabilizes and IT budgets return to normal levels. That is not to saythat SAN adoptions have stopped in this environment, but they have slowed alongwith everything else. Additionally, the availability of serverless backup and otherSAN “killer applications” should also drive future growth.

Figure 53 below illustrates the increasing adoption rate of SANs. Going forward,the SAN architecture will represent a larger percentage of the total market based onRAID-based disk storage growth.

We believe adoptionrates are going to

dramatically increasewhen the economy

stabilizes and IT budgetsreturn to normal levels.


61

Figure 53. RAID-Based Disk Storage by Architecture

0%

20%

40%

60%

80%

100%

1999 2000 2001 2002 2003 2004 2005

NAS SAN DAS

DAS

SAN

NAS


We have heard people talking about how many SANs have actually been installed.The key premise to understand is how SAN is being defined. Some define it asFibre Channel revenues, while others define it as multiple servers (more than two)being connected to multiple storage devices (more than two). Although the formeris more common, we believe the latter is more accurate.

Technology has historically been an area in which adoption rates can linger. Weestimate “the year of the SAN” will be no different; taking off over the course of thenext several years and experiencing a protracted adoption period.

In the end we expect SANs to move from about 5% penetration today to 90% in thefuture. From an account penetration point of view we believe SAN penetration iscloser to 15%. But note, not all customers who have adopted SANs have rolled itout into 100% of their environment. We believe even existing adopters are only10%–30% penetrated from a potential addressable port connectivity point of view(again, on their way to 90%).

In the end we expectSANs to move from

about 5% penetrationtoday to 90% in the

future.


62

➤ NAS (Network Attached Storage) is a storage networking architecturethat allows storage subsystems to connect directly onto the existingcomputing network, the Local Area Network (LAN).

What Is NAS?NAS (Network Attached Storage) is a storage networking architecture that allowsstorage subsystems to connect directly onto the existing computing network, theLocal Area Network (LAN). Traditional storage subsystems apply Direct AttachStorage (DAS) to the back end of servers and have used costly application servercapacity to transfer data from storage devices to clients (desktop computers). This“application server tax” is avoided in the NAS architecture by attaching a smaller,less expensive server (referred to as a thin server, file server, or Filer) to a disksubsystem and directly attaching the combined subsystem (referred to as a NASappliance) onto the LAN, thus forgoing the traditional dependence of file systemaccess on application servers (see Figure 54 below).

Figure 54. Traditional NAS Architecture

Key Advantages

•Frees server capacity

•Storage not dedicated toone server

•Uses existing TCP/IPnetworks

•Client can directly accessdata

•Heterogeneousconnectivity (betweenUNIX & NT)

•Simplifies DataManagement

LAN

Client 1

Client 2

Client 3

Client 4

Server 1

Server 2Subsystem 2

TapeLibrary

Subsystem 1

NASAppliance


Through the NAS architecture, storage subsystems gain access to multiple hosts(servers and desktops), as seen in Figure 54 above. For example, the NAS appliancecan speak to Client 1 or Client 2 without major application server involvement.

Figure 55 below lists major differences in NAS and SAN.

What Is NAS?

NAS (Network AttachedStorage) is a storage

networking architecturethat allows storage

subsystems to connectdirectly onto the existing

Local Area Network(LAN).


63

Figure 55. NAS Versus SAN

SAN NASProtocol Fibre Channel

protocolNFS, CIFS

Network Fibre Channel EthernetTransfer Block FileEmbedded File System No Yes


A NAS architecture lowers storage management costs by simplifying the storageprocess and achieving heterogeneous connectivity, thereby enabling file sharingacross multiple platforms which allows storage to be centrally managed.

Note: Unless stated explicitly, we will refer NAS to mean disk-based NAS, notoptical NAS, nor tape-based NAS.

Key Advantages of NAS ArchitectureThe NAS architecture offers several benefits, including:

➤ Reliability, Availability, and Serviceability (RAS);

➤ The simple “appliance” design of NAS devices increases reliability vis-à-visgeneral-purpose servers, reducing both IT staff and end-user hassles;

➤ NAS storage is not dedicated to one server (in traditional client-serverarchitectures, if a server goes down, none of the files on an attached storage unitcan be accessed);

➤ Clients can directly access data over a LAN without going through a server,freeing server capacity for other tasks and thus improving network performance;

➤ NAS can be implemented over existing TCP/IP networks; and

➤ Adding storage capacity does not require taking a general-purpose server down,eliminating the need for IT personnel to work off-hours to add capacity. Shoulda server be down during business hours, Gartner Group determined that the costof lost user productivity ranges from $200 to $2,000 per hour.

Manageability➤ Heterogeneous connectivity between UNIX and NT, enabling file sharing across

multiple platforms (traditional client-server architectures require separate copiesof files for NT and UNIX); and

➤ Simplified data management (for example, in traditional client-serverarchitectures, if the NT version of a file is changed, the UNIX version thenneeds to be updated and vice versa).

Performance➤ Because the NAS appliance is running a thinner operating system than a

general-purpose server, it can deliver similar or higher performance with lesscomputing power.

A NAS architecturelowers storage

management costs bysimplifying the storageprocess and achieving

heterogeneousconnectivity.


64

Low Total Cost of Ownership (TCO)➤ Simple, reliable “appliance” design results in fewer failures and quicker, easier

fixes, which saves on IT staff costs and allows personnel to be deployed to othermeaningful projects;

➤ Simple “appliance” design results in lower upfront cost than is the case forgeneral-purpose servers; and

➤ Quick, easy installation (typically less than half an hour), which saves on ITstaff costs.

However, There Is No Free Lunch➤ Lower-end NAS devices are not fault-tolerant;

➤ NAS is scalable at the cost of losing its simplicity and manageability;

➤ NAS increases network traffic on the LAN (unless a separate LAN is created);and

➤ Data transmission speeds are constrained by the LAN, limiting performance.

➤ While NAS distributes the compute cycles to less expensive file servers, itcreates a greater total compute demand on the application servers since it has toprocess Ethernet packets versus SCSI blocks. For a better understanding of fileversus block transfer, please see this report’s “Software RAID” section.

NAS Market SegmentationThe NAS market is generally divided into three segments: entry-level, mid-range,and high-end. As the devices move up-market, they feature not only more storagecapacity but also many of the reliability, availability, serviceability, scalability, andmanageability features found in higher-end general-purpose servers. Examplesinclude snapshot-based data recovery, remote mirroring, redundant and hot-swappable components, status reports, failure alerts, diagnostic capability, andintegration with enterprise management tools. Much of this value-add in the higher-end NAS devices is in the software.

Figure 56 below outlines which companies participate in these segments.

NAS appliances span awide range of prices and

capabilities to meet avariety of market needs.


65

Figure 56. Market Positioning of NAS Vendors

Performance/Availability

Pri

ce

Auspex

Broadband Storage

Compaq

EMC

Hewlett Packard

IBM

Network Appliance

Network Storage Solutions

Procom

Sun Micro

IntelMaxtorNortel

Quantum

3WareHewlett Packard

IBMMaxtor

Network Storage SolutionsProcom

Quantum (Connex)

EntryEntryEntryEntry

MidrangeMidrangeMidrangeMidrange

High-EndHigh-EndHigh-EndHigh-End


Entry NASThese are products designed to provide inexpensive, simple file sharing for smallerworkgroups, or as an alternative to portable storage technologies such as Iomega’sexternal Jaz. The uses of these products may be permanent for small businesses —for example, replacing the need for a traditional file server. Examples of products inthis class are Quantum’s Snap Servers and Maxtor’s MaxAttach.

Midrange NASThese products are designed to have increased performance, scalability, andreliability from Entry NAS. Pricing typically ranges from $5,000 to $100,000 withmaximum capacities scaling to 2 TB. Examples of products in this class areNetwork Appliance’s F85 and Compaq’s TaskSmart N2400.

High-end NASThese products are designed for use in data centers that are expected to providemultiple terabytes of storage to the network or application servers. The productsmust deliver high availability and scalability, and thus they are characterized ashaving more than one storage controller; nearly always having redundantcomponents, multiple processors, and network interface cards; and usually being thefirst to adopt new performance-oriented storage technologies. Pricing starts at$100,000 with capacities scaling to 12 TB in clustered configurations. Someexamples of products in this class are EMC’s Celerra and Network Appliance’sF800 Series.

Examples of NAS products in the various segments can be found in the “NASSubsystems” section.

Examples of NASproducts in the varioussegments can be found

in the “NASSubsystems” section.


66

Market Share and ProjectionsDataquest estimates the overall NAS market will grow to $10.3 billion in 2005 froman estimated $1.5 billion in 2000, representing a 48% CAGR (Figure 57 below).

Figure 57. NAS Revenues and Projections

($ in millions) CAGRPrice Segmentation 1998 1999 2000 2001 2002 2003 2004 2005 2000-2005Greater than $100,000 $262 $416 $1,033 $1,380 $2,336 $3,312 $4,329 $5,603 40.2%

$25,000 to $100,000 $87 $128 $284 $323 $647 $1,107 $1,734 $2,637 56.1%

$5,000 to $25,000 -- $9 $44 $142 $323 $585 $957 $1,476 101.7%

$2,000 to $5,000 -- $4 $54 $73 $167 $280 $407 $533 58.1%

Less than $2,000 -- $24 $32 $32 $49 $62 $77 $93 23.7%

Total RAID Revenue $349 $580 $1,448 $1,950 $3,521 $5,347 $7,502 $10,343 48.2%

Year-to-Year Growth -- 66.2% 149.7% 34.7% 80.6% 51.8% 40.3% 37.9% --


While high-end NAS ($100,000 and above) only commanded 6% of total NASunits, it dominates total revenues, representing 71% of total NAS revenues in 2000.Conversely, the entry level ($25,000 and below) has approximately 85% of totalunits but represented only 9% of total revenues in 2000 (Figure 58 below).

Figure 58. NAS Units and Projections

CAGRPrice Segmentation 1998 1999 2000 2001 2002 2003 2004 2005 2000-2005Greater than $100,000 1,514 2,285 3,834 4,870 8,959 13,833 20,481 29,312 50.2%

$25,000 to $100,000 1,527 2,337 5,486 6,036 15,364 27,620 46,041 74,543 68.5%

$5,000 to $25,000 -- 1,083 3,852 10,727 21,325 35,636 58,772 91,650 88.5%

$2,000 to $5,000 -- 1,275 18,495 26,575 59,680 104,211 158,566 227,004 65.1%

Less than $2,000 -- 19,690 30,500 33,725 47,706 62,756 78,611 96,521 25.9%

Total RAID Revenue 3,041 26,670 62,167 81,933 153,034 244,056 362,471 519,030 52.9%

Year-to-Year Growth -- 777.1% 133.1% 31.8% 86.8% 59.5% 48.5% 43.2% --


Network Appliance, EMC, and Quantum, combined, have over 90% of the totalNAS market share. Figure 59 below illustrates NAS market share by revenue in2000.

Figure 59. Total NAS Market Share by Revenue, 2000

Network Appliance49.8%

EMC36.3%

Quantum4.0%

Dell2.0% Others

7.9%

Source: Dataquest (April, 2001)

While the high-end onlycommanded 6% of totalNAS units, it dominates

total revenues,representing 71%.


67

➤ We believe the trend to network storage is bringing focus to a new“Data-Centric” environment that merges many storage architecturesand technologies.

➤ In our opinion, the merging of SAN and NAS will further drive moredemand for storage networking software and equipment, similar tothe way LANs increased demand for PCs and servers.

Data-Centric ArchitecturesWe believe all debates around NAS, SAN, and traditional DAS (Direct AttachedStorage) should dissipate in favor of one “Data-Centric” architecture. In a Data-Centricarchitecture, nobody cares what you call it, whether it be SAN, NAS, Fibre Channel,iSCSI, or Ethernet. The only thing that matters is whether or not it works! Keep inmind, the whole reason SAN and NAS have emerged is to solve today’s data puzzle,which is: 1) data is doubling every year, and 2) IT staffing budgets are remaining flat.In other words, customers need to manage more data, but with no additional resources.

The other important factor to keep in mind is that nobody is going to throw out currentequipment just because newer equipment is better. Simply stated, newer equipment thatis backward-compatible with the current equipment is what customers are most likelygoing to buy. This benefits everyone: 1) customers migrate toward better, moreadvanced solutions, 2) customers get to reap the benefits of past investments, and 3)new technologies have the opportunity to thrive through adoption.

Notice that when NAS Is Scaled, It Becomes a SANAlthough the NAS architecture is technically scalable, in so doing, it becomes morecomplex and loses its original appeal of simplicity. When NAS scales, it alsoincreases traffic on an already burdened LAN.

Figure 60 below depicts a traditional NAS architecture.

SAN and NAS Convergence

We believe SAN, NAS,and DAS architecture

have been merging andwill continue to merge.

When NAS is scaled itbecomes a SAN.


68

Figure 60. Traditional NAS Architecture

LAN

Client 1

Client 2

Client 3

Client 4

Server 1

Server 2Subsystem 2

TapeLibrary

Subsystem 1

NASAppliance


To add greater tape backup capacity, another tape library must either be added to theLAN, to the back-end of an application server, or to the back-end of the NAS (thelatter of which we would call a SAN if it interconnected multiple NAS subsystems).To add more disk capacity, another NAS appliance must be added to the LAN or tothe back of the NAS.

Figure 61 below illustrates how adding tape connectivity to the back-end of NASdevelops a NAS/SAN hybrid.

Figure 61. By Scaling NAS, It Becomes a SAN

Key Considerations

1)Relatively low cost ofmanagement

2)Fault tolerant

3)Data transmission speedsare somewhat constrainedby the LAN

4)Heterogeneousconnectivity

5)Scalable at the cost oflosing its simplicity

LAN

Client 1

Client 2

Client 3

Client 4

Server 1

TapeLibrary

DiskArray 1

NAS DiskAppliance 2

NAS TapeAppliance

SAN

NAS DiskAppliance 1


Adding tape connectivityto the back-end of NAS

develops a NAS/SANhybrid.


69

When scaling a NAS architecture, it makes the most sense to us (with today’stechnologies) to merge NAS and SAN architectures to achieve the most efficientresults. For this reason, we believe SAN and NAS architectures complement oneanother.

Network Appliance FIlers Are Interoperable with Brocade SANsIn May, 2001, Network Appliance announced that its filers were interoperable withBrocade SANs, allowing configurations like the one depicted in Figure 61 above.By supporting SAN-enabled backups, we believe Network Appliance opens up itssolution to greater market potential. By putting the tape backup solution on a SANbehind NAS instead of onto the LAN, Network Appliance filers offer reducednetwork traffic on the LAN, high availability of the tape appliance, high availabilityof its Filers, and greater scalability, thereby creating a more robust computingenvironment.

SANs Also Enable Disk Mirroring for NASSome NAS companies have even begun using their Fibre Channel back-ends toprovide failover, by creating multiple data paths, and greater reliability, through diskmirroring. Network Appliance, the leading NAS appliance provider, is one of thecompanies that could use its Fibre Channel back-end to scale into data centerenvironments by creating a SAN back-end to ensure greater reliability.

Figure 62 below depicts an environment using disk mirroring (or replication) forNAS.

Figure 62. Using a SAN Behind NAS to Provide Failover and Disk Mirroring

LAN

Client 1

Client 2

Client 3

Client 4

Server 1

TapeLibrary 1

DiskArray 1

NAS DiskAppliance 2

TapeLibrary 2

SAN

NAS DiskAppliance 1

DiskReplication 2

DiskReplication 1


When scaling a NASarchitecture, it makes the

most sense to us (withtoday’s technologies) to

merge NAS and SANarchitectures to achieve

the most efficientresults.


70

EMC’s Celerra NAS Server Is a SANWe believe EMC’s Celerra is one of the best ways to service the high-end,expandable NAS market. EMC has made inroads into the high-end NAS marketover the past year resulting in annual NAS revenues of $524 million in 2000.Celerra has gained significant momentum recently, reaching revenues ofapproximately $562 million in the first six months of 2001.

Celerra is a more advanced approach to NAS in that it is not a complete NASappliance, but a series of NAS servers (thin file servers) without the traditional diskintegration. Celerra attaches a Symmetrix disk subsystem (EMC’s traditional disksubsystem) on its back-end, potentially forming a type of SAN architecture behindCelerra (we would refer to this design as a SAN/NAS hybrid). In other words,Celerra provides a gateway for clients to access files directly over the LAN(typically Symmetrix disk subsystems are directly attached to application servers,therefore, forcing clients to traverse application servers in order to retrieve files).

Although the Celerra architecture loses the simplicity of NAS, it captures all otherfeatures while increasing reliability, scalability, and availability. Figure 63 belowillustrates how a Celerra-based NAS architecture might look.

Figure 63. Traditional Celerra-Based NAS Architecture

Key Considerations


2)Fault tolerant




LAN

Client 1

Client 2

Client 3

Client 4 Celerra 2

Celerra 1

Server 1

TapeLibrary

Symmetrix 1

Symmetrix 2

Symmetrix 3


Figure 64 below illustrates how a Celerra-based SAN architecture might look.

We believe EMC’sCelerra is one of the bestways to service the high-

end, expandable NASmarket.

Although the Celerraarchitecture loses the

simplicity of NAS, itcaptures all other

features while increasingreliability, scalability,

and availability.


71

Figure 64. Potential Celerra Based SAN Architecture

Key Considerations


2)Fault tolerant




Client 1

Client 2

Client 3

Client 4

Server 1

TapeLibrary 1

EMCSymmetrix 1

TraditionalNAS

Appliance

EMCCelerra 1

EMCSymmetrix 2

TapeLibrary 2

SAN

EMCCelerra 2

LAN

EMCSymmetrix 3


The Future Could Have It AllLooking into the future we envision a more diverse “Data-Centric” architecture thatincorporates and migrates from DAS to SAN while leveraging the benefits of NAS.Figure 65 below illustrates this architecture. Note how it incorporates legacyinvestments.

Figure 65. Data-Centric Architecture

Client 2 LAN SAN

Client 1

Client 3

ApplicationServer 1

TapeLibrary

Subsystem 2

WAN/MAN/LAN

ApplicationServer 2

NASAppliance 1 NAS

Appliance 2

NAS TapeAppliance

Subsystem1

NAS File Server

Subsystem 3

Subsystem 4

Traditional,low-end NAS

High-end,SAN/NAShybrid

DAS


Looking into the futurewe envision a more

diverse “Data-Centric”architecture thatincorporates and

migrates from DAS toSAN while leveraging the

benefits of NAS.


72

➤ We believe that server clustering has been one of the leastrecognized networking growth opportunities. In our opinion, serverclustering will be a key area of growth for today’s storage softwareand networking companies.

What Is a Server Cluster?Server Clusters are groupings of servers networked together to form clusters. Thereare three types of server clusters: 1) failover, 2) parallel processing, and 3) load-balancing. We will discuss failover clustering since this is one of the fastestgrowing areas.

In a failover server cluster, servers are grouped together to create High Availability(HA) sub-networks referred to as a system area network (san, as opposed to a SAN),which ensures greater application availability (sometimes measured using the ninesof availability or 99.999% uptime). Said simply, failover server clustering allows asecondary server (or servers) to take over the primary server’s functions in case itfails. Reliability, availability, and flexibility of the clustering deployment (such asadding or removing systems or applications from a cluster) are the key features ofclustering.

Note: Workstation and storage subsystems can also be clustered to form system areanetworks (sans).

Failover server clustering is gaining momentum as the importance of data and thepenalties for downtime increase. Figure 66 below illustrates a potential clusterserver configuration.

Figure 66. Servers Are Clustered to Provide Greater Reliability


Switches could also be used to enable higher node count clusters as depicted inFigure 67 below.

What Is Server Clustering?

We are big believers inclustering and view the

storage software andnetworking companiesas the natural winners.

Servers 1 & 2

Server 3Server 6

Servers 4 & 5


73

Figure 67. Server Clustering Using Storage Network Switches


Taking things a bit further, we thought it useful to depict a full-blown server-clustered, SAN-connected computing environment (Figure 68 below).

Figure 68. Scalable Storage Networking Cluster


Client 1

Client 2

Client 3

Client 4

Client 5

Client 6

Client 7

TapeLibrary 1

Subsystem 2

Subsystem 1

TapeLibrary 2

SAN

LAN

Subsystem 3

Subsystem 5

Subsystem 4

Subsystem 6

Subsystem 7


74

Figure 69 below illustrates another way to unite server clusters and storagenetworks, potentially using multiple protocols, including FC-SCSI, FC-IP, and FC-VI, enabling server-to-server, server-to-storage, and storage-to-storage connectivity.This is the ultimate system area network.

Figure 69. Designing a Potential Systems Area Network (san)


Clustering Could Be Huge for Storage Networking andSoftware CompaniesClustering could be a huge opportunity for storage networking players. Clusteringsoftware has been one of Veritas’s fastest growing products with a 140% CAGR(albeit off a small starting base) as illustrated in Figure 70 below.

Clustering could be ahuge opportunity for

storage networkingplayers.

san

LAN

StorageClients

Servers

Servers


75

Figure 70. Veritas Clustering Revenues

Revenue in millions

$0

$10

$20

$30

$40

$50

$60

$70

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

140% CAGR

Source: Company reports and Salomon Smith Barney

Clustering uses the Virtual Interface (VI) and, since InfiniBand is not availabletoday, Fibre Channel has become the preferred networking medium to run VI due toFibre Channel’s efficient design. That said, IP is the most proliferated protocol forserver clustering. This has created a natural partnership between VI and FibreChannel which, in turn, has opened up many storage networking companies to thedevelopment of Infiniband in order to expand their addressable market. Intel hasinvested in Ancor (owned by Qlogic), Crossroads, and other emerging networkingcompanies to promote the development of Infiniband. Startups such as Mellanoxand Banderacom are focused on developing next-generation Infiniband technologyand have also drawn the attention of Intel.

➤ Ethernet is not typically used to run VI as a result of IP’s inefficient protocolstack. We believe this is one of the largest drivers behind many Ethernetnetworking companies’ efforts to upgrade the IP stack: to be able to cluster moreefficiently.

➤ Novell, Veritas (Cluster Server, Global Cluster Manager), and Legato(Automated Availability Manager) have each released 32-node cluster softwarepackages with the ability to expand. While many sans may start small (underten server nodes), customers are taking advantage of existing scalable clusterswhich can scale from two to an almost infinite number of systems. In thesecond quarter of 2001, Veritas’s Cluster Server represented over 20% of itslicensed revenues.

There is currently astrong partnership

between VI and FibreChannel, which has

resulted in the use ofFibre Channel to network

large server clusters.


76

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77

Subsystems

Subsystems: The Heart of StorageDisk Drives to Subsystems

RAID and BeyondNAS Subsystems

Core Software


78

➤ While all the buzz is about newer growth areas of storage networkingand software, the reality is that subsystems are the heart of storage.

➤ In our view, as an investor, the ability to understand the fine nuancesof new subsystem technology developments can give you an edge inhelping to predict a company’s future success.

Subsystems Drive DemandSeveral major subsystems vendors (such as EMC, Hitachi Data Systems, IBM,Compaq, and Network Appliance) and startups (such as 3PARdata, 3ware, andBroadband Storage) have recently released exciting new products that provide majorarchitectural upgrades by leveraging new component technology developments andmore advanced software functionality. For example, EMC has its HighRoadarchitectures; Network Appliance has its DAFS initiatives; Hitachi has its Hi-StarSwitched Architecture; TrueSAN has its Meta-Fabric; 3PARdata has carrier-classstorage; 3ware has its ATA-based RAID controllers; and Blue Arc has itsSiliconServer architecture that utilizes field programmable array units (FPGAs).

The Heart of StorageSubsystems are the heart of storage. Storage subsystem purchases are an importantcatalyst for the migration to SANs since they provide much of the uniquefunctionality of this architecture and sales are directly related to capacity. SANRAID-based disk storage (including SAN-attached external storage and NAS)represented 65% of the total SAN market in 2000 (see Figure 71 below).

Figure 71. SAN Storage Market in 2000

RAID Storage64.5%

SANNetworking13.3%

StorageSoftware22.2%


As subsystems and architectures improve in functionality, performance, and price,we believe more end users will invest in SANs. As SAN penetration improves, theadoption of complementary technologies such as storage networking and softwareshould offer exceptional growth.

Figure 72 below illustrates the high growth that storage subsystems are expected toexperience.

z

Subsystems: The Heart of Storage

Storage subsystempurchases are an

important catalyst for themigration to SANs since

they provide much of theunique functionality of

this architecture andsales are directly related

to capacity.

As subsystems andarchitectures improve in

functionality,performance, and price,

we believe more endusers will invest in

SANs.


79

Figure 72. RAID-Based Disk Storage Revenues and Projections

$ in millions

CAGR1998 1999 2000 2001 2002 2003 2004 2005 2000-2005

Internal $4,762 $5,818 $7,064 $7,269 $7,223 $6,987 $6,427 $5,704 (4.2%)

JBOD $5,083 $5,704 $4,582 $3,887 $3,162 $2,459 $1,824 $1,289 (22.4%)

External (Subsystems) $12,093 $13,491 $16,330 $16,735 $19,270 $23,963 $31,327 $41,063 20.3%

NAS $349 $580 $1,448 $1,950 $3,521 $5,347 $7,502 $10,343 48.2%

Total RAID Revenue $22,287 $25,593 $29,424 $29,841 $33,176 $38,756 $47,080 $58,399 14.7%

Year-to-Year Growth -- 14.8% 15.0% 1.4% 11.2% 16.8% 21.5% 24.0%


Throughout the report, we use the following terminology:

➤ Internal: Both the storage and the RAID (Redundant Array of IndependentDisks) intelligence are inside the server.

➤ JBOD: Acronym for “Just a Bunch Of Disks” and that’s all it is. Although thestorage is externalized from the server, the RAID intelligence remains inside theserver.

➤ External, or Subsystems: Both the storage and the RAID intelligence areoutside the server. This is EMC’s market and the main focus of this report.

➤ NAS: Acronym for “Network-Attached Storage.” NAS is a dedicated storageappliance optimized for file serving and storing data that connects to the existinginfrastructure (i.e., the LAN).

Figure 73 below shows the market shares of the total RAID-based storage marketincluding internal, JBOD, and external storage.

Figure 73. Total RAID Storage Market Share by Revenue

1998 2000

EMC19.1%

Compaq18.7%

IBM13.3%

Sun11.6%

Dell4.6%

Fujitsu, FujitsuSiemens3.7%

Other14.9%

Hitachi, HDS,Hewlett-Packard

14.0%

EMC14.4%

Compaq20.0%

IBM15.2%

Sun9.7%

Dell3.3%


Other19.4%

Hitachi, HDS,Hewlett-Packard

13.9%


Note: We have aggregated Hitachi and Hitachi Data Systems (HDS) with Hewlett-Packard since the company OEMs HDS’s Lightning subsystem.


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We believe the ability to understand the fine nuances of new subsystem technologydevelopments can provide an edge in helping predict a company’s future success.Also, since storage capacity is at the heart of the industry, the subsystems companieshave tremendous influence on the direction of related technologies.

For example, in June, 1995, EMC introduced Symmetrix 3000, one of the world’sfirst platform-independent storage subsystems, which included EMC’s first entranceonto open systems platforms (i.e., NT and UNIX) in addition to its mainframeplatform. Although the significance of this technological development may seemobvious in hindsight, it took about a year before the new product translated intosignificant revenues since it had to target a new open system customer base. Thisnew product cycle fueled growth for EMC for over five years and forever changedthe dynamics in the storage industry (see Figure 74).

Figure 74. EMC’s Stock Price Versus the S&P

0%

1000%

2000%

3000%

4000%

5000%

6000%

Jun-93

Sep-93

Dec-93

Mar-94

Jun-94

Sep-94

Dec-94

Mar-95

Jun-95

Sep-95

Dec-95

Mar-96

Jun-96

Sep-96

Dec-96

Mar-97

Jun-97

Sep-97

Dec-97

Mar-98

Jun-98

Sep-98

Dec-98

Mar-99

Jun-99

Sep-99

Dec-99

RelativePerformance

EMC

S&P

Time to ramp selling tonew open systems

customer base

Platformindependent product

release

Salesramp up

Source: FactSet and Salomon Smith Barney

Understanding subsystem technology can help answer questions such as:

➤ What is it about EMC’s Symmetrix technology that has allowed it to maintainits leadership position for over a decade? Why is it positioned so well for thefuture?

➤ Why is Hitachi’s Hi-Star architecture such a success?

➤ What are the major product differences to focus on?

➤ In addition to hardware, how significant is the software to the performance of asubsystem? (Our Answer: A lot!)

➤ What kind of innovations are startups developing?

Since storage capacity isat the heart of the

industry, the subsystemscompanies have

tremendous influence onthe direction of related

technologies.


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➤ Why is a sales force and customer support (“the business”) so important?

With so many new subsystems products and terminology coming out recently, wefelt it would be useful to gain a better understanding of what they are and whatbenefits they deliver. We start off with understanding the basics: What is a diskdrive? Then we move into the major trends in storage. Finally we discuss thetechnology: How do different RAID algorithms affect performance? How does asubsystem work? Why is cache so important? What is the difference between busand switched architectures? Read on to find out everything you need to know aboutsubsystems to be dangerous.


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➤ Increasing demand for external storage subsystems has opened upthe storage market and enabled externally focused companies suchas EMC to compete in more of the market.

What Is a Disk Drive?Did you know disk drives can account for as much as 60% of the cost of a subsystem?On a cost basis, the disk drive can be considered the most important component in asubsystem. Also, disk drives can affect the speed and overall performance of a storagesubsystem. Hence, in understanding subsystems, it is important to understand whatdisk drives are and how they work. The major disk drive companies are Maxtor,Seagate, IBM, Western Digital, and Fujitsu.

When you want to store information on your computer so you can retrieve it later, youcan either save it to a removable disk (i.e., floppy, CD, or zip) or an internal hard diskdrive (HDD, or simply, “disk drive”). The difference between a disk drive and afloppy disk is that a disk drive is fixed inside the computer, it’s faster, holds moreinformation, is more reliable, is more expensive, is larger, and has higher areal density(how much data can be stored per square inch). Nearly all PCs have a single diskdrive built inside the computer, whereas disk storage subsystems (“subsystems”) havemultiple, sometimes hundreds, of disk drives. There are three types of disk drives: 1)IDE, 2) SCSI, and 3) Fibre Channel. In this report, we address enterprise drives,which include SCSI and Fibre Channel, since those are used for disk storagesubsystems.

Figure 75 below illustrates the inside of a disk drive.

Figure 75. Major Hard Disk Drive Components

Source: Seagate Technology; Note “Disc” is also referred to as “Disk” or “Platter”.

Disk Drives to Subsystems

Did you know disk drivescan account for as much

as 60% of the cost of asubsystem?


83

While disk drives vary, they all contain the same basic components. In many ways,disk drive components are analogous to those in an audio record player: the diskplatter is analogous to the record, the head is analogous to the needle, and thesuspension/head arm is analogous to the record player arm.

Like an audio record, information is recorded on both sides of the platter. However,in a disk drive the disk platter is fixed in place. Thus, there is a head (i.e., a needle)on each side of the disk platter (i.e., record). Also, in a disk drive there is typicallymore than one disk platter per drive. Since each disk platter can contain a fixedamount of data, more disk platters can be stacked into a disk drive to expand itsstorage capacity. Disk drives can have up to 12 platters and can be re-recorded over(much like a tape cassette).

The disk drive in Figure 75 above has three media and six heads. Assuming it stores33.3 GB on each platter, it will hold 100 GB of information.

In Figure 76 below, to the left is what a single disk drive looks like as an internalcomponent and to the right what it looks like as a stand-alone external product. Diskdrives typically account for about 40% to 60% of a storage subsystem’s cost. Note:While the disk drive on the left displays its internal architecture, disk drives in useare fully enclosed to look like a small rectangular pizza box.

Figure 76. Disk Drives

Internal External

Source: Maxtor

Figure 77 below has an example of where a disk drive could be located within asubsystem. In this case, we use EMC’s Symmetrix as an example of a subsystem.

Disk drives typicallyaccount for about 40% to

60% of a storagesubsystem’s cost.


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Figure 77. EMC Symmetrix Disk Drive Subsystem

DiskDrives

Fans(outtake)

Power

Fans(intake)

RAID(Intelligence)

ControlConsole

Logic andMemory Boards

Source: EMC and Salomon Smith Barney

Moving from Internal → External StorageThere are three basic configurations for RAID-based storage systems: 1) internal, 2)JBOD, and 3) external.

Figure 78 below illustrates these configurations. In the internal storageconfiguration, the server, RAID intelligence, and drives are housed within the samechassis. While it has a simpler design with tighter integration, internal storage alsohas its limits including scalability, the ability to mix best-of-breed server andstorage, fault tolerance, and reliability. In the JBOD configuration, the server andRAID intelligence are tightly integrated but the disk drive is externalized. WhileJBOD is a step in the right direction, it separates the intelligence from the data.

Subsystems solve these problems by integrating the RAID intelligence and the diskdrives in a single chassis and externalizing the subsystem from the server.Additionally, subsystems such as EMC’s Symmetrix have multiple ports so datafrom several servers can be aggregated into a single storage pool and as a result,become easier to manage. In this section we are primarily concerned with internalversus external storage. More details about JBOD appear under “RAID andBeyond”; and more on networked external storage is included in the “What is aSAN?” section.

Subsystems integratethe RAID intelligence and

the disk drives in asingle chassis and

externalize thesubsystem from the

server.


85

Figure 78. Different Server/RAID Configurations

Server RAID DriveServer RAID Drive

Internal

Server RAID Drive

External Storage Configuration

Subsystem

Server RAID Drive

Server RAID Drive

JBOD

Server RAID Drive

JBOD Configuration

JBOD

Server RAID Drive

Networked ExternalStorage Configuration

Subsystem

Server RAID Drive

SubsystemNetwork


Server vendors are typically more motivated to promote internal versus externalstorage since they have several advantages when it comes to selling storage insidethe server including brand name familiarity and initial point of contact with thecustomer.

Figure 79 below depicts internal versus external storage. The thick line connectingserver and storage in the external configuration can represent a SCSI or FibreChannel cable. More complex configurations can be created with switches fornetworked storage.

Figure 79. Internal Versus External Storage

ExternalInternal

Server Storage

Storage

Server


The obvious result is that many of the top internal storage vendors are also servervendors, as illustrated in Figure 80 below.

Server vendors haveseveral advantages when

it comes to sellingstorage inside the server

including brand namefamiliarity and initial

point of contact with thecustomer.


86

Figure 80. Internal RAID Storage Market Share by Revenue

Compaq30.3%

IBM22.2%

Dell12.3%

Sun7.6%

Hewlett Packard7.1%

NEC1.4%


Other17.1%Compaq

29.3%

IBM25.5%

Dell7.6%

Sun8.1%

Hewlett Packard7.5%

NEC2.0%


Other15.4%

1998 2000


The server vendors were able to retain a large percentage of storage market share foryears due to its internal design. However, when players such as EMC andStorageTek entered the market and demonstrated the benefits of external storage, anew segment emerged. Some of the benefits of external storage include betterscalability, functionality, reliability, flexibility, serviceability, and less CPU cycles.Unlike the server vendors, storage vendors, such as EMC, were more motivated tosell external storage since this was the only type of storage they sold, rather thankeeping it captive to their server sale by bringing it inside the server (or “internal”).

Many server vendors evolved by offering JBOD. But while this appeared to be“external” storage, it was not. Server vendors succeeded to some degree with thisinitiative until the advent of storage area networking (SAN), which highlighted thebenefits of external storage. As a result of its numerous advantages, external storagehas been growing quickly while internal storage and JBOD revenues have begun todecline.

From 1997 to 2000, EMC’s organic revenues grew at a compound annual growthrate (CAGR) of 37.9%. Since it is the clear leader and only participates in theexternal storage subsystems market, it is a great real-world illustration of the growthof its market.

Figure 81 below demonstrates EMC’s Symmetrix revenue stream — with a CAGRof 26.3% from 1995 to 2000 — as a great example of the success of externalsubsystems.

When players such asEMC and StorageTek

entered the storagemarket and

demonstrated thebenefits of external

storage, a new segmentemerged.


87

Figure 81. EMC’s Symmetrix Revenues

$0

$200

$400

$600

$800

$1,000

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$1,600

1Q95

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1Q00

3Q00

1Q01

CAGR 26.3%

Revenue in millions

Source: Company reports and Salomon Smith Barney. CAGR is based on annual revenues from 1995 to 2000 and does not include 2001.

Figure 82 below demonstrates that although the major server vendors own theinternal storage market, EMC and Hitachi Data Systems (pure play storage vendors)are the market leaders in the external storage market. Note: We have aggregatedHewlett Packard with Hitachi Data Systems and Hitachi since HP OEMs Hitachi’sproduct.

Figure 82. Internal Storage Versus External Storage Market Share by Revenues (in 2000)

Internal Storage External Storage

Compaq30.3%

IBM22.2%

Dell12.3%

Sun7.6%

Hewlett Packard7.1%

NEC1.4%


Other17.1% EMC

32.7%

Compaq Storage11.3%IBM

8.4%

Fujitsu5.6%

NEC2.0%

Dell PowerVault1.0%

Other14.7%

Sun Network Storage7.1% Hewlett Packard,

Hitachi and HDS17.2%


However, server vendors still have an advantage to selling and a desire to sellJBOD. Figure 83 below illustrates that for JBOD storage, the storage is captive (thebrand of the JBOD is the same as the brand of the server) 99% of the time.However, external storage subsystems are captive in less than half of the cases anddeclining.


88

Figure 83. JBOD Storage Versus External Storage by Revenues in 2000

Captive99.4%

Noncaptive0.6%

JBOD External Storage

Captive44.4%

Noncaptive55.6%


Figure 84 below demonstrates that increasing demand for external storagesubsystems has opened up the storage market and enabled externally-focusedcompanies such as EMC to compete in more of the market.

Figure 84. Total RAID-Based Disk Storage

Revenue in millions

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1998 1999 2000 2001 2002 2003 2004 2005

ExternalCAGR 20.3%

JBOD, CAGR (22.4%)

InternalCAGR (4.2%)

Source: Dataquest (August, 2001). CAGR is for 2000–05.

Since server vendors have less of an advantage selling external storage than they dointernal storage, market share position can change quickly. Figure 85 shows themarket share for external storage for 1998 and 2000. Market share percentageschange more in external storage than in internal storage (see Figure 85 below). Themore dynamic nature of the external market gives independent vendors such as LSILogic and startups a better opportunity to penetrate the market.


89

Figure 85. External RAID Storage Market Share by Revenues (1998 and 2000)

1998 2000

EMC26%

Compaq Storage8%

IBM11%

Hewlett Packard4%

Sun Network Storage6%

Hitachi, HDS13%

Fujitsu7%

NEC2%

Other23% EMC

32.7%

Compaq Storage11.3%IBM

8.4%

Fujitsu5.6%

NEC2.0%

Dell PowerVault1.0%

Other14.7%

Sun Network Storage7.1% Hewlett Packard,

Hitachi and HDS17.2%



90

➤ RAID is an algorithm (formula) that describes a method of writingdata to a group of disks to improve performance and protect againstdisk failure. Which RAID algorithm a subsystem vendor decides tooffer can impact the design, cost, reliability, and speed of itssubsystem.

RAID-ing Scale of 1 to 5In 1987, researchers David Patterson, Garth Gibson, and Randy Katz published apaper that outlined the concept of RAID (Redundant Array of Independent Disks).RAID is an algorithm (formula) that describes a method of writing data to a group ofdisks to improve performance and protect against disk failure. Which RAIDalgorithm a subsystem vendor decides to offer can impact the design, cost,reliability, and speed of its subsystem. For example, a new subsystem designedusing RAID 5 would likely have greater capacity but slightly less speed than asubsystem using RAID 1. EMC’s RAID expertise has helped propel it to the leadingposition within the market. In this section we describe what these terms mean, thedifferent RAID levels available, and their relative advantages and disadvantages.

What Is RAID?A subsystem with RAID intelligence inside is smarter, more reliable, and moreexpensive than JBOD (Just a Bunch Of Disks) which separates the intelligence (i.e.,RAID) from the disk. A RAID subsystem uses algorithms to write data to a groupof disks so that the drives’ combined performance and reliability are better than ifthey were working independently. Several RAID algorithms exist, each with itsown advantages. The methods differ primarily in the way they write/retrieve dataand build in fault tolerance. We will explain two of the more popular methods indetail, RAID 1 and RAID 5, and then touch upon a few others.

RAID 1: MirroringIn the RAID 1 algorithm, data is written to disk using mirroring. In mirroring, everytime data is written to disk, an exact copy is made to a different disk in the samesubsystem (Figure 86 below). This is accomplished by writing the data to twodifferent drives at the same time.

RAID and Beyond

Which RAID algorithm asubsystem vendor

decides to offer canimpact the design, cost,reliability, and speed of

its subsystem.

Mirroring is more fault-tolerant, but takes up a

lot of disk space.


91

Figure 86. Mirroring in RAID 1

123 123


If one drive fails, an exact copy exists on a separate healthy drive and no data is lost.When the original failed drive is replaced with a new drive, the mirrored drive (thebackup copy) becomes the primary copy and the new drive becomes the backup(Figure 87 below). Therefore, the subsystem always has two copies of the data,thereby ensuing that data is not lost.

Figure 87. Redundancy in RAID 1

123 123

123

Replacement Disk

Copy

XSource: Salomon Smith Barney

In addition to improving fault tolerance, RAID 1 also enables faster read times. Iftwo computers are trying to access the same file simultaneously, rather than waitingin queue, they can each access a different copy of the data. But, there are no freelunches. The main disadvantage to RAID 1 is that it is expensive since it requirestwice the storage capacity of a non-mirrored configuration.


92

RAID 5: Striping with ParityThe RAID 5 algorithm uses striping — a technique in which data received issegmented and each segment is written to a different drive — to write to disk. Forexample, the first block would be written to the first drive, the second block to thesecond drive, and so on (Figure 88 below). It makes writing and reading to diskfaster.

Figure 88. Striping

Striping

1 2 3

123123

123

No Striping


RAID 5 builds in fault tolerance using fewer disks than RAID 1. The equivalent ofone disk of storage is used to store parity per each RAID set of disks.

Figure 89 below demonstrates how parity works. The RAID controller or softwarecalculates the data in the first row (the numbers 1, 2, and 3) add up to 6, which isthen stored on a different disk. Note: In actual practice RAID 5 uses 1s and 0s forthe data, the parity calculation is stored across several disks instead of one, and theparity calculates if the data on the other disks add up to an odd or even number.

Figure 89. Parity in RAID 5

1 2 3+ + =

Data Parity

6


In RAID 5, if one of the disks fails, information from the other disks can be used torecreate the data on a spare disk. In Figure 90 below, according to the parity disk,the data on the other disks should add up to six. By subtracting one and three from

Striping divides a pieceof data and each piece is

written to a differentdrive. It makes writing

and reading to diskfaster.

RAID 5 builds in faulttolerance using fewer

disks than RAID 1. Theequivalent of one disk ofstorage is used to store

parity per each RAID setof disks.


93

six, the RAID 5 intelligence can determine a two was on the failed disk and thusrecreate it.

Figure 90. Redundancy in RAID 5

1 0 3

2

(=6-1-3)

Replacement Disk

6X+ + =


The benefits of RAID 5 are that it can decrease the time it takes to write since itspreads the workload across drives and it is less expensive since it takes up less diskspace than RAID 1, but again, there are no free lunches. It also requires greaterCPU utilization in the subsystem, thereby requiring more silicon due to the greaterlevel of difficulty in calculating the more complex RAID 5 algorithm versus a RAID1 algorithm. It also takes longer to rebuild due to the calculations involved.

Is RAID 5 as reliable as RAID 1? No. In a situation in which multiple drives fail atthe same time, RAID 5 can actually lose data. For example, in the rare event thatdrives 1 and 2 went down simultaneously before either could be replaced, paritycannot be used to calculate what data was stored on each drive.

Other RAID LevelsRAID levels 2, 3, and 4 also stripe and use parity schemes slightly different than inRAID 5. RAID 0+1 and RAID 10 use both striping and mirroring. These RAIDlevels are not used as often as RAID 1 or 5. Also, EMC uses its proprietary RAID Sfor its Symmetrix flagship subsystem. In RAID S, part of the RAID calculation isperformed by the disk drives themselves instead of by the disk controller. RAID Sdoes not use striping, but it is often compared with RAID 5. Many vendors such asEMC provide customers with choices of multiple RAID levels.

Figure 91 below charts what RAID levels certain vendors incorporate in theirsubsystems.

RAID 5, however,requires greater CPU

utilization in thesubsystem and takes

longer to rebuild.


94

Figure 91. RAID Vendor Comparison

1 2 3 4 5 S 0+1 10

Compaq StorageWorks 12K FC • • • •Dell PowerVault 660F • • • •EMC Clariion • • • •EMC Symmetrix • • •HDS Lightning 9900 • •HDS Thunder 9200 • • •IBM ESS (Shark) •IBM MSS • • • •LSI Logic e4400 • • • •Network Appliance •Sun StorEdge T3 • •Source: Salomon Smith Barney

Several interesting patterns can be observed in the figure above:

➤ RAID 1 is the most often used in the enterprise market (i.e., high end), andRAID 0+1 and RAID 10 are also popular choices. EMC has built its success onRAID 1 due to its reliability. RAID 5 is the second most commonly used andtends to show up more in the mid-range or low end of the market.

➤ Network Appliance is one of the few vendors that uses RAID 4, which is similarto RAID 5 but stores all parity calculations on a single dedicated disk instead ofseveral disks. Network Appliance chose to use RAID 4 in order to ease theprocess of adding disks to an existing RAID group. Although this can slowdown writing and reading, Network Appliance believes it has optimized aroundthis with its file system.

➤ RAID 3 is popular for video applications.

Data’s Path to PerformanceThe method of transferring data from the network to the disks within a subsystemcan have a significant impact upon performance. Many variables exist such as thesize of the cache, the effectiveness of the caching algorithms, and whether a bus orswitched architecture is used. These can affect how quickly data is processed,stored, and retrieved by the subsystem. Hence we believe it is important forinvestors to understand what path the data takes in a subsystem in order tounderstand how a system might ultimately perform.

Figure 92 below illustrates the basic path data takes in a subsystem. We will use aread request as an example, although a write command would take a similar path.First, the host computer will make the request (either read or write) to a subsystem.Along the path, it stops at several points within the subsystem for either processingor transport (see Figure 92 below).

The method oftransferring data from

the network to the diskswithin a subsystem can

have a significant impactupon performance.


95

Figure 92. Subsystem Architecture

Battery Power Supplies Fans

Cache

Logic

Bus

or

Fabric

Ctrlr

Ctrlr

Ctrlr

Interf

Interf

Interf

FC

IP

SCSI Backplane

Server Storage Subsystem (External)

DisksDisk

controllers

Connectivity

1 2 & 3 4 5 6


The data takes the following path, in order:

1 Interface: The request command will typically travel from the server, across aSCSI cable or Fibre Channel network, and into the storage subsystem. It entersthe subsystem through an interface. The interface consists of a port and a targetcontroller adapter (or chip) which contains intelligence. The interface translatesthe electrical signals that it receives from the external cable into a digital formwhich the computer can understand. A different adapter is needed for eachprotocol (i.e., SCSI and Fibre Channel). SCSI and Fibre Channel are the twomost commonly used protocols for communications between servers and storage.

2 Logic: Next, a microprocessor processes the logic. The logic is responsible forseveral functions including checking if the data requested is readily availablefrom the cache and keeping track of which data has been requested

3 Cache: Next, the cache checks to see if it has the data requested. Cache usessilicon instead of magnetic media to store data. Since it is made up of siliconinstead of spinning magnetic platters, it has a quick access time. If the cachedoes not have the data stored, it will send the request along to the backplane.(We describe the cache in greater detail in the “Cache Costs Ca$h” section.)

4 Backplane: Next, the request for data will travel across a backplane. This partof the subsystem is used to interconnect one section to another to transport data.The backplane typically uses a bus or switched architecture. In figure 92 above,it is used to transport data between the cache and the disk controllers. (Wedescribe the main differences in performance between these two architectures ina section titled “Bus Versus Switched Architecture.”)

The backplane typicallyuses a bus or switched

architecture.


96

5 Disk Controller: Next, the data goes to the disk controller. The disk controlleris a set of chips that contains the intelligence to manage the actual writing andreading to disk.

6 Disk Drive: Next, the data is stored in the disk drive. Once the data is foundand retrieved, it will be sent to the host that initially requested it in nearly thereverse order.

Subsystems use different combinations and architectures of hardware and softwareto execute similar functions. Figure 93 below provides a different view. It gives anidea of how various subsystems, which can be largely composed of off-the-shelfcomponents, can still be unique in terms of performance and design.

Figure 93. Subsystems Architecture Model

Cache

Backplane

Disk Controller

Disk

Logicmicroprocessor,algorithm, firmware

SCSI, FC, ATA

Interface

size, mirroring

bus or switch

RAID level

SCSI, FC

VariablesData Path

(1)

(2)

(3)

(4)

(5)

(6)


In architecting a subsystem, several options exist:

1 Interface: A vendor can decide which protocols it wants to support (e.g., SCSI,Fibre Channel).

2 Logic: A vendor can choose which microprocessor it uses. For example, EMC’sSymmetrix uses the 333 MHz PowerPC (up to 80) while Hitachi Data System(HDS) uses Intel’s I960.

3 Cache: A vendor can decide on size and if it wants to mirror the cache (for moreon this see “Cache Costs Ca$h”).

4 Backplane: A vendor can decide between using a bus or a switched architecture.Backplanes can also be either active or passive.

5 Disk controller: A vendor can decide which RAID level it wants to support.There can be more than one RAID level supported in a single subsystem.

Subsystems usedifferent combinations

and architectures ofhardware and software

to execute similarfunctions.


97

6 Disks: A vendor can choose among different interfaces (i.e., Fibre Channel,SCSI), speeds, and capacities.

There are many considerations to choose from when designing a subsystem. In anydesign, there are trade-offs to using one method versus another to fulfill a function.One of the more common trade-offs is price versus performance. For example, avendor could use the best hardware available to design a subsystem, but it wouldlikely be expensive to manufacture. Additionally it still might not perform as wellas an older system which had more advanced firmware.

Another example of a subsystem consideration is “to make” versus “buy.” Forexample, Hewlett-Packard OEMs its high-end subsystem from Hitachi DataSystems, allowing it a faster time to market. On the other hand, IBM has chosen todesign its own subsystem, the “Shark” (although in the past it has OEMed fromStorageTek), giving it higher potential margins and greater control over futureproduct releases.

Although knowing the specifications of a new subsystem can help predict asubsystem’s performance relative to competitors, the ultimate test is still customeradoption and sales. Customers choose vendors on many factors in addition to“speeds and feeds” such as support, software applications, price, reliability, ease-of-use, functionality, scalability, size, interoperability, and total cost of ownership(TCO). Since different customers have different needs, companies that can satisfythe broadest set of needs in the most complete way should gain the most marketshare.

Cache Costs Ca$h (but Looks Worth Every Penny)Some vendors such as EMC claim their caching is one of their biggest advantagesover other vendors’ products, and we agree! Although it is typically Static RandomAccess Memory (SRAM) which is widely available, the way cache is implementedand utilized in the subsystem can dramatically affect performance. Caching canspeed up performance through more intelligent algorithms and increased memorycapacity. Fault tolerance can be improved through mirrored caching and batterybackup.

What Is Cache?Cache (pronounced cash) stores data in silicon instead of magnetic drives. As aresult, it is faster and more expensive. A megabyte of storage capacity on a harddisk drive can cost around $0.03, but on silicon such as SRAM, can cost $10. Thinkof it as short-term memory (cache) versus long-term memory (disk drive). Data incache is easier and faster to retrieve but is not stored as long as data in disk drives.Subsystems use cache to store the most frequently accessed data so the total amountof time it takes to access data decreases. The amount of time it takes to access cacheis measured is nanoseconds (billionths of a second) whereas the amount of time ittakes to access disk drives is measured in milliseconds (thousandths of a second).

In addition to having a faster access time versus disk drives, getting data from cachewill also shorten the path the request must make in the subsystem before retrievingthe data. If the subsystem looks for the data and the cache already has it, the

In any design, there aretrade-offs to using onemethod versus another

to fulfill a function.

Cache is a fast butexpensive way to store

data. It is typically usedfor fast retrieval of

frequently-accesseddata.


98

subsystem can retrieve the data directly from cache without ever having to accessthe disk drive. However, if it does not find the data in the cache, the subsystem mustthen go to the disk drive.

Figure 94 below illustrates a cache hit (requested data is in the cache) versus a cachemiss (requested data is not in the cache).

Figure 94. Cache Hit Versus Cache Miss

CPU Cache Disk

Cache Hit: No disk access needed

1

2

CPU Cache Disk

Cache Miss: Need to access disk

1

4

2

3


Cache is analogous to closet space. In order to save time and energy, you wouldprobably store the outfits you wear most often in the closet nearest to you, thebedroom closet (cache), rather than one further away, the attic closet (disk). Nowimagine that on a subsystem scale — you would only be able to store three shirts outof 100 in that nearby closet (analogous to 32 gigabytes out of one terabyte).

There are several ways to improve the use of cache including 1) increasing the sizeof the cache, 2) improving the algorithm used to decide which data is stored incache, 3) mirroring, and 4) battery backup. Increasing the size of the cache isanalogous to having a bigger bedroom closet. The more you can store in thebedroom closet (cache), the less often you have to go to the attic (disk). Mostcurrent subsystems have cache sizes ranging from several megabytes to, forexample, 64 GB on EMC’s Symmetrix. We will describe the other three variablesin greater detail next.

Speed Through Caching AlgorithmsThis is one of EMC’s greatest competitive advantages, in our view. A cachingalgorithm is a formula that tells the subsystem which data to store in cache. If thecache is one gigabyte in size, the algorithm’s goal is to correctly guess whichgigabyte of data will be requested next. Returning to the closet analogy, the cachingalgorithm is similar to the way you guess which clothes you will likely wear nextweek so you can determine what to put in the bedroom closet. Well-constructedalgorithms can speed up the overall subsystem by maximizing the amount of datathat can be retrieved from the cache (bedroom closet) so there is less time needed to

A caching algorithm is aformula that tells the

subsystem which data tostore in cache.


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access the slower disk drives (attic closet). Note: The selection of which data isstored in the cache changes continuously.

There are two types of algorithms: read and write. Read algorithms determine whatto store in the cache. Write algorithms determine when to write the data from cacheto disk. A simple example of a read algorithm is “store the data that you used mostrecently in the cache.” Good caching algorithms are incredibly difficult to createsince they are essentially trying to predict the future.

Figures 95 below shows how the cache relates to accessing files.

Figure 95. Algorithms Guess Which Files Will Be Accessed Soon

CacheFiles thatwill be

accessed soon

•The greater the overlap,the faster the data is retrieved.

•A good algorithmmeans more overlap.

Overlap includes files thatdo not require disk access


Figure 96 below graphically depicts an effective versus an ineffective cachingalgorithm.

Figure 96. Effective Versus Ineffective Caching

Effective Ineffective


EMC’s Intelligent Caching AlgorithmsWe believe EMC has one of the best caching algorithms available as a result of itsdecade-long focus in the area. In some instances, EMC’s Symmetrix storage

There are two types ofalgorithms: read and

write.


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subsystem is able to fulfill approximately 90%–95% of the read requests it receivesfrom the cache without ever having to access a disk drive. This, of course, results inEMC’s renowned performance. The Symmetrix has the ability to customize itsalgorithms based on past user behavior (i.e., it learns its user’s style) while manyother subsystems simply use the same algorithm every time, regardless of the user’sstyle.

Safety Through Mirroring and Battery BackupOnce the subsystem receives data from the host, it travels along the data path andtraverses through the cache before it is written to disk. Along the way, there can beproblems sending the data from the cache to the disk for a number of reasonsincluding cache failure and power loss. In the case of cache failure, the cache boardstops functioning, thereby losing the data stored on it before it was written to disk(i.e., data is lost forever). Any data loss is considered unacceptable in storageenvironments.

Cache data loss can be prevented through the use of mirrored caching. Figure 97below compares single versus mirrored caching. In a single caching scheme, thedata is transferred to a single cache board and then to disk. In a mirrored cachingscheme, the data is transferred to two cache boards (similar to RAID 1) so if onefails, the other cache board has a copy and data is not lost.

Figure 97. Mirrored Cache Versus Single Cache in Cache Failure

Cache

Data

Single Cache

Subsystem

X CacheMirrorCache

Mirrored Cache

Data

XSubsystem


A second risk to data loss on the cache is power. The type of memory used forcache (often SRAM) is usually volatile. In volatile memory, when there is a loss ofpower, the data is lost forever. This can happen if there is a power blackout, thesubsystem power supply system fails or maybe somebody walks by a subsystem andaccidentally kicks the power cord out of the wall (which happens). In this scenario,a battery can be used to supply power temporarily. This can give the subsystemenough power to finish the process of transferring the data from cache to disk safely.Even backup batteries are often duplicated, just to be safe (see how crazy storage

Cache data loss can beprevented through the

use of mirrored caching.


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people can be). As a magnetic medium, disk drives do not need continuous power toretain data so once the data is transferred to disk, it is safe even if the batterycompletely depletes or fails.

Bus Versus Switched ArchitectureHitachi’s Hi-Star switched architecture has been recently gaining traction in thesubsystem industry. By using a switched versus bus backplane, Hitachi claims itsLightning 9900 product can have 6.4 GBps internal bandwidth, higher than mostsubsystems available on the market today.

First, What Is a Backplane?A backplane is a printed circuit board (PCB) that interconnects the separatecomponents within a subsystem. One example of a backplane is the motherboard inyour PC onto which various components (i.e., microprocessor, memory, NIC, HBA,etc) are mounted and connected.

A bus is a system of interconnects (mostly metal traces) run across the backplane.Components send data to each other by using electronic signals along these metaltraces (wires can also be used).

Many subsystems currently use a bus architecture on the backplane in which severaldevices share a common bus. In Figure 98 below, a bus is used to allow themicroprocessors to communicate with the cache boards, and the cache boards tocommunicate with the disk controllers. Note: A bus and a bus architecture describetwo different concepts, although a bus architecture utilizes a bus.

Figure 98. Bus Architecture


CacheLogic

Ctrlr

Ctrlr

Ctrlr

Interf

Interf

FC

SCSI BusBus


A subsystem with a bus architecture can increase its bandwidth by utilizing morebuses.

Many subsystemscurrently use a busarchitecture on thebackplane in which

several devices share acommon bus.


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Hitachi’s Hi-Star Switched ArchitectureHitachi Data Systems has recently replaced its bus-based storage systems with itsHi-Star switched architecture, giving it 6.4 GBps of internal bandwidth, one of thehighest in the industry. The higher bandwidth is primarily a result of the point-to-point direct connection. In a switched architecture, each component has a directconnection to every other component.

In a bus architecture, components share one common interconnect. If two sets ofcomponents are trying to communicate with each other, they must share thebandwidth available to the single interconnect. For example, if the interconnect iscapable of 1 GBps, when two components are sending data simultaneously, each oneis allocated half of the available bandwidth, or 500 MBps. In a switchedarchitecture, each component can send data at 1 GBps simultaneously.

Figure 99 below illustrates these two architectural differences. In the busarchitecture, Cache A and Cache B must share the same interconnect to get to eitherdisk controller. In the switched architecture, there are multiple paths between eachcache and each disk controller.

Figure 99. Switched Versus Bus

Disk Ctrl A Disk Ctrl B

Cache A Cache B

Switch

Disk Ctrl A Disk Ctrl B

Cache A Cache B

Bus


The main advantage of a switched architecture is that it generally has higherbandwidth than a bus architecture; however, again, there is no free lunch. Thecomponents and the complex manufacturing process used to create a switchedbackplane make it more expensive.

Figure 100 below illustrates where the Hi-Star switched architecture is used insideHitachi’s Lightning 9900 subsystems. It is used for communication between themicroprocessors, cache boards, and the disk controllers. Note: Each interface chiphas its own dedicated logic (i.e., processor) so there is no bottleneck as depictedbelow.

In a switchedarchitecture, each

component has a directconnection to every

other component.


103

Figure 100. Switched Architecture and Mirrored Cache


Cache

Ctrlr

Ctrlr

Ctrlr

Interf

Interf

FC

SCSI

Cache

Logic

Switch Switch



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➤ NAS subsystems differ from traditional subsystems due to theirconnectivity to the existing infrastructure (LAN) rather than anemerging dedicated storage infrastructure (SAN).

What Is a NAS Subsystem?NAS subsystems differ from traditional subsystems due to their connectivity to theexisting infrastructure (LAN) rather than an emerging dedicated storageinfrastructure (SAN). In this section we segment NAS into three categories: 1) highend, 2) midrange, and 3) low end.

NAS ConfigurationsIn Figure 101 below are a couple of NAS configurations. In a traditional NASappliance, the server, RAID intelligence and drives are all within the same box. InEMC’s Celerra, a general-purpose server is replaced with a file server (thin serveroptimized for file serving), which is then attached to EMC’s Symmetrix subsystems.

Figure 101. Several NAS Configurations Are Possible

FileServer

RAID DriveFileServer

RAID Drive

NAS EMC Celerra


High-end NASThis is the original NAS market, pioneered by Auspex and now dominated byNetwork Appliance. According to Dataquest, the high-end segment constituted thelargest revenue segment in 2000.

According to Dataquest, high-end or enterprise NAS devices are server appliancesfor high-performance, high-capacity file sharing either as a resource for use bynetworked clients or within a SAN. They typically have RAID support, often havemultiple storage controllers, and support multiple networking topologies such as100Base-T, Fibre Channel, FDDI, and ATM. Pricing is typically over $100,000with capacities scaling to 6 TB.

Other definitions suggest that high-end NAS appliances include connectivity toseveral network file systems, sometimes extending to proprietary systems andmainframes, and performance is improved through automatic load and pathbalancing and high-speed transfers between storage domains assigned to differentfile or application servers. Accessibility is enhanced by a feature that ensuresdisaster protection referred to as High Availability (HA). Failing components arediagnosed, reported to a remote service site, and eventually corrected or replaced

NAS Subsystems

According to Dataquest,high-end NAS devices

are server appliances forhigh-performance, high-

capacity file sharingeither as a resource for

use by networked clientsor within a SAN.


105

before they become inoperable. Storage management features extend beyondbackup, to include applications such as archiving, library management, andhierarchical storage management (HSM). Examples of high-end NAS devicesinclude Network Appliance’s Filer F800 series and EMC’s Celerra. EMC’sCelerra/Symmetrix combination is an enterprise NAS solution (although weconsider it a SAN/NAS hybrid).

Network Appliance’s FilerAlthough Network Appliance may not have been the sole inventor of the NASconcept, it has certainly been considered the marquee NAS company and has madeits filers to be synonymous with NAS. Network Appliance’s strategy to remove theI/O burden of file accessing from application servers with a separate dedicated filestorage to an appliance that connects directly onto the Local Area Network (LAN)has developed a storage market that has caught the eyes of investors and competingstorage vendors alike.

Network Appliance’s Filers have quietly been increasing their features/functions andmigrated into the data centers of many corporations and ISPs such as Cisco, Yahoo,Texas Instruments, Motorola, British Telecom, and Deutsche Telekom. We believeYahoo uses over 500 TB of Network Appliance storage for its Web-based email andaccount information and needs only eight IT administrators to manage it.

Figure 102 below shows Network Appliance’s F840. It appears in the foreground asa single unit while the background shows it as part of a rack configuration.

Figure 102. Network Appliance’s F840

Source: Network Appliance

EMC’s Celerra — High-end NASThe EMC Celerra File Server is a network-attached storage system providing highperformance, high availability and scalability for enterprise file storage. The systemfeatures EMC-developed software and hardware, known as Data Movers, within acommon enclosure and with a common management environment. The Data

We believe Yahoo usesover 500 TB of Network

Appliance storage —only eight IT

administrators areneeded to manage it.


106

Movers and management environment connect to Symmetrix Enterprise Storagesystems and external customer networks through a variety of interfaces. A fileserver’s purpose is to provide end users with the ability to access, update, and storecommon files to a central location directly from their desktop computer without theneed to utilize a general purpose server. The company intends to continue tointroduce new versions of the EMC Celerra File Server system with additionalfeatures and capabilities.

Figure 103 below pictures EMC’s Celerra.

Figure 103. EMC’s Celerra

Source: EMC

Celerra is a unique approach to NAS in that it is not a complete NAS appliance. It isa series of NAS servers (thin file servers) without the traditional disk integration.Celerra attaches a Symmetrix disk subsystem (EMC’s traditional disk subsystem) onits back end, potentially forming a type of SAN architecture behind Celerra (wewould refer to this design as a NAS/SAN hybrid). In other words, Celerra providesa gateway for clients to directly access files over the LAN (typically Symmetrix disksubsystems are directly attached to application servers or SANs, thereby forcingclients to traverse application servers in order to retrieve files). Figure 104 belowillustrates how a Celerra-based NAS architecture might look.

Celerra is a uniqueapproach to NAS in thatit is not a complete NASappliance. It is a seriesof NAS servers without

the traditional diskintegration.


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Figure 104. Traditional Celerra Architecture

Key Considerations


2)Fault tolerant




LAN

Client 1

Client 2

Client 3

Client 4 Celerra 2

Celerra 1

Server 1

TapeLibrary

Symmetrix 1

Symmetrix 2

Symmetrix 3


Midrange NASAccording to Dataquest, midrange NAS devices typically have SCSI drives(although ATA ones are starting to gain traction), a mixture of software andhardware RAID controllers, and more storage management software functionalitysuch as clustering. Pricing ranges from $5,000 to $100,000 with capacities scalingto less than 2 TB. Other definitions suggest that these products typically have nosingle point of failure and allow field-replaceable units to be swapped while thesystem continues to operate (referred to as “hot swapping”). They incorporate someperformance features, such as faster write for RAID configurations, complexcaching algorithms, and/or dedicated data paths.

These systems can be scaled many ways, allowing easy growth in performance,resiliency, and connectivity. Integrated backup is often offered as an option, andadministration of all network-connected storage can typically be performed fromone central location.

Examples of midrange NAS devices include Procom’s NetFORCE 1700, NetworkAppliance’s F740, and Compaq’s TaskSmart N2400. In December, 2000, EMCintroduced its CLARiiON IP4700, a mid-tier NAS product (which can also scale tothe high end) with fault tolerant hardware, a wide range of network connectionsincluding Gigabit Ethernet, and internal failover (processors, power supplies,pathways). The IP4700 is available in a rack-mountable configuration and supportsfrom ten to 100 disks utilizing building block arrays. The array utilizes either 18- or36-GB disks with a total capacity of up to 3.6 TB. EMC noted that the averagesetup time has been ten minutes. The operating system is based on software fromCrosStor, which EMC acquired on November 1, 2000.

The Quantum Snap Server ES12 has 1 TB of raw capacity in a 3U rack-mountableform factor with hot-swappable drives and hot-swappable, redundant power suppliesfor under $25,000. Quantum recently acquired the Connex NAS business fromWestern Digital to add additional enterprise-class functionality to its product

Mid-range NAS devicessupport a number of

drives and RAID, andoffer RAS (reliability,

availability, andserviceability) features.


108

offering which could move it up the value chain (to the high-end market). Figure105 below pictures EMC’s CLARiiON IP4700, which can also scale to the high end.

Figure 105. EMC’s CLARiiON FC4700

Source: EMC

Common applications include additional capacity for small and remote offices aswell as file serving, desktop backup, software distribution, and temporary “scratch”space for IS administrators in large organizations. Common departmental andenterprise NAS applications include capacity expansion and high-capacity, high-performance file sharing.

Entry NASDataquest defines Entry NAS devices as having one to four ATA hard disk drives.The low-end of Entry will typically contain one or two drives with either no RAIDor RAID 1 while the high-end of Entry will have four drives with RAID 5 support.Pricing is usually less than $5,000 with raw capacity up to 300 GB. Otherdefinitions suggest that these products may be resistant to the most common failures(such as disk drive, power supply, and cooling system) but are still vulnerable to lesscommon component failures and usually must be turned off for plannedmaintenance.

Connectivity is sometimes limited to one topology (Ethernet, for example).Common applications include additional capacity for small office/home office, smallbusinesses, and remote or branch offices, as well as file serving, desktop backup,software distribution, and temporary “scratch” space for IT administrators in largeorganizations. There is much evangelizing that could be done in this nascentmarket, as we believe much of the target customer base is not aware of theseproducts and the benefits they offer. Examples of low-end NAS devices includeQuantum’s Snap Server and Maxtor’s MaxAttach Desktop family.

Figure 106 below pictures Quantum’s Snap 4100.

Dataquest defines entry-level NAS devices as

having one or two harddisk drives and no

expandability.


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Figure 106. Quantum’s Snap 4100

Source: Quantum.

In July, 2001, Maxtor announced general availability for its 400 GB, 1U highMaxtor MaxAttach NAS 4300 File Server. The MaxAttach 4300 is based on theWindows operating system, and we believe positions the company strongly at thehigh end of the entry group. Maxtor’s product also has dual 10/100 Ethernet ports,gigabit Ethernet (320 GB), and a SCSI port for local tape backup. We note thatmost NAS filers in this product category do not have Gigabit Ethernet connectivitynor do they offer an external SCSI port for tape backup. In addition, Maxtor’sMaxAttach NAS file servers are compatible with backup software from VERITAS,Legato, and Computer Associates, several device-management tools and supportRAID 0, 1, and 5.

Figure 107 below features the MaxAttach 4100.

Figure 107. Maxtor’s MaxAttach 4100

Power UPS portDual 10/100Ethernet ports

SCSIport

GigEport

Softpower

10/100Ethernetmonitor

Diskactivity

Source: Maxtor and Salomon Smith Barney

Maxtor’s product alsohas dual 10/100 Ethernet

ports, gigabit Ethernet(320 GB), and a SCSI

port for local tapebackup.


110

Veritas NAS SoftwareIn June, 2001, Veritas announced ServPoint Appliance, a new product thatrepresents an innovative approach to the NAS market. Instead of developing its ownNAS appliance complete with its own hardware, Veritas has developed software thatwill turn a general-purpose server into a file server. The addition of storage to thefile server would result in a NAS-like configuration. The ServPoint ApplianceSoftware for NAS leverages Veritas’s extensive experience with file systems. Webelieve ServPoint provides server vendors with a simple solution to offer NASfunctionality to its customers without the need to develop a new NAS device fromthe ground up. It provides Veritas with access to the NAS market without the needto develop a hardware product.

NAS Versus Traditional ServersNAS appliances can also be employed in lieu of adding storage to an existinggeneral-purpose server. Adding a NAS appliance increases processing power to thenetwork, offloading file-serving duties from the general-purpose server and therebyimproving overall computing performance. Since disks and subsystems do not havethe capability to process the file system, adding a disk or subsystem to a general-purpose server adds to its burden.

In their simplest form, NAS appliances are thin servers optimized for file servingwith plenty of built-in storage and the ability to easily expand and add more storage(most general-purpose servers have built-in storage, too.) The main differencebetween a general-purpose server and a NAS appliance is that the general-purposeserver can be used for applications beyond storing and serving files. These mightinclude serving print jobs, e-mail, applications, databases, and Web pages. Thegeneral-purpose server can perform more functions because it has more processingpower, additional interconnects for devices such as monitors, and applicationsoftware capable of performing tasks such as transaction and database processing —all of which take substantial processing power.

Many of the components in NAS appliances — especially in the entry level andmid-range — are off-the-shelf PC components, as illustrated in Figure 108 below.These additional components include microprocessors and related chipsets, memory,and hard disk drives.

The main differencebetween a general-

purpose server and aNAS appliance is that the

general-purpose servercan be used for

applications beyondstoring and serving files.

Many NAS appliancesuse off-the-shelf PCcomponents (CPUs,

RAM, and disk drives).


111

Figure 108. A General Purpose Server Is More Complex — and Expensive — Than a NAS Appliance

PC or General-purpose Server NAS Appliance

System Board yes yes, often less powerfulEnclosure yes yesHard Disk Drives yes yesServer OS License Windows NT proprietaryClient OS Licenses Windows NT proprietaryPower Supply yes yesVideo board noneEthernet Connection board PCI cardFloppy Disk Drive yes high-endMonitor yes noKeyboard yes noMouse yes no

Source: Maxtor Corp. (December, 1999), and Salomon Smith Barney

Adding Storage Through NASTo add storage to a general-purpose server, the server must be shut down and takenoffline. The new storage is then installed, and the server is brought back online.IDC estimates this process typically takes at least eight hours and often longer.Some NAS vendors believe the savings on labor to install a NAS device, combinedwith a shortage of skilled IT professionals and the benefits of not taking a serveroffline, will result in NAS appliances being used to add storage to a general-purposeserver.

Figure 109 below compares the cost of three alternatives for adding storage to anetwork: 1) adding hard drives to an existing NT server, 2) adding a Quantum NASappliance, and 3) adding an NT server.

Figure 109. Adding More Storage: Quantum’s Entry NAS Appliances Versus an NT Server or Hard DriveAddition

Add SCSI Drives to anNT Server

Add a Snap Serverto the Network

Add an NT Serverto the Network

Installed Cost(Parts & Labor)

$400-$1,999 $499-$4,499 $3000-$10,000

Required Expertise Professional ITKnowledge

Basic PC Literacy Professional ITKnowledge

Installation Time 2 to 10 hours 5 minutes 1 to 2 days

Downtime DuringInstallation

Server is offline None Server is offline hours todays

Ongoing Management& Availability

Significant; frequentweekly reboots

Minimal Significant; frequentweekly reboots

Source: Quantum and Salomon Smith Barney


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➤ Without the secret software sauce of file system and volumemanagement technologies, RAID might not be of any use at all.

What Does Veritas Have to Do with This?Veritas has developed the industry’s leading core technology that interconnectsservers with storage subsystems. While HBAs, cables and switches, physicallyinterconnect servers and storage to provide a next generation architecture, Veritas’sfile system and volume management technologies (which it refers to as itsfoundation software) create the intelligence to logically interconnect and leverageserver and storage technologies (i.e., they enable data management). Its no wonderthat the leading server (Sun) and storage (EMC) vendors are old friends of Veritas.The question is: will they continue to be friends as each peers into the others’markets and can no longer resist the opportunity for growth, account control, andgross margin expansion? As we see it: No. Increasingly, they are all becomingfierce competitors.

Note: We go into greater details of the storage software market in the section titled“Software is the Magic Word.”

Below in Figure 110, we have illustrated the location of the file system and volumemanagement within a Direct Attached Storage (DAS) architecture.

Figure 110. File System and Volume Management Architecture

RAID

Disk

FS

VM

Disk

Disk

OS

OS = Operating System FS = File System

VM = Volume Management


RAID Is No Good Without CoreSoftware

It’s no wonder that theleading server (Sun) and

storage (EMC) vendorsare old friends of Veritas.


113

What Do We Find So Cool About Veritas?Veritas has displaced the traditional operating system approaches of managing data.In other words, Veritas has introduced third-party file system and volumemanagement technology that replaces the operating system’s embedded file systemand volume management functionality. Since Veritas has created superiorindependent technology, end users have opted to pay extra for a Veritas add-on inorder to get better and more reliable performance. Sun Solaris was the firstoperating system Veritas penetrated. More recently, Microsoft, IBM, and Hewlett-Packard have partnered with Veritas to invite its file system and volumemanagement technology into the various operating systems in order to competemore effectively with the Sun/Veritas combination. Note: Microsoft only usesVeritas’s Volume Management technology.

Being the foundation technology for NT and all major UNIX operating systemsmakes Veritas’s technology the industry standard software platform to manage data.So, with Veritas on its way up the software stack and trying to make hardware acommodity, are server and storage vendors planning to punch back? You bet!Although we cover most of this debate in our section “Software is the Magic Word,”it is important to stop here and look at the interrelationships of servers, file and filesystem management, block and volume management, RAID, external storage and(ultimately, maybe) virtualization.

We start by building up from blocks, to volume management, to files, to file systemmanagement, and then a quick stop to virtualization.

What Is a Block?A block represents physical disk space. Blocks are often thought of as the lowestcommon denominator of storage (i.e., data). Disks are subdivided into blocks,which are numbered and laid out onto the round disk platters in concentric circles,similar to the lines on a phonograph album. Blocks are grouped into tracks, sectorsand cylinders, but this is beyond the scope of our report. Blocks are the lowestcommon denominator of data.

Blocks are stable locations of physical disk storage. Blocks are written to (or filledwith data) in order. In other words, first block 0 is filled, then block 1, then block 2,etc. This simplicity is part of the reason block storage is often preferred. Withsimplicity comes greater reliability, better performance, lower CPU utilization andan easy, common, standard unit of data.

However, using multiple blocks, as storage does, creates the need to intelligentlymanage these blocks through grouping and organization (i.e., volume managementsoftware).

Below in Figure 111, we illustrate the concept of block storage, which is physicalstorage. One important thing to note is that multiple blocks can be stored on onedisk (each cylinder below represent one disk, multiple disks form a storagesubsystem). Further, block-based storage groups blocks together, one next to theother, until a disk is full. This means that data is saved in the order it is created(conceptually). Therefore, when you go to retrieve data (composed of multiple

Disks are subdividedinto blocks, which arenumbered and laid out

onto the round diskplatters in concentriccircles, similar to the

lines on a phonographalbum.


114

blocks), with block-based storage they can all be next to each other (conceptually,although not always), which would make them easy to find. In other words, it’seasier to find a box of needles in a haystack, than a couple of hundred individualneedles scattered about (as is sometimes the case with file-based storage).

Figure 111. Block-Based Storage

C

A

B

Disk 1

Subsystem

Disk 2 Disk 3

ABC

Blocks


Volume ManagementVolume management is the management of block data. While blocks are the lowestcommon denominator of data storage, they can be organized into logical groups viavolume management. In other words, volume management technology operates atthe volume level, a step above the block level. Think of it as similar to school. Thetwelfth grade is not a person (a block), it’s a way to more logically arrange people(data blocks) and manage them (in this case to teach) in a more unified andorganized way. Think of blocks as people and volumes as grades. Below in Figure112 we depict blocks aggregating into volumes.

Volume management isthe management of block

data.


115

Figure 112. The Hierarchy of Data Storage — Volume Management

Block Block Block Block

Volume Volume Volume Volume

Storage

Connectivity

Server


Volume management is more flexible than simple block-based storage. Therefore, itis needed on servers, and sometimes on storage subsystems, for cohesive datamanagement (as illustrated below in Figure 113). Note: In the diagram below, theblocks and volumes are located on different disks within the same storagesubsystem.

Figure 113. Volume Management Provides Greater Manageability Than Simple Block Storage

C

A

B

Disk 1

Subsystem

Disk 2 Disk 3

A B C

Volumes



116

Typically, servers send blocks (via volume management technology) to storagesubsystems (RAID), in order to write and read data from disks.

EMC Uses Veritas’s Volume Management and Has ItsOwn Volume Manager?EMC is one of the few (and arguably the only) storage subsystem vendors tointegrate its own volume management technology and tightly link it to Veritas’svolume manager and file system technology. This has enabled EMC to unlock andcreate a lot of valuable management features, such as storage-based replication,which is an important piece of EMC’s flagship SRDF Disaster Recovery (DR) andTimeFinder technologies.

EMC has worked closely with Veritas to create an enhanced Veritas volumemanagement edition for EMC’s Symmetrix. By tightly integrating EMC’s storagesubsystems and volume management technologies with Veritas’s volume manager,EMC has been able to take advantage of Veritas’s sophistication and provide theindustry’s leading storage solution.

Note: According to sources, (to date) no other storage company has integrated astightly with Veritas’s Volume Manager as EMC.

What Is a File?Files are collections of blocks, but are more abstract than physical blocks. Think offiles as abstractions of blocks. Files are not bound to any physical location. Filesare given names and organized in a non-linear format. In other words, while blockzero, block one, and block two are typically laid out one after the other, file X, fileY, and file Z could all be on different volumes and/or on separate disks and/orstorage subsystems.

Below in Figure 114, we have illustrated how files might be logically grouped andstored.

EMC has worked closelywith Veritas to create an

enhanced Veritas volumemanagement edition for

EMC’s Symmetrix.

Think of files asabstractions of blocks.


117

Figure 114. File-Based Storage

C

A

B

Disk 1

Subsystem

Disk 2 Disk 3

A B C

Volumes

File X

File Y

File Z

Files


File SystemsSince files are abstract, they create a more virtualized environment that can be moreflexible than a physical environment. Put another way, blocks can be renamed intofiles and grouped logically (the same concept applies to volumes). Consequently,file system software creates abstractions of blocks to improve data management (asillustrated below in Figure 115). For example, file one might be blocks 17–22 andfile two could be blocks two, nine to 14, and 23. Thought of another way, blocksone to four could be file 17 and block five could be file two.

Since files are abstract,they create a more

virtualized environmentthat can be more flexible

than a physicalenvironment.


118

Figure 115. The Hierarchy of Data Storage — File Systems


Volume

File System

Volume Volume Volume

File System File System File System

Storage

Server

Connectivity


So why make things so confusing with file system software and logically, ratherthan physically, group data? Imagine if you physically stored data A, B, and C aswe did in the block storage diagram (Figure 111). Then we deleted data B. Then westored data D, E, and F. According to block storage layouts, block D would be laidout after block C, leaving the space allocated to block B empty. This creates “holes”of empty disk space which must then be logically filled with data. Unlike a filesystem, a volume of block storage has no notion of “free,” “empty,” or “hole.” Ablock is a block is a block, and all blocks exist on the volume continuously. One ofthe things a file system adds is the notion of blocks being in use or free (a databasehas a similar notion internal to the database). Bottom line, of course there is areason for the madness.

The better the volume management and file system technologies, the better theaccess to data. High performance file system software can reduce search times byproviding quality data organization, including look ahead, and better utilize diskcapacity. This is similar to having a really good office filing system, rather thansimply tossing papers onto a pile and then sifting through the entire pile when asingle piece of data is needed. If it’s stored, organized, and managed optimally, it’seasier to find and use. It takes less brain power to find it (processor utilization) andit can be found faster (performance).

Think of file systems similar to Microsoft Explorer. Imagine you create threedirectories (similar to volumes): A, B, and C. As employee data is organized it isgrouped into directories A , B, and C. Then Homer, an employee from group Atransfers to group B. Simply click on, drag and drop Homer’s data from directory(volume) A to B. While the file layout has changed (i.e., Homer’s data is nowaccessed under the B directory, instead of the A directory) the data (or blocks) canremain in the same physical location.

High performance filesystem software canreduce search times.


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Why Are Most Using Veritas’s Core Technology?Similar to good volume management technology, quality file system technology cancut through a lot of potential headaches and significantly improve a storageenvironment. According to Veritas, a good file system has:

1 high integrity — data remains the same between the process of storing andretrieving it,

2 availability — being able to retrieve data with ease, and

3 performance — retrieving data quickly through quality organization.

We have outlined two of Veritas’s file system’s important advantages. (Note:Many of these attributes can also be found in file systems by EMC, NetworkAppliance, and others):

1. JournalingJournaling is used by file systems to balance increasing performance withoutcompromising data integrity. Journaling can have a significant impact on dataavailability.

Here’s the typical problem: System writes are stored in the system’s memory buffercache. Therefore, if the system fails before data is written from the cache buffer todisk, data is lost. In the middle of this process, the file system data is constantlymoving from the cache buffer to disk and vice versa. Therefore, a secondary impactof a buffer cache failure is that when the failure is circumvented, the failed part isswapped out or the system is rebooted, the system has to figure out where it left off.In other words, did it write the data to disk? Did the entire transfer make it beforethe failure? This diagnostics check takes time, thereby, delaying the system’savailability and potentially compromising its reliability. (It’s similar to when a PCcrashes and then has to reboot. The PC takes longer to reboot because it’s trying tofigure out where it left off and if it’s in working order.)

While most file systems examine every data block during this process, Veritas’advanced journaling system simply looks at the ones recently in use or changed.This significantly increases performance upon failure. Veritas also increases dataavailability and integrity through other features.

2. Disk AllocationDisk allocation is one of the main challenges in data storage. This is the way data islaid out onto disks. Therefore, the method of block allocation can be a keydifferentiator between vendors’ file systems. This is one of Veritas’s keyadvantages. According to Veritas there are four major types of disk allocation:contiguous, linked, indexed, and extent-based. While Veritas uses the moreadvanced extent based allocation (which modifies and combines the contiguous andindexed allocation methods), the other three have been around longer and are,therefore, more broadly used by legacy operating systems.

Based on Veritas’s input, we have outlined the various allocation methods below:

While most file systemsexamine every data

block during thisprocess, Veritas simply

looks at the onesrecently in use or

changed.


120

Contiguous Block Allocation

This method allocates disk space on a contiguous basis. Since data is laid out ontodisks contiguously, it is easier to find. For example, once I get the first word of aparagraph, the rest are right next to it in order and in the same place. The drawbacksare when data is deleted, causing “holes,” or when disk space runs out.

Contiguous block allocation must be used in environments without a file system.

IBM’s VM/CMS and Apple use this method.

Linked Block Allocation

This method leaves “pointers” at the end of each disk block to point to where thenext data block is located. While this architecture creates a more flexibleenvironment and addresses the issue of holes, it can significantly and negativelyimpact performance.

MS-DOS, OS/2, Network Appliance, and EMC use this method.

Indexed Block Allocation

This method is similar to linked block allocation in that is uses pointers; however, itstores the pointers in the file system, rather than with the data blocks on the disksthemselves, thereby freeing up disk capacity and enabling the access of data withfewer disk head movements. This provides a performance boost over linked blockallocation, but it still increases overhead which negatively impacts performancerelative to contiguous block allocation.

UNIX uses this method.

Extent-Based Allocation

This method takes the Contiguous and Index methods a step further by combiningthem and adding features to increase performance (the latter of which is its keyadvantage) while decreasing disk capacity overhead and incorporating the use ofpointers (but cuts down on their use relative to the Linked and Index methods) anddisk capacity from holes.

Veritas and EMC’s Celerra use this method.

NAS Changes the File System RulesWhile Veritas’s file system is usually located on the server (host-based), NetworkAppliance’s file system is located on a NAS appliance. This architecture offloadsCPU demand from more expensive application servers to less expensive file serversor NAS appliances (which contain file server functionality). Note: Veritas and EMCcan also locate their file systems on a NAS appliance or file server and, in fact, areaggressively expanding into this market.

In the figures below we illustrate the location of the file system in Direct AttachedStorage (DAS), Storage Area Network (SAN), and Network Attached Storage(NAS) architectures. Note: While the location of the file system can be movedaround, the core technology is largely the same.

Network Appliance’s filesystem is located on a

NAS appliance andoffloads CPU demand to

less expensive fileservers or NAS

appliances.


121

Figure 116. File System DAS Architecture

Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1FS

FS

FS

Client 2 LAN

Client 1

Client 3

Client 4

Subsystem 2

Subsystem 3


Figure 117. File System SAN Architecture

SAN

Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

FS

FS

FS

Client 2 LAN

Client 1

Client 3

Client 4

Subsystem 2

Subsystem 3



122

Figure 118. File System NAS Architecture

Client 2 LAN

Client 1

Client 3

Client 4

NASAppliance 2

FS

NASAppliance 1FS

Server 2

Server 1


ArchitecturallyArchitecturally we can look at NAS as connecting to or obviating the need forapplication server file systems, which can reduce file system expenses (each copy ofa file system costs money) and more expensive application server CPU utilization(although NAS creates greater overall CPU demand, it offloads the CPU cycles frommore expensive application servers onto less expensive file servers or NAS). On theother hand, DAS or SANs use simpler, more efficient volume management (block)based storage as an interconnect which is often viewed as more reliable and faster,particularly for compute of data intensive applications. We have illustrated this inFigure 119 below.

On the other hand, DASor SANs use simpler,

more efficient volumemanagement (block)based storage as an

interconnect.


123

Figure 119. Various Data Architectures

Application Software

Operating System

File System

Volume Management

Volume Management

RAID

Disk

File System

Volume Management

RAID

Disk

NAS

ApplicationServer

StorageSubsystem

File ServerFunctionality


Note: Storage subsystems can have their own volume management technology.Although it is uncommon, this has been one of EMC’s key differentiators on its high-end subsystems.

Network Appliance’s File SystemOne of Network Appliance’s most distinctive advantages over traditional server-attached storage, as well as its NAS competition, is its sophisticated file system,which is strategically located on its NAS appliance’s thin server. In conventionallocal or direct attached storage and block-level SAN implementations, the filesystem is colocated with the operating system/application server — separate fromthe RAID controller. In this approach, file systems send blocks to the RAIDcontroller, which lays the data blocks out on the disk array. By separating the filesystem from the controller/subsystems, Network Appliance believes that file systemadvantages such as security, logical volume and file management, and datamanagement can be lost (although many would argue the opposite).

Network Appliance’s filers integrate its file system — called Write Anywhere FileLayout (WAFL) — directly with the RAID array, which preserves and enhancesfile-mode access advantages. Network Appliance believes benefits for local file-sharing access include scalability, management, resiliency, failover, and lower totalcost of ownership. To date, Network Appliance filers have been attached toapplication servers and clients through TCP/IP utilizing NFS, CIFS, and HTTPprotocols.

Storage subsystems canhave their own volume

management technology.Although it is

uncommon, this hasbeen one of EMC’s key

differentiators on itshigh-end subsystems.


124

Heterogeneous ConnectivityIn traditional server-attached storage architectures, storage subsystems typicallycannot share files between platforms. This is partly due to the location of the filesystem, which is located on the application server. In effect, the location of a filesystem in a traditional storage architecture couples each storage subsystem with theoperating or file system being used by the application server, as illustrated below inFigure 120.

Figure 120. Storage Subsystem Connectivity by Operating and File System

Mainframe

UNIX

NT

Mainframe

UNIX

NT

FS

FS

FS


Being able to provide heterogeneous connectivity between discrepant systems andtechnologies is a powerful advantage. For example, would it be nice to store UNIXand NT data onto a single storage subsystem? Network Appliance can due to its filesystem architecture, but so can EMC using its block-based architecture.

Heterogeneous data storage has been one of EMC’s largest competitive advantagesin the past. Recently many other storage subsystem vendors have developedheterogeneous connectivity, although EMC still supports the broadest number andversions of operating systems, including the mainframe. Block based storagesubsystems can store UNIX and NT files on the same subsystem and then translate,if requested, NT data into UNIX data. However, due to its file system architectureNetwork Appliance has taken heterogeneous connectivity to a more advanced level.

Block-based subsystems partition disks by operating system (e.g., NT, UNIX). Itcan then cache the data and translate it to communicate with other operatingsystems. In Figure 121 below, we have illustrated how a storage subsystem storesdata and retrieves it by operating system.

Being able to provideheterogeneous

connectivity betweendiscrepant systems and

technologies is apowerful advantage.


125

Figure 121. Heterogeneous Storage

Subsystem

Mainframe

UNIX

NT

Mainframe

UNIX

NT

FS

FS

FS


What sets Network Appliance’s heterogeneous storage apart from others is that itactually stores data in a neutral (neither NT nor UNIX) format. This obviates theneed to “translate” data back and forth, using expensive caching buffers. However,it does add overhead at the onset of a save or write command. Below in Figure 122,we have anecdotally illustrated how Network Appliance stores data in a neutralformat.

Figure 122. Network Appliance Uniquely Stores Data in a Heterogeneous, Neutral Format

UNIX

NT

Neutral

UNIX

NT

Neutral

NeutralOR

A

B

A’

B’

A

B


About 40% of all Network Appliance systems shipped are installed out of the box tointerconnect multiple computing platforms, typically UNIX and NT. By leveragingits file-system design, Network Appliance is able to offer heterogeneousconnectivity while maintaining only one file. To offer heterogeneous connectivity,

What sets NetworkAppliance’s

heterogeneous storageapart from others is thatit actually stores data ina neutral (neither NT nor

UNIX) format.


126

other storage systems need to maintain multiple copies of the same file, increasingcomplexity and requiring additional storage space.

Below in Figure 123 we have illustrated how Network Appliance’s heterogeneousconnectivity might be viewed. Note: Network Appliance does not fully support themainframe.

Figure 123. Network Appliance’s Heterogeneous Storage

NetAppAppliance

UNIX

NT

UNIX &NT

FS


ScalabilityFiles organize data logically, instead of physically (which is done by volumemangers). This means that blocks can be any size, regardless of physical limitations.Thought of another way, simply snap new disk capacity (i.e. physical disk) onto thenetwork and an intelligent file system can seamlessly assimilate that new storage.With volume management software, a new node must be initialized, whichsometimes takes the environment temporarily offline. Blocks tend to be a fixed sizewhile files and file systems can be any size.

No Free LunchesFile-based storage also has its downfalls. For example, it requires higher CPUutilization and is more complex than block-based storage. These complexities canincrease the chances of failure and negatively impact performance. Often times incomputing, simpler is better.

Combining the Best of Both Worlds: EMC’s HighRoadIn December, 2000, EMC introduced software enhancements for its Celerra NASserver called HighRoad along with a new high-end Celerra. EMC’s CelerraHighRoad File System Software, which enhances the functionality of the EMCCelerra, allows files to be served either through Celerra or through the SAN. Thesoftware intelligently determines the profile of the requested data and then optimallydetermines the path to best serve the data to the client. The software is installed onCelerra with agents located on participating servers connected to a SAN. Celerra SEis a high-end NAS device housing both EMC Celerra and Symmetrix Storagesystems in a single-bay enclosure. CelerraSE scales to 8TB of raw capacity.

Simply snap new diskcapacity (i.e., physicaldisk) onto the network

and an intelligent filesystem can seamlessly

assimilate that newstorage.


127

EMC’s Celerra and HighRoad ArchitectureCelerra and HighRoads offload the file system and data path to 1) reduce cost, and2) increase performance. Although the downside is that this architecture greatlyincreases server-to-storage complexity, some argue that its advantages far outweighthis factor.

Externalizing the File System Can Save $$$

By offloading (externalizing) the file system onto a separate file server, file systemcosts can be reduced. For example, in an environment with 100 application servers,100 file system licenses are required. On the other hand, one (or a couple of)Celerra file server(s) could reduce the number of licenses needed; thereby,potentially reducing cost.

Veritas and Network Appliance can also offload the file system from applicationservers if desired. Some argue that this architecture creates a potential bottleneck inhighly active compute environments. Its also creates a more complex environmentwith additional networking, hardware and management requirements, and introducesa very sensitive single point of failure. In the end, while this architecture might beoptimal in some environments, it certainly does not suit all. EMC is focusing on adistributed storage management approach that has the flexibility to distributeintelligence.

Figure 124. Externalizing the File System using EMC’s Celerra

SANServer 2

Server 1

TapeLibrary

Subsystem 1Client 2 LAN

Client 1

Client 3

Client 4Server 3

FS

Subsystem 2

Subsystem 3


EMC’s Highroads greatly enhances storage environments by:

➤ Greater Connectivity: creating greater Symmetrix connectivity

➤ Being Faster: increases performance by creating multiple paths of delivery; alsoone path is Fibre Channel, which is faster than more cumbersome Ethernet

➤ HA Architecture: by creating multiple paths, HighRoads enhances dataavailability in case of a path or system failure

By offloading(externalizing) the file

system onto a separatefile server, cost can besignificantly reduced.


128

➤ Optimal Performance: HighRoads can dynamically determine the mostefficient data path, be it through a file server using files for smaller transfers oran applications server using bocks for larger data transfers

➤ Reducing Network Traffic: by offloading potential application server-to-Celerra (file server) data traffic onto a dedicated Fibre Channel storage network,LAN traffic can be reduced

Figure 125. EMC’s Celerra Without HighRoad

NAS FileServer 1

Server 2

Server 1


Client 1

Client 3

Client 4Subsystem 2


Figure 126. EMC’s HighRoad Software Enables Greater Symmetrix Connectivity

NAS FileServer 1

Server 2

Server 1


Client 1

Client 3

Client 4Subsystem 2


By implementing HighRoads in a SAN environment, further efficiencies can becreated by incorporating the benefits of SANs as shown in Figure 127 below.


129

Figure 127. EMC’s HighRoads Can Leverage SANs for Best-in-Class Performance

SANServer 2

Server 1

TapeLibrary


Client 1

Client 3

Client 4Server 3

FS

Subsystem 2

Subsystem 3


Competition...Competition!!!Its no wonder to us that Network Appliance, EMC, and Veritas are becoming fiercecompetitors for data management and file management technology.

Virtual Reality?Virtualization is the natural evolution in data management. We started with disks(blocks), then grouped them into subsystems (volumes), and then organized the datain the server (file systems). Virtualization is the next logical evolutionary (notrevolutionary) step in data management. Essentially, it’s a hierarchical grouping ofvolumes that allows the management of all storage as a common pool. Below inFigures 128 and 129 we have depicted how this might fit into our block diagram.

Essentially, virtualizationis a hierarchical

grouping of volumes thatallow the management ofall storage as a common

pool.


130

Figure 128. Virtualization in a Server-Centric Architecture


Volume

Virtual Layer


Virtual Layer Virtual Layer Virtual Layer

Storage

Server

Connectivity

File System File System File System File System


Figure 129. Virtualization in a Network-Centric Architecture


Volume

Virtual Layer


Virtual Layer Virtual Layer Virtual Layer

Storage

Server

Connectivity

File System File System File System File System


Note: The virtualization architecture could also be storage-centric, meaning thatthe virtualization technology would be located within a storage subsystem. Or, itcan be distributed, as is EMC’s view with its AutoIS.

Many startups, such as StorageApps (bought by Hewlett-Packard), trueSAN,DataDirect, FalconStor, VICOM, StoreAge, and XIOtech (bought by Seagate), andmany existing companies (such as Compaq, EMC, StorageTek and Veritas) havebeen developing virtualization software in order to create the ultimate, ubiquitous,heterogeneous storage pool that can expand exponentially. However, it is importantto keep in mind that while many talk about virtualization as a silver bullet to


131

ubiquitous data management in the near term, we do not expect to see it in a broadlyusable form for a number of years.

Virtual Promise: Unlimited storage capacity on demand. In other words, capacitycan be added on the fly without taking systems down or having to reconfigure them,similar to the way file systems operate. Virtualization introduces the concept of“free” versus “in use” space to the SAN at the block/volume level and the ability tomap things at a logical level all the way down to a physical level.

Below in Figure 130, we have illustrated the way a virtual pool of storage might beinterpreted graphically.

Figure 130. Virtual Storage Pool of Unlimited Storage on Demand

Virtual StoragePool

SAN Virtual SAN


AnalogySimilar to our previous school system analogy, virtualization becomes another layeror subset.

➤ person = block (disk)

➤ grade = volume (volume management)

➤ school division (primary school, high school, college, etc.) = virtualization

➤ school = file system

Virtualization introducesthe concept of “free”

versus “in use” space tothe SAN at the

block/volume level andthe ability to map things

at a logical level all theway down to a physical

level.


132



133

Software

The Magic Word is SoftwareSoftware Applications


134

➤ Software is the secret sauce that makes it all work.

➤ The importance of storage software has increased exponentially, inour view. As information has gained value, storage environmentshave become more complex, and the cost to manage data hasincreased.

Software Takes Storage to the Next LevelPerhaps the most complex aspect of the computer storage evolution for IT managershas been the actual control and management of its implementation. Data centersmay include several CPUs or servers, multiple disk subsystems, and various tapelibraries all distributed across wide geographic areas, manufactured by varioussuppliers, and spanning a multitude of computing platforms. Add to that thedoubling of data every year and the fact that budgets are under pressure and itbecomes easy to conclude that the evolution and complexity of computing are at therisk of becoming unmanageable.

Storage software enables the effective and efficient management of explosive datagrowth. Storage software has been one of the key drivers to lowering overall storagemanagement costs by increasing the productivity per person for administrators.

The Importance of SoftwareThe history of the computer industry leads us to conclude that hardwaredevelopment cycles typically get ahead of software development cycles. As anapplication area matures, the hardware component tends to diminish in importance,which is why hardware-based companies are continually striving for the nextbreakthrough technology or architecture.

In the initial stages of a software application’s evolution, the application typicallyprovides minimal functionality (the 1.0 release). Over time, software generally“matures,” adding functionality. In the later stages of an application’s development,the software provides most of the value and, since hardware becomes tougher todifferentiate, there is consolidation of hardware vendors.

In addition, hardware vendors sometimes try to commercialize their proprietarysoftware, which is referred to as “firmware” (software written to work closely with aspecific hardware design). This is often mentally difficult to execute because thesoftware is tightly integrated with specific proprietary hardware configurations andcommercializing one’s software may enable other hardware vendors to offer a morecompetitive solution. The result is that firmware historically has been a tertiarybusiness, which tends to offer less functionality than can be attained throughindependent software providers.

The maturity process of software development can be tracked as follows:

➤ Code is developed;

The Magic Word Is Software

Software is the glue thatthat ties a networked

environment together.


135

➤ Bugs or errors are found and fixed;

➤ Code is rewritten to be more efficient, often shortening “path lengths”;

➤ Functionality is added to enhance the application;

➤ The target hardware support is expanded, making the application more open andheterogeneous; and

➤ Ease of use, documentation, and support are all enhanced.

In summary, we believe software companies typically have a longer lasting valueproposition than hardware companies and require less dominant market shares toensure long-term viability.

“But I Don’t Want To Be a Commodity!” — Hardware VendorAnd who does? This is the battlefront of storage computing. It is an issue of makeversus buy. Does a company delay its entrance into the market by developing in-house, proprietary software, or does it speed up its entrance by OEMing software?The first scenario enables 90% gross margins and locking in the customer to yoursolution. The second choice enables a total solution, maintaining account control,and getting to the market quickly. Which is the more prudent path in our opinion?Both!

Server Vendors Have Been Leveraging VeritasBoth Hewlett-Packard and IBM have signed up to partner with Veritas to embed itsfoundation software (which includes file system and volume management software)into their operating systems releases. We believe this was done 1) because of theperformance advantages Veritas software provides, and 2) to combat SunMicrosystems’ partnership with Veritas foundation products, which has providedSun with a more competitive offering resulting in greater market share. At the sametime Sun, Hewlett-Packard, and IBM each plan to continue developing their ownproprietary UNIX-based OS.

Veritas began its file system and Volume Management (VM) proliferation with SunMicrosystems. In effect, Veritas provided a better file system and VM than whatSun embedded in its Solaris-based (UNIX) servers. When Sun recognized that notonly was Veritas’s Solaris foundation suite better than its own but better than manyof its competitors, Sun welcomed Veritas onto its pricing sheet and became areseller of Veritas’s Solaris foundation products. We believe this partnershipfurthered Sun’s competitive advantage. It took Hewlett-Packard and IBM years tosuccumb to Veritas’s file system and VM expertise. Through Veritas’s doggedefforts, it now has the leading market position in file system and VM software,capturing 61% of the UNIX market in 2000 (Figure 131 below).

Note: We combine the Core Storage Management Technology (includes file systems)and Virtualization (includes volume management) categories since Dataquestcategorizes Veritas’s Volume Manager as a Virtualization product. Also, Legatodoes not offer a file system or volume manager product so we do not describe itspartnerships here.

Adding value is the realcompetitive

differentiator, but not atthe cost of losing market

share.

Through Veritas’sdogged efforts, it now

has the leading marketposition in file system

and VM software.


136

Figure 131. Core Storage Management and Virtualization Software, UNIX platform

EMC23%

Veritas67%

Other10%

1999 2000

EMC30%

Veritas61%

Other9%


Veritas is the fastest-growing independent supplier of storage software. Thecompany grew its software licensing revenues 65% year over year in 2000. Veritassupplies its file system and volume management software (referred to as itsFoundation suite) for Sun Solaris, EMC’s Symmetrix (VM only), NT (only volumemanagement rebranded by Microsoft as Logical Disk Manager, not file systemsoftware), Hewlett-Packard HP/UX (embedded with a “lite” version), and IBMAIX/Monterey (embedded with a “lite” version; expected in the second half of2001). Why are so many large companies deferring to Veritas’s file system andvolume management software expertise? Because it’s better to get a piece of themarket than nothing at all. It is also important to note that Veritas has proven timeand again that it can provide more robust file system and volume managementsoftware on a more timely basis.

Further, we believe as more companies, such as IBM, begin to ship embeddedVeritas products, Veritas will continue its market share dominance in this segment(referred to by Dataquest as Core Storage Management and Virtualization).

On a related note, on August 8, 2001, Sun Microsystems and Hitachi Data Systemsannounced a three-year agreement under which they will cross-license currentstorage software products and collaborate on future ones. Veritas has relationshipswith both of these vendors.

The Attraction to SoftwareThe business model for a software company is very seductive. Figure 132 belowlists several generic business models that clearly illustrate the financial power of awell-run software company in today’s market.

The business model for asoftware company —

including gross marginsof 88%–90% — is very

seductive.


137

Figure 132. Financial Power Comparison

ComputerAVERAGES Software Networking Leadership H/W CEM/EMSGM 88.0% 54.0% 50.0% 9.0%Oper Mgn 30.0% 20.0% 20.0% 5.5%Net Margins 20.0% 15.0% 14.0% 3.5%

ROE 30.0% 29.0% 24.0% 13.1%ROA 30.0% 20.0% 13.0% 7.0%

PE/Growth Rate 3.0 2.2 1.5 1.0


A Competitive and Consolidating MarketWith such robust market projections, such an attractive business model, and theincreasing importance of management, it is easy to understand why the storagesoftware market is so fiercely competitive. Many startup companies have found theenvironment too daunting to go it alone. This has led to a flurry of acquisitions bylarger companies with greater resources.

The figures below highlight acquisitions by BMC, Computer Associates, EMC,IBM, Legato, Network Appliance, and Veritas.

Figure 133. BMC Software Acquisitions

DateAnnounced

DateCompleted Name Type Value at Announcement Product

8-Mar-99 14-Apr-99 NewDimensionSoftware

Purchase Share purchase and tenderagreement to acquire NewDimension Software, Ltd. for$52.50 per share; Approx.value of $650M

Enterprise managementsoftware; Ouptputmanagement software

21-May-97 21-May-97 Datatools Inc. Purchase $60M cash SQL Backtrack, DBRecovery solutions

Source: BMC Press Releases; Bloomberg

Figure 134. Computer Associates Acquisitions

DateAnnounced


14-Feb-00 10-Apr-00 Sterling SoftwareInc.

Stock Purchase;purchase accounting

$4B stock-for-stock; exchange0.5634 shares of CA stock foreach outstanding Sterling share

E-business software

29-Mar-99 29-Jun-99 PlatinumTechnologyInternational

Cash purchase;purchase accounting

Computer Associates to pay$29.25 cash per share ofPlatinum Technology; approx.$3.5B

27-Oct-96 2-Dec-96 CheyenneSoftware

Cash purchase;purchase accounting

$1,175M - $27.50 per share

Source: Computer Associates Press Releases; Bloomberg


138

Figure 135. EMC Corporation Acquisitions

DateAnnounced


20-Sep-01 20-Sep-01 Luminate Cash purchase $50M Performancemonitoring

11-Apr-01 11-Apr-01 FilePool NV Cash purchase $50M Belgian softwarecompany

1-Nov-00 1-Nov-00 CrossStorSoftware

Stock pooling $300M Networked storagesystems software

16-Aug-00 16-Aug-00 AvalonConsulting

Purchase Undisclosed Rich media archivemanagement software

14-Jan-00 14-Jan-00 TerascapeSoftware Inc.

Undisclosed $50M cash Software

21-Dec-99 28-Jan-00 Softworks Inc Undisclosed $192M cash Corp. informationsoftware

9-Aug-99 13-Oct-99 Data GeneralCorp.

Pooling of interest;accretive to earnings

$1.1B as of Aug 6; EMC willissue 0.3262 of a share ofEMC common stock for eachshare of Data Generalcommon stock

AViiON software

10-Aug-98 10-Aug-98 Conley Corp. Undisclosed Undisclosed amount High-availability, high-performance storagemanagement software

Source: EMC Press Releases; Bloomberg

Figure 136. IBM Acquisitions

DateAnnounced


14-Dec-99 14-Dec-99 MercuryComputer'sStorage division

Cash purchase $23.5 million Software thatenables file sharingon a network

31-Jan-96 4-Mar-96 Tivoli Systems Cash $743 million Tools that managecorporate computernetworks

Source: IBM Press Releases, Bloomberg


139

Figure 137. Legato Systems Acquisitions

DateAnnounced


11-Jul-01 20-Jul-01 SCHTechnologies

Cash $12.5M Media life cyclemanagement, and tapedevice and library sharing

28-Jan-99 1-Apr-99 IntelliguardSoftware, Inc.

Purchase accounting;acquisition accretive toearnings

Legato will issue 720,000 shares ofstock and the cash equivalent of180,000 share of Legato stock at theclosing price on the day preceding thecompletion of the transaction for all ofthe outstanding stock of IntelliguardSoftware. Transaction value was$52M as of Jan. 27

Celestra Architecture;Network Data ManagementProtocol (NDMP)

18-Nov-99 Terminated24-Jan-00

Ontrack DataInternational

Purchase accounting;accretive to 2000 earnings

Legato will issue a combination ofapprox. 1.485M shares of Legatostock and approx. $20M in cash for allof the outstanding stock of OntrackCorp. Approx value of $134M as ofNov. 17

Data recovery services andproducts

7-Jun-99 2-Aug-99 Vinca Corp. Purchase accounting;accretive to 1999 earnings

Combination of stock and cash valuedat approx. $94M

StandbyServer family; Highavailability data protectionsoftware

26-Oct-98 19-Apr-99 Qualix Group Inc.D/B/A FullTimeSoftware Inc.

Pooling of interest; tax-freereorganization

Legato will issue 1.721M share ofstock in exchange for all the stockand options of FullTime Software.Approx. value $69.4M

Application service levelsoftware solutions

30-Jul-98 6-Aug-98 Software Moguls.Inc.

Pooling of interest; tax-freereorganization

Legato to issue 250,000 shares of itsstock in exchange for all for all thestock of Software Moguls. Approx.value $10.2M

SM-arch; backup-retrievalproducts

Source: Legato Press Releases; Bloomberg

Figure 138. Network Appliance Acquisitions

DateAnnounced


5-Sep-00 5-Sep-00 WebManage Stock purchase $75M Content managementsoftware

13-Jun-00 13-Jun-00 Orca Systems Stock purchase $49M Virutal Interface (VI)software

17-Mar-97 17-Mar-97 InternetMiddleware

Stock puchase $7M Internet proxy cachingsoftware

Source: Network Appliance Press Releases, Bloomberg


140

Figure 139. Veritas Acquisitions

DateAnnounced


15-Feb-01 15-Feb-01 Prassi Europe SAS Cash purchase Undisclosed CD and DVD-masteringtechnology

29-Mar-00 30-Septapprox.

Seagate Technology Management buyout.Seagate to become private

Investor group and Seagatemanagement purchase Seagate'soperating businesses for $2B.Then Veritas acquires Seagate,including all of VRTS shares thenheld by Seagate plus investmentsecurity investment in othercompanies and cash

None. Financialtransaction.

17-Aug-99 17-Aug-99 ClusterX, part of NuView,Inc.

Purchase accounting; cash& stock

$67.9M in cash and stock ClusterX

1-Sep-98 1-Jun-99 TeleBackup Systems Inc. Amalgamation underCanadian law; tax-free;pooling of interests

1.7M shares of VRTS, entire dealvalued at $86M

TSInfoPRO

5-Oct-98 28-May-99 Seagate Software'sNetwork StorageManagement Group

Purchase accounting; tax-free; merger

33M shares of SEG (for thesoftware business valued at$1.6B); VRTS will assume NSMGemployee options. Total approx.value $3.1B

Storage managementsoftware for UNIX andWindows NT platforms;Netbackup Professional

18-Feb-99 3-Feb-99 OpenVision Australia Pty.Ltd.

Subsidiary formed;purchase accounting; non-dilutive (purchase)

Undisclosed amount Distribution

10-Feb-99 8-Feb-99 Frontier SoftwareDevelopment (India);Private Limited (Pune,India operations)

Wholly owned subsidiary;purchase accounting; nondilutive

Undisclosed amount Development Center

18-May-98 15-May-98 Windward TechnologiesInc.

Purchase accounting; cash Undisclosed amount Windward Lookout failureprediction software

13-Jan-97 24-Apr-97 OpenVision Technologies Pooling of interests; tax-free; merger

7.5M shares of VRTS. Entire dealvalued at $126.6M

Business applicationmanagement solutions;HA, UNIX backup,Exchange

28-Mar-96 Advanced ComputingSystems Inc.

Purchase accounting; cashand royalties

$3.5M cash plus royalties, cappedat $5.5M

Network Removable MediaLibrary (VML Media Lib)

12-Apr-95 10-Apr-95 Tidalwave TechnologiesInc.

Pooling of interests;exchange of stock

117,374 shares of VRTS;VERITAS assumes a warrantwhich entitles the holder to acquirean additional 27,010 shares ofVRTS common stock

FirstWatch failoversoftware; HA

Source: Veritas Press Releases; Bloomberg

The advantages of a “total solutions” product offering have helped driveconsolidation in the storage software market. Rather than offering a niche set ofsoftware products and competing with larger competitors with a complete softwareproduct portfolio, both acquirers and acquirees see the wisdom in merging, therebyincreasing the combined companies’ potential addressable market by offering amore complete total solutions package.

Even with all the consolidation that has already occurred, we believe the storagesoftware market still has many companies left that will go out of business or will beacquired. We estimate that 15%–20% of the storage software market remains“white box” (i.e., in the hands of small companies).

Storage Software TrendsIn the past, storage software has been somewhat interesting, offering backup,recovery, device administration, media library management, HSM, file system andVolume Management (VM) software. But it has been the recent momentum of datareplication, SAN/Device Administration, and SRM software that have broughtmainframe and open-systems computing to a more level playing field. We believethese budding segments will not only offer significant growth well into the future,

The advantages of a“total solutions” product

offering have helpeddrive the consolidationin the storage software

market.

We estimate that 25%–30% of the storage

software market remains“white box.”


141

but will increase the value of the other more traditional storage software productareas.

For example, the development and implementation of SRM and SAN/DeviceAdministration (which are two pieces of the same function; please refer to the“Software Applications” section for more details on SRM) have enabledbackup/recovery networking to be done more manageably. When systems go on anetwork they often become more complex and harder to manage due to the inclusionof many more variables. With SRM and SAN/Device Administration, theenvironment can be viewed and altered more easily. SRM will bring thearchitecture up into a format that is easy to read and understand and SAN/DeviceAdministration will alter the environment to make the appropriate policy changesdesired. Therefore, SRM and SAN/Device Administration help generate moredemand for Backup/Recovery Networking (open systems) versus Backup/RecoveryHost (mainframe).

Figure 140 below outlines the storage software market segments in 1998 and 2005based on Dataquest’s projections and categories. Going back to 1998 might seemlike a bit much, but it helps accentuate the trends. Note the increase in the size ofthe market: from $2.9 billion (1998) to $16.7 billion (2005) in seven years,representing a 29% CAGR between 1998 and 2005. Also note that SRM moves to10% from 4% of the total market; Virtualization to 7% from 2%; and Replication to20% from 15%. Note: Dataquest revenue calculations include new license sales butnot revenues from maintenance and support services.

Figure 140. Storage Software Trends

Backup /Recovery Host

23%

HSM / Archive9%

Data Replication15%

Core StorageManagementTechnology

8%

Storage ResourceMangement

4%

VirtualizationSoftware

2%Media & LibraryManagement

8%

SAN & DeviceAdministration

5%

Backup /Recovery Network

26%

SAN & DeviceAdministration

10%

Backup /Recovery Network

25%HSM / Archive

4%

Data Replication20%

Core StorageManagementTechnology

16%

VirtualizationSoftware

7%

Media & LibraryManagement

3%

Storage ResourceMangement

10%

Backup /Recovery Host

5%

1998$2.9 Billion

2005$16.7 Billion


NT and UNIX FocusWhen looking at specific companies in the storage software market, it is importantto recognize the difference between mainframe (MVS) and open systems (NT andUNIX). In 2000, UNIX storage software revenues surpassed mainframe revenues.In 2001, Windows NT storage software revenues are projected to also surpassmainframe revenues (Figure 141 below).

It has been the recentmomentum of data

replication, SAN/DeviceAdministration and SRM

software that havebrought mainframe and

open-systems computingto a more level playing

field.

NT and UNIX are thefastest-growing

segments in the storagesoftware market.


142

Figure 141. Total Worldwide Storage Software Market Revenues by Platform

CAGR1998 1999 2000 2001 2002 2003 2004 2005 2000-2005

MVS 1,322.1 1,541.9 1,491.0 1,491.0 1,505.9 1,528.5 1,548.4 1,565.4 1.0%Unix 745.9 1,306.9 2,094.8 2,792.6 3,766.1 4,967.1 6,407.6 8,265.8 31.6%Windows NT 478.8 810.9 1,213.8 1,859.5 2,640.5 3,624.9 4,817.8 6,233.6 38.7%Netware 153.6 207.2 139.9 125.9 107.0 85.6 59.9 54.9 (17.1)%Proprietary 68.6 86.2 175.4 228.0 285.0 342.0 393.3 432.7 19.8%Windows 32 61.9 86.8 89.9 98.9 107.8 116.4 124.6 132.0 8.0%Windows 16 13.6 8.0 3.2 0.8 - - - - NAVMS 20.2 15.7 18.7 18.7 18.3 17.8 17.1 16.2 (2.8)%OS/400 8.0 13.1 16.3 18.7 20.6 22.7 24.9 26.2 10.0%OS/2 6.9 2.5 1.2 0.6 0.3 0.1 - - NAMacintosh 10.6 8.8 7.2 5.8 4.5 3.4 2.5 1.8 (24.2)%Total 2,890.2 4,088.0 5,251.4 6,640.5 8,456.0 10,708.5 13,396.1 16,728.6 26.1%


It comes as no surprise to us that most companies are increasing their focus on NTand UNIX. In fact, while BMC, Computer Associates, and IBM derived a goodportion of their revenues from the mainframe platform in 2000 (63%, 46%, and76%, respectively), the up-and-comers such as EMC and Veritas derive the bulk oftheir revenues from NT (23% and 32%, respectively) and UNIX (64% and 64%,respectively). The mainframe storage software market share breakdown for 2000 isshown in Figure 142 below.

Figure 142. Mainframe Storage Software Market Share (2000)

IBM42%

ComputerAssociates

19%

EMC11%

BMC9%

StorageTek9%

Other10%

Source: Dataquest (April, 2001). Includes MVS and VMS.

Figure 143 below illustrates the storage software market share on the UNIXplatform in 2000. Veritas has a much larger presence in open systems, on bothUNIX and Windows NT.

Most companies areincreasing their focus on

NT and UNIX.


143

Figure 143. UNIX Storage Software Market Share (2000)

EMC40%

Veritas26%

IBM7%

BMC4%

Legato3%

Hewlett-Packard4%

ComputerAssociates

3% Other13%


Figure 144 below illustrates the storage software market share on the Windows NTplatform in 2000.

Figure 144. NT Storage Software Market Share (2000)

EMC26%

Veritas22%Computer

Associates16%

Compaq8%

Legato6%

Other22%


Storage Software Projections and Market ShareSoftware is the glue that ties together various computing devices and platforms. Theincreasing complexity of data management has made high-level softwarefunctionality non-negotiable. As a result, the storage software market has grownsubstantially. Dataquest projects that worldwide storage software market revenueswill grow to $16.7 billion in 2005 from $5.3 billion in 2000, representing a 26.1%CAGR.

In Figure 145 below is the storage software triangle, a layered diagram of thesubsegments which does not exactly fit the order Dataquest uses, but it is the waywe prefer to look at the market.

Software is the glue thatties together various

computing devices andplatforms.


144

Figure 145. Total Worldwide Storage Software Market Revenues

StorageResourceMgmt.

SAN & Device Administration

HSM / Archive

Data Replication

Backup / Recovery Network

Backup / Recovery Host

Media & Library Management

Core

Virtualization

Clustering

Applications

Core

2000Market SizeTotal $5,251M

2005Market SizeTotal $16,729MCAGR 26.1%

$271.3

$966.9

NA

$327.2

$378.6

$178.5

$791.7

$307.1

$1,332.6

$697.6

$1,709.5; 44.5%

$3,323.2; 28.0%

NA

$506.6; 9.1%

$1,644.7; 34.1%

$1,213.5; 46.7%

$2,652.7; 27.4%

$603.8; 14.5%

$4,305.9; 26.4%

$768.7; 2.0%

Source: Dataquest (May, 2001) and Salomon Smith Barney

With increased storage subsystem capacities and complexities, software-controlledstorage management is becoming a must. Software is quickly becoming animportant enabler to keeping the explosive growth of data under control.

Figure 146 below outlines the leading storage software vendors’ market share andgrowth rates.

Software-controlledstorage management is

becoming a must.


145

Figure 146. Total Worldwide Storage Software Market Revenues by Selected Vendor

($ in millions)

1998 1999 2000Market Market Market Change

1998 Share 1999 Share 2000 Share 1999-2000EMC 444.7 15% 802.8 20% 1340.6 26% 67.0%Veritas 293.2 10% 504.7 12% 855.1 16% 69.4%IBM 607.7 21% 723.6 18% 843.9 16% 16.6%Computer Associates 596.2 21% 798.7 20% 612.7 12% (23.3)%BMC Software 164.9 6% 228.9 6% 224.1 4% (2.1)%Network Appliance 14.9 1% 53.1 1% 156.0 3% 193.8%StorageTek 86.9 3% 112.8 3% 143.5 3% 27.2%Compaq 14.8 1% 44.9 1% 143.2 3% 218.9%Legato 147.2 5% 172.2 4% 142.3 3% (17.4)%


Storage Software Product Descriptions by CategoryWe believe the best way to analyze the storage software market is withinDataquest’s framework. We have been impressed with Dataquest’s analysis and,therefore, use Dataquest’s definitions and estimates in most of our analysis.However, we have added clustering as a separate category and have re-ordered thecategories in the way we prefer to look at the market. The following are detaileddescriptions of each enterprise storage software product category, in order from thetop of the software pyramid to the bottom (Figure 145 above), mostly provided byDataquest:

➤ Storage Resource Management: SRM products provide data collection andautomation agents that consolidate and operate on information from multipleplatforms supporting storage management tools on multiple operating systems,and storage and SAN devices. Key functions include capacity reporting andanalysis, performance reporting and analysis, capacity and performancemanagement automation, storage management product integration, applicationand database integration, and hardware integration. Basic network and systemmanagement (NSM) integration should provide the ability of the SRM productto externalize events to other management products via SNMP (storage networkmanagement protocol). Product-specific integration includes the ability tolaunch the SRM product from the NSM console. Integration with SAN anddevice administration products and media management products should includelaunch of hardware configuration utilities from the SRM console, collection andreporting of agent information, and integration of logical-level data.

➤ Data Replication: This segment includes snapshot, data movement, and datareplication products.

➤ HSM and Archive: Hierarchical Storage Management (HSM) products operateon defined storage policies that provide for the automatic migration ofinfrequently used files to secondary storage. Archive products provide for thestoring of a point-in-time version of a file for historical reference.


146

➤ Backup/Recovery Network: This segment includes those products thatmanage data protection processes on multiple systems from a singlemanagement location.

➤ Backup/Recovery Host: This segment includes products designed specificallyto manage host-attached storage.

➤ Virtualization: Virtualization software creates an abstraction layer thatseparates physical storage from logical storage, masks complexities to simplifystorage management and enables storage resource optimization via pooling.This segment includes software products that sit on an application server or aserver appliance between the server and the storage.

➤ Clustering: Server clustering software creates highly available systems byenabling groupings of servers to appear as one. If a primary server fails, asecondary server will assume its functions.

➤ Media and Library Management: Products in this segment are designed tomanage and optimize drive and library hardware, removable media, andoperational labor across tape, optical platters, and CD-ROM. Mediamanagement activities include allocating, labeling, tracking, recycling, andmonitoring media, as well as storage pool management.

➤ SAN and Device Administration: Storage subsystems and SAN infrastructurecomponent software products provide configuration utilities and agents thatcollect capacity, performance, and status information, usually for a single devicetype or a set of devices from a single vendor.

➤ Core Storage Management Technology: The core segment includes filesystems, volume management products, and emerging technologies that do notfit into one of the other segments.


147

➤ The four storage software applications we view as importantcatalysts for future growth are: 1) Storage Resource Management, 2)Replication, 3) Serverless and LANless Backup, and 4) HierarchicalStorage Management. [We discuss file systems, volumemanagement, and virtualization in our previous section: “RAID Is NoGood Without Core Software.”]

➤ We expect to see these key four segments also drive growth in moretraditional storage software product areas.

➤ We believe EMC and Veritas are the two horses to bet on. Also, thereare other emerging companies coming out with new applications andtechnologies that deserve attention.

The four storage software applications we view as important catalysts for futuregrowth are: 1) Storage Resource Management, 2) Replication, 3) Serverless andLANless Backup, and 4) Hierarchical Storage Management. [We discuss filesystems, volume management, and virtualization in the previous “RAID Is No GoodWithout Core Software” section.] We expect to see these key four segments alsodrive growth in more traditional storage software product areas.

We believe EMC and Veritas are the two horses to bet on in the storage softwarerace. They are currently the storage software market leaders and both gained marketshare in 2000. We also believe other companies are coming out with important newproducts and technologies that merit attention.

1. Storage Resource Management (SRM)We view SRM as one of the most coveted assets of emerging SAN environments.SRM is the looking glass into a data infrastructure that can enable greatermanageability of resources. Therefore, it is high priced real estate (you see the logoall day long) and it is very “sticky” (swapping applications is painful).

SRM improves manageability by allowing SAN administrators to view and controlproducts from multiple locations on a single console, versus managing themindividually. This can lead to significant cost savings by enabling four to seventimes greater data management per person, thereby, reducing the number of peopleneeded to manage the environment.

Additionally, the Graphical User Interface (GUI) is high priced real estate and isvery sticky. It’s similar to Windows. Once you get used to using Microsoft’sWindows GUI, you might be more inclined to use Microsoft’s Word or Excel,instead of (say) Word Perfect or Lotus 1-2-3. Controlling this real estate not onlyopens up follow-on business, it also drives brand recognition (which is why thevendor that built your computer monitor put its brand name on the front of thescreen).

This is ground zero of the storage battle and could prove to be a winner-takes-allcontest. Therefore, we believe SRM is very important to understand.

fs

Software Applications

SRM is one of the keyareas of focus for SANs

and represents excellentgrowth opportunities.


148

What Is SRM?While SRM has traditionally been the software that provided a window to view thestorage environment from a single console and measure the performance of devices,it is also increasingly including the device administration software that provides theadministrative tools to alter the environment, including policy definitions, devicezoning, load balancing, and capacity allocation. In other words, SRM used to bedefined as the software that made everything easy to view and measure. Now itincludes active management, referred to as “drag-and-drop” functionality. Think ofit in the context of your Microsoft Explorer application, separating viewing theenvironment from using your mouse to make a change to it.

EMC’s ControlCenter 4.3 has been the clear leader in the Storage ResourceManagement software market. We expect some new entrants to gain traction in2002 and beyond, for example, Prisa’s VisualSAN, Veritas’s SANPoint Control 2.0,InterSAN’s Virtual Private DataPath technology, Legato’s GEMS SRM, and SunMicrosystems’ HighGround SRM 5.0.

Below in Figure 147 is a snapshot of EMC’s ControlCenter.

Figure 147. EMC’s ControlCenter Software


Device AdministrationDevice Administration software controls a device; in other words, it can change itsenvironment — it is active, not passive. Brocade’s Fabric OS software is anexcellent example of device administration software. Another example is EMC’sSymmetrix Manager, which is now tied together with ControlCenter.

Symmetrix Manager

Third-partyswitch software

ESN ManagerNavisphere


149

Load Balancing

Brocade’s Fabric OS is considered to be one of the more sophisticated storagenetworking software device administration software applications. It helps createnetwork-aware storage environments. Features such as load balancing ensure theeven flow of data through the network. This further contributes to data availabilityby balancing traffic evenly across the network. In other words, if one switch (orport) is being overloaded and another switch (or port) has excess capacity, some ofthe data can be sent through the other, less congested switch (or port), resulting in amore efficiently run network.

Trunking is also a component of load balancing. Trunking allows the aggregation ofthe bandwidth from multiple ports. For example, four 2 Gpbs ports can be trunkedtogether to create a single virtual 8 Gbps port.

Failover

Another one of Brocade’s advanced device administration software features hasbeen its failover capabilities. This is the software that enables multiple networkingdevices to reroute storage traffic through alternative paths upon the devices’ failure(failover can also occur within the same device between multiple ports uponcomponent failure).

Security

Security has been increasing in importance to protect users from accessing datawithout permission and protecting against corruptions and failures.

We believe Brocade’s advanced software features have been one of its strongestassets that have helped it dominate the storage switch market.

Robust SRM Software Promotes Wider AdoptionWe believe the availability of robust Storage Resource Management (SRM)software is contributing to broader storage network adoption by providing a user-friendly window to view and manage storage environments.

Figure 148 below is an example of an SRM GUI interface from Prisa Networks.Note the similarity to Microsoft’s Explorer.

Brocade’s Fabric OS isone of the more

sophisticated storagenetworking software

device administrationsoftware applications.


150

Figure 148. Prisa Networks’ VisualSAN Network Manager

Source: Prisa Networks


151

Figure 149 below has more examples of Prisa Networks’ GUI interface.

Figure 149. Prisa Networks’ VisualSAN Performance Manager


SRM Projections and Market ShareDataquest projects SRM software will grow to $1,709.5 million in 2005 from $271.3million in 2000, representing a 44.5% CAGR (Figure 150 below).

Figure 150. Storage Resource Management Projections

Revenues in millions

$0$200

$400$600$800

$1,000

$1,200$1,400$1,600$1,800

1998 1999 2000 2001 2002 2003 2004 2005

44.5% CAGR

Source: Dataquest (May, 2001). CAGR is for 2000 through 2005.


152

While vendors such as Computer Associates, BMC Software, and IBM representmainframe SRM software and currently own the bulk of the market, the entrances ofSterling (owned by Computer Associates), HighGround (owned by Sun), and EMC(through its ControlCenter software) have pushed SRM into open systems and are amain driver for Dataquest’s projections (see Figure 150).

Figure 151 below breaks out the market share of industry leaders on all platforms.

Figure 151. Storage Resource Management Market Share, All OS

EMC33%

ComputerAssociates

25%

BMC Software18%

IBM7%

HighGround (Sun)3%

Others14%

EMC19%

ComputerAssociates

42%

BMC Software13%

IBM7%

HighGround (Sun)2%

Others17%

1999 2000


Figure 152 below breaks out the market share of industry leaders on the UNIXplatform. EMC has the largest share of this market.

Figure 152. Storage Resource Management Market Share, UNIX

EMC54%

BMC Software33%

Others8%

Legato1%

Hewlett-Packard2%

HighGround (Sun)2%

EMC31%

BMC Software27%

Hewlett-Packard4%

Legato17%

Others18%

HighGround (Sun)3%

1999 2000


Figure 153 below breaks out the market share of industry leaders on the WindowsNT platform. EMC gained significant share from 1999 to 2000.


153

Figure 153. Storage Resource Management Market Share, Windows NT

EMC31%

ComputerAssociates

15%

W. Quinn13%

HighGround11%

Northern Parklife7%

Others23%

EMC2%

ComputerAssociates

48%

W. Quinn13%

HighGround7%

Northern Parklife9%

Others21%

1999 2000


EMC’s ControlCenter Is the SRM LeaderEMC’s ControlCenter is a suite of host-based software applications that provide usermanagement of storage components across EMC’s Enterprise Storage Networks(ESNs). Management functions include monitoring, configuration, control, tuning,and planning.

ControlCenter Characteristics➤ Tight Integration: ControlCenter works with the following subsystems:

EMC’s Symmetrix and Clariion, Compaq’s StorageWorks, HDS’s Lightning,and StorageTek’s Fibre Channel tape drives. ControlCenter also works withConnectrix switches. Note: Connectrix switches are OEM’ed from McData andBrocade. ESN (Enterprise Storage Network) Manager, a powerful plug-insoftware application featuring zoning and path management, provides evengreater control over the switches. With regards to other vendors’ subsystems,the viewing function should perform well but the management function couldhave more difficulty tightly integrating due to the potential reluctance ofcompetitors to support EMC.

➤ Mainframe Platforms: In addition to working on open systems platforms,EMC’s ControlCenter also works in mainframe environments, giving it accessto the entire market. EMC is one of the few storage software companies that hasa leading position on all three major platforms (mainframe, UNIX, and NT).

Veritas Has Entered SRMVeritas’s SANPoint Control manages heterogeneous SANs to control devices —including volumes, HBAs, switches and storage subsystems — from a singlemanagement interface. Veritas had less than 1% of the SRM market in 2000 asSANPoint was only released in the fourth quarter, but we expect it to expandaggressively as it rolls out its 2.0 version released in May, 2001.

SANPoint Control Characteristics➤ Heterogeneity: SANPoint Control 2.0 can specifically identify certain

subsystems from the same vendors as either EMC, HDS, or Compaq. It can alsodetect certain switches from QLogic, Brocade, McData, and Inrange. Veritashas a long track record of successful heterogeneous solutions since it has beenintegrating its software with other vendors’ products for over a decade.

EMC’s ControlCenter hastight integration with the

hardware.

Veritas has a long trackrecord of successful

heterogeneoussolutions.


154

However, as a non-hardware vendor it does not have the advantage of beingtightly integrated with a proprietary subsystem.

➤ Open Platforms: SANPoint Control works on open systems platforms (UNIXand NT).

➤ A Recent Entrant: Veritas only released SANPoint Control in the fourthquarter of 2000. EMC released Symmetrix Manager, an early incarnation ofControlCenter, in early 1998. A more mature product can offer greaterreliability through years of testing in actual environments.

2. ReplicationWe view replication as a critical business asset. Replication creates multiple copiesof data to ensure an uninterrupted business environment. A large part of replicationis that it acts as an emergency plan for data infrastructures that can prevent atemporary or permanent loss in data availability. Therefore, replication istransitioning from becoming a discretionary, to a necessary expense and in somecases is being leveraged as a competitive advantage as data grows both in quantityand significance and customers demand access to information 24 hours a day, sevendays a week without interruption for any reason.

Replication has been a solid area of growth for EMC in the past and we think it’sonly going to get better.

What Is Replication?Replication enables the mirroring of data between disk storage subsystems to ensurethe continuous availability of enterprise data during planned or unplanned outages.Replication provides business continuance capability in the event of a data centerdisaster, and during planned events such as daily backups, database loads andrefreshes, application testing, scheduled maintenance, and data center migrations orconsolidations.

Below we have illustrated what data replication might look like.

Figure 154. Data Replication


Replication istransitioning from

becoming adiscretionary, to a

necessary, expense.

Replication enablesmirroring of data

between two physicallyand geographicallyseparated storage

subsystems.

Primary Data

Replicated Copy


155

Although Veritas recently introduced its own replication solution, EMC is still theclear leader in this market segment. Other players include Legato’s Octopus,NetApp’s SnapMirror, and NSI’s Double-Take.

Disaster Recovery (DR)Disaster Recovery software, a subset of Replication, enables the high availability(HA) of data by creating a real-time copy at a remote location. In the event of adisaster, such as a power outage, which could affect the data infrastructure in aparticular business or region, businesses can be switched over to a replicated datafacility in a different location.

Without replication, lost data and prolonged downtime could result in a loss ofmassive amounts of revenue and productivity, as well as in customer trust, brandequity, and competitive advantages which can take years to build but just hours todestroy. Replication can also prevent a loss in productivity as employees sit idle forhours while the original data infrastructure is restored, as would be the case with arecovery from a tape backup.

Below in Figure 155, we illustrate how a disaster recovery architecture might beviewed.

Figure 155. Disaster Recovery Architecture


Figure 156 below provides estimates of the cost of downtime.

Primary datacenter in NY

Backup datacenter in FL


156

Figure 156. Downtime Costs

Application Downtime CostsFinancial Brokerage $6,450,000 / hrCredit Card Authorization $2,600,000 / hrHome Shopping $113,000 / hrCatalog Sales $90,000 / hrAirline Reservations $90,000 / hrTele-Ticket Sales $69,000 / hrPackage Shipping $28,000 / hr

Source: Fibre Channel Industry Association

Replication Projections and Market ShareWe expect replication to be one of the fastest growing storage software segments.Dataquest projects replication software will grow to $3,323.2 million in 2005 from$966.9 million in 2000, representing a 28.0% CAGR (see Figure 157 below). Asbandwidth and disk prices decline, the investment needed to create a secondary sitefor disaster recovery decreases.

Figure 157. Data Replication Projections

Revenue in millions

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1998 1999 2000 2001 2002 2003 2004 2005

28.0% CAGR


Data Replication has been one of EMC’s most valuable assets, generating 42% ofEMC’s new software license revenues in 2000. According to Dataquest, EMC’sreplication software has dominated its segment with 58% market share in 2000,while its three closest competitors combined represented only 19% (see Figure 158below). According to Dataquest, EMC grew its replication revenues 38% in 2000.Note: EMC replication revenues include SRDF, TimeFinder, InfoMover,CopyPoint, and Extractor/Resource Pak.


157

Figure 158. Replication Market Share, All OS

EMC65%

NetworkAppliance

4%

Compaq1%

Symantec6%

StorageTek5%

Others19%

1999 2000

EMC58%

NetworkAppliance

10%

Compaq5%

Symantec4%

StorageTek4%

Others19%


Figure 159 below illustrates the UNIX replication market share. EMC clearlydominates this market segment.

Figure 159. Replication Market Share, UNIX

EMC85%

Others15%

EMC89%

Others11%

1999 2000


Figure 160 illustrates the Windows NT replication market share. EMC hassignificantly increased its lead in this segment.


158

Figure 160. Replication Market Share, Windows NT

EMC41%

Compaq24%

PowerQuest11%

Legato9%

Others15%EMC

29%

Compaq13%PowerQuest

16%

Legato21%

Others21%

1999 2000


EMC’s SRDF Is the Clear LeaderTake a Look at EMC’s Secret Sauce — SRDFEMC’s replication software, Symmetrix Remote Data Facility (SRDF), has been oneof its key differentiators. SRDF is EMC’s remote data replication software thatenables the synchronous replication of data in various locations. In our opinion,ensuring disaster recovery is one of the single most important assurances an ITmanager wants.

SRDF Characteristics➤ Storage-centric: SRDF provides this facility simultaneously to mainframe,

UNIX, Windows NT, and other systems. This storage-centric (i.e., residing onthe subsystem), mirrored, data storage solution duplicates production site dataon one or more physically separate target Symmetrix systems. Systems can beacross the room, across the globe, or anywhere in between.

➤ Low Transmission Costs: SRDF’s multi-hop capability decreases linetransmission costs by mirroring only the tracks changed since the last update,and by taking advantage of lower cost transmission lines, such as Ethernet.

➤ Simultaneous Use of Data: Scheduled backup operations, data warehouseloading, or new application testing can be performed from the target Symmetrixdata (the second copy), while normal operations are continuously running on theoriginal Symmetrix system.

➤ Synchronous and Asynchronous: EMC mainly offers SRDF over FibreChannel, interconnected by T1 and T3 lines, for synchronous applications.EMC also offers SRDF over IP (Internet Protocol) for asynchronousapplications as a less expensive, less robust solution. (Note: Synchronous is realtime, asynchronous is for static information.)

Below is an illustration of a potential architecture using EMC’s SRDF. In onebranch, two Symmetrix systems are connected via dark fiber. In this configuration,replication can be accomplished either synchronously or asynchronously. In anotherbranch, two Symmetrixes are attached via IP. In this configuration, replication canonly be accomplished asynchronously.

EMC’s replicationsoftware, SRDF, has

been one of its keydifferentiators.


159

Figure 161. EMC’s Replication Software Can Mirror Data in Two Different Locations

Client 2 LAN SAN

Client 1

Client 3

ApplicationServer 1

TapeLibrary

EMCSymmetrix 2

WAN/ MAN/LAN/ SAN

ApplicationServer 1

EMCCelerra

EMCSym 1

EMCSymmetrix 3

EMCSymmetrix 5

EMCSymmetrix 6E

MC

’sSR

DF

over

IP

EMC’sSRDFover IP

EMCSymmetrix 4

EM

C’s

SRD

Fov

erD

ark

Fib

er


Veritas Has Entered ReplicationWe believe Veritas is in an excellent position to benefit from replication marketexpansion over the next few years. Why? Aside from Veritas’s increasing focus onthis market segment, it can provide heterogeneous replication across platforms,servers, and storage (EMC only provides the first two and, we would argue, does notcurrently have much incentive to help out its competitors by providing the third).We believe this creates significant opportunity for Veritas.

Veritas Is Poised to Rock ReplicationIn our opinion, 2002 will be the year Veritas really gains replication momentum.Note: In addition to its primary Volume Replicator product, Veritas also offers twoother replication products: File Replicator and Storage Replicator for Windows.

Volume Replicator Differences➤ A Recent Entrant: Veritas released Volume Replicator in the third quarter of

2000 (although the company had been developing the product for many yearsbefore it was released).

➤ Server-centric: Volume Replicator is server-centric (i.e., it resides on theserver) as opposed to EMC’s SRDF, which resides in the storage subsystem.

➤ Heterogeneity: Volume Replicator works with storage subsystems frommultiple vendors, offering greater vendor flexibility. EMC’s SRDF replicatesdata from one Symmetrix (its subsystem offering) to another Symmetrix. Ahomogeneous solution can offer greater functionality since it is more tightlyintegrated with the unique features of a particular hardware platform; however,customers often prefer flexibility in choosing subsystems from multiple vendors.

We believe vendors arelooking for a third-party

vendor for replicationsoftware. We believe

Veritas fits that bill.


160

3. Serverless and LANless BackupWe believe that serverless and LANless backup are two of the most compellingreasons for SAN adoption. Serverless and LANless backup are high availabilitymethods to back up data. By leveraging the SAN architecture, these applicationsfree up expensive bandwidth and CPU cycles. Therefore, serverless and LANlessbackup are “killer applications,” which reduce infrastructure costs and maximizeavailable resources by offloading work from the LAN to the SAN.

Serverless and LANless backup improve availability by allowing the backup of datawithout the need for a dedicated server or without having to utilize the LAN. Thiscan lead to significant cost savings by requiring less servers and bandwidth for thedata infrastructure.

We believe these applications will be two of the largest drivers for SAN adoption.This could prove to be a high growth area for storage software companies.

Traditional DAS BackupIn a traditional DAS architecture, generally speaking, application servers and theLAN must be used when backing up data. Large data backups can sap anapplication server and congest the LAN. Therefore, by offloading backups onto aSAN, servers and LANs can function more efficiently without the burden of bulkstorage traffic.

In Figure 162 below, backing up Subsystem 2 to the tape library traditionally wouldsend the data through Server 2, onto the LAN, through Server 1, and then into thetape library (the reverse would occur to recover the data).

Note: The thick lines represent the data path in the figures that follow.

We believe the real“killer application” thatSANs can deliver today

is serverless andLANless backup.


161

Figure 162. Traditional DAS (Direct Attached Storage) Backup

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1




Subsystem 2

Subsystem 3


What Is LANless Backup?SANs enable LANless backup by offloading backup traffic onto a dedicated storagenetwork thereby reducing LAN congestion (see Figure 163).

Figure 163. SAN Backups Can Be LANless

LAN SAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1

SAN(LANless Backup)

•In a SAN architecture,backup traffic can beoffloaded onto a dedicatedstorage network whichavoids further LANcongestion.

•LANless backup doesinvolve an application serverto run the backup software.

Subsystem 2

Subsystem 3


Many traditional architectures avoid this type of LAN congestion by directlyconnecting servers to each other via a SCSI or Fibre Channel cable. We wouldargue that this is an early stage SAN. The next logical evolutionary step isserverless backup as intelligence is added into the network and onto subsystems.

What Is Serverless Backup?Taking backup one step further, SANs enable serverless backup by offloadingbackup traffic onto a dedicated storage network to reduce LAN congestion as well as

SANs enable LANlessbackup by offloadingbackup traffic onto a

dedicated storagenetwork thereby

reducing LANcongestion.


162

server involvement (see Figure 164). Therefore, serverless backups are alsoLANless by definition.

Figure 164. SAN Backups Can Be LANless and Serverless

LAN SAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

SAN(Serverless Backup)•In a SAN architecture,backup traffic can beoffloaded onto a dedicatedstorage network toavoid further LANcongestion.

•Backup and recovery donot have to involve anapplication server to run thebackup application software,thereby freeing servercapacity.

Subsystem 1

Subsystem 2

Subsystem 3


We believe Veritas’s NetBackup, Legato’s Celestra, and Computer Associates’ARCserveIT are the leading LANless and serverless backup software products. Weexpect the availability of these killer applications (particularly serverless backup)will significantly increase the demand to network storage. Although theseapplications have been promised for over a year, we expect broad adoption to beginin 2002, as other SAN technologies also evolve.

4. Hierarchical Storage Management (HSM)We view Hierarchical Storage Management (HSM) as one of the traditionalapplications which can benefit greatly from increased SAN adoption. The goal ofHSM is to reduce the cost of storing data by more effectively utilizing secondarystorage capacity. Secondary storage can cost as little as 3% of the cost of primarystorage.

HSM can leverage storage capacity by more efficiently incorporating secondarystorage; thereby potentially expanding a user’s available storage capacity withexisting resources (i.e., without increasing cost). Secondary storage capacity,particularly tape, is relatively less expensive (and easier) to expand. Don’t you hategetting reminders to empty out your email basket and then being locked out ofsending new emails because you have exceeded your storage limit? Then, afterdeleting all old emails, you discover that you need data from an old email. Read onto see how HSM could help.

HSM Positives:➤ It reduces costs

➤ It expands storage capacity

Hierarchical StorageManagement (HSM) isone of the traditional

applications which canbenefit greatly from

increased SAN adoption.


163

HSM Negatives:➤ Slower data access

SANs enable a broader application of HSM, even though HSM has been around fora while. SANs make HSM more attractive by reducing the resources needed toutilize it.

HSM is a good example of how the adoption of a SAN infrastructure can maketraditional applications even more powerful. Additionally, as IT budgets comeunder more scrutiny, applications with immediate and tangible cost savings shouldgrow in importance. Therefore, we believe HSM is important to understand.

What Is HSM?Hierarchical Storage Management is just what it sounds like: prioritized datastorage. HSM assigns a level of “usage” to data. By doing so, intelligent HSMsoftware can prioritize the accessibility of data and store it according topredetermined parameters. For example, HSM would locate a frequently used file(say a phone list) where it could be readily accessed on a primary storage device.On the other hand, HSM might migrate less frequently used data (withpredetermined and preset parameters and thresholds; for example, an employmentcontract) to a secondary storage device. In general, HSM is designed to migrate lessfrequently used data from primary, quick-access storage to secondary, lessexpensive, slower-access storage. Below are definitions of primary and secondarystorage:

Primary storageA primary storage device is a storage device or subsystem that provides fast,easy access to data, such as a disk subsystem.

Secondary storageA secondary storage device is a storage device or subsystem that providesless expensive, slower access to data, such as a tape library or opticaljukebox.

In Figure 165 below, we have outlined how HSM might view data.

Hierarchical StorageManagement (HSM) is

just what it sounds like:prioritized data storage.


164

Figure 165. An Example of How HSM Views Data

Disk Subsystem

Data

Disk Subsystem

FrequentlyUsed Data

Less FrequentlyUsed Data

Unused CapacityUnused Capacity

The wayHSM

Looks At It


HSM can migrate data based on many different variables, or by combiningnumerous variables, such as frequency of use, date (i.e., file age), file size, and typeof data (e.g., attachments, graphics). An example might be email attachments andemails two weeks old and older. In this example, all attachments and emails that aretwo weeks old or older would be migrated from a disk storage subsystem to a tapelibrary. The goal is to reduce the cost of storing data by more effectively utilizingsecondary storage capacity.

The cost advantage of HSM does not come without a performance penalty. Hereagain, we run into the importance of data access, rather than data storage. Thisfunctionality can be a key differentiator. For example, OTG Software provides aunique indexing scheme which truncates (migrates) target data from its location onprimary storage, leaving behind a small “stub file.” The stub file has the updatedlocation of the target data. When clients access data that has been migrated, they hitthe stub file, which, in turn, accesses the target data directly from secondary storagewithout first having to copy it back to primary storage. In Figure 166 below, wehave illustrated how HSM effectively maximizes storage capacity.

The goal is to reduce thecost of storing data by

more effectively utilizingsecondary storage

capacity. Secondarystorage can cost as little

as 3% of the cost ofprimary storage.

OTG Software provides aunique indexing schemethat truncates (migrates)

target data from itslocation on primary

storage, leaving behind asmall “stub file.”


165

Figure 166. HSM Data Migration — Freeing Primary Storage Capacity by Utilizing Less ExpensiveStorage

Disk Subsystem

FrequentlyUsed Data

Stub Files

Utilized Tape Backup

Unutilized Tape Backup

HSMMigrated Data

DataMigration

Tape Library

Disk Subsystem

FrequentlyUsed Data

Less FrequentlyUsed Data

Unused Capacity

UsingHSM Unused Capacity


SANs Make HSM a “Killer App”We believe the deployment of SANs, which provide an any-to-any architecture,increases the attractiveness of HSM by enabling more seamless primary-to-secondary storage data migrations, without involving the LAN and applicationservers.

By taking advantage of a SAN architecture, HSM becomes much more seamlessand, therefore, a “killer application.” In a DAS architecture, data must traverseservers and LANs in order to gain access to a tape library (i.e., a typical HSM datamigration). This may be too taxing on servers and LANs to gain any benefit. In aSAN architecture, data migrations from disk to tape can be done more efficiently byutilizing a dedicated storage network.

Below in Figure 167 we illustrate data migration from a disk storage subsystem(primary storage) to a tape library (secondary storage) in a traditional DirectAttached Storage (DAS) architecture.

By taking advantage of aSAN architecture, HSM

becomes much moreseamless and, therefore,

a “killer application.”


166

Figure 167. Data Migration in a DAS Architecture

LAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

Subsystem 1




Subsystem 2

Subsystem 3


Below, in Figure 168 we illustrate the same data migration as above, but with a SANarchitecture.

Figure 168. Data Migration in a SAN Architecture

LAN SAN

Client 1

Client 2

Client 3

Client 4Server 3

Server 2

Server 1

TapeLibrary

SAN(Serverless Backup)

•In a SAN architecture,backup traffic can beoffloaded onto a dedicatedstorage network whichavoids further LANcongestion.

•Backup and recovery doesnot have to involve anapplication server to run thebackup application software,thereby freeing servercapacity.

Subsystem 1

Subsystem 2

Subsystem 3


Using a SAN, no servers or LAN need to be accessed for tape backup, increasing theavailability of these resources for other uses.


167

HSM Projections and Market ShareDataquest projects HSM and Archive software will grow to $603.8 million in 2005from $307.1 million in 2000, representing a 15% CAGR (Figure 169 below). Note:Archive products create a point-in-time version of a file which can be retrieved at alater date.

Figure 169. HSM and Archive Projections

Revenue in millions

$0

$100

$200

$300

$400

$500

$600

$700

1998 1999 2000 2001 2002 2003 2004 2005

15% CAGR


Figure 170 below shows HSM and Archive market share. IBM dominates thismarket segment.

Figure 170. HSM and Archive Market Share, All OS

IBM48%

OTG Software9%

ComputerAssociates

8%

SGI8%

Others27%

IBM49%

OTG Software4%

ComputerAssociates

10%

SGI12%

Others25%

1999 2000


Figure 171 below shows HSM and Archive market share on the UNIX platform.The market is fairly fragmented with no one having more than 16% market share.


168

Figure 171. HSM and Archive Market Share, UNIX

1999 2000FileTek15%

SGI14%

IBM12%ADIC

9%Sony5%Veritas

5%

Legato3%

Others37%

FileTek17%

SGI12%

IBM11%ADIC

10%Legato

8%Sony3%

Veritas3%

Others36%


Figure 172 below illustrates HSM and Archive market share on the Windows NTplatform. Computer Associates and OTG Software are the leaders in this market.

Figure 172. HSM and Archive Market Share, Windows NT

1999 2000

OTG Software42%

ComputerAssociates

21%

Smart Storage13%

KOM Networks4%

Others20%OTG Software

25%

ComputerAssociates

39%

Others22%

Smart Storage11%

KOM Networks3%


OTG Software’s HSM ProductsWe believe OTG is the leader in HSM software, with Veritas its main competitor.As we see it, the benefits of OTG’s technology are that it is more leveragable andflexible than competitors’ offerings. We believe OTG has achieved its leadershipposition due to its intent focus on the HSM market.

We believe OTG’s EmailXtender is a “killer application” that will provide leveragefor its other Xtender products. OTG’s EmailXtender can uniquely provide: 1)HSM, 2) the ability to easily perform key word and full text searches, and 3) theability to choose multiple secondary storage mediums, such as optical. From whatwe have seen, competing products cannot perform all these tasks. OTG’sEmailXtender can reduce file or data searches from about 11 hours, or from aboutfive hours if the target data has been electronically backed up, to seconds. Webelieve this bodes well for OTG in today’s increasingly regulated environmentwhich mandates that data be stored more often and for longer periods.

OTG has also developed industry-leading content management and search/archivefunctionality into EmailXtender. We believe that these core features, combined withits traditional HSM technology, are what truly puts OTG Software above others.

We believe OTG is theclear leader in HSM

software, with Veritas itsmain competitor.


169

Veritas’s HSM SolutionWhile Veritas only captured 1.5% of the HSM market in 2000, according toDataquest, we believe it is (and will continue to be) OTG’s most visible competitor.Further, we believe Veritas is going to continue to aggressively target the HSMmarket over the upcoming years.

Based on technology, we believe OTG Software has a superior solution. As outlinedin the sections above, OTG’s technology migrates data based on a predetermined setof attributes. In other words, OTG’s technology is flexible enough to migrate olddata, large files, attachments, or data measured by various other predeterminedattributes. Veritas’s HSM software is not as flexible. For example, Veritas’s emailproduct (Remote Storage for Exchange or RSE) only manages email attachments. Inour opinion, OTG has the best HSM technology in the market.

Veritas has a broader distribution outlet and the most popular backup software,which could make it a formidable competitor. Although, on a product basis, OTGseems to have the edge, Veritas has a broader market footprint spanning a morecomprehensive product portfolio. Veritas sells its HSM product packaged (orintegrated) with many other products, including its popular Netbackup software.OTG sells its products as an add-on. This could put Veritas at a competitivemarketing advantage. However, OTG’s partners, Compaq, Legato, Maxtor,StorageTek, Tivoli/IBM, and Quantum, are all OEMs of OTG and embed its HSMtechnology in one form or another, which could level the playing field.

On July 16, 2001, Veritas announced it had created an HSM solution to manageMicrosoft Exchange e-mail attachments for the Maxtor MaxAttach NAS 4100.


170



171

Networking

Storage NetworkingStorage Networking I/O

Storage Networking Equipment


172

➤ We believe storage networking is on the cusp of resuming solidgrowth in 2002, due to many product launches, such as Brocade’sSilkworm 12000, and the industry’s migration to 2 Gbps and PCI-X.

➤ We expect storage networking companies to lead the storageindustry’s growth.

➤ In this section we provide a market overview, followed by moredetailed discussions on HBA and storage networking technologies,markets, and companies.

Peeling the Onion — It’s Not Really a CloudQ: Why is the SAN pictured as a cloud?

A: Because the real depiction (illustrated below) hurts to look at.

In reality, the “SAN cloud” is composed of many different types of networkingequipment; including HBAs, hubs, routers, switches, and Directors.

Figure 173. The Secret Behind a SAN Cloud

LAN

Tape 2

Disk 6

Disk 3

Disk 1

Disk 7

Server 2

Server 3

Server 4

Server 5

Server 6

NASServer 1

Tape 1

Disk 4

Disk 5

Server 1

NASServer 2

Disk 2

Disk 6

Disk 7

Disk 8


Note: In the diagram we use switches, which are usually purchased with 16 ports(moving to include 32 ports). We could use Directors instead or as well. Directors

Storage Networking

In reality, the “SANcloud” is composed ofmany different types ofnetworking equipment.


173

come with 64 ports (McData) and 128 ports (Inrange). We do not specifically depictany routers or hubs per se. Also, note the redundancies in order to ensure multiplepaths and greater uptime in case of a path or device failure.

Mommy, Where Do SANs Come from?Once upon a time there were mainframes and they ruled the earth. Mainframes were(and still are) large scale supercomputers. Think of them as huge servers – IBMdoes. A challenge of the mainframe was storing and retrieving large amounts ofdata. Here they faced two issues. First was that the IBM mainframe S/390, forexample, only has 256 maximum ESCON channels for storage connectivity.However, mainframes (for the most part) can have greater storage requirements thantheir 256 ports can supply. The second issue was that multiple mainframes neededaccess to common disk and tape storage subsystems – remember, these areexpensive items.

Therefore, IBM introduced Enterprise System CONectivity (ESCON), a new andfaster system interconnect (at the time) that could attach to multiple systems. Note:ESCON is simply mainframe connectivity, much the same way SCSI is for opensystems (UNIX and NT). To manage this storage traffic, ESCON Directors werecreated by IBM, Inrange and McData to enable greater mainframe connectivity.ESCON Directors showed up on the market back in the early 1990s. So, storagenetworking is not all that new of a concept. Notice that the capital “D” in Directorsand the name itself is derived from the ESCON Director (mainframe) market.

Today’s SANs Are Simply an Extension of Yesterday’s MainframeStorage Architectures Combined with Data Networking ExpertiseFor mainframes, ESCON Directors were placed behind the mainframe in order to“fan out” and enable greater storage connectivity; thereby, increasing performanceand flexibility. In a sense, today’s SANs are simply an extension of yesterday’smainframe storage architectures, applied to a wider variety of computers andcombined with data networking expertise. Note: Some would argue it’s more of anetworking model applied to storage.

Inrange and McData have come from the mainframe world and are therefore,focused more on providing higher-end storage networking (i.e., Directors). Brocadeand QLogic (through its Ancor acquisition) have come to the market with more of adata networking background and are therefore focused on the mid-range and low-end markets (i.e., switches).

Below we have illustrated a mainframe storage architecture.


174

Figure 174. Mainframe Storage Architecture Using ESCON Directors

Mainframe ESCONDirectors

Storage


Market BreakdownWe believe the SAN concept is one of the more exciting killer applications emergingin today’s information-centric world. But what actually goes on inside the SANcloud?

We have positioned the various storage networking components in Figure 175below, with the upper portion of the pyramid representing moresophisticated/higher-cost devices. We have also depicted the segments we believeare current growth areas. Figure 175 essentially represents our view of the storagenetworking market.

SAN is one of the mostintriguing killer

applications to emerge.


175

Figure 175. SAN Networking Component Analysis

HUBBRIDGESWITCH (FC-AL)

SWITCH

(FABRIC)

SANAPPLIANCE

ROUTER

DIRECTOR

Cost

Technology

HBA

Current Growth Categories OEM ProductsConnected Product Categories


Note: The terms and names of storage networking equipment are very similar toLAN and WAN networking equipment (i.e., bridges, routers, hubs, and switches) butare, in fact, very different technologies.

ProjectionsStorage Networking GrowthStorage networking has emerged as one of the highest-growth areas of storage. Weexpect storage networking growth to lead the overall storage industry. According toDataquest, storage networking growth (2000–05) is expected to reach a 67.0%CAGR versus storage software’s estimated 26.1% CAGR and RAID-based diskstorage 14.7%.


176

Figure 176. Storage Networking Growth Is Expected to Lead the Industry (YoY Growth Projections)

0%

50%

100%

150%

200%

250%

1999 2000 2001 2002 2003

Networking Software RAID


ProjectionsDataquest projects storage networking revenues will grow to $16.9 billion in 2005from $1.3 billion in 2000, representing a 67.0% CAGR. This projected high-growthmarket has attracted fierce competition from many companies looking to be theCisco of storage — including Cisco. (See the “Fibre Channel Versus Ethernet”section for more details).

Figure 177. Projected Storage Networking Revenue Growth

CAGR(Revenue in $millions) 2000 2001 2002 2003 2004 2005 2000-2005FC Routers $50 $70 $110 $160 $240 $360 48.4%FC Hubs $50 $60 $60 $60 $60 $60 3.7%FC Switches $470 $710 $1,090 $2,210 $4,090 $4,930 60.0%FC Integrated Switches $0 $90 $180 $460 $840 $1,040 NMFC HA Core Products $190 $400 $1,040 $2,390 $4,620 $6,240 101.0%FC HBAs $540 $810 $1,140 $2,090 $3,480 $4,250 51.1%Total Storage Forecast $1,300 $2,140 $3,620 $7,370 $13,330 $16,880 67.0%Year-to-Year Growth -- 64.6% 69.2% 103.6% 80.9% 26.6% --


Platform FocusWindows NT is clearly expected to be a SAN growth driver. This should bode wellfor Brocade (which we believe has the lion’s share of the NT storage networkingmarket), Emulex (which supplies Fibre Channel HBAs to Compaq, and EMC), andQLogic (which supplies Fibre Channel HBAs to Dell and NetApp).


177

Using Dataquest’s JOBD and external RAID Fibre Channel storage estimates andprojections as a reference point, we estimate that NT should grow fromapproximately 30% of the SAN market in 2000 to approximately 57% in 2005.Note: Although UNIX is projected to surrender market share to NT, what is notcaptured below is the fact that NT is also growing nicely. In other words, NT issimply expected to outpace UNIX growth. Also, since FICON has only recently beenreleased, it has not yet been included in this analysis.

Figure 178. SAN Market Share by Platform

2000

NT30%

UNIX67%

Other3%

2005

NT57%

UNIX42%

Other1%

Source: Dataquest and Salomon Smith Barney


178

➤ An HBA is needed with most external server-to-storage connections.Therefore, HBA growth should ride the wave of migrations frominternal to external storage. This — combined with more HBAbusiness moving to independent (third-party) players, increasingFibre Channel adoption, and the emergence of additional protocols(such as iSCSI and Infiniband) — should propel the HBA vendorswith solid growth.

➤ Although HBAs are also used in non-networked storageenvironments, SANs increase their importance and demand greaterfunctionality.

The Fibre Channel HBA MarketThe Fibre Channel Host Bus Adapter industry has experienced phenomenal growthin recent years, reaching $540 million in 2000, according to Dataquest. The five-year CAGR through 2005 is expected to reach 51.1% (notice that much of thisgrowth is front-end loaded).

Figure 179. Fibre Channel Host Bus Adapter Growth Projections


$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2000 2001 2002 2003 2004 2005

51.1% CAGR

Source: Dataquest

Storage Networking I/O: HBAs and ICs

The Fibre Channel HostBus Adapter industry

has experiencedphenomenal growth in

recent years.


179

HBA Growth DriversThe growth drivers of the HBA industry have provided an excellent backdrop for allmembers of the group (i.e., a rising tide has lifted all boats), each of whom hasfocused on different segments of the market.

Growth drivers include:

1 the migration to external storage (which uses HBAs, as opposed to internalstorage, which does not),

2 the industry is quickly moving to independent (or non-captive or third-party)players,

3 the greater proliferation of Fibre Channel networking,

4 the increasing demand for greater HBA functionality,

5 the emergence of additional protocols (such as iSCSI and Infiniband), which weexpect to be at least partially serviced by the leading Fibre Channel HBA vendors(all of which have initiatives underway to develop new protocol interface cardsfor future demand).

What Is an HBA?Much like a Network Interface Card (NIC) interconnects servers to PCs via the LANor Ethernet, a Host Bus Adapter (HBA) interconnects servers to external storagedevices (note: HBAs provide far more functionality than NICs, which we discuss inthe “Anatomy of HBAs” section). Back when storage was internal to the server, nosuch Input/Output (I/O) interface was required, since storage was not externallyattached. With the advent of external storage, I/O interfaces (i.e., HBAs) becamenecessary to provide inter-device communication.

Below in Figure 180, we have outlined the placement of NICs and HBAs withinserver-to-PC and server-to-storage architectures. Note: since internal storage isinside the server, there is no such need for an I/O interface.

Figure 180. HBAs Emerged as a Server-to-Storage I/O Interconnect

NIC HBA

EthernetFibre Channel

Server StorageSubsystem

PC

LAN SAN


A Host Bus Adapter(HBA) interconnects

servers-to-externalstorage devices.


180

Below we have listed a side-by-side comparison between NICs and HBAs.

Figure 181. HBAs Versus NICs

Handledby HBAFunction

Handledby NIC

✔✔

✔✔

✔✔

Framing packets

Provide MAC address

Link level error checking

✔✔

✔✔

✔✔

Sequence level error checking

Manages flow control

Performs SAR

Provides linking of I/O request and packet

Handles chaining of multiple requests

Manages many concurrent I/O

✔✔

✔✔

✔✔

✔✔

✔✔

✔✔

RequiresServerCPU

Ability to analyze and manage data

Storage virtualization

✔✔

✔✔

Source: Emulex

Digging a Bit Deeper into Storage ICsIn physical terms, the link between the system and the external storage device needsa controller on both the host side (within a server) as well as the target side (within astorage peripheral or subsystem). The two controllers negotiate the transmission ofdata and must use the same protocol (i.e., IDE, SCSI, or Fibre Channel).

On the host side (the server), the interface can appear as an HBA or an integratedcircuit (IC) on a motherboard. In the Ethernet world, Intel and other chipset vendorsstandardized IDE and its variants (EIDE, UDMA) into their chipsets; most PCsystems today already include the IDE interface technology embedded. For higherperformance computing, however, SCSI often appears in systems as either an HBAor as a separate chip on a motherboard. Fibre Channel, due to its high performance,also often (although not exclusively) appears in the form of an HBA.

On the peripheral or target side (the storage), the interface typically appears as anindependent controller IC or embedded within a single chip solution and hardwiredinto the storage subsystem on its disk drives (the exception is IBM’s Shark storagesubsystem that uses an Emulex HBA for FICON). For example, the hard disk drivecontroller ASIC produced by ST Micro or Lucent embeds either a SCSI or IDEinterface controller. The ASIC is then used in Seagate and Quantum disk drives. Incontrast, both Fujitsu and Hitachi currently utilize the QLogic target interface ICwithin their Fibre Channel disk drives. The trade-offs of embedding a solutionversus using off-the-shelf silicon are clear; off-the-shelf components allow OEMs toget to market faster, but add to cost.

More often than not, I/Orefers to storage.


181

Below in Figure 182 we show the relationship between the host controller and thetarget controller.

Figure 182. Host and Target Controllers Negotiate Data Transfer

HBA

Fibre Channel

Server StorageSubsystem

TARGET SCSI / FCCONTROLLER

HOST SCSI / FCCONTROLLER

Disk Drives


Below in Figure 183 are some examples of an HBA and host and target controllerchips from QLogic.

Figure 183. I/O Interfaces Exist in the Form of Chips, Boards, and Cells

QLogic ISP2312 - 2Gb, Dual ChannelFibre Channel Controller Chip

QLogic FTEC482 - 2Gb FibreChannel HD Controller Chip

QLogic SANblade 23002 Gigabit Fibre Channel HBA

Source: QLogic and Salomon Smith Barney


182

Anatomy of a Fibre Channel HBATo understand the different Fibre Channel HBA solutions offered by QLogic,Emulex, JNI, and others, we believe a close look at the host bus adapter iseducational. Each of the three leaders develop their own silicon and software, whichare two critical elements of market success. Just as with IDE and SCSI, a portion ofthe Fibre Channel interface market will eventually go on the motherboard; therefore,a silicon integration path is crucial to servicing the lower-end, more price-sensitiveportion of the market.

Figure 184 below details the primary components of an HBA: the Fibre Channelcontroller ASIC, memory (usually SRAM), firmware (usually Mask ROM or Flash),voltage regulator (LDO), serializer/deserializer (SerDes), and the connectors(Electro-optic Module, standard nine-pin DB for copper, GBIC for fiber optic cable,or more recently released Small Form factor Plugs).

Figure 184. Dissection of a Fibre Channel Host Bus Adapter

LDO

FLASH

SRAM

QLA2200 ASIC

OSCILLATOR

Note: the SerDes is embedded within the chip


The HBA Bone Is Connected to the PCI Bone...The HBA bone is connected to the PCI bone. The PCI bone is connected to theserver backplane bone, which is connected to every other bone. We have illustratedthe elusive PCI (Peripheral Component Interconnect) on the left of Figure 185below. It is the internal slot in the back of your computer that you plug stuff into,like modems, extra memory, NIC cards, the connector for your joystick, etc.

Note: The S-Bus slot, depicted on the right below, looks similar to a PCI slot, but isnot (see section below the figure for details).

Silicon integration iscrucial for long-term

success in this market.


183

Figure 185. HBAs Slide into the PCI Slot, Which Is Connected to the Server or PC’s Backplane (Left)

S-Bus Connectorin SPARC System

PCI Connectorsin PC


SBus Is the Same, but Not Exactly

SBus was developed by Sun Microsystems in the 1980s to connect graphic cards toits SPARCstations. It is a 25 MHz, 32- or 64-bit bus using an enclosed pinconnection on the underside of the board. The form factor for the board is smallerthan PCI, about 85mm x 150mm versus 100mm x 180mm (excluding pins, whichare another 10mm at the bottom). Because it only operates at 25 MHz, themaximum bandwidth is 200 MB (25x64/8) versus 528 MB for PCI.

SBus has recovery capabilities that PCI does not. Therefore, if the card seizes, thechannel can reset itself without taking the system down or “hanging” the system. Inother words, SBus is self healing.

While a PCI HBA stands up on end, an SBus HBA lays flat on top of themotherboard. In Figure 185 above, if the SBus HBA were plugged in, you wouldnot be able to see the Super SPARC chip because the HBA would lay (flat) over thetop of it. Below in Figure 186, we have illustrated the physical differences betweenPCI and SBus HBAs from JNI.

Currently, Sun (the main supplier of SBus servers) appears to be moving away fromSBus in favor of PCI and PCI-X, but that has not stopped the recent entrants ofQLogic and Emulex into the SBus market. We believe there will be a respectablelegacy SBus market for a while, although at a diminishing rate.

Note: We go into greater detail of PCI and PCI-X in this report’s “Protocols”section.


184

Figure 186. JNI PCI and SBus HBAs

PCI Interconnect

SBus Interconnect

Source: JNI

Lean and Mean: QLogic and JNI SimilaritiesLargely driven by exceptional ASIC design teams, QLogic and JNI share designphilosophies with regard to chip and board designs. Both integrate a RISCprocessor, which runs at 33–66 Mhz and is primarily used for command processing,rather than data processing. Instead, the data path goes from the Fibre Channelcable, through an integrated FIFO in the ASIC, to the PCI interface. The primarydifference between QLogic and JNI is the integrated SerDes. QLogic’s integrationof the SerDes provides nearly a single chip solution for the HBA. This strategyallows QLogic to be the only HBA vendor with a complementary chip offering(which echoes the direction it is moving in the switch market). The company is ableto provide OEMs with either a chip solution for their motherboard, or a boardsolution (HBA), both using the same software driver and chipset.

Though QLogic’s Fibre Channel host IC business is small today (about $4–$5million or 8% of their Fibre Channel revenues), we believe it will provide animportant avenue for growth in the future as OEMs such as Sun Microsystemschoose silicon solutions for lower-end, more price-sensitive products. Already,other independent makers of HBAs and RAID adapter boards leverage QLogicsilicon, including American Megatrends, ATTO, IBM, and VMIC.

QLogic’s single chip solution positions it as the lowest cost provider, enabling it tocharge the lowest end-user ASP (Average Selling Price) at about $1100 per board(compared with about $1700 from other vendors) and get the highest gross marginsin the HBA industry (i.e., 64.5% in fiscal 2001 ending March, 2001).

Note: While JNI and QLogic do use GBICs (GigaBit Interface Converters) andSFPs (Small Form factor Plugs), the vast majority of HBAs are sold with dedicatedoptical or copper connections that are hardwired onto the board, thereby, loweringcost and increasing reliability.

QLogic has the highestsilicon integration, and

complementary HBA andchip solutions.


185

Figure 187. QLogic and JNI Designs Have Similar Data Paths

GBICOPTIONAL

SRAM

TO PCI BUS

TO FIBRECHANNEL

CABLE

QLogic Fibre Channel HBA

FIFO RISC

SERDES

PCI DMA

FIFOSERDES

GBICOPTIONAL

SRAM

RISC

TO PCI BUS

TO FIBRECHANNEL

CABLE

JNI Fibre Channel HBA


While JNI has previously based its HBAs on Agilent’s Tachyon ASIC, in order togain more control of its product roadmap and lower production costs it istransitioning to its own ASIC family called Emerald. Interestingly, the Emeraldtechnology was originally sold to JNI by Adaptec, which dislodged its FibreChannel division in 1998. JNI’s new chip release, Emerald, serves as the basis fornearly all of its new products, including PCI-X. By owning its own ASICarchitecture, JNI will be better served as the Fibre Channel market evolves to 2Gbps,dual-channel, and support for Virtual Interface (VI), Internet Protocol (IP), andiSCSI. In addition, a strong semiconductor design team will be crucial for JNI if itdecides to formulate a chip strategy for future growth.

Emulex Takes the High RoadThe Emulex design is not necessarily centered around silicon integration, but aroundperformance (including reliability and functionality) and software instead. Asshown in Figure 188 below, Emulex uses an Intel StrongARM processor, which runsup to 200–250 MHz, to manage the data flow. The benefit of Emulex’s design isthat it can better and more quickly leverage industry standard microprocessoradvances. Also, Emulex’s higher chip count circumvents distant limitations andincreases signal integrity (both of which are important in high-end and SANenvironments).

The downside to the chip-intensive solution is that a high part count increases costsand takes up a large footprint; thereby requiring significant reengineering to migrateto an embed solution for the motherboard (i.e., a chip solution). The higher partcount also gives Emulex a high-cost structure. As a result, Emulex’s gross marginstrend around 50%, less than QLogic and JNI which have historical gross marginsbetween 55% and 65%.

Another benefit of Emulex’s design is the software/firmware platform, which as aresult of the standardized hardware design, handles much of the data flow andcontrol and includes support for Fibre Channel and FICON on every board.Integrating these functions in software, rather than silicon (as QLogic and JNI have),provides greater flexibility for Emulex customers. As a result of Emulex’s chip-intensive solution, it is well respected in the industry as the premium provider.

JNI is shifting from alicensed ASIC to its

internally-developed“Emerald” platform.


186

Figure 188. Emulex LP8000 and Block Diagram Showing Data Path

SRAM

LDO FLASH

StrongARM

SRAM

DragonFly ASIC

SerDes

LDO

DragonFlySERDES

GBICSRAM

StrongARM

TO PCI BUS

TO FIBRECHANNEL

CABLE

Emulex Fibre Channel HBA


Emulex’s HBA architecture is ideal for high-end OEM customers, who oftenimplement proprietary features in their products. As a result, IBM uses Emulex’sproducts throughout several platforms including Sequent NUMA, RS6000, andS390. In addition, IBM’s next generation FICON based mainframe system, referredto as the zSeries (previously code-named Freeway), uses Emulex HBAs in both thefront-end server and back-end Shark storage subsystem. IBM has the onlysubsystem that uses an HBA rather than a target chip. This means Emulex gets atwofer in captive IBM server-to-storage environments by putting an HBA on bothends of the connection.

In addition, Emulex’s design bug fixes are easily applied in its firmware which ishelpful when problems arise; and bugs are not uncommon. For example, inSeptember, 2000, Emulex customers discovered a bug in their LP8000 HBA, whichthe company fixed and corrected in its software. As a result, shipment of newproduct was only put on hold for a week and existing customers downloaded asimple software update from Emulex’s website. This could have been a much morecostly problem if Emulex used a more integrated design.

High-end...Low-end?

Although we attribute Emulex’s design to the high-end market and QLogic’s to thevolume market, both have been making strides to cover the other’s so-called market.In the end, it is more about winning customers. The first vendor to win a customercan establish significant barriers to entry due to server and storage companies’ tightdevelopment and integration to specific HBA designs (be it the high-end or volumemarket). Note: It takes a new HBA design many months to get OEM approval, evenfrom an existing supplier using the same drivers.

Note: While QLogic supplies HBAs into Sun’s high-end products, Emulex suppliesto EMC and IBM’s volume NT and NAS products. Integration by vendor is oftenmore important than by platform.

The first mover advantage is almost everything in the HBA market. Emulex hasmany first-mover design wins, including IBM, EMC, and Compaq. Qlogic has thefirst mover advantage at Sun, Dell and NetApp. JNI for EMC (Sbus) and HDS.Thus far, its has proved to be very difficult (and very unsuccessful) to try unhooking

Emulex’s flexiblearchitecture is ideal for

high-end customers.


187

an incumbent HBA supplier. Clearly this market cannot commoditize until HBAsfrom different vendors are seamlessly interchangeable (or “plug and play”) whichwe expect to take some time.

The Emerging HBA’int Market: a Single-Chip SolutionIf Fibre Channel follows in the footsteps of the IDE and SCSI interfaces, a newmarket segment will emerge: a chip based (silicon) solution for motherboards. Webelieve this migration is crucial to promote broader Fibre Channel adoptions byhelping it penetrate the lower end of the market that is not as performance sensitiveand is more price sensitive. To date, for the 1 Gbps generation of Fibre Channelproducts, QLogic is the supplier with the highest degree of integration with on-boardSerDes and RISC processor in its ASIC; the integration enables QLogic to have thehighest gross margins and the lowest ASPs. This low cost has enabled QLogic topenetrate the entry-level Windows NT markets.

JNI’s Emerald-IV ASIC also integrates about every part needed to incorporate asingle chip solution, except the SerDes. JNI chose to avoid the complexities ofSerDes integration, recognizing that vendors such as Vitesse sell the 1 Gb part(which is generally manufactured in GaAs) for only $5.

At the end of the day, while single chip solutions might be ideal for someapplications, they will not cover the mid- and high-end markets. For example, in ouropinion, signal clarity is highest with an external SerDes and larger SRAM buffers.Therefore, full-blown SAN applications requiring external cabinet connections oftenprefer the cost/performance trade-off of the higher-end HBAs (such as Emulex’s).However, for smaller SANs and especially NAS applications, which may onlyrequire inter-cabinet storage, we expect a more integrated HBA or chip solution(such as QLogic’s) to be preferred.

Competitive LandscapeWe expect market conditions to become more competitive; providing increasedshare to the stronger players (the gorilla game). Already, strong players such asEmulex, JNI, and QLogic have demonstrated solid growth rates, while smallerplayers have underperformed. In addition, traditional SCSI providers, with theexception of QLogic, have failed to gain traction in the Fibre Channel HBA market.

Below in Figure 189, we plot the various growth trajectories of the three leadingFibre Channel HBA vendors: Emulex, JNI, and QLogic.

QLogic and JNI have thehighest integration levels

.

Trade-offs with anintegrated SerDes.


188

Figure 189. Historical Growth of Fibre Channel HBA Revenues per Quarter


$0

$10

$20

$30

$40

$50

$60

$70

$80

Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01

Emulex QLogic JNI


Players’ PositionsThe various market positions of each of the Fibre Channel HBA vendors arerevealed by a study of their respective market shares. A recent IDC study of 2000results (shown in Figure 190 below) proclaimed Emulex the unit and revenue shareleader achieving 32.1% and 34.8% of these respective markets. We attributeEmulex’s strong showing to its focus on a high-end design solution which spans theUNIX, NT, and mainframe platforms, translating into a broader footprint and higherASPs.

The study also shows that in 2000, QLogic was able to maintain a disproportionateshare of the units shipped when compared to its revenue share. QLogic’s unit andrevenue market shares were 29.1% and 17.0%, respectively. QLogic focuses moreclosely on the price/performance market and does not command the same pricingpremium as Emulex. However, it does a similar unit volume and if QLogic’s hostand target chips were included we believe that QLogic would be the unit marketshare leader.

JNI has an interesting position in the market: most of its shipments have been forSolaris systems with about 70% of the company’s revenues from Solaris SBusadapters. Also, the company’s close relationship with EMC has been lucrative giventhe popularity of the Sun server/EMC storage configuration.


189

Figure 190. Various HBA Companies’ Positions

Unit Share (2000)

Emulex32%

Qlogic29%

Agilent12%

JNI12%

Compaq7%

Interphase3%

Sun3%

Other2%

Revenue Share (2000)

Emulex35%

JNI18%

Qlogic17%

Compaq12%

Agilent7%

Sun6%

Interphase3%

Other2%

Source: IDC (July, 2001)

Agilent was one of the early developers of Fibre Channel technology; however, byour analysis, the company’s success appears somewhat understated in the HBAmarket share numbers. The market share data show that Agilent has not had muchsuccess in the HBA market, however, its ASIC (called “Tachyon”) developmentefforts landed the company several design wins on several early generation HBAs.The Tachyon hardware is based on a state machine architecture, which allowsperformance of the HBA to scale proportionally with the system CPU.

Below in Figure 191, we illustrate some board and silicon relationships.

Figure 191. Board/Silicon Relationships

AGILENTTACHYON

ASIC

JNICOMPAQ EMULEX QLOGIC

EMULEXDRAGONFLYor CENTAUR

ASIC

JNIEMERALD

QLOGICISP2x00

INTERPHASE

AGILENTTACHYON

ASIC

SUN MICRO

SUNASIC

orQLOGIC

ASIC

AGILENTTACHYON

ASIC

ADAPTEC


Gaining Share from Captive SuppliersCompaq and Sun are the only two systems manufacturers who also produce FibreChannel HBAs. Even though both started with home-grown solutions in their serversystems, both now have established relationships with merchant (independent)suppliers, which we expect will continue to expand in the future. Compaq hasrelationships with Emulex for NT and high-end UNIX, JNI for Solaris, and QLogicfor Linux. Meanwhile, Sun has a long-standing relationship with QLogic through itsSCSI platform and has been using QLogic Fibre Channel products (both ASICs andHBAs) as well. Given the torrid pace of Fibre Channel development, we wouldexpect Sun and Compaq to migrate toward merchant solutions, rather than continueto develop their own HBAs internally. By increasingly taking share from vertical

Agilent’s Tachyon ASICis used in several early

generation hostadapters.

Both Compaq and Sunhave relationships with

independent HBA andASIC vendors.


190

suppliers, independent suppliers such as Emulex, JNI, and QLogic should be able toeasily outpace industry growth rates.

While the independent HBA suppliers (Emulex, JNI and QLogic) significantlyincreased their combined market share from 39% in 1998 to 70% in 2000, thecaptive suppliers (Compaq and Sun), which declined in market share to 18% in 2000from 53% in 1998, have clearly begun to pull out.

Figure 192. Market Share of FC Host Bust Adapter Suppliers

1998

Sun43%

Emulex21%

Compaq10%

Agilent0%

Other0%Interphase

8%

JNI9%

Qlogic9%

2000

Emulex35%

JNI18%

Qlogic17%

Compaq12%

Agilent7%

Other2%

Sun6%

Interphase3%


Name AssociationBecause the Fibre Channel HBA resides within a server, and ultimately connects toa storage subsystem, it is a critical determinant of the overall system performance.Therefore, end users generally select the HBA that has been approved by either theserver vendor, such as Compaq and Sun, or, the storage vendor, such as EMC,Compaq StorageWorks, or Hitachi Data — or both! To make matters morecomplex, the HBA can also be procured either from the server vendor, storagevendor, or through indirect distribution channels. The following figure illustratessome supplier/customer relationships for Emulex, QLogic, and JNI.


191

Figure 193. HBA Supplier/Customer Relationships

OEM 85%

Channel 15%

Emulex

OEM 90%

Channel 10%

QLogic

OEM 76%

Channel 24%

JNI

EMC (Solaris), HDS (UNIX& NT), Compaq (Solaris),IBM (UNIX & NT),

StorageTek (Solaris & NT)

Bell Micro, GE Access,ACAL, Info-X, Tidalwire,

NetMarks

IBM (all), EMC (all &NAS), Compaq (UNIX& NT) , HDS (all),Fujitsu (Solaris),McData (all)

Bell, Info-X, Tech Data,AVNET, Tidalwire, ACAL

Sun (Solaris), Dell(NT), NetApp (NAS),IBM (NT), SGI, EMC(NT), Compaq (Linux)

Bell, Info-X, Tech Data, Consan


Which relationships are most important? In our view, clearly, the largest server andstorage OEMs are most influential. One popular combination has been to combineSun Solaris servers, NT servers from Compaq or Dell, and EMC storage units, allconnected using a Brocade switch. Resellers would likely recommend a JNI HBAbe used for the Sun server, since EMC has tested and qualified JNI’s SBus HBA.Sun and other vendors may offer an HBA, but unless it has been certified by EMCalso, the use of it may void the EMC warranties. Needless to say, Compaq, IBM,Dell, MTI, and other major OEMs have similar programs.

Sun’s Approach Is a Bit Tricky

When it’s Sun server-to-Sun storage, Sun sells a QLogic HBA. When it’s a Sunserver -to-someone else’s storage, a JNI HBA is used and can be bought from the“other” storage vendor or from the channel (distributors).

Platform Focus Determines Product StrategyUNIX (excluding Solaris)Emulex has captured most of the Fibre Channel HBA market for high-end UNIXplatforms through its close relationship with IBM, EMC and, recently, Compaq.Emulex drivers support several flavors of UNIX including AIX, VMS, OS/390UNIX, Sequent’s Dynix, HP-UX, and DG-UX. Furthermore, as IBM mainframesadopt Fibre Channel through its FICON (FIbre channel CONnect) protocol, Emulexwill enter the mainframe market on both the host side as well as in IBM’s FICONShark storage subsystem (a twofer). Linux drivers are available from all three majorHBA vendors including Emulex, QLogic, and JNI. Note: with IBM’s AIX and NT

Emulex’s flexibleplatform is ideal for high-

end UNIX server OEMs.


192

storage sales, Emulex often gets a twofer, since it also embeds an HBA in IBM’sShark in those environments.

Below we have drawn a rough sketch of Emulex’s platform penetrations based onour own in-depth industry research. Note: A good portion of Emulex’s revenuescome from the storage side within Shark which we have assigned to the AIX and NTplatforms. In the future, FICON should emerge as a noticeable contributor forEmulex. We have based our estimates on HBA unit volumes.

Figure 194. Emulex’s Platform Profile

NT46%

Solaris18%

AIX31%

Tru644%

NAS1%


SolarisSun Micro’s version of UNIX, called Solaris, is used mainly on Sun and Fujitsu(which licenses a version of Solaris from Sun) servers. Emulex, JNI, QLogic, andSun each have Solaris drivers available for HBAs built for the PCI bus, which isused in entry-level and workgroup servers from Sun.

Emulex, JNI, Sun and (recently) QLogic each have Solaris drivers available forSBus HBAs, though JNI is recognized as the leading provider of SBus HBAs forSolaris. QLogic has historically had the closest relationship with Sun includingsome embedded chip design wins. We expect QLogic to continue to furtherpenetrate Sun.

Below in Figures 195 and 196, we have drawn a rough sketch of QLogic and JNI’srespective platform penetrations based on our own industry research. We havebased our estimates on HBA unit volumes.

JNI has captured most ofthe HBA market for

Solaris SBus, which iscommonly used in Sun’s

high-end servers.


193

Figure 195. QLogic’s Platform Profile

NT79%

Solaris12%

NAS9%

Source: .Salomon Smith Barney

Figure 196. JNI’s Platform Profile

Solaris90%

AIX& HP-UX5%

NT5%


Windows NT/2000QLogic is the predominant supplier of Fibre Channel HBAs for the high-volumeWindows NT server market. QLogic’s mini-port driver, which is commonly usedfor NT systems, is highly regarded in the industry. As such, QLogic has capturedmuch market share in this segment and has relationships with OEMs such as Delland IBM’s Netfinity group. Adaptec provides HBAs to Hewlett-Packard for itsNTserver platforms, while Emulex is a supplier to Compaq for its Proliant NTservers.

QLogic supplies majorNT server vendors such

as Dell and IBM.


194

➤ We view storage networking equipment as the highest octane portionof the storage industry. We estimate that SANs are only 5%–10%penetrated, on their way to about 90%. This should enable manyplayers, including subsystem and software vendors, to grab their fairshare of the market’s growth.

➤ We believe the storage networking market presents an awesomegrowth opportunity and still has its best days in front of it.

The Storage Networking Equipment MarketWe define the storage networking equipment market (which we refer to simply as“storage networking”) to include: bridges, routers, hubs, switches, and Directors (notincluding HBAs). We will mostly focus on switches and Directors.

Regardless of IT demand in 2001, storage networking companies experiencedphenomenal growth in 2000 — 347% for Brocade, 178.5% for Inrange, and 161.1%for McData (according to the companies’ filings). Dataquest expects the storagenetworking market to grow to $12,630 million in 2005 from $760 million in 2000,representing a 75.4% CAGR.

Figure 197. Storage Networking Growth (2000–05)


$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2000 2001 2002 2003 2004 2005

75.4% CAGR

Source: Dataquest and Salomon Smith Barney

What Is a SAN Switch?To really take full advantage of the speed and scalability of Fibre Channel, a fabricswitch must be deployed. A switch provides any-to-any (point-to-point)connectivity, thereby enabling each port to communicate at full capacity (currently1 Gbps or 2 Gbps).

Storage Networking Equipment

We expect SAN adoptionto lead the storageindustry into a newphase of evolution.

To really take fulladvantage of the speedand scalability of Fibre

Channel, a fabric switchmust be deployed.


195

Figure 198. SAN Switch Diagram

FibreChannel

FibreChannel

Switch

Server

Server


FC-AL Versus FabricA switch can be FC-AL or fabric. There are many differences between FC-ALswitches and fabric switches. A FC-AL switch can be thought of as an upgradedhub. In other words, it acts like a hub from an addressing standpoint, but moves datalike a switch at full bandwidth per port (review hubs below). The difference inaddressing reduces a FC-AL switch’s available connectivity. Typical FC-ALswitches can connect up to 32,000 nodes, while fabric switches can connect up to 16million nodes (theoretically). The increased connectivity capabilities of a fabricswitch are why it is referred to as the foundation of today’s SAN.

One of the advantages of FC-AL is that some legacy host bus adapters (HBAs) usethe FC-AL protocol, not the fabric protocol. This means that a software translationhas to be performed in a fabric switch to connect to legacy FC-AL HBAs. This isembedded (for a price) into a switch called an FL-Port, to emulate the FC-ALprotocol and enable fabric-to-FC-AL connectivity. (HBAs are storage networkinterfacing cards that plug into servers to enable SCSI or Fibre Channelconnectivity, much the same way a Network Interface Card [NIC] does in the LAN.)

Another way to interconnect fabric switches to FC-AL HBAs is through embeddedsoftware. In this architecture, software is added to a native fabric switch (whichwould fit into the device administration segment of storage software) to, in effect,dumb it down (remember, a FC-AL device is less complex than a fabric device).The additional software makes the fabric switch think and act as if it were a FC-ALswitch in order to interconnect it with legacy FC-AL HBAs. Since this is anembedded software-driven solution, upgrading back to full-fabric simply requirespaying a software licensing fee and flipping a software switch. This is a relativelyseamless process that does not cause any network interruption. (This is thearchitecture of Brocade’s and QLogic’s FC-AL switches.)

Alternatively rather than dumbing down the entire switch, Brocade and othercompanies also have the ability to do reverse translation which allows legacy FC-ALservers to be translated onto the fabric and utilize fabric storage or tape devices. The

One of the advantages ofFC-AL is that some

legacy host bus adapters(HBAs) use the FC-AL

protocol.


196

fabric communications are translated back to the legacy server for a seamless two-way communication. Since only the setup is done in software (actually firmware),once loaded, the translation occurs in the ASIC hardware and performance can besustained at full Fibre Channel speeds.

Gadzoox has approached this in a unique way by developing its Capellix chassis-based switch. The chassis part means that it is modular in order to plug either a FC-AL switching blade or fabric switching blade into a slot, thus making the switchperform with the desired protocol. This solution requires that the system be takendown (including unscrewing the lid of the switch) in order to upgrade. In ouropinion, this process is just about the last thing an IT manager wants to do.

Switch Addressing — Public Versus Private LoopsHubs and FC-AL switches use simple local addressing schemes, much like an officephone system. To dial a person across the floor, you key in four digits. You don’thave to dial the whole number because you’re in a local network. These devices arereferred to as “private loops,” because they can only see and communicate withother devices within their private loop.

Fabric switches use a more robust addressing scheme. These devices can be thoughtof as your telephone at home. To transmit your voice, you dial the three-digit areacode, the three-digit zone, and then the four-digit address. This tells the phoneswitch what area to go to, what zone to go to, and then what exact address to go towithin that zone. This is the same way a SAN fabric switch operates. Fabricswitches are referred to as “public” because they can see and communicate withmost every device connected to the network.

Switching ArchitecturesDifferent vendors have architected their switching products with varyingcomponents, cost structures, reliability, scalability, flexibility, and sophistication.While switching hardware architectures are wildly different (and we’ll go throughthe range), we believe that software remains one of the most important featureswhen assessing the competitiveness of assorted products. Software leverageshardware to provide customers with solutions. We believe McData’s recentacquisition of SAN Navigator (a storage software company focused on networkmanagement) is an outcrop of the demand for software functionality. It has been ourobservation that the best solution, not the best hardware, grabs the most marketshare.

Switching InterconnectsSimilar to our discussion of storage subsystem backplanes and PCI bus versusInfiband, a switched interconnect can significantly increase performance. Using acrossbar switch architecture, however, demands more logic, which adds complexity,increases costs and potentially delays a product’s time to market.

Below in Figure 199 we illustrate a few different switch (or Director) architectures,including Bus (Brocade and QLogic), switched (McData), multi-stage (Inrange), andpassive (Brocade’s Silkworm 12000).

Hubs and FC-ALswitches use simple

local addressingschemes. Fabric

switches and Directorsuse more advanced(public) addressing

technology.

We believe that softwareremains one of the mostimportant features when

assessing thecompetitiveness ofassorted products.


197

Figure 199. Switch Interconnects

ASIC

ASIC

4 port ASIC

Cross Bar Switch

ASIC

ASIC

4 port ASICBus Interconnect

ASIC

ASIC

4 port ASIC

Multi-stage Interconnect

ASIC

ASIC

ASIC

4 port ASIC

Passive Interconnect


BrocadeBrocade uses a bus interconnect and leads the market in product maturity and ASICfunctionality. Brocade’s developments — trunking, time stamping, frame filteringand traffic monitoring — are among the industry’s leading functions. Brocade’sfocus on real, end-user needs and a “total solution” design has enabled it to maintainits popularity with end users.

Brocade Design Snapshot:

➤ bus interconnect

➤ eight-port ASIC design (2 Gbps)

➤ distributed memory

➤ distributed controller

Figure 200 below illustrates Brocade’s 2 Gbps 16-port switch architecture.

Note: The shaded region represents the ASIC’s footprint.


198

Figure 200. Brocade’s 2Gbps 16-port Switch Architecture

SFPFrom FibreChannelCable(send)

To FibreChannelCable(receive)

SFP

Flash

PentiumClass CPU

DRAM

SerDes

SerDes

HighSpeedProprietaryBusInterconnect

SerDes

SerDes MemoryBuffer

RS-232

10/100 Ethernet

Power

Buffer

Controller


McDataMcData takes the highroad with a serial crossbar interconnect. The serial crossbarenables any-to-any port connectivity without performance degradation. SinceMcData uses a serial crossbar interconnect it must traverse two SerDes (or the sameone twice) per every send or receive transmission (or four per every send and receivetransmission). The extra SerDes workload is brought on due to the “serial”technology within the crossbar which requires a serial transmission versus the ASICwhich requires a parallel transmission. For this reason, McData uses two SerDes perASIC (each SerDes used by McData has four quad channels). The SerDes (whichstands for Serializer/Deserializer) transforms the signal into a serial transmission(Serializer) and/or into a parallel transmission (Deserializer).

McData uses a serial crossbar interconnect in order to increase performance andutilize off-the-shelf technology (in this case, from Vitesse).

McData has developed a four-port ASIC design and has the highest componentcount in the industry, which means it also has the highest cost structure. The benefitis that McData also has the most reliable design. If one of its ASICs fails, it only


199

takes down four ports, versus higher ASIC densities, which can take down as manyas 16 ports upon failure.

Below in Figure 201, we have laid out a 16-port McData switch (ES-3016) andmapped a data send and receive transmission in order to make sense of thisgibberish.

Figure 201. McData’s 2 Gbps 16-port Switch Architecture

SFPPower

From FibreChannelCable(send)


SFP

SerDesSerDes

Buffer

Controller

Flash

Intel I960CPU

DRAM

SerialCrossbarController

SerDesSerDes

SerDesSerDes

SerDesSerDes

McData’s 4-port ViperASIC

SerialCrossbarChip

10/100 EthernetRS-232


McData Design Snapshot:

➤ serial crossbar interconnect

➤ four-port ASIC (1 and 2 Gbps) with serial crossbar interconnect

➤ memory is distributed and integrated

➤ distributed and integrated controller

QLogicQLogic’s exceptional ASIC design team has focussed on ASIC integration (i.e., chipdesign), resulting in an ASIC with the greatest integrated functionality andconnectivity in the industry. QLogic’s chip integrates so many components that its16-port switches (called SANbox) require only a single chip. QLogic has even


200

embedded crossbar technology inside its new Itasca Fibre Channel chip. As with itsHBAs, this provides QLogic with the most compact and lowest cost design in theindustry.

QLogic Design Snapshot:

➤ single-chip solution

➤ 16 ports per ASIC (2 Gbps)

➤ integrates the controller, memory, buffer, and crossbar inside the ASIC

Figure 202. QLogic’s 2Gbps 16-port Switch Architecture

SFP

10/100 Ethernet

Power

From FibreChannelCable(send)


SFP

Flash

PentiumClass CPU

DRAM

Embedded

Interconnect

Controller

GL_Port 0

GL_Port11

QLogic’s16-PortItascaASIC

RS-232

SerDes

SerDes

SerDes

SerDes

SerDes

SerDes

SerDes

SerDes


The Core of a Switch/Director Is its ASICAlthough switch architectures can impact performance and connectivity, ASICdensities are also important to track. McData uses a four-port ASIC architecture,Brocade uses 8 ports (four ports in its 1 Gbps ASIC), and QLogic/Inrange use 16ports (8 ports in the 1Gbps ASIC). Increasing the number of ports per ASIC cansignificantly reduce costs and increase performance; however, it also inherits greater

Although switcharchitectures can impact

performance andconnectivity, ASICdensities are also

important to track.


201

port loss upon failures. While this might not be an issue for lower- and mid-rangeenvironments, higher-end applications might prefer lower port densities per ASIC(not to be confused with ports per switch or Director, they are very differentconcepts that do not run parallel). Lower ASIC port densities are often viewed asmore reliable because if an ASIC does fail, it takes down a smaller fraction of theoverall switch or Director (i.e., if an ASIC fails, only four ports fail rather than eightor 16). That said, ASIC failures are very unusual and redundancies can be built infor greater reliability.

Other important aspects of ASICs are their functionality and software integration.While a customer might not pay as much attention to port count per ASIC, theysurely recognize the delivery of functionality. Functionality and softwareintegration are key elements to the successful delivery of a solution (i.e., what’s bestfor the customer). For example, the ability of Brocade’s ASIC to autosense FC-ALand fabric environments has enabled it to grab the lion’s share of the storagenetworking market early on, as customers migrate from FC-AL to fabric. Theinability of other vendors to effectively mix these environments could have stalledthese vendors’ attempts to penetrate the market.

Other valuable, upcoming ASIC features include trunking, time stamping, framefiltering, and traffic monitoring.

Trunking

Trunking, combined with load balancing, is one of the more anticipated inter-switchfunctions. Trunking aggregates bandwidth to create a single, larger pipe that all datacan traverse. Load balancing equalizes the distribution of data across multiplechannels. Combining the two features results in better performance and lesscongestion.

Below in Figure 203, we illustrate the way Trunking works when combined withload balancing.

Other important aspectsof ASICs are theirfunctionality and

software integration.


202

Figure 203. Trunking Functionality

ASIC preservesin-order frame delivery

Congestion

Without Trunking2G 2G1.5G 1.5G.5G .5G1G 1G2G

1G

1G

2G1.5G.5G1G2G

2G1.5G.5G1G2G

With Trunking

8Gbps ISL Trunk:All streams share bandwidth

Optimal bandwidth utilization using load balancingon up to four 2G links

Source: Brocade

Frame Filtering

Frame filtering is another ASIC capability that would integrate with availablesoftware and enable features that would allow for successful system deployment.With frame filtering, many features can be developed to improve management andmonitoring capabilities, and security in the SAN. Features such as LUN zoning,detailed performance analysis, and multi-protocol zoning could improve the SANdeployment and overall management, as well as ensure future integration with otherprotocols.

Switch Market and Competitive LandscapeSwitch revenues are expected to grow to $5,970 million in 2005 from $470 millionin 2000, representing a 66.3% CAGR, according to Dataquest.


203

Figure 204. Switch Market Growth

Revenues in millions ($)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2000 2001 2002 2003 2004 2005

Switches 66.3% CAGR

Source: Dataquest

The Biggest Little Kid on the BlockThe switch market not only has the largest share within storage networking byrevenue, it is also the largest by ports shipped. This latter point is of particular notegiven that Directors had much higher port densities in 2000 (eight and 16 ports forswitches compared to 32 and 64 ports for Directors). Detailed analysis, therefore,points to many more “switch” installations than the port shipment differentialdepicts. Note: Although the hub port market share might appear impressive, itsactually down approximately 12% from 1999, while switch port shipments were upapproximately 317.3% from 1999, according to IDC.

Figure 205. Switch Storage Networking Market Share

2000 Market Share (Revenue)

Directors27%

Switches66%

Hubs7%

2000 Market Share (Ports)

Hubs31%

Switches59%

Directors10%

Source: Dataquest (left) & IDC (right)

PlayersBrocade is the clear leader in the Fibre Channel switch segment, garnering an 86%market share in 2000, according to IDC. Brocade has been able to maintain itsswitch market share at around 90% since the industry’s inception. We expectMcData, a long-time Director-only supplier, to play a greater role in the switch

The switch market notonly has the largest

share within storagenetworking by revenue, it

is also the largest byports shipped.

Brocade is the clearleader in the Fibre

Channel switch segment.


204

market since the release of its 16- and 32-port switches, which began shipping at theend of 2000, and were adopted by OEMs early in 2001. QLogic should also play abigger role in the future with its Sun relationship, early delivery of 2 Gbps andintegrated chip design, which should prove to be very leverageable in the embeddedswitch market. Note: QLogic is the only vendor in both the Fibre Channel switchand HBA markets.

Figure 206. Switch Market Share (Revenues) 2000

Brocade86%

Gadzoox2%

Vixel3%QLogic

9%


Brocade Remains the LeaderFrom a revenue point of view, it cannot be disputed that Brocade continues to be theleader of the storage networking market. As illustrated below in Figure 207, allcompanies have chalked up some impressive growth. The Figure charts Brocade’s,Inrange’s, QLogic’s and McData’s switch and Director revenue growth (percompany filings and our own research).

Figure 207. Switch and Director Revenue Growth — Brocade, McData, Inrange, and QLogic


$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01

Brocade McData Inrange Qlogic


From a revenue point ofview, it cannot be

disputed that Brocade isthe leader of the storage

networking market.


205

Below in Figure 208 we highlight Brocade’s Silkworm product portfolio.

Figure 208. Brocade’s Silkworm Product Family

Silkworm 2400(8-port switch)

Silkworm 2800(16-port switch)

Silkworm 6400(Pre-configured64-port switch)

Silkworm 12000(64-port core switch)

Source: Brocade and Salomon Smith Barney

Below in Figure 209, we also illustrate QLogic’s switch portfolio, including itsDirector, which it OEMs from Inrange. QLogic has been successfully growing theswitch business it bought with its acquisition of Ancor in August, 2000. InQLogic’s June 2001 quarter its switch business grew, to $14.4 million, or about 10%sequentially, up from the $7–$9 million level when QLogic acquired it.


206

Figure 209. QLogic’s Switch and Director Product Family


What Is a Director?Defining a Director is like defining the perfect cheeseburger: It depends on who youask. By definition, Directors are high-end storage switches.

We have found that the most common criteria for Directors include:

➤ high port density

➤ scalability

➤ fully redundant, fabric, non-blocking architecture that is hot swapable

It is important to keep in mind that there are two very different types of storageDirectors: ESCON/FICON and Fibre Channel.

ESCON and FICON Directors (mainframe)ESCON (mainframe) Directors have been in use for almost a decade. ESCONDirectors provide mainframe connectivity; in other words, in order to connectmultiple storage subsystems to a mainframe one must use an ESCON Director.Mainframes communicate through ESCON (Enterprise System CONnection), muchthe same way that open system servers and storage subsystems communicate usingSCSI.

Think of Directors ashigh-end, fully redundant

switches.

ESCON (mainframe)Directors have been in

use for almost a decade.


207

FICON (S/390 FIbre Channel CONnectivity) is to mainframe environments whatFibre Channel is to open systems (UNIX and NT): It’s a more advanced form ofconnectivity. We expect Inrange and McData to be significant players in the FICONDirector market.

Figure 210. ESCON and FICON Directors

Transfer Rates Max Distance ThroughputESCON 17MBps 3 kilometers Half DuplexFICON 100MBps 20 kilometers Full DuplexSource: Salomon Smith Barney

ESCON/FICON Directors have been built for zero downtime (or five nines ofreliability, meaning 99.999% uptime). In order to accomplish this goal, Directorshave been designed with multiple hardware redundancies, including power supplies,fans, backplanes, processors, and memory, as well as the software functionality (i.e.,logic) to utilize its fully redundant architecture in case of component failures.

Industry sources indicate that McData had an approximate 85% share of the ESCONmarket in 1999 by supplying IBM’s 9032 Director that scales to 248 ports per unit.Inrange captured about 15% of the market with its CD9000 that scales to 256 portsper unit.

Note: IBM’s FICON products launched in the fall 2001.

Fibre Channel Directors (Open Systems: UNIX and NT)Since Inrange and McData (a former subsidiary of EMC) already hadESCON/FICON expertise, when they entered the open systems storage market, bothcompanies approached it from their Director heritage; thereby creating a newcategory of Fibre Channel switches called Directors. (Directors are typically abouttwice as expensive as Fibre Channel switches on a per-port basis; switch ASPs areabout $1300 per port; Director ASPs are about $2500–$3000 per port). McData’sfirst generation 32-port Fibre Channel Directors (the ED-5000) began shipping inquantity in October, 1998, and Inrange introduced its 64-port Director (the FC/9000)in April, 2000.

Director...Switch...So what the Heck Is the Difference?Thus far, the market has essentially defined Directors as high port density switches.McData’s Directors had 32 ports; Inrange’s 64 ports. Directors, however, are muchmore than simply high port densities: They are fully hardware redundant FibreChannel fabric switching devices that can maintain full non-blocking bandwidth inthe event of multiple hardware failures. In contrast, switches would have tosubstantially over-allocate ports in order to ensure a non-blocking, fully availableand reliable architecture. But, the resulting switch mesh would result in a highercost and a more complex, harder to manage environment.

Baby You Can Drive My CarWe liken the technology to a car with four tires going down the highway at 60 mph.Then one tire blows out (i.e., hardware failure). The Director drops down areplacement tire and keeps on trucking at 60 mph uninterrupted (like a James Bond

Inrange and McDataentered the Fibre

Channel market withDirector designs.


208

car). The software-redundant switch, on the other hand, redistributes (balances) theweight of the car such that it can run on the remaining three tires until the fourth tirecan be replaced. This type of switching architecture might suffer some performancedegradation and have to reduce its speed in order to maintain total throughput.

Now imagine that the car has 64 or 128 tires. One tire blowing out is a lot lesssignificant. In other words, the larger the fabric, the less important one port (tire)becomes. However, while we believe a software redundant “core switch” might beable to service a good portion of the market, in our opinion, many IT managers willsimply demand hardware redundancies in order to be conservative. That said, webelieve that switches (including 16-port switches) will continue to dominate themarket, from the point of view of total ports shipped, for at least another couple ofyears. As Brocade often points out and we agree, the issue will continue to be aboutthe size of your overall fabric and how its managed.

Director Market and Competitive LandscapeDirector revenues are expected to grow to $6,240 million in 2005 from $190 millionin 2000, representing a 101.0% CAGR, according to Dataquest. Directors areprojected to be the highest growth area in storage networking on a percentage basis,as illustrated in Figure 211 below.

Figure 211. Directors Are Expected to Achieve the Highest Growth in Storage Networking


$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2000 2001 2002 2003 2004 2005

Routers Hubs Switches Directors

Router 48.4% CAGR

Hub 3.7% CAGR

Switch 66.3% CAGR

Director 101.0% CAGR

Source: Dataquest

PlayersIn 2000, McData was the clear Director leader with an 85.4% market share.However, Inrange definitely deserves the “up-and-comer” award for establishing a14.6% share after only having product available in the second half of the year.

Directors are projectedto be the highest growth

area in storagenetworking on a

percentage basis.


209

Figure 212. Director Market Share (Revenues) 2000

McData85%

Inrange15%


Inrange

Inrange entered the Fibre Channel Director market in April, 2000, with its 64-portFC/9000 (the largest density at the time) and has since scaled its Director up to 128ports (the largest density in the market). Inrange uses QLogic’s (formerly Ancor’s)Fibre Channel ASIC technology in its Director and this has created a tightpartnership between the two companies. Inrange OEMs QLogic’s eight- and 16-portswitches and QLogic OEMs Inrange’s FC/9000 Director.

Inrange has also delivered its own ESCON and FICON Directors, which it sellsthrough its direct sales force, resellers, and OEMs. The company has also stated itsintention to migrate to a 256-port Director by 2002 (current 64- and 128-portFC/9000s are architected to be fully upgradable to 256 full bandwidth, non-blockingports). Inrange can offer Fibre Channel (fabric and FC-AL, both public and private)and FICON connectivity within a single box. The FC/9000 also supports IP-over-Fibre Channel.

McData

McData entered the Fibre Channel market in the fourth quarter of 1998 with its 32-port ED-5000 Director, which used third-party ASIC technology. In November,2000, McData delivered its own ASIC technology and introduced its 16-port ES-3016 switch, its 32-port ES-3032 (March, 2001) and its 64-port ED-6064 (April,2001). McData also manufactures and designs its own line of ESCON Directors,ESCON-to-FICON bridge cards (which fit into its ESCON Director), and FICONDirectors.

McData’s new generation 16-, 32- and 64-port products all support Fibre Channelfabric and FICON in the same enclosure and provide the industry’s most denselypackaged solution (i.e., offering the most ports per square inch). Note: McData doesnot support FC-AL in its switches or Directors, except in its ES-1000, which worksin FC-AL mode but not in fabric mode.

Brocade

Brocade is planning to enter the Director market with its Silkworm 12000 late thisyear. The Silkworm 12000 is a 64- and 128-port “core switch” that provides much


210

of the same reliability as a Director though it does not, however, support FICON(i.e., the mainframe). We expect the Silkworm 12000 to drive significant growth forBrocade in 2002 and beyond as it opens up the Director market and enables thecompany to expand its footprint.

The figure below gives a rough timeline of the release of many Fibre Channelswitching technologies.

Figure 213. Fibre Channel Product Introductions

2002200120001999

Inrange 64-portFC/9000

Inrange 128-portFC/9000

QLogicBrocade &Inrange McData

2Gbps

Inrange to introduce256-port FC/9000

Brocade tointroduce 64-portSilkworm 12000

Brocade 64-portSilkworm 6400

Brocade 8/16-portSilkworm2400/2800

McData 32-portED-5000

QLogic 8/16-portSANbox

McData 16-port ES-3016

McData 32-portES-3032 & 64-port ED-6064


Figure 214 presents Inrange’s complete product portfolio.


211

Figure 214. Inrange’s Product Portfolio

Channel Extender

9801SNSDWDM

FC/9000

(128 ports)

FC/9000

(16 ports)

FC/9000

(64 ports)

FC over WAN

VL/9000

Source: Inrange

We Believe High Port Density Is The Sweet SpotWe believe that higher port density switches and Directors are one of the next bigwaves of demand currently unfolding in storage networking. In fact, we believe 128ports (perhaps even up to 256 ports in a single box) is going to be the ultimate sweetspot. Note: Legacy mainframe ESCON Directors have about 256 ports.

Size Does Matter! Why Bigger Is BetterWe believe the industry is moving to higher port density products as fast as they aredelivered. Why? Firstly, higher port densities offer scalability. For example, if anIT manager only needs 24 ports today, they can purchase a FC/9000 populated withonly 24 ports. The important aspect of the FC/9000 is that it can scale to 128 portsas the customer’s demands increase. We equate this to the way IT departments usestorage subsystems. With storage subsystems, if an IT department needs half of aterabyte of storage, they usually buy a storage subsystem that scales to 3 TBs ormore and only populate enough disk drives to satisfy current demand. This providesseamless scalability in order to easily satisfy future demand without forklifting in,installing, and configuring a new subsystem every time additional capacity isneeded. With the FC/9000, capacity can easily be added by snapping in additionalports (up to 128 ports and 256 ports in the future).

Higher port count switches also enable more efficient scalability. As multipleswitches are interconnected to create a fabric or network, ports must be sacrificed ase-ports to provide inter-switching links. This, in turn, creates a loss of ports asfabrics are scaled. By utilizing higher port count products, fewer ports are lost andthe overall network remains less complex, due to the interconnectivity of fewerswitches/Directors.

Below in Figure 215 we illustrate how using 16-port switches to build a fullyredundant non-blocking 32-node fabric requires six switches (96 ports). Then, inFigure 216 we illustrate a more common architecture which scales to reach 30

We see higher portdensity switches and

Directors as one of thenext big waves of

demand.


212

nodes, but only uses three 16-port switches (48 ports). However, the latter exampleis not a fully redundant, non-blocking architecture, meaning that performance candegrade as port failures occur.

Note: The diagrams below are also illustrations of a multistage or meshedarchitecture.

Figure 215. Building a 32-port High Availability Fabric Using 16-port Switches

16-port Switches8nodes

8nodes 8

nodes8nodes

*Note: there are less expensive/complex ways to build a 32-port fabric. However, the lessexpensive solution will not be as robust. We architected the above design to compare apples toapples on the high-end without sacrificing performance and availability.


Figure 216. Building a Simple 30 node Fabric Using 16-port Switches

10nodes

10nodes

10nodes

16-port Switches

*Note: we believe this is the most common multi-switch fabricarchitecture, but it is not a fully redundant, non-blocking fabric.



213

16-port Switches Will Likely Stay In Demand for YearsWe believe that low port density switches (eight, 16 and 32 ports) will continue tobe in high demand for many more years: Not everyone wants, or can afford, to builda large-scale storage network. We also expect to see low port density switchescontinue to thrive on the edge of the network and in department locations for manymore years. We believe that SANs are still in the early stages of deployment, whichwe feel will translate into demand for lower-scale, lower-cost solutions that enablephase one deployments. However, longer term, we believe the low port densitymarket will stagnate and, eventually, contract.

One architecture many industry experts expect to continue gaining momentum iscore-to-edge architecture. In this architecture, a core switch or Director would sit inthe middle of a storage fabric and smaller, less expensive switches would line theperiphery (as illustrated in Figure 217 below).

Figure 217. Core-to-Edge Storage Networking Architecture

Switches Switches

Directors orCore Switches

ServersStorage

Edge Edge

Core


Thus far, McData has been the leader in the core-to-edge market due to its time tomarket delivery of a full solution spanning Directors and switches. However, weexpect Brocade and Inrange to establish solid footholds in this segment.

Figure 218 shows a more likely core-to-edge architecture.

We believe that low portdensity switches will

continue to be in highdemand for many more

years.


214

Figure 218. More Likely Core-to-Edge Storage Networking Architecture

Edge

Core


Below in Figure 219 we illustrate McData’s core-to-edge product portfolio.

Figure 219. McData’s Core-to-Edge Product Portfolio

ED-6064ES-3032

ES-1000 ES-3016

Source: McData

Compatibility Matters!Although many products seem robust, when you get into actual computingenvironments involving multiple vendors and platforms, they fall a bit short due toincompatibility. In other words, what good is a switch that cannot connect to

Interoperability is a keycomponent to promoting

broad SAN adoption.


215

Microsoft’s Windows2000? Or to Sun’s Solaris UNIX platform? Or what good is aswitch that cannot connect to EMC’s Symmetrix storage subsystem? Or toCompaq’s StorageWorks? Or to an HBA? We believe this is an important issue toovercome in order to promote broader SAN adoption.

Perhaps one of the more pressing issues is inter-switch vendor connectivity.

Brocade Is The StandardIn June, 2000, Brocade announced that its Fabric Shortest Path First (FSPF) routingprotocol was accepted by the Technical Committee T11 of the National Committeefor Information Technology Standards (NCITS), for approval as an industrystandard by the American National Standards Institute (ANSI), one of the primaryFibre Channel standards bodies.

Brocade submitted the standards proposal in March, 2000, seeking to facilitatebaseline interoperability among Fibre Channel switches from multiple vendors. Theproposal, FSPF, specified a common method for routing and moving data throughvarious Fibre Channel networking vendors’ switches. We view this as having beena powerful move for Brocade and a necessity for the industry.

Brocade has also gotten its e-port technology accepted as the inter-switching linkstandard. While Brocade’s FSPF is the routing protocol, Brocade’s e-port specifiesthe hardware connection.

Interconnecting Vendors’ Switches Is ImportantOne of the largest promises of Storage Area Networks (SANs) has been any-to-anyconnectivity. The gating factor prohibiting any-to-any connectivity in Fibre Channelnetworks has been incompatibility between various networking vendors’technologies. By using Brocade’s new inter-operative standards, any-to-anyconnectivity can become a reality which, we believe, will serve to increase adoptionrates. But, vendors still have to agree to work together.

Inter-operability Promotes the IndustryWe believe Fibre Channel’s recent evolution toward standardization will prove to bea great ally for storage networking companies by increasing the rate of adoption. Ithas been our observation that end users do not like to be locked into proprietarysolutions and that they are more willing to embrace new technologies whenstandards exist.

Note: Cisco has also singed on to use Brocade’s e-port technology to interconnectits Ethernet switches to Brocade’s Fibre Channel fabrics.

What Is a SAN Bridge?The first obstacle of any new technology is backward compatibility. No IT manageris going to implement a SAN, or any other technology, if it calls for the disposal ofprevious investments. To enable older legacy SCSI systems to inter-operate withFibre Channel, a “bridge” must be built (SCSI devices cannot be directly connectedto Fibre Channel devices). Thus, bridges — one of the first SAN networkingmarkets to develop in early 1999 (the other was hubs, which we will discuss later)

One of the largestpromises of Storage

Area Networks (SANs)has been any-to-any

connectivity.

We believe 2001company-specific

momentum will continue.


216

— are an integral part of bringing the concept of Fibre Channel SANs to realitytoday.

Bridges can be in stand-alone boxes or integrated within storage subsystems (and inwhich case are called blades). Figure 220 shows a SAN bridge.

Figure 220. SAN Bridge Diagram

Fibre Channel SCSI

Bridge

DiskArray SAN Bridges

enable SCSI toFibre Channelconnectivity.


In the future, we expect to also see Fibre Channel-to-Ethernet, Fibre Channel-to-Infiniband, and Ethernet-to-Infiniband bridges in order to migrate today’stechnologies into tomorrow’s environment.

What Is a Traditional SAN Router?To take a bridge one step further, routers enable several SCSI-to-Fibre Channelconnections. Each router has a varying number of SCSI and Fibre Channel ports,depending on the vendor and product. One of the benefits of routers is that theylook at the data being sent through them. Where hubs and switches focus on movingdata frames quickly and efficiently, a router stops the data frame (for a microsecond)to determine if it’s a read, write, or copy command and routes it accordingly.(Stopping data in this instance should not be confused with a disruptive event; this isintentional and does not interrupt data transfers). The router determines what needsto be done with the data frame by reading a leader on each frame of data.

As a result of being able to read a frame of information without ruining a backup,routers (or the router function) have the potential to play an increasing andinfluential role in future SANs in order to enable, say, serverless backup.

Much like bridges, routers can be in stand-alone boxes or integrated (as blades)within storage subsystems. We project the blade market, which has just begun toemerge, to offer decent growth for the next couple of years. It provides storagevendors, which do not have Fibre Channel connectivity integrated into theirsubsystem, the ability to offer a plug-and-play, Fibre Channel–ready subsystemwithout substantially changing their subsystem’s architecture. (That is, it makes alegacy SCSI tape library appear to have native Fibre Channel connectivity. In otherwords, you can plug a Fibre Channel cable directly into a SCSI tape library via anembedded routing blade.)

Furthermore, as Fibre Channel migrates to incorporate LAN (Ethernet) and WAN(ATM) interconnectivity, we believe the router’s place in SAN networks will be

To take a bridge one stepfurther, routers enable

several SCSI-to-FibreChannel connections.


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cemented. Note: In Dataquest’s analysis and projections, bridges and routers areplaced in the same category.

Figure 221. SAN Router Diagram

Fibre Channel SCSI

Router

DiskArray

TapeLibrary

SAN Routersenable multipleSCSI to FibreChannel

connections.


PlayersCrossroads has been the clear leader in the SAN router segment, although there areother emerging niche companies entering the market, such as Chaparral, ATTO andPathlight (recently bought by ADIC).

Figure 222. Crossroads’ Product Portfolio

Crossroads 8000Front View

Rear View

Source: Crossroads

Upcoming SAN RoutingAs SANs begin to expand and require inter-SAN connectivity, we believe currentnetworking technologies will be leveraged. In other words, SANs will beinterconnected over Ethernet and ATM. We also believe Dense Wave DivisionMultiplexing (DWDM) will play a big role for storage vendors (which is why

Crossroads has been theclear leader in the SAN

router segment.

We believe storagerouting could become a

very large portion ofoverall storage

networking revenues.


218

companies such as Brocade, Inrange, and McData have partnered up with leadingDWDM companies OpticalNetworks and ADVA, respectively).

Figure 223. Routers Could Enable Multiple Protocol Connectivity

EthernetFibreChannel

Router

DiskArray

TapeLibrary

SAN Routers canenable the

interconnectivityof multipleprotocols.


We believe storage routing could become a very large portion of overall storagenetworking revenues (although it may become tough to distinguish this segment asstorage per se). We believe this market will gain traction in 2002 to provide SAN toLAN, WAN, and MAN connectivity.


219

Figure 224. SAN-to-SAN Interconnectivity via a LAN

LAN Disk 3

Disk 1

Disk 5

Server 2

Server 3

Server 4

Server 5

Server 6

NASServer 1

Tape 1

Server 1

NASServer 2

Disk 2

Disk 6

Disk 4

Disk 8

SAN

SAN

Disk 7

FC-GERouter

FC-GERouter


PlayersCisco entered into a technology license agreement with Brocade in June, 2000.Under the terms of the agreement Cisco’s Catalyst 6000 product family ofmultilayer switching technology (Ethernet) would be combined with Brocade’sSilkworm switch technology (Fibre Channel). The interconnection would occurthrough the integration of a Fibre Channel–based interface, designed by Brocade andbuilt by Cisco, located within a Cisco switch, providing switch-to-switchconnectivity. The combined solution is based on encapsulating Fibre Channel’sprotocol, FCP, over TCP stacked with IP through Ethernet to achieve non-blockingOC48 performance (about 248 MBps). Cisco plans to continue increasing the speedof transmission with future generations of the interface.


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In our opinion, other leading companies in the SAN router segment include ADVA(through its purchase of SAN Ltd.), Crossroads, Computer Network Technologies,Nishan, and SAN Valley.

Figure 225. Nishan’s FC-to-IP Router

Nishan IPS 3000

Source: Nishan

Figure 226. SAN Valley’s FC-to-IP Router

SAN Valley Systems SL1000

Source: SAN Valley

What Is a SAN (Entry Level) Hub?One promise of a SAN is any-to-any connectivity. This can be achieved with a“hub.” Hubs were one of the first SAN networking market segments to generaterevenues. A hub connects several storage subsystems and allows them tocommunicate with one another. This would be like a walkie-talkie: Anyone canspeak to anyone else. The drawback of hubs is that data must share bandwidth; inother words, only one person can speak at a time.

Hubs are constructed using a shared bandwidth architecture. A hub can transmitdata at 100 megabytes per second (MBps), which is also the speed of Fibre Channel,but it must allocate that bandwidth such that the sum of all ports capacity usageequals 100 MBps. In other words, only two ports in a hub can be connected to eachother and be transmitting data at one time; therefore, various ports must take turns.

This inefficient use of bandwidth has led to the migration to more sophisticateddevices: switches.


221

Figure 227. SAN Hub Diagram

FibreChannel

FibreChannel

Hub

Server

Server


What Is a SAN Managed Hub?Managed hubs not only connect various storage subsystems, they also manage them.One of the taboos in computer storage is data interruption. Data interruption cancause a backup to fail. Failed backups lead to lost data. A managed hub canovercome some of the disruptive events that occur in an entry hub (also called a non-managed hub or dumb hub), by controlling port traffic.

Disruptive events result in delays in data transmission. These delays can result froma new storage device connecting to the hub for the first time or from the failure of anexisting connection. In both cases, entry hubs inadvertently delay data transmissionwhile they reconfigure their environment. A few milliseconds of disruption in a datatransmission can result in a failed backup, even if the backup is eight hours into theprocess (in which case the backup might have to start over).

Another benefit of managed hubs is that they can act as an initiator. For example,who tells storage subsystems when it’s time to back up? Or what to back up? Amanaged hub can be the initiator of a data transfer. Therefore, managed hubs can bea real enabler for serverless and LANless backup.

PlayersWe continue to believe the hub market, be it entry level or managed, is losing itsluster as storage networks demand more bandwidth and greater connectivity. Infact, many of the “hub” vendors, such as Vixel and Gadzoox, have been trying tomigrate up to the switching segment. However, both companies have had difficultymanaging through the transition.


222

Figure 228. Gadzoox’s Product Portfolio

Capellix 2000 SAN switch

Slingshot 4218 2Gb Open Fabric switch

Slingshot 4210 2Gb Open Fabric switch

Capellix 3000 Modular SAN switch

Gibraltar GS FC_AL hub

Source: Gadzoox

Hubs, We Don’t Need No Stinking HubsIn our view, the hub market is all but gone. Although we believe hubs will continueto play a small role in the low-end and along the outer periphery of fabric SANs, inour view, it is a commodity market and has very little (if any) potential for futuregrowth.

Hub and Switch Side-By-Side ComparisonHubs can only transmit data at 100 MBps for the entire device, compared withswitches that can transfer data at 100 MBps per port (note: as Fibre Channeltransmission speeds increase, these capacities will also increase). For example, afour-port hub can transfer 100 MBps (200 MBps if you take into account bi-directional data transmission), while a four-port switch can transfer 200 MBps (400MBps if you take into account bi-directional data transmission). Note: each linktakes up two ports.

The reason for the difference in data transfer rates can be found in the architectures.In Figures 229 and 230 we illustrate hub and switch architectures.


223

Figure 229. Four-port Hub and Switch Architectures

Hub Switch


Figure 230. Six-port Hub and Switch Architectures (16-port Switches Are More Common)

SwitchHub


Note: The two previous figures were drawn for simplicity; in reality, any port in aswitch can connect to any other port. In our illustrations, switch ports only connectacross.

Notice that all the hub ports are connected to each other (called daisy chaining). Inorder for one port to connect to another port in a hub, it must pass through all otherports along the way. In a switch, various paths are available to simultaneouslyconnect multiple ports without interfering with one another creating point-to-pointconnectivity.


224

Ever Hear of a Looplet?Switches can also use “looplets” to expand connectivity. Looplets act in much thesame way as an entry hub and can connect a maximum of 126 nodes. A switch withmultiple looplets is illustrated in Figure 231 below.

Figure 231. Fibre Channel Arbitrated Loop (FC-AL) Diagram

Switch

Looplet 2

Looplet 1

Hub or

Switch


What’s the Difference?Notice that Looplet 1 simply connects devices to one another to form a loop (calleddaisy chaining), while Looplet 2 uses a hub or switch to make the connections. Theadvantage to using a hub or switch, rather than daisy chaining, is it makes wiring theloop less cumbersome, and if a device on the loop fails, the loop can still function.Daisy chaining devices act much like Christmas tree lights; when one bulb goes out,they all go out.

However, we project hubs have already become commodities, while switches have,and will continue to demand, premium prices as a result of their more complex andleveragable technology. For this reason, hub manufacturers have been attempting toincrease their value by increasing the functionality of their product set (i.e., they aremoving to switches).


225

Protocols


226

➤ While Fibre Channel continues to proliferate the industry in the formof networked and non-networked storage, IP storage is getting closerto becoming a reality. Several IP based products have beenannounced recently, and the IETF is getting closer to selecting a finalstandard. We expect IP storage to effectively penetrate the marketover the next three years, but instead of replacing Fibre Channel, webelieve it will complement it on the low end and at the periphery inthe near term.

➤ We also anticipate InfiniBand showing up over the next few years asthe next evolutionary development to PCI. InfiniBand delivers aswitch-based I/O technology which could, eventually, be leveragedinto the storage network fabric, potentially competing against bothFibre Channel and IP for the holy grail of storage networking.

Multiple Technologies Are Peering into Each Other’sMarkets for Future GrowthOf course every company wants to take its technology as far as it can go; however,in the past, various networking technologies have been locked into their respectivemarkets due to technology barriers: IP for LANs, ATM for WANs, and FibreChannel for SANs. Figure 232 below illustrates how the various networkingtechnologies are beginning to bump heads: Everyone wants to expand into eachother’s markets.

Note: We have drawn the overlaps where we believe they exist today. We expectthese overlaps to expand over time and a LAN/SAN overlap to emerge.

Figure 232. Various Networking Areas


z

Protocols: The Language of SANs

We maintain our beliefthat Fibre Channel willcontinue to be the only

robust storagenetworking technology

for another two to threeyears.

SANLAN

WAN


227

On top of the seeming sibling rivalries, newer protocols continue to show up.InfiniBand appears one of the most promising. Over the next three years we arelooking forward to watching InfiniBand’s evolution as a PCI bus replacement (i.e.,an alternative I/O) and as a potential storage networking contender. However, themost proliferated and aggressive technology has been IP (i.e., Ethernet; IP stands forInternet Protocol), which has already crept into the WAN space by providing voiceover IP. IP is now positioning itself, through the recent introduction of iSCSI andother iterations, to also enter storage networking.

Before diving into a protocol discussion, let’s first appreciate why so many differentvendors, technologies and investors are so intensely focused on this debate: Storagenetworking is going to be a HUGE market and everyone wants a piece of it.

In this section we explore the various technologies and their respective potentials inthe storage market. In the process we will look to provide detailed explanations ofeach technology and how we expect them to play out.

➤ Basics of I/O Interfaces – starts out in the weeds of system and connectivityperformance (I/O stands for Input/Output).

Various protocols can be used to network storage. We discuss 1) Fibre Channel, 2)Ethernet, and 3) IP storage:

➤ Fibre Channel: Networking Storage — outlines the importance of FibreChannel and its advantages in storage networking.

➤ Fibre Channel versus Ethernet — Compares Fibre Channel and Ethernet andtracks the histories of both.

➤ IP Storage — Comparisons of iSCSI, iFCP and FCIP, three IP-based protocolsgaining traction for storage networking with backing from influential companiessuch as Cisco and IBM.

➤ InfiniBand — a new architecture that multiplies the maximum bandwidth ofinterconnectivity in servers.

The Reality of a Homogenous NetworkWe believe one of the most misunderstood assumptions is that end users want, orneed, one ubiquitous networking technology to be the silver bullet that solves allproblems for all computing needs so that one homogenous networking ring can beinstalled to handle all forms of network traffic equally as well.

If that were true, why do we have many different flavors of UNIX, or usemainframes, UNIX, and NT together in the same data center (such as Citigroup’s)?Why are there three different types of disk drives (ATA, SCSI, and Fibre Channel)?Why are there bicycles, mopeds, and motorcycles? Why trucks and cars? Why catsand dogs? Why boys and girls? Okay, we are getting a bit carried away, but you getthe point.

The reality is that we want choices and certain technologies solve certain needsbetter than other technologies, but that is not going to stop people from trying todeliver the perfect ubiquitous network technology.

On top of the seemingsibling rivalries, newer

protocols continue toshow up.

We believe one of themost misunderstood

assumptions is that endusers want, or need, one

ubiquitous networkingtechnology.


228

When?We have heard many people implying that this concept of “one network” is justaround the corner and beginning to emerge today. While we agree it is beingarchitected today, we believe the availability of a technology that can meet all typesof networking demand is in the distant future (more than five or ten years away).

It has been our experience that technology shifts of this magnitude take more time— not less — than originally anticipated. Right now, people are talking aboutGigabit Ethernet moving to 10 GbE and 40 GbE; we note that Ethernet is currentlyramping transmission speeds of 1 Gbps. At the same time, it must be noted thatFibre Channel is not standing still. 2 Gbps Fibre Channel has already hit GeneralAvailability (GA) and the 10 Gbps Fibre Channel spec is already in the works.

In Figure 233 below we have depicted our expectations of the rollout of variousstorage protocols.

Figure 233. Past and Potential Future Storage Networking Technology Availability

20052004200320022001200019991998

FibreChannel

IPStorage

InfinibandAdoption

2006

Source: Salomon Smith Barney (August, 2000)

How?The how is a bit tougher to explain. In the following sections we will explain thedifference between various networking protocols and what we believe will unfold inthe next three years. While a longer-term vision is exciting to talk about, we believeit is too futuristic and difficult to predict and, therefore, should not consumeinvestors’ diligence today. Besides, the technologies will probably change at least15 times in the next couple of years alone.

Learning from HistoryWho would have guessed that Cisco’s technology — a company that very fewpeople had heard of in the late eighties and early nineties — could have usurped BigBlue’s efforts to network the Internet with its technology? The point is, nobodyreally knows what technologies and companies will survive in the distant future (webelieve a more appropriate window to focus on is two or three years out).

In the end, we believe itwill take at least two or

three years beforeEthernet is ready to go

head-to-head with FibreChannel. Thereafter, we

believe the twotechnologies will

overlap.


229

Who Wins?We certainly see many new technological advancements developing from all sidesof the debate. For example, we believe Cisco’s torrid pace of acquisitions, includingNuSpeed, is a clear indication that it recognizes the constantly changing networktopology. We also believe almost every one of the Fibre Channel companies hasmorphed quite a bit since inception. For example, Ancor, which was focused onFibre Channel LANs in the early nineties, moved into Fibre Channel storagenetworking, was bought buy QLogic, and is now developing iSCSI and InfiniBand.Another good example is Inrange which has morphed from a telecom and datacomnetworking company with some mainframe products to be a leader in the high-endFibre Channel market. Inrange has long-haul IP and ATM connectivity and islooking to incorporate InfiniBand and iSCSI in future architectures.

We believe the ultimate winners will be companies from both Ethernet and FibreChannel networking ancestries that have displayed 1) technology leadership, 2)visionary management leadership, 3) the ability to react quickly to changingtechnologies and changing customer demands, and 4) a willingness to evolve theircore competencies to suit customer needs two to three years out by developing freshtechnologies in new directions today.

Our Thoughts for the Future➤ We believe the emerging “Data-centric” architecture (architecture, not network)

will incorporate multiple networking platforms, including Fibre Channel,Ethernet, ATM, DWDM, and InfiniBand.

➤ Traditional networking companies will both compete and partner with FibreChannel networking companies well into the future.

➤ Ethernet will develop into a more robust technology over the next three years,and only then, will it be able to begin competing head-to-head with FibreChannel to network storage.

➤ 10 Gbps Ethernet (10 GbE) will tip the scale toward using Ethernet, perhaps inthe form of iSCSI, as the preferred solution in the low end of the market and onthe periphery of storage networks.

➤ By the time Ethernet has developed the same level of functionality as FibreChannel, it will no longer be TCP/IP Ethernet. We believe it will require aforklift upgrade (i.e., the installation of an entirely new IP network) withhardware that can communicate with the new protocol, which we expect to bedifferent from today’s Ethernet hardware. We believe that iSCSI has taken thelead as the most viable IP storage networking protocol, but expect that otherswill continue to evolve as challengers.

➤ Fibre Channel will continue to be the unchallenged, premier storage networkingsolution for enterprise class, production data for at least another two or threeyears.

➤ Fibre Channel will continue to gain momentum through 2004, no matter howmany resources are stacked against it. Note: It takes a long time between a

We believe when thedust settles in ten years,we will have networking

companies with Ethernetroots and ones with

Fibre Channel roots. Inour view, the key for

investors is not to pick atechnology, rather pick

quality companies whichhave displayed the

ability and willingness toadapt.


230

technology’s inception and when it’s ready for prime time. It took FibreChannel, for example, more than five years to get ready for prime time.

➤ Storage Networking companies should continue to recognize record growth andstorage networking will likely expand into a HUGE market opportunity.

➤ InfiniBand should replace the PCI bus over the next two to three years and onlythen will it begin to show up as a potential alternative to network storage.

➤ The Virtual Interface (VI) protocol will play an increasing role as systems getmore advanced and require faster I/O.

➤ Storage Networking companies have already begun and will continue toincorporate Ethernet, ATM, InfiniBand, and any other networking technologywhich presents itself as a viable storage networking alternative for the future.


231

➤ The change from a SCSI interface as a server-to-storage interconnectto Fibre Channel has made large-scale SANs possible. Knowing thebasics of I/O interfacing can help investors evaluate newconnectivity technologies such as IP storage and InfiniBand.

Connectivity Speeds SAN AdoptionConnectivity from server to storage has been an area where some of the greateststrides have been made and continue to be made. The change from a SmallComputer System Interface (SCSI) to a Fibre Channel interface has made large-scaleSANs possible.

In this section, we explain the basics of Input/Output (I/O) systems, both past andpresent, to gain a better understanding of how the future of interconnectivitystandards might emerge and how this might affect storage networking.

What Is I/O?I/O stands for Input/Output and describes the process and components involved insending and receiving data between computers and peripherals. For example,computers can use the SCSI interface for its I/O with disk drives. SCSI is a protocoldescribing one way of sending and receiving data. Alternatively, computers can alsouse Fibre Channel or IDE.

Each protocol has its advantages and disadvantages. Hence, different ones are usedfor different purposes. For example, while SCSI and Fibre Channel are used forcommunication with disk drives, Universal Serial Bus (USB) protocol is often usedwith communication for keyboards.

Critical for System PerformanceHigh-performance computer systems need to be built with high-performance parts.Low-end “free PCs” and high-end servers are both dependent on four critical sub-systems: 1) microprocessors, 2) memory, 3) networks, and 4) system I/O — all ofwhich need to be performing in balance. In other words, the system is only as fast asits slowest part. The weakest link is often referred to as the “bottleneck”.

Over time, Intel has successfully conditioned us to view the microprocessor as acritical determinant of a system’s performance. Also, with the controversy overDDR, RDRAM and PC-133 DRAM technologies, the importance of the memorystructure became apparent. A third important determinant of performance wasidentified by Sun Microsystems who said “the network is the computer.” As such,we are now shifting from Ethernet to Gigabit Ethernet within the LAN connection.The fourth, and less publicized link in the chain is the system’s I/O. Broadlyspeaking, this is how a computer transmits data onto and off of the motherboard,whether it be to a disk drive, tape drive, scanner, printer, etc. This is the place wherethe cable meets the computer. Since boosting the I/O transmit rate can enhancesystem performance, I/O technologies such as IDE, SCSI (pronounced skuzzy), and

The Basics of I/O Interfaces

Input/Output (I/O)describes the process

and componentsinvolved in sending andreceiving data between

computers andperipherals.

The often forgotten linkin the chain is the I/O

infrastructure.


232

Fibre Channel have each evolved through several generations of performance,reliability, and functionality.

Cirque de StandardsBecause of Intel’s significant presence in microprocessors, chipsets, andmotherboards, it has emerged as a pseudo-governor of computer architecture,endorsing specific memory or graphics standards to ensure the PC “evolves” in anorderly manner. To a degree, I/O standards have also been influenced by Intel. Itsendorsement of USB has shifted the low-performance peripherals market away fromserial and parallel ports. High-performance I/O, however, has been out of thecompany’s jurisdiction, since Intel only determines specifications up to the PCI bus,the portal through which many peripherals are attached. As to what devices areattached to the PCI bus, it is the IT professional or systems engineer that determineswhether the I/O protocol will be IDE, SCSI, or Fibre Channel.

IDE: Absorbed into ChipsIn the early 1980s, the Integrated Drive Electronics (IDE) interface, formally knownas Advanced Technology Attachment (ATA), was developed by Western Digital andCompaq, and installed as the primary link between a computer’s peripheral bus anda disk drive. Over the years, as bus bandwidths increased, the IDE standard alsoevolved into its current form called UltraATA 100, which runs at 100 MBps; thenext generation will be Serial ATA expect to eventually run at 600 MBps. As IDEbecame pervasive and Intel’s chipsets began to absorb the IDE interface, the marketfor discrete host and peripheral IDE products declined rapidly. Today, almost everyhost chipset and every target low-end disk drive ASIC include variants of IDE. Thecurrent generation of IDE, shipping in volume today is UltraATA 100; newerchipsets, such as Intel’s 845, 850, and 860 have the interface embedded.

The IDE interface will likely remain the primary desktop/workstation interconnectstandard because it doesn’t scale as well as SCSI or Fibre Channel technologies.Only two devices can be connected to a single IDE channel versus 15 for SCSI. Acommon desktop configuration has one disk drive and a CD-ROM. If moreperipherals are needed (such as a second disk drive), another interface channelwould be required. Performance workstations and servers often have two to fiveperipherals in each system, and require a greater degree of connectivity.

SCSI: the Incumbent Interconnect for ServersSimilar to IDE, the SCSI standard has served primarily as an interface for storagedevices for over a decade. In addition to greater connectivity, SCSI has aperformance advantage over IDE systems. IDE’s newest generation, UltraATA 100,runs at 100 MBps, while SCSI’s latest generation, Ultra320, runs at 320 MBps.Finally, the disk drive vendors, in an effort to segment markets, have typicallyproduced faster, higher-density disk drives with a SCSI interface. SCSI is usedprimarily in mid- and high-end computing applications.

Because SCSI is not often integrated within a chipset, there is usually additional costassociated with SCSI technology over IDE. A SCSI chip may be a $30–$40 costadded on a motherboard, while a SCSI host bus adapter (HBA) may cost $100–

IDE will likely remain adesktop PC standard.

Versus IDE, SCSIsolutions carry a cost

premium.


233

$300. In addition, disk drive manufacturers also charge a premium for SCSI drives.To justify the cost premium, SCSI vendors have touted both speed and functionality.The latest generation, Ultra320, has not only the highest data transfer rate of anySCSI generation, but also new fault tolerance features such as Cyclic RedundancyChecking (CRC) and Domain Validation. Both improve the integrity and reliabilityof the data transfers. With Ultra320, SCSI has managed to keep pace with theperformance of current high-end computer systems (see Figure 234).

Figure 234. Evolution of SCSI

SCSI

Fast SCSI

Ultra SCSI

Ultra Wide SCSI

1984 ‘86 ‘88 ‘90 ‘92 ‘94 ‘96 ‘98 2000 2001

Ultra2 SCSILVD

640

320

160

80

40

20

10

5

MB/sec

Ultra160 SCSI

Future SCSIGenerations

Source: Adaptec and Salomon Smith Barney

A Two-front War Limits SCSI’s GrowthOnly a few years ago, SCSI was pervasive in high-performance servers andworkstations, despite the price premium ($100–$300 for SCSI HBA plusincremental cost of a SCSI disk drive). Often, the fastest spinning, high density diskdrives were only available with the SCSI interface. In comparison, low-end andmainstream desktops used IDE drives, with slower spindle rates. Today, SCSI’svalue proposition is not quite as compelling since drive manufacturers have madeIDE drives available with spindle rates up to 7,200 rpm and densities of 40 GB perplatter, nearly as powerful as SCSI and Fibre Channel drives. In addition, on August29, 2001, a consortium consisting of Seagate, APT, Dell, IBM, Intel, and Maxtorannounced the release of Serial ATA which will eventually transfer data at 600Mbps. These products are expected to be available in the first half of 2002 with aninitial release of 150 Mbps bandwidth.

At the other end of the spectrum, in mainstream and high-end servers, SCSI hashistorically been preferred. High-end systems typically require an array of drives(three to nine drives) and longer cable lengths for external storage connections;SCSI’s ability to connect up to 16 devices per channel at distances up to 12 metersaddressed both of these issues. But recently, the Fibre Channel interface, which canscale up to 126 devices per channel at distances up to ten kilometers, has garneredsignificant interest for high-end systems. Additionally, the Fibre Channel interfaceis a cornerstone technology in emerging SAN architectures, thus giving any FibreChannel installments even more flexibility and headroom for growth.

With both low-end (IDE) and high-end (Fibre Channel) threats, some industryanalysts have all but declared SCSI a dead technology. But in our opinion, SCSI

UltraATA threatens SCSIon low-end and

performance systems.

Fibre Channel threatensSCSI in high-end

applications.

Don’t pronounce SCSIdead just yet.


234

remains a reliable and widely available interconnect technology, which has evolvedboth in speed and connectivity over several years. Even though Fibre Channel isgaining traction in the high-end applications, and IDE in low-end, the transitionwon’t happen overnight. SCSI’s long history is difficult to overlook due to the factthat engineers often go with what they have experience with.

For example, EMC has stayed with SCSI drives in its Symmetrix subsystem.Adaptec, QLogic, and LSI Logic provide SCSI chips and HBAs.

Figure 235. Data Transfer Rates of Various Interface Standards

MBps

0

50

100

150

200

250

300

350

USB1.0 13

94

USB2.0

UltraATA100

Fibre Channel1G

Ultra160 SCSI

Fibre Channel2G

Ultra320 SCSI


Fibre Channel Components Hit the Disk DriveDisk drive suppliers and component manufacturers have realized the benefits thatFibre Channel components offer. Today, Fibre Channel technology is not only usedfor connectivity between servers and storage, it is also becoming a preferredcomponent technology. The benefit of Fibre Channel components are 1) their abilityto provide thinner internal connectivity within systems, thereby enabling smallersystems, 2) they produce less heat, and 3) they enable faster transmissions. Forexample, Network Appliance was able to triple its Filers’ capacities to 1.4 terabytes,simply by using Fibre Channel drives instead of SCSI drives. Subsystems vendorssuch as Hitachi Data Systems also realized significant improvements in performancewhen they switched from SCSI to Fibre Channel drives.

Alternative Interconnect Technologies Show PromiseAlthough IDE, SCSI, and Fibre Channel will likely remain the three primary I/Ointerface technologies for storage connections, other technologies have evolved forother types of devices. For example, the Apple-backed IEEE-1394 (a.k.a. Firewire),which was once heralded as a competing storage interface, has found acceptance indigital video applications. Its success is a result of support from both Apple as wellas Sony, which ships a branded version of 1394 called “iLink.” In addition, USB

USB is becoming aubiquitous low-endsolution, 1394 finds

niche in digital video.


235

1.0 has already become the next generation standard for low bandwidth I/O devices(i.e., keyboards, mice). Already incorporated in current Intel chipsets, USB 1.0 haslower data transfer rates than either IDE or SCSI and runs at 1.5 MBps. USB 2.0will have significantly higher performance, up to 60 MBps. While USB 2.0 mayencroach on low-end storage solutions, such as desktop removable media (IomegaZip drives), it will not have the bandwidth to compete with the mainstream desktopI/O standards.

InfiniBandWhile this would be a great place to move to a discussion on InfiniBand, we feel it ismore appropriate (chronologically) to spend some time on Fibre Channel next, thenIP storage, and then InfiniBand.


236

➤ Using Fibre Channel instead of SCSI has evolved storage into anetworked architecture.

➤ The growth and benefits of networking storage are undeniable andwe expect it to present a HUGE growth opportunity as far as the eyecan see!

“Heeeere I Come to Save the Daaaaay!” — Fibre ChannelThe existing storage connectivity standard, SCSI, has begun to fall short of therapidly advancing system I/O demands. Due to the inherent limitations of the SCSIstandard, a new storage connectivity standard, Fibre Channel, has emerged to takeits place. This new standard has gained strong momentum in the past two years asthe heir apparent to SCSI and the enabler of storage networking (i.e. SANs);thereby bringing the additional benefits of networking to the storage world.

In this section, we will explain how SCSI evolved to Fibre Channel and why.

Think of It as Super SCSIFibre Channel is based on the core SCSI protocol — think of it as souped-up SCSI.Fibre Channel improved upon SCSI by morphing it from a parallel to a serialinterface, allowing Fibre Channel to overcome SCSI’s distance limitations, amongother things.

SCSI is a method for computers to communicate with disk drives. It uses a parallelinterface and its own SCSI protocol to send and receive data. A parallel interfacesends data eight bits concurrently down eight different wires (although the wires areplaced side-by-side to form a single cable). Next to each of those wires is anotherwire that describes what type of data is being sent (in Figure 236 below, we labelthis type of information “Control”). Note: In reality, the number of wires variesdepending on the version of SCSI being used, there are generally less control thandata lines, and after each control bit several data bits are sent within a frame.

Figure 236. Parallel Versus Serial Interface

SCSI’s Parallel Interface

Fibre Channel’s Serial Interface

Data 1 Control 1Data 2 Control 2Data 3 Control 3

Data 1Control 1Data 2Control 2Data 3Control 3

MultipleWires

Onewire


Fibre Channel: Networking Storage

Fibre Channel is basedon the core SCSI

protocol — think of it assouped-up SCSI.


237

As one can imagine, it is difficult having 16 different pieces of data arrive at theexact same time. SCSI has distance limitations: The longer the data transfer, thehigher the probability it will arrive at different times. Additionally, having manyelectrical wires tightly wrapped together creates electromagnetic interference, whichcan degrade the integrity of the data. Fibre Channel overcomes this distancelimitation by using a serial, instead of a parallel, interface. As a result, information(still using the SCSI protocol) can be sent one bit at a time so the bits of data wouldnot have a problem in arriving in the exact same order in which they were sent,regardless of distance.

Additionally, the architects of Fibre Channel added new features into the protocolwhich extended its ability to be networked.

Fibre Channel Has Several Additional Advantages toSCSIFew will dispute that Fibre Channel is a compelling technology, even though wehave only begun to see its potential. In addition to overcoming distance limitations,Fibre Channel improves upon many other SCSI shortcomings such as speed, greaterconnectivity, centralized management, low overhead, increased reliability, andimproved distance and cabling.

In Figure 237 and the section following we compare SCSI and Fibre Channel.

Figure 237. SCSI and Fibre Channel Comparisons

Maximum Data

Transfer Rate

(MBps)

Maximum Cabling

Length (meters)

Maximum Number of

Host Device

Connections

Wide Ultra SCSI 40 1.5 16

Wide Ultra2 SCSI 80 12 16

Ultra 160 SCSI 160 12 16

Ultra 320 SCSI 320 12 16

1 Gbps Fibre Channel 100 10,000 126 (loop)16 mil (switched)

2 Gbps Fibre Channel 200 10,000 126 (loop)16 mil (switched)

Source: Adaptec and Salomon Smith Barney

➤ High Bandwidth (Speed). The first generation of Fibre Channel debuted withdata transfer rates of 1 Gbps (or 1 Gbit/sec or 100 MB/sec or 100 MBps; it’s allbasically the same thing), faster than any other interface technology at the time.Currently Fibre Channel’s second generation is being deployed and reachestwice the data transfer rate, or 2 Gbps (or 200 MBps). This compares to SCSI,which is currently running at 320 MBps, an increase from previous SCSI speedsof 160 MBps and 80 MBps. Although Ultra 160 SCSI and Ultra 320 SCSI havehigh bandwidth, as parallel protocols they lack several important features thatare useful for networking.

Another benefit of Fibre Channel is that it is bi-directional, which means that itcan send and receive data at the same time. This feature effectively doubles the

In addition toovercoming distance

limitations, FibreChannel improves upon

many other SCSIshortcomings.


238

throughput of Fibre Channel. Although Fibre Channel is still superior fornetworking, SCSI is proving to be a formidable competitor for the disk driveinterface.

➤ Greater Connectivity. Because Fibre Channel supports multiple topologies,such as point-to-point, arbitrated loop, and switched, it can scale up to meet therequirements of any particular application. For example, in arbitrated loopmode, Fibre Channel can connect up to 126 nodes — a theoretical 16 millionnodes in switched mode — compared with SCSI, which connects only 16.

➤ Centralized Management. Switched architectures can be managed through onecentral point; as such, bandwidth can be allocated according to demand.Centralized management is especially important for applications involving e-commerce and transaction processing.

➤ Low Overhead (Low Latency). In addition, the Fibre Channel protocol has verylittle transmission overhead, compared with SCSI, IDE, and TCP/IP (Ethernet).This reduces latency and makes the hardware usage highly efficient, deliveringgreater price/performance.

➤ Increased Reliability. Fibre Channel guarantees the delivery of data, adding ahigh degree of reliability, which is critical for the intense data integrityrequirements of storage applications. This reliability makes Fibre Channel a keydifferentiator for use in SANs, when compared with traditional LAN (Ethernet)or WAN (ATM) technologies.

➤ Distance and Cabling. Fibre Channel cables inherently go farther (up to 10 km)and with greater ease (cables are less bulky and easier to handle) than SCSI.There are also fewer impedance issues, which improves data integrity (such asusing one wire rather than many intertwined). The maximum cable length is animportant criterion for campus-level SANs.

Does this mean that SCSI is dead? No! Or at least not for a while. In ourexperience, technological shifts of this magnitude occur over long periods of timeand, in many cases, both technologies co-exist for prolonged periods. We wouldrefer to this migration as evolutionary, not revolutionary. We expect bothconnectivity solutions to co-exist for at least another five to ten years, albeit at adiminishing rate.

Because Fibre Channelsupports multiple

topologies, it can scaleup to meet the

requirements of anyparticular application.


239

➤ Fibre Channel has won out over SCSI for large-scale SANs. The nextdebate is whether Ethernet can beat Fibre Channel for future growth.

➤ We explain Fibre Channel and the basics of protocols in this sectionso investors can better evaluate the IP storage debate.

What’s the Big Deal?So if Fibre Channel is so good, why isn’t everyone doing it? How could the largestnetworking companies on the planet miss such an important networking technologyshift that we expect will drive growth for the next decade? Simple — they didn’t.In fact, 3Com was one of the first networking companies to sign up for the firstFibre Channel standards body meeting with the Internet Engineering Task Force(IETF) in 1996.

Fibre Channel was expected to take off in 1997. After allocating resources forseveral years, 3Com dropped its Fibre Channel initiative, sending a signal to othernetworking companies that there was little market potential. Many other largenetworking companies took 3Com’s lead...”Yeah I had heard of Fibre Channel, but3Com spent a couple of years doing diligence and dropped out. So we thoughtnothing would happen and that storage would have to wait for Ethernet to increaseits bandwidth to provide a networked infrastructure.” Other traditional networkingcompanies such as Cisco were also busy with other initiatives such as voice-over-IP.The other important factor was NAS, which was just beginning to gain traction.NAS already used IP so there seemed to be no need for a new storage networkingprotocol.

Two years later, in 1999, Fibre Channel began to blossom. But since this seeminglyniche market (including HBAs) was only projected to reach $3 billion in 2003 (byDataquest who has since increased its expectations to $7 billion in 2003 and $17billion in 2005), the established networking companies looked to NAS and 10Gigabit Ethernet as the answers that would slam the fledgling Fibre Channel marketback to whence it came. The problem was that Fibre Channel technology began toembed itself into other storage components, such as disk drives, RAID and serversand backplane technologies. The other, and larger problem, was that 10 GigabitEthernet did not solve the performance issues Ethernet presented: In other words, itis not simply about speeds and feeds.

So what do you do if you are a thousand-pound gorilla and you are late to the game?You partner with the leaders, buy your way in, change the rules, or all of the above.Aside from the hope that 10 Gigabit Ethernet would throw enough bandwidth at theproblem to make the discussion moot, many incumbents banded together to form anIP alliance and various IP protocol proposals began to flood the IETF.

In order to frame the debate (like the pun?), let’s first review what it is, exactly, thatwe are talking about. In other words, let’s review what a “protocol” is. Then let’s

Fibre Channel Versus Ethernet


240

look at what today’s TCP/IP Ethernet is and compare it to today’s Fibre Channel.Then let’s see whether, and how, Ethernet might work out in the house of storage.

Understanding Networking Protocols and ArchitecturesProtocol discussions can be confusing since the same term can have differentmeanings. For example, the term “Ethernet” can refer to a protocol, a protocolstack, or an architecture.

What Is a Protocol?A protocol is a set of rules that multiple devices adhere to for sending and receivingdata to and from each other. These rules can describe specifications such as howdata should be addressed, how error checking should be accomplished, or how datashould be segmented for transport. Many protocols are open standards that vendorsfollow so they can communicate with devices from other vendors. For example, inorder for a computer to send data to a disk drive, it can use the SCSI, IDE, FibreChannel or ATA protocol.

What Is a Protocol Stack?A protocol stack is a combination of protocols that work together. For example, theTCP/IP protocol stack includes the TCP, IP, and Ethernet protocols. We will use theterm Ethernet to refer to the TCP/IP stack. Note: The TCP/IP stack technicallyincludes only TCP and IP, but since Ethernet is often used with this stack in the realworld, the industry frequently refers to this combination as Ethernet or IP.

What Is an Architecture?Architecture refers to the hardware and software used to implement the protocol.For example, a network interface card (NIC) is part of the Ethernet architecture.

Using Layers to Describe ProtocolsWhat Are Layers?Layer diagrams are often used to describe protocols. In order to send data across anetwork, different layers of instructions must be added. As the data packet goesthrough the different layers, it grows larger as more information is added.

Figure 238 below illustrates how data is networked using the OSI model which wedescribe in further detail in the next section. Each discrete set of instructions isrepresented by a separate layer in sequence. Note: Although OSI divides theinstructions into seven categories, any number of categories can be used.

A protocol is a set ofrules that multiple

devices adhere to forsending and receivingdata to and from each

other.

Architecture refers to thehardware and softwareused to implement the

protocol.


241

Figure 238. OSI Reference Model

Data Data

Data Sent Data Received

Networking Info Networking Info


The final data packet, complete with all instructions (such as the address) and theoriginal data (also referred to as the payload), becomes what is known as a frame inFibre Channel parlance and a packet in Ethernet. The frame (assuming it is FibreChannel) is then finally sent to the other node (which can be a computer or device).As you can imagine, this process can create quite a bit of overhead.

Once the information crosses the wire and arrives at the other node (a node can be acomputer or device), the frame must go through the exact same steps but in reverseorder. At each layer, information is stripped away, the frame decreases in size, untilthe final application gets the raw data that was originally sent.

OSI ModelThe International Standards Organization (ISO), which focuses on standardization intechnology, created the Open System Interconnection (OSI) Reference Model (seeFigure 239 below). The OSI is a generic model which categorizes the instructionsand processing involved in networking into seven distinct, sequential layers. Tounderstand which instructions different protocols describe, it is useful to comparethem using the OSI model.

Figure 239 below illustrates how Ethernet and Fibre Channel compare using the OSImodel. Ethernet provides guidelines for layers one through four of the OSI model.Fibre Channel provides guidelines for layers one through five. Other higher-levelprotocols must be used to fill in the rest. Note: The relationship to the OSI model isnot perfectly matched. In Ethernet, the TCP protocol includes some elements ofboth the transport and networking layers. In Fibre Channel, FC-2 includeselements of the networking and transport layers and FC-4 includes elements of thetransport and session layer.

The OSI is a genericmodel which categorizes

the instructions andprocessing involved innetworking into seven

distinct, sequentiallayers.


242

Figure 239. OSI Versus Ethernet Versus Fibre Channel

FC-3

FC-2

FC-0

FibreChannel

OSIModel

L2: Datalink

L1: Physical

L7: Application

L6: Presentation

L5: Session

L4: Transport

L3: Network

Ethernet

Ethernet

IP

TCP

FC-1

Data

FC-4


Figure 240 below describes the type of processing that occurs on each layer.

Note: We have seen multiple ways of mapping Fibre Channel, Ethernet, and otherstorage protocols to the OSI model from various respected sources. Since the OSI isan idealized model which no one is required to adhere to, protocols do not alwaysmatch it exactly. For example, protocols can add new rules which are not includedin the OSI model, or they can group the layers differently. Since protocol mappingis more of an art than a science, this represents our best approximation.

Figure 240. ISO’s OSI Model

Layer What it Does AnalogyL7) Application Translates the message into a form that

the receiving computer will understand.For example, text into ASCII.

Draft a letter.

L6) Presentation Translates, compresses and encrypts themessage.

Print out actual message onstationery paper.

L5) Session Details about the communicationssession.

Will it be sent first or second class?

L4) Transport Segments the data. Breaking up the parcel intoseparate packages.

L3) Network Adds addressing and routing information. Write down address and best wayto get there.

L2) Datalink Prepares data for particular method ofphysical medium.

If sending first class, put insideFirst class envelope.

L1) Physical Transfers from computer onto medium(i.e., copper, optical).

Send it out of the building via truck.



243

Sending data from host to target can be analogous to one person sending a letter toanother. Data begins to be processed from top to bottom, from layer seven to layerone. The first three layers deal with the presentation of the data before it is brokenup into smaller packets of data. In layer seven, the computer transforms the raw datainto a form that can be sent, similar to writing your thoughts down in a draft letterthat can be read by someone else. In layer six, it formats it even further, similar totransforming your draft into a nicely written letter that can be properly sent. In layerfive, it describes features of the communication session (i.e., security), similar todeciding if your letter should be sent first or second class.

The next four layers deal with breaking up the data into smaller packets andpreparing these packets to be reassembled correctly upon arrival. In layer four, thedata is segmented into smaller pieces, similar to breaking down a parcel intoseparate boxes. In layer three, the computer adds on addressing and routinginformation, similar to writing down the address of the person you are sending yourletter to on the envelope, as well as the return address so the recipient knows who itis coming from. In layer two, it prepares the data to be used properly depending onwhat kind of physical medium it is travelling on, similar to putting the letter inside afirst class envelope so it can be sent correctly. In layer one, the data finally gets sentonto the wire, similar to the post office putting the letter into the truck and out on theroad.

Fibre Channel BasicsFibre Channel describes layers one through five of the OSI model (see Figure 241below). Note: FC-2 has elements of OSI layer four so it is not a perfect one-on-onecorrelation between the OSI and the Fibre Channel layers as depicted below. FC-4occupies the network, transport and part of the session layer.

Figure 241. Fibre Channel Versus OSI Model

FC-3

FC-2

FC-0

FibreChannel

OSIModel

L2: Datalink

L1: Physical

L7: Application

L6: Presentation

L5: Session

L4: Transport

L3: Network

FC-1

Data

FC-4


Sending data from hostto target can be

analogous to one personsending a letter to

another.


244

Figure 242 below describes the functions of each layer.

Figure 242. Fibre Channel Five-Layer Model

Layer DescriptionFC-4) Upper-Layer Protocol Interface SCSI is the most commonly usedFC-3) Common services Advanced featuresFC-2) Data Delivery Framing and flow controlFC-1) Byte Encoding Encode and decodes eight bits to ten

bits so the transmission will be morereliable.

FC-0) Physical layer Optical or copper wire may be used.Source: Salomon Smith Barney

The Fibre Channel layers carry out the following functions:

➤ FC-4: Upper-Layer Protocol Interface. The first step is to generate the data.SCSI generates a command or data to send across the network. SCSI includesstorage-related commands such as “write to disk.”

➤ FC-3:Common Services. This layer defines advanced features such as striping(to transmit one data unit across multiple links) and multicast (to transmit asingle transmission to multiple ports).

➤ FC-2: Data Delivery. This layer contains basic rules needed for sending dataacross a network. This includes: 1) how to divide the data into smaller frames,2) how much data should be sent at one time before sending more (i.e., flowcontrol), and 3) where the frame should go. It also includes Classes of Servicewhich define different implementations of Fibre Channel that can be selecteddepending on the application (for more detail, see the section titled “GuaranteedDelivery.”

➤ FC-1: Byte Encoding: This layer takes the frames from step FC-2 andtransforms it so it can be sent across a wire with less chance of error.

➤ FC-0: Physical Interface: This layer is part of the Fibre Channel that sayswhich type of physical media can be used in the network. For Fibre Channel,either optical of copper cable may be used.

Backtracking Through a Little Fibre Channel HistoryBacking up in time for a moment, Fibre Channel actually came to the market in thelate eighties as a data communications networking technology; in other words,instead of using Ethernet one would use Fibre Channel to connect servers and PCs.In fact, Ancor Communications (now owned by QLogic), one of the current leadersin Fibre Channel networking, was founded in the late eighties as a LAN company.

The benefit of Fibre Channel is that it can transmit larger packets of data effectively(referred to as “block level” data transfers), while Ethernet is optimized for smallpackets. In the end, Ethernet won because of its backing by the government and itsbroad-based support from multiple organizations. Note: There was no real need atthe time to send block level data over the LAN. That was being handled behind theserver by SCSI, which at the time did not have a demand to be networked.

In the mid-1990s, somecompanies began to

realize the benefits ofFibre Channel.


245

In the mid-1990s, when SCSI began to look as though it was running out of gas,companies such as EMC and Brocade began to realize the benefits that FibreChannel could bring by networking storage.

Ethernet Feature ComparisonThe Ethernet protocol stack (TCP, IP, and Ethernet protocols) describes layers onethrough four of the OSI model (see Figure 243 below). It is the most widely-usednetworking protocol stack for LANs. Note: We will use the term “Ethernet” to referto the protocol stack and the term “Ethernet protocol” to refer to the protocol itself.

Figure 243. Ethernet Versus OSI Model

OSIModel

L2: Datalink

L1: Physical

L7: Application

L6: Presentation

L5: Session

L4: Transport

L3: Network

Ethernet

Ethernet

IP

TCP

Data


Figure 244 below briefly outlines the main function of each of these protocols inEthernet.

Figure 244. Ethernet — Protocol Functions

Layer DescriptionTCP Ensures reliable transportIP AddressingEthernetprotocol

Formatting data for physical transport


TCP/IP was originally design by the U.S. Department of Defense and largely used ingovernmental agencies and universities. It was the use of TCP/IP to develop theInternet, however, that gave it the ultimate upper hand over competitors such asNovell’s SPX/IPX and IBM’s SNA protocols.

Ethernet FeaturesFeatures of Ethernet include: 1) different framing architecture, 2) longer instructionsets, 3) transmitting individual packets on different routes versus sequences ofpackets on the same route, and 4) different delivery guarantees.


246

1. Different Framing ArchitectureGigabit Ethernet has packet sizes that range between 512 bytes and 1,522 bytes (seeFigure 245 below). Note: Each segment does not correspond to a separate OSIlayer. The figure is not drawn to scale as the data payload can be as large as 1500bytes.

Figure 245. Ethernet Packets

DestinationAddress

SourceAddress

Type/Length

DataFrame

Check Seq.

512 to 1,522 bytes


If the data to be transmitted is smaller in size, the packet is extended to 512 bytesthrough a technique called “carrier extension,” which adds extension symbols forcollision detection purposes. The extra bytes are overhead and reduce overallefficiency. Note: Ethernet jumbo frames allow for packets as large as 9000 bytesbut are not commonly used or supported by all existing infrastructure.

In Figure 246 below, the light grey areas have all of the relevant information that isneeded to send the data payload. However, the entire length of this data string isless that 512 bytes. Hence extension symbols are added at the end to make sure thepacket is exactly 512 bytes long.

Figure 246. Ethernet Packet Adds Extension Symbols for Small Data Payloads

DestinationAddress

SourceAddress

Type/Length

DataFrame

Check Seq.ExtensionSymbols

512 bytes

64 bytes


Fibre Channel, on the other hand, has frame sizes that range between 36 and 2,148bytes (that’s approximately 2 kilobytes). The amount of overhead, however,remains constant regardless of the size of the data to be transmitted. This makesFibre Channel highly efficient for sending high volumes of smaller frames.

In addition, Fibre Channel frames can be linked together in a sequence, which makesthe protocol useful for large bulk transfers of data. Note: Gigabit Ethernet also hasframe bursting, which allows for the transmission of a series of frames at one time.

Figure 247 below illustrates a Fibre Channel frame. Unlike an Ethernet packet, theFibre Channel frame does not waste transmission cycles with extension symbols.Both Ethernet and Fibre Channel frames contain the same type of information.

If the data to betransmitted is small in

size, the packet isextended to 512 bytes

through a techniquecalled “carrier

extension.”

Fibre Channel iseffective for high-

volume, small frametransmission, and also

has sequencingcapabilities for transfers

of large blocks of data.


247

Note: Although the sections of the Fibre Channel frame in Figure 247 below arelabeled differently from those in the Ethernet packet above, both have the same typeof information, not including the extension symbols. The header includes the sourceaddress, destination address and type; similar to Ethernet. The figure is not drawnto scale as the data payload can be as large as 2112 bytes.

Figure 247. Fibre Channel Frames

Start ofFrame

Header DataCyclic

RedundancyCheck

End ofFrame

36 to 2,148 bytes


2. Longer InstructionsEthernet works well for small bits of information, but generates too much overheadto effectively transmit larger blocks of data. It has a more cumbersome instructionset (over 5000 instructions per stack versus a few hundred in Fibre Channel) whichrequires the utilization of more CPU cycles than Fibre Channel to process a packet.

Additionally TCP/IP is typically processed using software. Fibre Channel’sinstructions are processed more quickly by using hardware (the HBA). Severalcompanies, however, have announced plans to develop TCP accelerators, whichprocess sections of the TCP/IP stack on hardware.

Also note that Gigabit Ethernet, although it raised its data transfer rate 10x bymoving to 1 Gbps, it only increased its throughput by approximately 3x as a result ofits high overhead (one could argue the increase is 2x or 4x, depending on the methodof measurement).

3. Sends Packets over Different RoutesTCP/IP often routes each packet differently, giving each individual packet of a givendata transmission a different route to arrive at the same destination as the others;whereas Fibre Channel logically groups frames and sends several at a time insequence, ensuring they arrive in order. The result is that TCP/IP often dropspackets of data when the network becomes congested. The packets must then beretransmitted using more bandwidth.

4. Regulated Flow ControlFlow control guidelines specify how many packets to send at a time. In TCP/IP,packets are sent without an indication if the receiver is ready for it. In FibreChannel, the sender asks the receiver how many frames it has capacity for. Once itgets an answer, it will send the number of frames allowed, in sequence.

5. Guaranteed DeliveryTCP/IP always offers guaranteed delivery, a feature in which the receiver will sendan acknowledgement to the sender after each packet. If the sender does not get theacknowledgement within a specified period of time, it will retransmit the packet.

While TCP/IP does thejob for file level data on

the LAN, it does notcurrently meet the

performancerequirements of block

level storagetransmissions.


248

Hence, when two stations are transmitting data on the same line at the same time, noacknowledgement will be received by either. Each station will then wait a randomamount of time before transmitting again. In heavy traffic conditions, after ten

unsuccessful attempts, the delay time increases. After 16 unsuccessful attempts, thestation gets an error and no more tries are made. Although this reduces congestionon a busy network, it will also slow down data transmission.

Fibre Channel offers six different classes of service that can change the deliveryguarantee characteristics depending on the type of environment the SAN is in. Class1, a circuit-switched connection, is a dedicated, uninterruptible link, analogous to atelephone connection. The benefit of Class 1 service is that transmissions aresustained and guaranteed, which is useful for high-volume, time-criticaltransmissions, such as between two large supercomputers. Class 2 serviceguarantees delivery with receipt confirmation, but no dedicated connection isestablished. Class 3 is similar to Class 2 but without a guarantee of delivery so thereis no wait for confirmation. Note: In Class 3, the most common implementation ofFibre Channel, there is no guaranteed delivery, which means Fibre Channelimmediately resends packets upon receiving an error.

Example of Ethernet Versus Fibre ChannelOkay, let’s look at the different routing, flow control, and guaranteed deliveryfeatures in a way that is easier to understand. Let’s say you have to send a group ofchildren to a museum. Ethernet would have each child find his/her own way to themuseum. Along the way, one might get lost, delayed, or destroyed (remember, thisis really data we are talking about). If everyone arrived, Ethernet would have toreorganize them back in alphabetical order and then wait for the museum to open.Fibre Channel, on the other hand, would first put the kids in alphabetical order andhave them hold hands so they would not go out of order. It would call the museumbeforehand to tell them when it was arriving so the museum would know when toopen and how many people to expect. Then each kid would get on the bus in anorderly manner. The bus would arrive at the museum exactly on time. The childrenwould arrive in the exact same order as when they started, and the transaction wouldbe completed.

New Ethernet-Based Protocols Are More Suited for StorageAlthough Ethernet has several features that make it more suitable for networkingsmall messages versus entire blocks, new protocols are being proposed whichmodify Ethernet to make it more suitable for storage. In the next section we discussthree: 1) iSCSI, 2) iFCP, and 3) FCIP.

Fibre Channel offers sixdifferent classes of service

that can change thedelivery guarantee

characteristics dependingon the type of environment

the SAN is in.


249

➤ There are several IP storage standards being reviewed by the IETF.Three of the more popular ones are iSCSI, iFCP, and FCIP.

➤ We believe IP storage will initially occupy the periphery of the marketbefore it can ramp significantly and potentially compete head-to-head with Fibre Channel in the enterprise.

IntroductionThe Internet Engineering Task Force (IETF), a standards body for Internetarchitectures, is currently considering several standards for IP storage. We use theterm IP storage to describe protocols that are based on IP over Ethernet networksversus Fibre Channel. Although network-attached storage (NAS) appliances alsowork over Ethernet, we do not include NAS per se in our definition of IP storage.

Three of the more prevalent IP storage protocols are iSCSI, iFCP, and FCIP.Understanding the differences between these proposals can be helpful in comparingthe unique benefits they have to offer.

In this section, we explain IP storage and what stages we believe this technologywill go through in the future.

Why Use IP Storage?If Fibre Channel is currently working well, why use IP/Ethernet? According to IPstorage proponents, three of the main reasons are:

➤ Performance: IP storage could eventually be both cheaper and faster since moremoney and resources are being spent on advancing Ethernet than Fibre Channeldue to a larger installed base. Cisco and IBM, two influential companies, arecurrently supporting iSCSI.

➤ Cost Savings: Eliminates the need to have two networks. One super networkinterface card (sNIC) can be used to access both Ethernet networks and IPSANs. Two cards are needed, a NIC and a host bus adapter (HBA), to accessEthernet and Fibre Channel networks, respectively.

➤ Manageability: Eliminate the need to have network administrators learnmultiple ways to control data networking and storage networking.

Three Versions of IP Storage: iSCSI, iFCP, and FCIPThere are three IP storage protocols currently being considered by the IETF: 1)iSCSI, 2) iFCP, and 3) FCIP. ISCSI and iFCP are native protocols that transportSCSI over Ethernet while FCIP is a tunneling protocol that encapsulates FibreChannel in Ethernet.

Fibre ChannelAs a quick review, Fibre Channel takes SCSI data and commands and adds newinformation onto these items so they can travel across a networked serial interface,similar to data across an Ethernet network.

Potential Future IP Storage Iterations

Three of the moreprevalent IP storageprotocols are iSCSI,

iFCP, and FCIP.


250

iSCSIiSCSI sends SCSI commands as data, (as does Fibre Channel), but to transport thedata, it uses Ethernet layers instead of the Fibre Channel layers. Additionally, it usesa new protocol called iSCSI to replace the FC-four layer that Fibre Channel uses.This protocol can be used on IP SANs only.

Figure 248 below compares Ethernet, iSCSI, iFCP, and Fibre Channel. Note:Protocol mapping is more of an art than a science and interpretations may vary.

Figure 248. Ethernet, iSCSI, iFCP, Fibre Channel

FC-3

FC-2

FC-0

FibreChannel

Ethernet

Ethernet

IP

TCP

FC-1

FC-4 FC-4 (SCSI)

TCP

IP

iFCP

iSCSI

TCP

IP

iSCSI

Ethernet Ethernet


Figure 249 below illustrates how newer protocols take elements of older ones.ISCSI takes elements of both SCSI and IP, similar to the way in which FibreChannel took SCSI and morphed it into Fibre Channel by adding networkingcharacteristics.

Figure 249. Newer Protocols Use Elements of Older Ones

SCSI

Ethernet iSCSI

FC

Older Newer


iFCPSimilar to Fibre Channel and iSCSI, iFCP sends SCSI commands as data but totransport the data, it uses Ethernet layers instead of Fibre Channel layers. Thedifference between iFCP and iSCSI is that iFCP keeps the FC-4 layer instead ofreplacing it with iSCSI.

iSCSI sends SCSIcommands as data, (as

does Fibre Channel), butto transport the data, it

uses Ethernet layersinstead of the Fibre

Channel layers.

The difference betweeniFCP and iSCSI is that

iFCP keeps the FC-4layer instead of replacing

it with iSCSI.


251

The FC-Four Layer Enables Backward Compatibility

By using an FC-four layer instead of an iSCSI layer, iFCP can be used with currentsoftware applications that manage Fibre Channel networks. This protocol can beused on both IP and Fibre Channel–based SANs. As you can see in Figure 250below, different protocols have different degrees of backward compatibility. Webelieve this is an important feature that IT managers will consider when decidingwhich technology they will use in the future.

Figure 250. Technologies Have Different Degrees of Backward Compatibility

FibreChannel

iSCSI iFCP FCIP

Fibre Channel SANs yes no yes yes

IP SANs no yes yes yes

Works with FibreChannel software

yes no yes yes


FCIPThe method of taking a complete frame in a different protocol and wrapping it in yetanother protocol is known as tunneling. FCIP is an open, standard way of tunnelingFibre Channel through IP. Proprietary methods of tunneling also exist.

FCIP is a combination of Ethernet and Fibre Channel. It takes a Fibre Channelframe of information and then adds Ethernet layers to it. This results in more dataneeded to be transmitted for a given file (see Figure 251 below) than in eitherprotocol by itself because after adding all of the Fibre Channel layers, it then mustadd several IP layers of instructions.

FCIP takes a FibreChannel frame of

information and thenadds Ethernet layers to it.


252

Figure 251. FCIP Combines Two Protocols

FC-4

FC-3

FC-2

TCP

IP

FCIP

FC-4

FC-3

FC-2

FC-1

FC

TCP

IP

Ethernet

Ethernet EthernetFC-0


We See IP Storage Becoming a Complement to FibreChannelOver the next few years, we believe IP storage will be more of a complement toFibre Channel than a competitor. We believe it will emerge in the low end of themarket because by the time it becomes a viable alternative to Fibre Channel, mostenterprise customers who need the technology now and can afford it will havealready made significant investments in Fibre Channel. In addition, the proposediFCP and FCIP protocols could be valuable complements to Fibre Channel byallowing geographically dispersed Fibre Channel SANs to communicate by“hitching a ride” on an existing Ethernet backbone.

Although TCP/IP has been around for a long time, we believe IP storage will takeapproximately two to five years to equal the performance of Fibre Channel. Webelieve the following things need to happen before IP storage can become amainstream technology:

➤ IETF must approve a standard. This standards board is currently in theprocess of reviewing various proposals, each of which has many differentversions.

➤ Vendors must modify products. Vendors such as Brocade, Compaq, EMC,IBM, Sun, and Veritas must modify their products before they can work with theiSCSI standard.

➤ Early adopters must test. New technologies take time to debug. Severalupgrade cycles could occur before IP storage is mainstream.

➤ Complementary technologies must be developed. In order for IP Storage toequal the performance of Fibre Channel, new technologies must be developed toallow for faster processing and transmission. We believe two of the moreimportant technologies are 1) increased bandwidth over Ethernet, and 2)hardware acceleration of IP processing. Fibre Channel currently runs at 2 Gbpsand Ethernet at 1 Gbps, so Ethernet technology must surpass Fibre Channel toequate its performance. Additionally, hardware accelerators to process thelonger IP instructions will make processing the data quicker. Currently IP is

Over the next few years,we believe IP storage willbe more of a complement

to Fibre Channel than acompetitor.


253

processed in software compared to Fibre Channel’s instruction set, which isprocessed in hardware.

IP Storage Is a Great Choice at the Department LevelWe believe IP storage can be a great choice at the department and workgroup level,much as NAS is today. It means companies who have small budgets and limited ITresources will not have to buy additional HBAs on top of their NICs, thereby savingmoney. Also, they will not have to retrain IT managers who already understandEthernet, thereby reducing complexity.

In time, IP Storage’s performance could surpass that of Fibre Channel. Greaterresources are being devoted to Ethernet’s research and development by largetraditional networking companies, such as Cisco.

However, the enterprise customers who are the main customers of Fibre Channeltechnology today could be reluctant to completely dispose of their Fibre Channelinvestments in order to use a newer technology. Until IP Storage adoption iscomplete, more money will continue to be invested into Fibre Channel, making itmore expensive to switch to IP Storage with each passing day. IT managers couldbe reluctant to switch to IP Storage until its price/performance is a magnitude greaterthan Fibre Channel, and not simply equal to it, and we believe this could take manyyears.

We believe new technologies follow a cycle similar to Gartner’s Technology“Hype” Cycle (Figure 252). The chart illustrates the amount of attention atechnology attracts over time.

Greater resources arebeing devoted to

Ethernet’s research anddevelopment by largetraditional networking

companies, such asCisco.


254

Figure 252. New Technology “Hype” Cycle and Protocol Positioning

Time

Attention

Trigger

Trough ofdisillusionment

Peak of inflatedexpectations

Slope ofenlightenment

Fails to establishcompelling end-user

value

Plateau ofproductivity

IP Storage

FibreChannel

InfiniBand

Source: Salomon Smith Barney for protocol positioning. Dataquest for Technology “Hype” Cycle.

In the early days of Fibre Channel people believed it was going to do everythingincluding the file sharing. We believe IP storage will go through a similar evolution.In its infancy, IP storage is currently being hailed as the all-encompassingreplacement to Fibre Channel, and is rapidly attracting attention. We believe it willeventually occupy a solid segment of the market and co-exist with Fibre Channel.

According to industry pundit Mike Gluck, “IP storage will happen slower than the‘hype’ but faster than Fibre Channel evolved.”


255

➤ We believe InfiniBand is on its way to becoming the next generationI/O. InfiniBand solves a painful computing bottleneck whileincreasing performance and scalability.

➤ We expect to first see InfiniBand as an HBA solution and thenmigrate to a chip based solution that (effectively) externalizes the I/O.

InfiniBand: Bringing Input/Output OutsideInfiniBand, previously named System I/O (referred to as SIO), is the result of themerging of two competing, developmental I/O (Input/Output) architectures:

1 Next Generation I/O (NGIO), which was architected by Intel and supported by,for example, Dell, Hitachi, NEC, Siemens, and Sun; and

2 Future I/O (FIO), which was being backed by companies including 3Com, Cisco,Compaq, HP, IBM, and Adaptec.

The goal of InfiniBand is to solve today’s server I/O bottleneck with a newcomputer architecture/connection that utilizes an InfiniBand switching fabric inplace of the current PCI Bus structure.

Below in Figure 253 we highlight the major InfiniBand supporters. Membership ofthe InfiniBand Trade Association currently includes 230 companies across diverseproduct fields including server, networking, storage, software, and silicon providers.

Figure 253. Premier InfiniBand Supporters

Steering Committee Companies

Sponsoring Member Companies

Source: InfiniBand Trade Association

The PCI and PCI-X Bus architectures create an inefficient bottleneck as data getscongested as it passes through the bus. InfiniBand overcomes this by implementinga switched fabric chip architecture to direct and control the flow of data; thereby,eliminating the PCI bottleneck. InfiniBand proposes to offer greater connectivity

The Future Band: InfiniBand


256

with increased performance by enabling data to flow into and out of devices moreefficiently.

Evolution of Interior I/OWith the exponential growth of bandwidth outside the server (Gigabit Ethernet plusadvanced storage networks) and the increasing speeds of microprocessors andmemory architectures, one thing is abundantly clear: Current I/O interconnects needan overhaul. While SAN solutions are certainly interesting out-of-the-box solutions,evolution inside the box is also unfolding. The two current development effortscenter around PCI-X, which is an evolutionary bus structure, to PCI, and InfiniBand,an entirely new switched fabric I/O architecture.

PCI-X Is Most Likely Next in LineWhile InfiniBand and Gigabit Ethernet may get more air time, PCI-X will mostlikely be the next technology milestone to be reached. When Intel invented the PCIbus in 1991, it was because the ISA and EISA bus structures were reaching theirbandwidth limits. Now, almost a decade later, as microprocessor frequencies haverisen from under 100 MHz to over 1 GHz, the limits of the PCI bus have beenreached. Given that system OEMs such as Dell, Compaq, IBM, and Hewlett-Packard will likely be launching PCI-X systems prior to or in 2002, it’s importantfor the HBA suppliers to grow in concert.

Doubling the Bandwidth of PCIPCI is a ubiquitous bus interface used throughout computing (desktops,workstations, servers) and is even moving into communications equipment such asrouters and switches. Graphics cards, modems, Ethernet NICs, SCSI/Fibre ChannelHost Bus Adapters are all common residents of PCI slots today. The latestgeneration of PCI (version 2.2) is a 64-bit bus capable of 66 MHz speeds; peakbandwidth tops out at 512 MBps. PCI-X is a 64-bit, 133 MHz bus capable of 1Gbps performance, double that of PCI 2.2.

PCI-X not only runs at higher frequencies, but also supports more slots. PCI 2.2systems, at 66 MHz, can support only one or two slots (with additional slots, the busspeed drops down to 33 MHz). PCI-X improves upon this limitation, offeringdesigners flexibility in choosing between one slot at 133 MHz, two at 100 MHz, orthree or more slots at 66 MHz.

Figure 254. PCI-X Delivers Higher Bandwidth than PCI

SpecificationBus width

(bits)Bus Frequency

(MHz)Peak Bandwidth

(MBytes/sec)

PCI 2.2 32 33 133

PCI 2.2 64 33 266

PCI 2.2 64 66 533

PCI-X 1.0 64 133 1,066


The only constant ischange.

PCI-X improves upon PCIin both speed and

number ofexpansion slots.


257

Additional Efficiency FeaturesThe designers of PCI-X also developed bus utilization features, which improvetraffic flow and efficiency of data transfers on the bus. Probably the most significantfeature is the addition of “split transactions,” which solves a major drawback of PCIcalled “delayed transactions,” which reduce system bandwidth. Other featuresinclude more stringent rules for inserting wait states, which also reduce bandwidth,and allowable disconnects. These and other enhancements greatly improve the busefficiency so that a PCI-X system will have greater bandwidth than a PCI system,even if it runs at the same bus frequency.

PCI-X Support Is on the WayPCI-X will be fully backwards-compatible with PCI, meaning that PCI-X devicesneed to work in PCI slots and PCI devices need to work in PCI-X slots. So thechallenge for designers is not only to implement the new features of PCI-X, but alsoto remain 100% backwards-compatible — not a trivial undertaking. However, asserver OEMs increasingly look for ways to improve system bandwidth, PCI-Xsupport will become increasingly important.

Figure 255. PCI-X Implementation in Next-Generation Servers

Source: Agilent

3GIO and HyperTransport are two other I/O technologies that are being discussed asreplacements for PCI, but are beyond the scope of this report.

To InfiniBand and BeyondWhile PCI-X will satisfy I/O bandwidth for the next couple of years, a longer-termvision reveals that a quantum leap forward for I/O architectures will likely benecessary to satisfy continually increasing data throughput requirements. AndreasBechtolsheim, vice president of Engineering at Cisco, commented that “PCI will justbarely be able to handle 1 Gb Ethernet… PCI-X will be just barely able to handle 10Gb Ethernet. To scale much beyond that dictates a shift to a new sort of I/Oprotocol.” To this end, Intel and a consortium of server and I/O componentsvendors are paving the road for InfiniBand, a new switched I/O architecture thatmay eventually bring the I/O interconnect outside the server (meaning, no moreinternal slots).

PCI-X improvesbandwidth over PCI,

even at the samefrequency.

The Fibre Channel HBAmakers that ship PCI-X

products first will have aslight advantage.


258

What Is InfiniBand?InfiniBand proposes to bring these I/O connections “outside” the servers, socomputing power can be upgraded or added in a simple, efficient manner. Inaddition, I/O expansion takes place across a switched fabric environment,eliminating slot limitations of PCI and PCI-X.

IDC projects servers with InfiniBand capability will grow to 6,720,296 in 2005 from3,806 units in 2001, representing a 346.1% CAGR (Figure 256 below). Althoughwe believe this is a bit optimistic, it drives home the point that InfiniBand is comingand is going to be a big market opportunity.

Figure 256. InfiniBand-Enabled Server Shipments

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2001 2002 2003 2004 2005

Units

346.1% CAGR

Source: IDC (May, 2001)

But what exactly is it? Is it a new bus or a protocol? Does it reside in the server oroutside? InfiniBand is an architecture based on a switched-fabric of serial I/Ochannels; InfiniBand is so broad-reaching that it redefines existing I/O systems,connections, cables, physical layer and high-level software protocols. Various I/Osubsystems such as Ethernet, Fibre Channel, SCSI, or even inter-processorcommunication will be able to link to an InifinBand fabric. But the transition won’tbe easy or quick nor is it guaranteed to happen. Systems supporting InfiniBand willlikely first be introduced in 2002, even under the most optimistic estimates.

Think Outside the Box, LiterallyA significant transition to be brought about by InfiniBand is the decoupling of theI/O subsystem from the server’s microprocessor/memory complex. Today’s serverI/O subsystem consists of shared PCI bus, linked directly to the system memory andCPU. InfiniBand architecture would replace the shared bus with a high-speed seriallink, with initial specification of 2.5 Gbps. The I/O subsystem would essentiallyreside “outside” the server, within a message-passing, IP-based switched fabric.

InfiniBand is a completenew architecture; the

transition won’t be easyor quick.

InfiniBand moves the I/Osubsystem out of the

server.


259

The elegance of the InfiniBand model is twofold: 1) it minimizes CPU interactionwith storage processing, thereby reducing the burden on the server’s microprocessor,and 2) it improves the scalability of the I/O subsystem.

The core technologies of InfiniBand are: 1) HCAs, 2) switching chips, and 3) TCAs.Host Channel Adapters (HCAs) reside on the host, i.e. a server, sending datathrough switches which create the interconnect to the Target Channel Adapters(TCAs) which receive the data in target devices, such as storage subsystems and/orInfiniBand-to-GbE routers. Given their relationship with server OEMs, HBAvendors such as QLogic, Emulex, and JNI have entered the development arena forInfiniBand technology. Silicon (i.e., chips) is being produced by establishedsemiconductor companies such as Intel and IBM as well as by startups such asMellanox, Banderacom, and others.

The development of industry standard software for InfiniBand (for subnetmanagement) is also being created by companies such as Lane15 and Vieo whichshould help drive InfiniBand standardization and interoperability. The deploymentof industry standard subnet management software in a technology this young isunique and has the potential to speed its adoption.

Figure 257 below illustrates where these products can be found on the network.Note: Software is everywhere.

Figure 257. InfiniBand Network

IBSwitch

IBSwitch

IBRouter

CPU

HCAMEM

Processor Node

CPU

HCAMEM

Processor Node

CPU

MEMHCA

CPU

HCA

Processor Node

CPU

MEMHCA

CPU

HCA

Processor Node

TCA

Storage Subsystems

TCA

Storage Subsystems

TCANetworkInterface TCANetworkInterface

TCANetworkInterface

TCANetworkInterfaceEthernet

Fibre Channel

Other IBsubnets,

WANs

Source: Lane15


260

Figures 258 below illustrates current PCI and PCI-X architectures.

Figure 258. Today’s PCI and PCI-X Server Architectures

Proprietary Internal Data Bus

ControllerMemory PCICard

CPU CPU

PCI Bus (66 MHz)

North Bridge &South Bridge


Figures 259 and 260 below illustrate potential InfiniBand architectures.

Figure 259. Phase 1: Potential InfiniBand Server Architecture


Memory

CPU CPU

IBHCA Multiple

InfinibandPorts

Controller

IBHCA

IBHCA

PCI Bus/Proprietary Bus

High-end



261

Figure 260. Phase 2: Potential InfiniBand Server Architecture

CPU

Memory

IBHCA

Low-end

Controller

MultipleInfinibandPorts

Mid-range


Memory

CPU CPU

IBHCA Multiple

InfinibandPorts

Controller

IBHCA

IBHCA

PCI Bus/Proprietary Bus


InfiniBand Versus Existing Architectures➤ Serial, Point-to-Point Connections: InfiniBand incorporates point-to-point

connections on a switched fabric, unlike the current PCI architecture, which is ashared bus. The primary benefit of the point-to-point connection is that higherbandwidth can be achieved through improvements in the media used to send thesignals. Each InfiniBand link will have two channels (1-bit wide), with atheoretical signal rate of 2.5Gbps. (See estimated performance specifications inFigure 261 below.) In addition to achieving higher bandwidths, point-to-pointconnections do not require any interrupt processing to establish communication.In contrast, the bus architecture requires that resources are shared, and variousprioritization schemes and interrupt processing must be determined.

➤ Single Point Upgrades: Because each InfiniBand link is independent, it can beupgraded independently. In a shared bus (PCI or PCI-X) environment, the busspeed drops to that of the slowest device.

➤ Improved Fault Isolation: Another benefit of the point-to-point architecture isthe ability to isolate faults to a single connection. A malfunctioning link can beserviced without interruption of other I/O devices. On a shared bus, a faultydevice can bring down the entire bus segment.

Figure 261. InfiniBand Links and Data Throughput Rates

LinkWidth

Link Signal Rate(uni-directional)

Useable Bandwidth(80% of signal rate)

Effective Throughput(bi-directional)

1x 2-channel 2.5 Gbps 2 Gbps (250 MBps) (250 + 250) MBps4x 8-channel 10 Gbps 8 Gbps (1 Gbps) (1 + 1) GBps12x 24-channel 30 Gbps 24 Gbps (3GBps) (3 + 3) GBps

Source: Compaq Computer Corp.

The InfiniBandarchitecture has severalcompelling features that

make it more scalableand serviceable than

existing architectures.


262

Virtual Interface Enhances InfiniBandVirtual Interface (VI) is often discussed in conjunction with InfiniBand architecture.It is a form of Direct Memory Access (DMA), a method to speed up the flow of datafrom the application to the HBA. Benefits include low latency and reduced CPUoverhead due to its smaller instruction set. Emulex reports that databaseapplications have experienced greater than 40% improvement in performance whenutilizing its VI products.

VI is an architecture that sends data from node to node more quickly. It does thisthrough bypassing the Operating System (OS) layer and replacing other layers withthinner ones that have less instructions. As you can see in Figure 262 below,traditionally, once an application such as Excel generates data to send to thenetwork, the data must be processed by the OS (for example, Windows NT) andthen that information must be processed by the device driver (a software applicationwhich manages a specific hardware piece) before it finally gets to the HBA and issent across the network.

Figure 262 below illustrates the VI architecture.

Figure 262. VI Architecture Comparison

VirtualInterface

Operating System

Driver

Standard

Application

HBA

Application

HBA


Using VI, the OS and the driver steps are bypassed, resulting in the data movingmore efficiently through the computer and out onto the network. In effect, VIallows the data to take a shortcut from the application to the HBA. This is alsoreferred to as Direct Memory Access (DMA) since the data takes a direct path fromthe main memory (application) to device memory (an HBA in this case) versusgoing an indirect path by passing through additional steps. Note: In practice, thedriver is not completely eliminated but replaced by a thinner one with lessinstructions.

Virtual Interface is a formof Direct Memory Access

to speed up the flow ofdata from the application

to the HBA.


263

VI Can Use Different Transport ProtocolsVI only describes how data should be processed from the application to the HBA.After those steps, other protocols are used to further prepare the data to be sent. VIdoes not specify which transport protocol must be used to send the data - it can useEthernet, Fibre Channel, InfiniBand, or any one of various protocols.

Below we use the OSI model to illustrate how VI can work with a number ofnetwork protocols.

Figure 263. VI in the OSI Model

Application

Presentation

Session

Transport

Network

Datalink

Physical

VI

Fibre Channel,Ethernet,InfiniBand, etc.


Breaking Apart the Server Seems LogicalBack in time, when one monitor was connected to one PC with one keyboard andone printer, computing was simple. Then computing moved to multiple PCsconnected to one printer. Then to multiple PCs getting data from one big server andconnecting to multiple printers, and so on. The difficult part is that each server canonly service so many PCs or applications. In order to expand one must eitherincrease the amount of servers or increase the robustness of each server. However,one cannot just add microprocessors to servers, per se.

Once a server is bought today, it has a finite capacity. By using InfiniBand to create1U high microprocessor farms, servers can be consolidated and more efficientlyutilize floor space. We believe it creates seamless capacity expansion. This latterpoint is very attractive to Internet Service Providers (ISPs) and Application ServiceProviders (ASPs) where floor space is in demand.

Further, with the trend towards “bladed servers,” or literally, servers that are a singlecard to be plugged in a chassis, InfiniBand becomes very powerful. A complete,multiprocessor server can be built that is the size of a single card, and contains twoto four InfiniBand HCAs. With enabling software providing for what’s known as a“shared I/O” paradigm, all traffic can share these HCAs into the fabric, be it FibreChannel storage traffic, Ethernet LAN traffic, or VIA server-to-server clusteringtraffic. In this way, the cost of powerful computing nodes is driven downtremendously.

VI can use Ethernet,Fibre Channel,

InfiniBand, or any one ofvarious protocols to

send the data.

By using InfiniBand tocreate 1U high

microprocessor farms,servers can be

consolidated and moreefficiently utilize floor

space.


264

Using VI over InfiniBand, servers can be aggregated much the same way thatstorage utilizes RAID (Redundant Array of Independent Disks). For the server, wewill refer to this as RAIM (Redundant Array of Independent Microprocessors) SeeFigure 264 below.

Figure 264. Potentially RAID and RAIM Architectures Could Look Very Similar

Microprocessor Farm (1U)

RAIM Controller

LAN

WAN




SAN

JBOD

RAID Controller

JBOD

JBOD

JBOD

SAN

Infiniband

FibreChannel

LAN

WAN


By disaggregating the components of a server, they can be scaled more efficientlyand provide greater reliability through any-to-any connectivity, thereby,circumventing component failures and providing better resource utilization.

Figure 265 shows our view of the macro networking categories, includingInfiniBand. Note the overlapping areas, which are intentional. We expect theoverlapping portions to expand over time in the way we have depicted using arrows;thereby creating competition between technologies.


265

Figure 265. Networking Diagram


In an InfiniBand World...As part of the press surrounding InfiniBand, there has been a lot of noise aboutInfiniBand eliminating the need for Fibre Channel and SANs. While it is true thatsomeday InfiniBand may challenge Fibre Channel for SANs given that the first-generation InfiniBand specification has only recently been completed, we believethe technology is still in its infancy and will take time to mature as a SANtechnology. Just as Fibre Channel was incubated for more than five years,InfiniBand will also require several iterations before it’s ready for GeneralAvailability deployment.

Let’s fast-forward to 2003, when InfiniBand products are probably just starting togain momentum. At this time, Fibre Channel–based SANs and 10 Gb EthernetLANs will already be deep into deployment and often working in cohabitation.InfiniBand will likely be deployed at the core of a data center, and connect toexisting LANs, WANs, and SANs. The question is then, which vendors will bringInfiniBand products to market? Indeed, members of the server OEM, LAN, WAN,and SAN communities have all been involved. We believe that given their closeworking relationship with server vendors, our Host Bus Adapter suppliers, the sameones offering Fibre Channel HBAs today, will be in the forefront of offeringInfiniBand host and target devices.

In short, we believe that everyone wants to use, and will use, InfiniBand.

Still in the concept stage,InfiniBand won’t be

ready for deployment formany years.

The Fibre Channel HBAsuppliers will likely also

offer InfiniBand HCAs.

SANLAN

WAN

IB


266

iSCSI HBA Product Roadmaps AnnouncedHBA vendors are beginning to offer iSCSI products. These devices propose to solvea major problem with IP storage — the TCP/IP protocol stack is very CPU intensive.New products will be able to offload the processing from the main CPU onto siliconon the HBA.

AdaptecOn July 2, 2001, Adaptec acquired Platys Communications for $150 million. Platysdevelops iSCSI ASICS that are scalable to 10 Gbps. On April 9, 2001, Adaptecannounced its AEA-7110C iSCSI HBA.

EmulexOn March 19, 2001, Emulex announced its GN9000/SI iSCSI HBA. It also offersthe GN9000/VI VI-over-IP host bus adapter for Virtual Interface.

QLogicOn January 23, 2001, QLogic acquired Little Mountain Group, a company thatdevelops iSCSI technology, for $30 million.

On July 31, 2001, QLogic licensed ARC International’s ARCtangent-A4 embeddedprocessor for its future iSCSI products.

Cisco Is Executing a Multi-Pronged StrategyCisco is attacking the storage market on several different fronts. This multi-prongedstrategy involves working with 1) IBM, 2) Brocade, and 3) NuSpeed.

We believe Cisco is increasing its focus on storage networking because of themarket’s phenomenal growth potential. In Cisco’s words, “Storage Area Networks(SANs) have become vital for companies to store and quickly retrieve data ondemand, as well as backup their systems.”

Further, there is speculation Cisco is incubating an in-house start-up called AndiamoSystems, which is said to be developing a large-scale SAN Director that willpredominantly use iSCSI technology.

IBMOn February 21, 2001, IBM announced the IP Storage 200i, a NAS appliance thatuses the iSCSI protocol. IBM uses the same version of iSCSI (as Cisco) for itsproduct. Cisco and IBM jointly submitted the use of SCSI over TCP/IP to theInternet Engineering Task Force (IETF), referred to as iSCSI.

BrocadeWe believe the Cisco/Brocade partnership provides a very high level of validationfor the benefits and importance of Fibre Channel networking technology.

On June 13, 2000, Brocade announced a partnership with Cisco to interconnectCisco’s Catalyst 6000 product family of high performance multilayer switches withBrocade’s Silkworm product family of Fibre Channel switches. The interconnectionwill occur through the integration of a Fibre Channel–based interface card, code-

Recent Company Developments

Cisco is attacking thestorage market on

several different frontsby working with 1) IBM,

2) Brocade, and 3)NuSpeed.


267

named Redhead, based upon Brocade’s e-port technology and located within a Ciscoswitch, providing switch-to-switch connectivity for remote Fibre Channel SANs.Cisco will pay Brocade a “license fee” on a per-port-shipped basis.

The combined solution is based on encapsulating the Fibre Channel protocol overTCP stacked with IP through Ethernet to achieve non-blocking OC48 performance(which is about 248 MBps, Fibre Channel currently runs at 200 MBps). Cisco willcontinue to increase the speed of transmission with future generations of theinterface.

Cisco will also offer DWDM connectivity for Brocade to traverse Metropolitan AreaNetworks (MANs) and Wide Area Networks (WANs). (Note: ONI Systems is alsoa Brocade partner and provides Brocade with DWDM. In addition, Brocade helpedfund ONI before it went public.)

NuSpeedOn July 27, 2000, Cisco announced a definitive agreement to acquire NuSpeed, aprivately held company focused on IP based storage networking, for $450 million.(The transaction closed in the quarter ended October, 2000.)

On April 9, 2001, Cisco announced the SN 5420 Storage Router, which utilizesCisco’s version of iSCSI. QLogic’s ISP2200A single-chip processor is being usedin the router. Some of the technology of the router came from the NuSpeedacquisition.

Figure 266. IP SAN Router

iSCSIFibreChannel

Router

DiskArray

TapeLibrary


We believe NuSpeed has been focused on a two-pronged approach: 1) interconnectFibre Channel SANs using the Internet Protocol (IP), and then 2) use native IP tonetwork storage based on the iSCSI protocol. The first stage is expected to unfoldover the next few years; at which time, the second stage is expected to beginramping.

Cisco will also offerDWDM connectivity for

Brocade to traverseMetropolitan Area

Networks (MANs) andWide Area Networks

(WANs).


268

We believe this is an important announcement for iSCSI versus iFCP and FCIP. Infact, Cisco’s announcement to acquire NuSpeed could have been an effort to stackthe deck in favor of Cisco’s iSCSI as the preferred IP storage networking standard.

This may seem to conflict with Cisco’s announcement that it was going to licenseBrocade’s Fibre Channel technology to interconnect SANs; in fact, it does a bit inone respect. With NuSpeed’s solutions (which, similar to Brocade’s technology, canbe embedded into a Cisco router and/or switch), Cisco will be able to interconnectany Fibre Channel equipment through an IP network. With the Brocade technology,Cisco will only be able to interconnect Fibre Channel equipment that conforms toBrocade’s e-port standard (e-port is an inter-switch linking port). TheCisco/NuSpeed router is more oriented to Fibre Channel node connectivity (i.e.,storage, tape, etc.) versus Cisco’s other product, which connects to a Fibre ChannelSAN for long-distance connectivity.

Although we agree that efforts to develop IP based storage networks are gainingmomentum, we believe that IP-based storage networks will mainly service the lowerend and periphery of the market and will take at least two to three years to gaintraction in the enterprise. In the meantime, we believe that Fibre Channel willcontinue to gain momentum as well.

Note: We do not expect Brocade to directly generate significant revenues from itsCisco relationship. We do expect that Cisco will continue to develop and implementBrocade’s e-port connectivity since it has been accepted as the Fibre Channelinterconnect standard by the American National Standards Institute (ANSI).Separately, Brocade’s Fabric Shortest Path First (FSPF) routing protocol, a methodof routing data between various vendors’ Fibre Channel switches, was accepted asthe industry standard by the ANSI Technical Committee T11. (This is different, butcomplementary, to Brocade’s e-port technology, which is the physical connection.)

What Has EMC Said and Done on the Subject?EMC is agnostic and just wants to sell more storage. We believe EMC will continueto implement Fibre Channel SANs, while at the same time supporting an effort todevelop Ethernet as a server-to-storage interconnect. In fact, we believe that if usingspaghetti was the best way to network storage, EMC would fully support it. Note:Both we and EMC agree that it will be several years before Ethernet can be reliablyused to network mission critical block-level storage traffic.

EMC Q&A:

Q: Will Ethernet be a viable server-to-storage interconnect?

A: “Yes, but not soon.” -EMC

Q: When will Ethernet technology be ready for prime time as a server-to-storageinterconnect?

A: “Two to five years. But Ethernet will not replace Fibre Channel. It will bebridged into existing SANs.” -EMC

EMC is agnostic, it justwants to sell more

storage.


269

EMC’s Fibre Channel HistoryWe believe EMC helped ignite the “Fibre Channel versus Ethernet” debate back inDecember, 1995, when it bought McData (which priced its IPO on August 8, 2000,at $28 per share and was subsequently spun out). McData was one of the first FibreChannel storage networking companies (through its purchase of Canadian NationalCorporation from Hewlett-Packard). Through the first half of 2001 alone, EMC hasgenerated approximately $1.75 billion of Fibre Channel–related revenues.

EMC’s Announcement of SRDF over IP Helped Ignite Today’s DebateOne of EMC’s most recognized developments has been its ability to remotely mirrormultiple Symmetrix storage subsystems in multiple locations in real time. Thebenefit of this is the ability to recover from a disaster in which all systems in onelocation fail; hence the term Disaster Recovery (DR). Lost data can cost companiesmillions of dollars in current and future business.

Historically, remote mirroring has gone over leased T1 and T3 lines in order tointerconnect multiple sites (remember, IP is not currently robust enough to handleblock-level storage traffic effectively). EMC announced that its Symmetrix RemoteData Facility (SRDF) is available over IP. So now IT managers can take advantageof the Internet and cut costs by using SRDF over less expensive IP (InternetProtocol) instead of having to lease expensive T1 and T3 lines right? Not quite.(Note: IP is typically transported through Ethernet)

SRDF can go over IP, but not for Disaster Recovery because of the high latenciesassociated with IP networking. EMC’s SRDF over IP only supports asynchronousapplications. In other words, you can only use SRDF over IP for static applications,such as Internet content (an example of a non-static application would betransactional data processing). We believe this actually opens up new opportunitiesfor EMC, which complements SRDF’s DR functions and, in turn, complementsEMC’s Fibre Channel investments.

EMC Has Entered the NAS Market to Offer Direct File Access over IPA second application EMC is implementing using IP is NAS (i.e., attaching storagedirectly onto Ethernet LANs). EMC’s NAS solution connects a Symmetrix orClariion storage subsystem directly to the LAN through its Celerra File Server.EMC can also connect that same Symmetrix to a Fibre Channel–based Storage AreaNetwork (SAN) behind general purpose servers to keep block-level data transfersseparate, while at the same time utilizing the Symmetrix’s full capabilities. Noticethe convergence of storage networking behind general purpose servers (SANs) andstorage access directly from the LAN (NAS).

We believe EMC willcontinue to implement

Fibre Channel SANs,while at the same time

support an effort todevelop Ethernet as a

server-to-storageinterconnect.


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Figure 267. SAN and NAS Convergence with EMC’s Celerra

Key Considerations


2)Fault tolerant



5)Increased scalability

Client 1

Client 2

Client 3

Client 4

Server 1

TapeLibrary 1

EMCSymmetrix 1

TraditionalNAS

Appliance

EMCCelerra 1

EMCSymmetrix 2

TapeLibrary 2

SAN

EMCCelerra 2

LAN

EMCSymmetrix 3


Figure 268. SAN, NAS, and DAS (Direct Attached Storage) Convergence with EMC’s Celerra

Client 2 LAN SAN

Client 1

Client 3

ApplicationServer 1

TapeLibrary

EMCSymmetrix 2

WAN/MAN/LAN

ApplicationServer 2

NASAppliance 1

NAS TapeAppliance

EMCSym 1

EMC Celerra

EMCSymmetrix 2



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Figure 269. Total Storage Convergence Including Remote Mirroring

Client 2 LAN SAN

Client 1

Client 3

ApplicationServer 1

TapeLibrary

EMCSymmetrix 2

WAN/ MAN/LAN/ SAN

ApplicationServer 1

EMCCelerra

EMCSym 1

EMCSymmetrix 3

EMCSymmetrix 5

EMCSymmetrix 6E

MC

’sSR

DF

over

IP

EMC’sSRDFover IP

EMCSymmetrix 4

EM

C’s

SRD

Fov

erD

ark

Fib

er


We believe EMC is anticipating a third application: Ethernet connectivity betweenservers and storage (i.e., Ethernet-based SANs). At the same time, it is ourunderstanding that EMC sees storage networking traffic remaining separate from filedata traffic. In other words, even if Ethernet were just as robust as Fibre Channel,storage and datacom networks would remain separate.

If the networks do, in fact, remain separate, we believe this could benefit FibreChannel storage networking, which has continued to gain momentum over that pastfew years. We believe using Fibre Channel and Ethernet technologies to networkstorage will begin to overlap in the two- to five-year time frame.

EMC has told us that they do not foresee any precipitous change in the storagenetworking landscape for the next couple of years. In other words, Fibre Channelwill continue to be the most robust block-level data storage networking technologyfor the foreseeable future. Furthermore, the company does not have any preferenceas to which technology customers will ultimately favor and we expect that EMC willdevelop connectivity for both solutions, as long as it drives greater storage demand.

In the end, we believe EMC is investing in developing Ethernet connectivity (i.e.,Ethernet SANs) as well as furthering its development of Fibre Channel connectivity(i.e., Fibre Channel SANs).

If the networks do, infact, remain separate, webelieve this could benefit

Fibre Channel storagenetworking.


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Coverage Universe


274

Advanced Digital Information Corp

Bell Microproducts

Brocade Communications Systems

Dot Hill Systems

EMC

Emulex

Hutchinson Technology

Inrange

Intevac

Iomega

JNI

Legato Systems

Maxtor

Network Appliance

OTG Software

QLogic

Quantum

Read-Rite

StorageTek

Veritas Software

Western Digital

Companies in Our Universe


275

Advanced Digital Information Corp. (ADIC, StorageSubsystems)Advanced Digital Information Corporation (ADIC) is a device-independent storagesolutions provider to the open systems marketplace. Through its recent Pathlightacquisition, ADIC will be positioned to be a solutions provider for both tape anddisk, by our analysis. The company has been gaining market share and was the No.2 and No. 3 OEM supplier of automated tape libraries in 2000 for units andrevenues, respectively. In 1999 and 2000, ADIC increased revenue share by 260basis points and 270 basis points, respectively.

ADIC’s solutions span a wide range of organizational requirements with tapelibraries varying in size from seven to 70,000 cartridges. The company is drive-independent and supports a broad range of drive types, including Quantum’s DLT,Sony’s AIT, LTO Ultrium (IBM, Hewlett-Packard, and Seagate), and IBM’sMagstar 3590.

All of the company’s products are designed to store, protect, manage and usenetwork data, including storage management software, Fibre Channel SANsolutions, and NAS appliances.

Bell Microproducts (BELM, Distributor)Bell Microproducts is a differentiated value-added provider of high technologyservices, solutions, and products serving the industrial and commercial markets.The company is a leader in the area of storage solutions and is the largest storagedistributor in the Americas.

Bell Microproducts differentiates itself by focusing on value-added services,computer storage and related peripherals, and niche semiconductor products. Value-added services include storage design, integration, implementation, and support;subsystem testing; software loading; and disk drive formatting and testing.

In April, 2001, Bell Microproducts was added to the Fortune 1000 list and wasranked No. 759 based on 2000 revenues.

Brocade Communications Systems (BRCD, StorageNetworking)Brocade Communications Systems is the leading supplier of Fibre Channel fabricswitch solutions, which provide the intelligent backbone for SANs. The BrocadeSilkWorm family of Fibre Channel switches and Brocade SAN managementsoftware are designed to optimize data availability in the storage enterprise. UsingBrocade solutions, companies can simplify the implementation of SANs, reduce thetotal cost of ownership of data storage environments, and improve network andapplication efficiency and performance.

Brocade has been a leader in the SAN networking industry since the company’sinception in 1995. Brocade has consistently offered leading-edge products, whichhave consistently satisfied customers’ evolving storage networking needs.

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Coverage Universe


276

Dot Hill Systems Corp. (HIL, Storage Subsystems)Dot Hill Systems Corporation is an independent provider of storage and SANsolutions and services. The company designs, manufactures, markets, and supportsdata storage systems for open systems computing environments, including Unix,Windows, and Novell.

Dot Hill’s disk-based product line is called SANnet and is sold primarily into SANenvironments. The company currently has approximately 250 employees. DotHill’s major offices are located in New York City; San Jose; Washington, DC;London; Tokyo; Beijing; Germany; Holland; and Israel. Dot Hill’s primarymanufacturing facility is located in Carlsbad, California.

Dot Hill is the result of a merger between Box Hill and Artecom in August, 1999.Box Hill was focused on providing storage solutions to New York’s financialservice institutions, while Artecom was angled toward the telecom sector.

EMC (EMC, Storage Subsystems)EMC is the largest and most diverse pure play data storage infrastructure storagecompany in the industry. The company has gained its market-leading position as aresult of aggressive sales efforts, a keen understanding of customers’ needs,comprehensive service support and the delivery of solid, consistent, reliableproducts that offer one of the greatest feature sets in the industry.

We believe EMC has strategically positioned itself as a leading company in everystorage segment it has entered, including: enterprise storage hardware, storagesoftware, networking, and the high-end Network-Attached Storage (NAS) market.

Emulex (EMLX, Storage Networking Components)Emulex is a leading supplier of Fibre Channel host adapters, hubs, ASICs, andsoftware products that enhance access to, and storage of, electronic data andapplications. The company has exited its traditional networking business and de-emphasized its hub business in an effort to focus on the opportunities within HostBus Adapters. Focused on high performance and a rich feature set, Emulex hasachieved much of its success in the premium segment of the fibre channel host busadapter (HBA) market.

Hutchinson Technology Inc. (HTCH, Disk DriveComponents)Hutchinson Technology is the world’s leading manufacturer and supplier ofsuspension assemblies for hard disk drives (market share of between 45% and 50%).Hutchinson manufactures conventional suspension assemblies, TSA suspensionassemblies, and suspension assembly components. Its fiscal 2000 revenue mix was22% conventional suspensions and 76% TSA suspensions.

Hutchinson’s products are sold to disk drive manufacturers (original equipmentmanufacturers) for use in their products and to head manufacturers (sub-assemblers),who sell to original equipment manufacturers.


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In second quarter 2001, enterprise hard disk drives accounted for over one-third ofsuspension production, desktop drives accounted for about 50%, and mobile harddrives accounted for the remainder.

Hutchinson works closely with its customers to develop products that improve diskdrive performance and reduce manufacturing cost.

Inrange (INRG, Storage Networking)Inrange is a storage networking company with a branded end-to-end total storagenetworking solution. Inrange will install and certify all storage networkingequipment, including HBAs, 16-port switches, 128-port Directors, Dense WaveDivision Multiplexing, and Fibre Channel-to-Gigabit Ethernet and Fibre Channel-to-ATM routing.

Inrange has entered the forefront of the storage networking industry by leveragingits previous expertise in storage and datacom and telecom networking to developone of the industry’s most robust and technologically advanced solutions. ItsFC/9000 128-port Fibre Channel Director has the highest port count in the industrytoday. Inrange is also uniquely positioned as the only storage networking companywith robust in-house, direct sales and services organizations. We believe that bothof these in-house organizations will be significant contributors to Inrange’s overallstorage networking success. Inrange is exiting its telecom businesses to increase itsfocus as a storage networking company.

Intevac (IVAC, Disk Drive Capital Equipment)Intevac (IVAC) is a leading supplier of sputtering systems and related equipmentused to manufacture thin-film disks for computer hard disk drives. Intevac has alsobeen pursuing other businesses (including flat panels).

Iomega Corporation (IOM, Disk Drives)Iomega Corporation designs, manufactures, and markets personal and professionalstorage solutions that are based on removable-media technology for users ofpersonal computers and consumer electronics devices. The company’s primary datastorage solutions include disk drives and disks marketed under the trademarks Zip,Iomega CD-RW, Jaz, PocketZip, and Peerless high capacity storage. Iomega is thedominant supplier in the low-end removable magnetic market with its Zip productsand participates in the high-end magnetic markets with its Jaz and Peerless productlines.

JNI (JNIC, Storage Networking Components)JNI is a leading supplier of Fibre Channel hardware and software products thatconnect servers and data storage devices to form SANs. The company currentlyprovides high-performance ASICs, a broad range of Fibre Channel HBAs, andsoftware that facilitate the integration and management of the devices that make up aSAN.

The company has a solid foothold in the non-captive Solaris (Solaris is SunMicrosystems’ platform) market, and benefits from relationships with major storage


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OEMs such as EMC, Compaq, and StorageTek. Most of JNI’s success to date hasbeen from connecting Sun servers to storage subsystems from EMC, Compaq,StorageTek, Hitachi Data Systems, and others. Given the stability and popularity ofSun’s Solaris platform, JNI has benefited tremendously from its growth. Thecompany is now building on its Solaris success, and expanding into other UNIX-based architectures such as HP-UX and IBM’s AIX.

Legato Systems (LGTO, Storage Software)Legato Systems develops products in the enterprise storage management softwaremarket. Legato helps customers leverage business-critical and corporate data assetsthrough its storage management software. Legato’s products enable informationcontinuance, and the management, movement, and protection of data throughout anenterprise. Legato’s products are available through a network of Legato-licensedvalue-added resellers, resellers, and OEM partners.

Legato’s strategy is to enhance hardware vendors’ product offerings by providingadvanced software applications, thereby obtaining and leveraging hardware vendors’support and market power to help Legato further penetrate the storage managementsoftware market. Legato achieves this goal by 1) staying clear of the file systemproduct category, 2) writing to a specifically defined set of Application ProgramInterfaces (APIs) which are publicly available, and 3) developing softwareapplications that offer integrated and heterogeneous solutions.

Maxtor (MXO, Disk Drives)After the merger with Quantum-HDD in April, 2001, Maxtor is now the largest harddisk drive (HDD) maker and manufactures one of the broadest product lines in thedisk drive industry. In addition to HDDs, Maxtor manufactures workgroup/entryNAS devices under its MaxAttach label.

In second quarter 2001, Maxtor’s desktop drives accounted for 89.4% of revenuesand 96.4% of units, while its enterprise segment accounted for 9.7% of revenues and3.6% of units. Maxtor sold 60% of its products through OEMs, 37% throughdistributors, and 3% through retail. Geographically, Maxtor sold 45% domestically,25% in Europe, 27% in Asia, and 3% in Latin America and Canada. In secondquarter 2001, NAS revenues accounted for 0.9% of total revenues.

Network Appliance (NTAP, Storage Subsystems)In 1992, Network Appliance helped originate Network Attached Storage (NAS).Although Network Appliance may not have been the sole inventor of the NASconcept, it has been one of the marquee NAS companies. Network Appliance alsooffers a family of Web-caching products, but a large majority of its revenues arecurrently derived from its family of file servers for NAS.

Network Appliance’s strategy is to remove the Input/Output (I/O) burden of fileaccessing from application servers with a separate dedicated file storage appliancethat connects directly onto the Local Area Network (LAN). Network Appliance’sNAS products, which it calls Filers, are essentially a high-speed front end to largenumbers of disk drives. Today, these Filers can hold as much as six terabytes of


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information (nine terabytes in the near future). NetApp Filers feature built-in RAID,clustered failover and redundant components for increased reliability.

OTG Software (OTGS, Storage Software)OTG Software is an emerging storage software player focused on storagemanagement and access which leverages its industry leading Hierarchical StorageManagement (HSM) technology. HSM is intelligent software that migrates unusedor less-used data from primary storage subsystems to less expensive secondarystorage subsystems, enabling the expansion of accessible storage capacity withoutthe burden or expense of installing a new primary storage subsystem. OTG hasleveraged its core HSM technology by adding many data management and accesstools, such as content management and search/archive functionality.

We see the company’s EmailXtender as one of the leading “killer applications” instorage and believe it will increase OTG Software’s visibility with customers andleverage it into broader customer relationships, including the sale of other Xtendersolutions.

QLogic (QLGC, Storage Networking Components)QLogic is the only supplier of end-to-end Fibre Channel solutions which includeHBAs, integrated circuits (ICs), and switches. We believe QLogic’s chip business isa clear leader in the industry and see its Ancor switch acquisition beginning to payoff nicely.

While Emulex targets high-end UNIX systems and JNI targets S-bus systems forafter-market attach to Sun servers, QLogic has become the low-cost supplier ofFibre Channel solutions by building inexpensive, highly integrated products. Topcustomers include Fujitsu, Sun, Dell, and Network Appliance.

Quantum (DSS, Storage Subsystems)Quantum designs, develops, and markets information storage products, includinghalf-inch cartridge tape drives (DLT), tape media, tape autoloaders and libraries, andentry/midrange NAS subsystems.

Quantum’s fiscal 2001 (March) revenue mix was 47% tape drives, 24% media (tapecartridges), and 29% storage systems (tape libraries, NAS, storage solutions).Quantum’s DLTtape drives are the dominant tape drive in the mid-range tape marketas Quantum recently introduced its next generation tape drive called SuperDLT. InOctober 2000, Maxtor acquired Quantum’s hard disk drive operations (Quantum-HDD).

Read-Rite Corporation (RDRT, Disk Drive Components)Read-Rite Corporation is one of the world’s leading independent manufacturers ofmagnetic recording heads, head gimbal assemblies (HGAs), and head stackassemblies (HSAs) for disk drives and tape drives. The company is the only U.S.-based independent supplier of magnetic recording heads for the computer storageindustry. In addition to its core read-head business, Read-Rite currently has


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approximately 73% ownership in Scion Photonics, a supplier of optical filters andwaveguide, and contract manufacturer.

Read-Rite is headquartered in Fremont, California, and has operations in Japan, thePhilippines, Singapore, and Thailand. Major customers include Maxtor, Samsungand Western Digital. Read-Rite’s two competitors in the OEM read-head market areAlps Electric and TDK.

StorageTek (STK, Storage Subsystems)StorageTek designs, manufactures, markets, and services information storage andretrieval subsystems and networking products. StorageTek is focused on deliveringinformation storage solutions for the mainframe and client/server market, includingUNIX and WindowsNT environments. The company’s strategic business segmentsare tape and tape automation, disk, and networking. For 2000, tape and tapeautomation accounted for 54% of revenues; disk, 7%; networking, 8%; and service,31%.

Veritas Software (VRTS, Storage Software)Veritas Software is a leading enterprise-class application storage managementsoftware provider that ensures information availability from business-criticalapplications by delivering integrated, cross-platform storage management softwaresolutions. Veritas positions its products as 1) Backup, 2) File and VolumeManagement, and 3) Clustering/Replication. The company’s products enablebusiness to continue without interruption and are designed to protect, access andmanage business-critical application information.

Veritas has been able to outpace overall market growth both by acquiring nichecompanies, thereby entering new market segments, and offering a total softwaresolution. A significant portion of Veritas’s above-average growth is the result of thecurrent trend by customers to purchase storage management software solutions froma single vendor that can provide a more complete solution. There are few othercompanies that can offer a “total solution.”

Western Digital (WDC, Disk Drives)Western Digital supplies hard disk drives to desktop and consumer applications. Forcalendar 2000, Western Digital’s revenues were $2.0 billion, with desktop drivesaccounting for virtually 100% of revenues by the fourth quarter.

In early 2000, the company announced that it was exiting the enterprise segment andhas been investing heavily in its subsidiaries: Cameo (communication and networkapplications), Keen PM (consumer electronics), SageTree (supply chainmanagement), SANavigator (SAN software). In calendar 2000, Western Digitalheld 10.7% of total HDD unit market share with 14.4% of desktop market. WesternDigital sold 70% of its products through OEM, 22% through distributors, and 8%through retail. Geographically, Maxtor sold 57% domestically, 30% in Europe, 13%in Asia.


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Private Companies


282

3PARdata

3ware

Alacritech

Ancot

Aprilis

Astrum Software

ATTO Technology

BakBone Software

Banderacom

Baydel

BlueArc

Broadband Storage

Bus-Tech

Cereva Networks

Chaparral Network

CMD Technology

CommVault Systems

CreekPath Systems

Datacore Software

DataDirect Networks

Eurologic Systems

ExaNet

Hitachi Data Systems

I-TECH

Ikadega

InfiniCon Systems

Infiniswitch

InterSAN

Lane15 Software

LeftHand Networks

ManagedStorage

Mellanox Technologies

NetConvergence

Nishan Systems

NSI Software

nStor

OmegaBand

Panasas

Pirus

PolyServe

PowerQuest

Prisa Networks

Raidtec

RedSwitch

Rhapsody Networks

SanCastle Technologies

Sanera Systems

SANgate Systems

Sanrise Group

SAN Valley Systems

Scale Eight

Seagate/XIOtech

Shugart Technology

Storability

StorageApps

StoreAge Networking

Tantia Technologies

Times N Systems

Troika Networks

TrueSAN Networks

Viathan

Vicom Systems

VIEO

Voltaire

YottaYotta

Zambeel

Zantaz

Listing of Private Companies


283

Note: Companies are listed in alphabetical order. The length of individualcompany profiles is based on the availability of information and not on preference.For example, companies we have previously published on typically have longerprofiles, while companies in stealth mode have shorter ones.

3PARdata Inc. (Storage Subsystems)3PARdata, founded in May, 1999, builds Utility Storage Servers and software thatenable information intensive organizations to consolidate and centralize theirinformation and storage assets so that they can be exploited to their full potential.3PARdata Utility Storage Servers enable multi-tenancy, management automation,and new levels of performance and scalability.

3PARdata, still in stealth mode, develops Carrier-Class Storage Servers that manageand serve information so that information consumers can fully exploit it. There is agreat need for simplified storage solutions that scale in performance, capacity, andconnectivity, and provide intelligent and flexible management software fordemanding big data applications.

Carrier-Class Storage Servers are a new category of storage solutions designed forMerchant Service Providers, known today as xSPs and Enterprise Service Providers,that provide:

➤ non-stop information services with failure tolerance, non-disruptive hardwareand software upgrades, minimal performance degradation under failure, andproactive and predictive support;

➤ automated management with virtual capacity allocation, usage tracking, granularquality of service, performance optimization, and simple volume and raidmanagement that eliminate server-based storage management; and

➤ an information consolidation engine offering true scalability in performance,capacity, and connectivity.

The company has strategic investors that include Oracle, Sun Microsystems, andVeritas. Financial investors include: Amerindo, Anshutz, Aurora Funds, DainRauscher Wessels, IGlobe Partners, Intec IT Capital, Mayfield, and WorldviewTechnology Partners. 3PARdata most recently raised $100 million in June, 2001.

3ware (Storage Subsystems and Components)Founded in February, 1997, 3ware has developed a new storage I/O architecture thatraises the performance and lowers the cost of storage by utilizing existinginfrastructures and technologies such as Ethernet and IDE/ATA drives. We believe3ware is well positioned to penetrate the expanding lower-cost storage market.3ware utilizes IDE/Ultra ATA drives in order to reduce cost and complexity, butwithout compromising performance or reliability. The company’s technologiesinclude DiskSwitch, AccelerATA, and TwinStor.

At the core of 3ware’s architecture is its Network Storage Unit (NSU) StorageSubsystem, which, when combined with its Escalade family of Switched Storage

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Private Companies


284

RAID controllers and 3DM Remote Storage Management software, creates one ofthe most promising emerging low-cost storage solutions. The 3ware solution allowsthe transmission of block-level SCSI data over Gigabit Ethernet LANs or subnetSANs, enabling customers to leverage existing investments in networkinfrastructures, reduce management complexity, significantly lower overall costs,and potentially eliminate the need for Fibre Channel IT personnel. The 3ware NSUis available in configurations from 240GB to 600GB and supports Windows 2000,Windows NT, MacOS, Solaris, and Linux platforms.

3ware’s Escalade controllers, which are packaged with the NSU, are based on thecompany’s DiskSwitch packet-switching technology. 3ware developed itsDiskSwitch Architecture to decrease latency and increase performance. TheDiskSwitch storage controller architecture applies the principles of packet-switchednetworking to subsystem I/O. Each disk drive has fully dedicated bandwidth,eliminating bus arbitration delays and other limitations of shared-bus architectures.Low-cost UltraATA drives are used by the company in place of SCSI or FibreChannel drives, and the company claims this is without incurring any performancepenalty. Escalade controllers are available in two-, four-, and eight-port models andcan be sized to fit any configuration from a 1U rack-mounted system to a high-capacity, multi-controller system.

3ware’s 3DM Remote Storage Management software displays drive and RAID arraystatus, allows remote configuration of new arrays, and enables hot swapping offailed drives for on-the-fly rebuilding. 3DM’s Web-based user interface provides acommon look and feel for all platforms, and, because it is browser-based, customerscan manage their storage from any point of network access without installingsoftware on the remote system.

Alacritech (Storage Components)Founded in 1997, Alacritech produces fully scalable network server adapters thatoffload network protocol data processing from the central processing unit on NTservers. Alacritech manufactures SLIC (Session-Layer Interface Card) Technologyto accomplish this task by using an application-specific integrated circuit (ASIC)and Alacritech’s custom Internet Protocol Processor (IPP). SLIC is fully compatiblewith Ethernet, TCP/IP, contemporary PC hardware and software, as well as today’slegacy network adapters and existing networking infrastructures.

Alacritech’s SLIC technology is designed to enable enhanced Gigabit Ethernetperformance by offloading TCP processing from networking endpoints, allowingsystems to drive many gigabits per second of information at greater efficiencies withboosted data throughput and decreased latency. Alacritech manufactures single-,two- and four-port 10/100 server adapters that conform to PCI 2.2 specification for64-bit devices for operation in either 32-bit or 64-bit PCI environments. Theseserver adapters allow IT departments to schedule more backups in the same amountof time. Alacritech is currently testing its Gigabit Ethernet Server Accelerator, withavailability planned for the end of 2001.

Alacritech products currently support iSCSI. Cisco Systems and FalconStor havedemonstrated iSCSI operating on standard Alacritech Server Accelerators, and


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Alacritech intends to offer iSCSI adapters in late 2001. Additionally, the companyhas started developing a 10 Gb Ethernet solution. Depending upon completion ofthe standard, it plans to offer this product in 2003.

Figure 270. 100x4 Quad-Port Server Accelerator

Source: Company website

Figure 271. 100x1 Single-Port Server Accelerator


In June, 2001, Alacritech announced its 100 Series Server Accelerators support MSWindows 2000 and Redhat Linux operating systems. Alacritech’s founder, Mr.Larry Boucher (inventor of the SCSI interface) has previously founded twosuccessful technology companies, Adaptec (ADPT) and Auspex Systems (ASPX).The company is privately held and has completed two rounds of funding totaling$22.4 million from Benchmark Capital, Institutional Venture Partners, AlloyVentures, and Berkeley International.

Ancot Corp. (Storage Testing)Ancot designs and manufactures a family of UltraSCSI and Fibre Channel testinstruments and associated equipment, such as bus analyzers and converters,targeted at developers and system integrators. Its customers are companies thatdevelop, offer, and use the SCSI and Fibre Channel interface for their computer,peripheral, and network end-user products. Its markets include all major computercompanies, peripheral manufacturers of disk, tape, CD-ROM, WORM, systems


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integrators, value-added resellers, and SCSI computer end users, as well as networkequipment suppliers.

Ancot was founded in 1987 by President Jan Dedek, to provide SCSI test anddevelopment equipment to the microelectronics industry. Since then, Ancot’sproducts have evolved, keeping pace with the growth and changes of the SCSI busprotocol. Ancot shipped the industry’s first Fibre Channel analyzer in 1994 andcontinues to develop SCSI and Fibre Channel products. Combining SCSI and FibreChannel technologies, Ancot now offers a more complete line of analyzer andextender solutions.

For its upper tier customers, Ancot offered the industry’s first 2 Gb protocolanalyzer for Fibre Channel systems. Ancot also offers a server version FibreChannel Analyzer that supports 1.06 Gbps data rates, yet cuts in half the typical costfor advanced Fibre Channel instrumentation.

➤ FCAccess 2000 Fibre Channel Analyzer: supports both 1.06 Gbps and 2.12Gbps data transfer speeds and is a leading network-attached, client-server FibreChannel Analyzer.

Figure 272. Ancot — FCAccess 2000 Fibre Channel Analyzer


➤ The Ultra2160 and Ultra2160/Lite SCSI Bus Analyzers: premier tools fordebugging and optimizing SCSI devices and systems.

Figure 273. Ancot — The Ultra2160 SCSI Bus Analyzer


The company’s world headquarters is located in Menlo Park, California. Sales andsupport for U.S. customers are provided from this location, while internationalmarkets are reached through its worldwide distributor network.


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Aprilis Inc. (Storage Subsystems)Aprilis, located in Cambridge, Massachusetts, commenced operations in June, 1999.It was established to commercialize holographic data storage technology exclusivelylicensed from Polaroid Corporation, with an early focus on large emerging marketsin three-dimensional data storage for ultra high capacity and high performanceapplications. Government funding through Defense Advanced Research ProjectsAgency–sponsored consortia supported early development of a proprietaryholographic recording media based upon cationic ring opening polymerization(CROP).

Aprilis is currently participating in activities in support of the PRISM consortium, afive-year DARPA-funded effort that has investigated a number of media options foruse in a prototype holographic storage system designed by HDSS, PRISM’scompanion consortium. Polaroid’s membership in PRISM began in 1997 and itshigh performance photopolymer was rapidly selected to be the write-once-read-many (WORM) recording material for the HDSS system demonstration. The HDSSsystem specifications comprise a capacity of one terabit on one disk, random access,and a sustained data rate of six gigabits per second using a single optical head.

Additionally, Aprilis is currently collaborating with several leading independentdevelopers of holographic data storage technology, both in the United States andabroad, by meeting their stringent requirements for high-performance WORMrecording media.

Astrum Software (Storage Software)Astrum Software, a privately held company based in Boston, Massachusetts,delivers client-to-storage management solutions for Windows 2000/NT/9X basedsystems, storage area networks and network attached storage. Astrum’s productsuite, StorCast, enables customers to proactively manage explosive storage growth,ensuring accessibility and availability to an organization’s most critical assets —data and IT infrastructure.

Astrum’s StorCast Suite is a family of fully integrated storage resource managementsoftware products that provide a centralized view to manage the implementation andgrowth of storage in today’s distributed RAID, SAN, and NAS environments. TheStorCast Suite includes the Storage Asset Manager, Reporter, Interconnect Monitor,and Storage Performance Manager.

➤ StorCast Storage Asset Manager: The quickest and easiest way to controlstorage consumption, monitor system performance and perform trend analysis.Supports Windows 2000/NT/9x.

➤ StorCast Reporter: A quick and easy way to discover all storage resourcesthroughout your IT infrastructure. Automated storage reporting and forecastingsolution. Supports Windows 2000/NT/9x.

➤ StorCast Interconnect Monitor: A powerful, simple, and scalable solution forverifying connectivity and availability of systems, devices, ports, and networkattached storage (NAS) throughout the enterprise and the Internet from a central


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location. Supports Windows 2000/NT/9x, Linux, AIX, NetWare, OpenVMS,HP-UX, UNIX.

➤ StorCast Storage Performance Manager: Provides a storage-centric view ofenterprise performance, ensuring all system and network components operate atpeak productivity.

ATTO Technology, Inc. (Storage Networking)Headquartered in Amherst, New York, ATTO Technology designs andmanufactures host adapters, SAN bridges, hubs, routers, and offers complete SANsolutions. Established in 1988, ATTO Technology develops a broad range of SCSIand Fibre Channel products that enable users to accelerate data access, increasebusiness productivity, and better manage the storage of enterprise informationthrough SAN development.

Since its inception, ATTO Technology has focused on a single goal: faster and moreflexible data delivery and productivity to maximize total cost of ownership. Fromhost adapters, to bus expansion and connectivity devices, to solid state storage,ATTO Technology’s peripheral products are designed to improve response time andoptimize system, and in particular, storage network performance, for computer usersaround the world.

ATTO Technology’s hardware and software solutions suit the needs of high-endworkstations such, as Sun Microsystems, DEC, Hewlett-Packard, and Appleplatforms. The company designs products for specialized applications includingdigital content creation, pre-press/electronic publishing, Internet/ISPs, data mining,decision support, asset management, online transaction processing, imaging,CAD/CAE, and software development. ATTO Technology implements fully tested,custom SAN solutions through its ContentCreation Solutions SAN package andserverless backup utilizing Fibre Channel Technology. To test its products andcomplete storage solutions, ATTO Technology has built a state-of-the-artinteroperability lab that enables testing solutions for interoperability between SCSI,InfiniBand, and Fibre Channel.

ATTO Technology was the first to introduce and/or to ship a:

➤ SCSI-based stand-alone hardware cache (ATTO SiliconCache);

➤ SCSI Logical Unit Translator product (ATTO SCSI Expander), which expandsthe number of SCSI devices that can be put on a single SCSI bus;

➤ BusMaster SCSI card for Macintosh;

➤ Dual-channel (ATTO ExpressPCI UL2D) Ultra2 host adapter, as well as singleand multichannel PCI-based SCSI-3 host adapters, all of which can be used oneither Macintosh or PC systems without the need for reconfiguration.

In May, 2001, ATTO announced that its ExpressPCI FCSW HBAs have beenqualified for use on “Powered by DataCore” storage virtualization nodes. As part ofDataCore’s SANvantage Technical Partner Program, ATTO and DataCore ensurethe use of these Fibre Channel host bus adapters as target and initiator ports forSANsymphony-managed network storage pools. The ExpressPCI FSCW enables


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PCI-to-Fibre Channel interconnect while maximizing productivity in workgroup andenterprise-level SAN environments. It utilizes an embedded Short Wave LaserInterface, capable of streaming data over cable lengths of up to 500 meters. Theadapter features full duplex 1.0625 Gb data-transfer rates, Class 2 and F-Portsupport, 64/32-bit PCI bus interface and 66/33 MHz compatibility. By integratingATTO ExpressPCI HBAs into SANsymphony storage virtualization nodes,substantial improvements in I/O rates translate into greater accessibility andavailability of data, according to the company.

ATTO Technology’s Enterprise solutions are ideal for high demand computingenvironments where data reliability, availability, and serviceability are critical.Enterprise solutions provide users with the tools necessary to maximize networkuptime. ATTO Technology provides the building blocks necessary to takeadvantage of Enterprise SANs, implement LAN-free backup and take advantage ofServerless backup.

Figure 274. ATTO Technology’s Enterprise Solutions


The ATTO ExpressPCI FC 3305 brings 2 Gb throughput to server cluster and SANenvironments. The FC 3305, with a fixed copper HSSDC Fibre Channel interface,allows for high-speed copper connections. Designed to support next-generationSAN requirements, the FC 3305 is ideal for high-speed random or sequential typesof data-intensive environments.


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Figure 275. ATTO ExpressPCI FC 3305


ATTO FibreBridge 3200R is an intelligent, managed Fibre Channel-to-SCSI bridgewith Advanced Fibre Channel Features designed for 24x7, high reliability, and highavailability Enterprise applications. Interoperability capabilities are amplified withthe addition of support for F-Port and full duplex transfers, along with dual GBICports and dual SCSI ports available in an LVD option. By achieving 98 MBps ofsustained throughput, the FibreBridge 3200R expands the speed potential ofEnterprise applications.

Figure 276. ATTO FibreBridge 3200R


The ATTO FibreCenter, Fibre Channel hub serves as a high-speed, centralconnection point for data sharing in Fibre Channel Arbitrated Loop (FC-AL)configurations. This stackable, five-port hub provides full duplex 1.0625-Gigabitperformance with 200 MBps transfer rates for I/O and data intensive ContentCreation environments.

Figure 277. ATTO FibreCenter, Fibre Channel hub

The ATTO FibreCenter 2100R serves as a high-speed, central connection point fordata sharing in Enterprise Fibre Channel Arbitrated Loop (FC-AL) configurations.The addition of a rack-mounted Fibre Channel hub in the FC Rack System givesEnterprise users countless options for configuring, upgrading, and expanding FibreChannel Storage Area Networks (SANs). This five-port hub provides full duplex


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1.0625 Gb performance and delivers 200 MBps transfer rates for I/O and data-intensive SAN environments.

Figure 278. ATTO FibreCenter 2100R


Worldwide distribution of ATTO products is directed through OEMs, SIs, VARs,and major distributors such as Bell Microproducts, Consan, and Ingram Micro.Customers include Apple, EMC–Data General, Eastman Kodak, Quantum/ATL, SunMicrosystems, Avid Technology, and others.

BakBone Software (Storage Software, Not Rated)BakBone Software (BKB.To) is a storage management software solutions companywith offices in the Unites States, the UK, Japan, and Canada. The companydevelops and distributes storage management software solutions to the open systemsmarkets. It provides data protection and management solutions scalable from officeto enterprise that will grow with a company’s needs.

Building upon core technology originally developed at AT&T/Bell Labs, BakBone’sNetVault software products are designed to provide a robust data protection andrecovery solution. NetVault’s features include versatile modular design, SAN/LAN-free support and specialized online application backup. Currently, NetVaultsupports both Windows NT and UNIX environments with support for Windows2000 planned for the future. Customers include major server OEMs and storage-centric value added resellers and distributors worldwide.

In June, 2000, BakBone acquired Tracer Technologies, now considered a key assetin BakBone’s future. Tracer’s MagnaVault is a market leader in file systems anddevice drivers for optical storage systems, with customers ranging from globalfinancial institutions to major agencies of the United States Government.

BakBone has a strategic alliance with FalconStor Software, a network storageinfrastructure company that provides worldwide bundling of BakBone’s NetVaultbackup/restore software with FalconStor’s IPStor. Customers are able to runNetVault on IPStor servers to locally backup and restore their data, while at thesame time relieving application servers on an IP-based SAN from the processingburdens imposed by traditional backup methods. Current users include AT&T,Bank of America, Federal Express, Cable & Wireless, Daimler-Chrysler, NCR, SUNMicrosystems, Sony, and others.

BakBone is located in San Diego, California and its facility provides office space, aninteroperability certification and test lab, and a global training and education facilityfor employees and distribution partners.


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Banderacom (InfiniBand Networking)Banderacom is a privately held, fabless semiconductor company located in Austin,Texas, focused on providing I/O connectivity silicon for computing and embeddedsystems environments utilizing the InfiniBand standard. Banderacom developshighly integrated semiconductors for InfiniBand host, targets, and switchingproducts.

Banderacom’s IBandit extensible architecture provides the building blocks forconstructing the InfiniBand fabric infrastructure of the data center. IBandit allowsrapid development of InfiniBand connectivity solutions to bridge the gap betweenlegacy PCI I/O and InfiniBand. Whether applications demand Fibre Channel, SCSI,SONET, Gigabit Ethernet, or other protocols used in applications such as I/Ochassis, RAIDs, and JBODs, Banderacom’s system-on-a-chip takes advantage ofInfiniBand’s high bandwidth and management features.

Founded in November, 1999, as INH Semiconductor, Banderacom’s founders wereall senior members of the technical staff at Jato Technologies, a networking siliconstartup now owned by Intel Corporation.

Baydel (Storage Subsystems)Baydel believes Ethernet SANs, not Fibre Channel SANs, are the wave of the future.This contrast with many other SAN solution providers is gaining momentum with anumber of startups and industry giants as well. Baydel designs and integratescomputer storage, connectivity, and system products. Very proud of its in-houseresearch and development teams, Baydel’s design capabilities encompass circuitdesign, microcode and software, and mechanical and electromechanical assemblies.

The O/ESR 2000 is a significant new RAID storage system from Baydel whichincorporates all the well proven features of the current O/ESR(Raider-5) product andadds an impressive range of further benefits.

Baydel has created a system with “virtual pathed” multiple RAID disk sets and allother major components as foolproof, hot swap elements. This high availabilityproduct offers outstanding performance and flexibility. In addition, the design offerssignificant upgrade potential which requires little or no down-time. This furtherimproves the cost of ownership and avoids the disruption of periodic “fork-liftchangeouts.”

Engineered as a versatile storage “building block,” the O/ESR 2000 can be used onits own in Direct Attach Server configurations, or in multiples within a storage poolwhen configuring NAS and SAN environments.

With its current features and planned future upgrade path, the product is an idealsolution for storage requirements ranging from a local application server to completeenterprise-wide configurations.


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Figure 279. Baydel’s O/ESR 2000


➤ Ultra-SCSI modular RAID subsystem with failover, UPS, Battery Backup andCaching. Capacities from 34 GB to 276 GB of usable disk space.

Figure 280. Baydel’s O/ESR RAIDER-5


Baydel’s software development is dedicated to providing users with enhancedfeatures and functionality at the application level. RAIDMON, Baydel’s RAIDmonitoring software, gathers performance data directly from the RAID controller.RAIDMON shows system administrators exactly what their systems are doing andenables fine-tuning, which leads to increased efficiency.

While most OSs provide no information about the internal condition of a RAIDsystem sitting on a SCSI port, an option is to write a device driver that can monitorand control the internal RAID elements via the SCSI bus. A second option is tokeep the disk device driver standard (making life easier for installation andmaintenance), and to do all the monitoring and management via another port (e.g.,RS232) from a user-level piece of software. This was the option Baydel chose —with the advantage that the same Baydel RAID system can now connect to everyplatform without concerns over device driver compatibility.


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Figure 281. An Example RAIDMON Software Screen. Error Notification: Failed Disk


Baydel works closely with value-added resellers that can specialize in particularplatform or application environments and provide high-quality integrated solutionsand services. Baydel offers support groups in Leatherhead and San Jose, directservice in many North American cities, and trained service partners, including IBM,SUN, Digital, Silicon Graphics, and Motorola in certain geographic territories.

BlueArc Corporation (Storage Subsystems)Founded in 1998, Mountain View, California-headquartered, BlueArc has developeda new high performance architecture for servers. The company’s SiliconServerarchitecture provides an efficient solution for safe, easy to manage storage accesswith solid state reliability and the scaling power to bring higher levels of serverperformance at a lower cost.

BlueArc’s work focuses on the bottleneck in the flow of Web pages, video clips, andother files around individual corporations and the Internet. To address thisbottleneck, BlueArc designed its Si7500 servers so that all data processing andmovement is done in the hardware. Through the use of reprogrammable gate flashmemory chips, the servers can be upgraded or expanded quickly and easily from adownload and since all processing is in the hardware, they can operate at multiplesof existing server speeds. The result of this architecture allows 2 Gbps throughput,up to 250 terabytes of storage capacity, tens of thousands of simultaneouslyconnected users, and 99.999% solid state reliability.


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Figure 282. BlueArc’s Si7500


On May 7, 2001, BlueArc completed a $72 million round of funding, bringing totalfunding since the company’s founding to over $100 million. This round will be usedto increase company growth. Investors from this round include Weston Presidio,Celtic House International, Apax Partners, and Patricof & Co., Dell Ventures,EUROQUBE, NY State Retirement Co., J.P. Morgan Partners, and FortWashington Capital.

Broadband Storage (SAN Appliance)Broadband Storage is an early stage company developing next-generation, networkstorage solutions that dramatically simplify enterprise data management. Thecompany’s solutions combine the ease-of-use and cost-efficiency of NAS, with thescalability and performance of SANs. The Broadband Storage architecturecombines hardware acceleration with a proprietary distributed file system and a datamanagement system.

Founded in 2000, Broadband Storage is a privately held company that completed a$15.45 million Series A round of funding in March, 2001. Headquartered in Irvine,California, the Company boasts a dynamic team of highly skilled software andhardware engineers who have a proven record of solving complex technicalchallenges and successfully delivering innovative products to market.

Bus-Tech (Storage Components)Bus-Tech’s businesses consist of intranet-to-mainframe connectivity solutions, high-speed data movement products, and channel connectivity solutions for OEMs, all ofwhich provide a broad range of offerings to complement the role mainframes play incorporate networks. Its channel and data movement technology solutions offermeans for customers to accelerate intranet deployment today while maintaining theflexibility to adapt to the needs of tomorrow. These solutions enable users toseamlessly access applications and data, which reside on the mainframe via standardbrowser-based clients, without sacrificing performance, reliability, security, ormanageability.


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A privately held corporation, Bus-Tech has grown from a single-product company in1987 to one that manufactures and markets a full suite of powerful mainframeconnectivity and data movement products, sold both directly to end users andthrough resellers and OEMs. While the company and its product line have grown,the company’s original goal has not wavered: to provide its customers with datacenter connectivity solutions.

Product line expansion has occurred in three main areas: intranet-to-hostconnectivity; high-speed data movement systems; and high-performance,programmable channel adapters. Bus-Tech’s business units reflect the industry’sneed for rapid communications between mainframes and servers and between theInternet or intranets and mainframes, regardless of network protocol or topology.Bus-Tech’s technology provides a migration path to upgrade to new networktechnologies such as ATM and Gigabit Ethernet, while leveraging the advancementsbeing made in intranet software.

As Bus-Tech has grown, it has developed partnerships with intranet softwareproviders, IBM, Novell, and Microsoft. In 1997, Bus-Tech added marketingrelationships with three key vendors in the industry — network infrastructure leader3Com, mainframe processor vendor Hitachi Data Systems, and host software vendorInterlink Computer Systems. Bus-Tech’s scalable intranet-to-mainframeconnectivity solutions and high-speed data-movement products take advantage ofthe mainframe as the central data system and because of the need to protectinvestments in these systems over time.

Bus-Tech was the first to provide a channel-attach device that directly connectedlocal area networks to IBM mainframes — the Ethernet LAN Controller — Model 1(ELC1). Bus-Tech, in close collaboration with IBM, developed the industry’s firsthigh-speed ESCON and parallel channel adapters specifically for use with IBM’seNetwork Communications Server for Windows NT software. Bus-Tech’s channeladapter drivers are the only certified and include drives for IBM’s eNetworkCommunications Server for Windows NT.

Bus-Tech’s DataBlaster line of software, designed for high-speed data movement,reduces the overall time it takes to do gigabyte-level data transfers, such as thoserequired in data warehouse and data mining applications.

The Original DataBlaster provides a fixed configuration of one Parallel (4.5 MBps)channel to a SCSI-1 connection.


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Figure 283. Bus-Tech’s Original DataBlaster


The DataBlaster 2 can be configured to support up to two mainframe ESCON orParallel channels, and four Ultra Wide SCSI connections simultaneously.

Figure 284. Bus-Tech’s DataBlaster 2


Figure 285. Bus-Tech’s NetShuttle


The company’s NetShuttle line of products leverage Internet-derived network andsoftware technology to uniquely provide users with a “plug and play,” scalablesolution for access to mainframe applications, regardless of network protocols ortopology. Bus-Tech has added availability of Gigabit Ethernet in its NetShuttleproduct line, making it possible for mainframe shops to move to a Gigabit Ethernetbackbone within their network on a cost-effective platform.


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Figure 286. Bus-Tech’s NetShuttle Product Features


The company also offers an Embedded Linux Controller (ELC) developmentplatform, designed to speed the development of network and storage appliances.ELC combines a high-performance RISC processor, with an open PCI mezzaninearchitecture.

Cereva Networks (Storage Subsystems)Marlborough, Massachusetts–based startup Cereva Networks provides Internetstorage systems capable of accelerating content delivery, and simplifyinginfrastructures for Internet data centers (IDCs) and service providers. Cereva waslaunched in April, 1998, but only came out of stealth mode in mid-January, 2001.

Cereva Networks’ products include integrated network and switch capabilities tiedto common storage disk arrays, scalable up to 230 terabytes in first generation, withbandwidth of 128 Gbps; scalable to 512 Gbps. The second-generation product willhave capacities just under 1 petabyte. The Cereva storage system uses Seagate andIBM disk drives with Cereva-built proprietary arrays. Cereva initially plans to sellits Internet storage system directly to service providers — ISPs, ASPs, SSPs, Webhosting companies and large content providers — who maintain massive Internetdata centers.

Cereva’s Internet Storage solution enables large content providers to deal withspikes in demand and scale their content infrastructure. This new type of storagedelivers the following attributes allowing service providers to offer storage as autility:

➤ Maximum volume pooling: enables the flexibility to handle spikes in demandand quickly add new services and subscribers through rapid, non-disruptivechanges to storage configurations

➤ Constant availability: ensuring an “always-on” data tone

➤ Integral multilayered security: of all content and infrastructure


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➤ Comprehensive standards-based systems management: for ease of use andseamless integration with existing network operations center management tools

To date, Cereva has received approximately $86.4 million in financing and $20million in credit from Comdisco Ventures, Intel, Global Crossing Ventures,Goldman Sachs, Matrix Partners, North Bridge Venture Partners, Oak InvestmentPartners, Sumitomo Corporation, and Worldview Technology Partners.

Chaparral Network Storage, Inc. (Storage Networkingand Components)Chaparral Network Storage is a provider of Intelligent Storage Routers and externalRAID controllers for open systems network storage solutions. The Company’sIntelligent Storage Routers facilitate the interconnection of SANs with existingSCSI-based servers and storage systems. Their external RAID controllers distributedata across multiple hard disk drives to increase data transfer speeds and deliverfault tolerance.

The company’s Intelligent Storage Routers enable seamless bi-directionalconnectivity between SCSI devices and Fibre Channel networks, allowingcompanies to take advantage of the benefits of Fibre Channel technology whileprotecting their investment in new and legacy SCSI storage devices. The routersutilize their external RAID controller platform but are configured with differentembedded software for SCSI peripherals including tape drives, automated robotictape libraries, and optical storage devices. These routers meet the performance andavailability requirements of both departmental and enterprise server needs as well asadvanced applications for SANs.

Chaparral’s Intelligent Storage Routers also have the ability to offer high-speedbackup over Fibre Channel in connection with software anticipated to be released byLegato and other companies in the near future. The product also provides for server-free backup, which allows users to perform backup operations directly from disk totape without first copying data to the host computer.

Chaparral’s external RAID controllers offer fault-tolerance features for mission-critical computing, such as high performance, redundancy, security, and protection.These products target the external storage business in the open systems servermarket as well as the SAN marketplace.

Chaparral is shipping its 2 Gbps storage routers that allow for easy attachment ofSCSI devices to Fibre Channel–enabled servers or SANs and provide theperformance, reliability, and connectivity required for data-centric applications suchas electronic commerce and digital video.


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Figure 287. Chaparral Network Storage — FS2620: 2Gbps Fibre Channel-to-Ultra160 SCSI StorageRouter


➤ G6322: Ultra 160-to-Ultra 160 SCSI: maximum performance board-basedRAID controllers, 4.25-inch x 9.0-inch, 180 MBps, 15,000 IOPS.

Figure 288. Chaparral Network Storage — G6322: Ultra 160-to-Ultra 160 SCSI


The Company sells its products to OEMs, including Eurologic Systems, MicroNetTechnology, Inc., Qualstar Corporation, Quantum Corporation/ATL Products, Inc.,Trimm Technologies, Inc., and Xyratex International Ltd., as well as to distributionpartners, including Arrow Electronics, Inc., Bell Microproducts, Inc., and CONSAN.

In late June, 2001, Chaparral announced the appointment of Mr. Victor Perez to theposition of chief executive officer. Mr. Perez has been Chaparral’s president andCOO since joining the company in December, 2000, and has served on Chaparral’sboard of directors since August, 2000. He will retain his president and COO roles.Mr. Gary Allison, who had been Chaparral’s CEO since the company’s inception in1998, will continue to serve as chairman of Chaparral’s board of directors.

CMD Technology, Inc. (Storage Components)CMD Technology supplies peripheral storage controller technology and high-performance storage-interconnect products to well-defined sales channels of OEMs,VARs, integrators, and resellers. CMD Technology is privately held and employsmore than 160 people.

The company is headquartered in Irvine, California, and maintains sales offices inCalifornia, Minnesota, Massachusetts, an Asian/Latin American sales office in SanJose, California, and a European sales office in the United Kingdom. CMD hasstrategic partnerships with companies such as Compaq (Digital), Intel, Microsoft,Hewlett-Packard, Dell, and Gateway.


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The company was originally founded in 1986 to develop and market SCSI hostadapters for Digital Equipment Corp. (DEC) computer systems. Today, CMD is aleader in Fibre Channel and SCSI RAID controller solutions for UNIX, opensystems and PC marketplaces and is a leading supplier of IDE/Ultra ATA andUniversal Serial Bus (USB) semiconductors for the PC and embedded marketplaces.CMD continues to invest in the computer peripheral interface and data-storagetechnology markets

CMD provides data-storage technology for a wide range of open systems, high-performance workstations, LANs, and PCs. CMD’s storage products are marketedthrough system integrators, VARs and OEMs — many of the leading providers ofstorage solutions. From CMD’s early success in the DEC market, many productinitiatives evolved. In 1991, CMD made the decision to add RAID to its productline and to expand into the PC, UNIX and open-system marketplaces. Two yearslater, CMD released the CRD-5000, its first RAID product.

The CMD Titan CRA-7280 RAID controller is a high-end SAN RAID controllerproviding dual-redundant, hot swappable, active/active or active/passive RAIDcontrollers, power supplies, and cooling fans, dual Fibre Channel host interfaces,and eight LVD Ultra2 disk channels. It provides true enterprise level storagecapacities and performance and comes bundled with an easy-to-use network-basedGUI RAID management utility.

Figure 289. CMD Technology — CMD Titan CRA-7280 RAID controller


CMD also develops, manufactures, and sells high-performance ASIC and board-level products. CMD’s IDE and Ultra ATA chips can be found in computersystems, including those by ACER, AST, Compaq, Dell, Digital, Gateway, Hewlett-Packard, and others. CMD also provides a wide range of complementarysoftware/firmware products and services that are designed to enhance the totalproduct solution.

CommVault Systems, Inc. (Storage Software)CommVault Systems provides data management and robust storage managementsolutions with the intent to meet the growing demand for reliable access to business-


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critical corporate information. CommVault believes that major shifts in technology,including the introduction of Windows 2000 OS, have opened significantopportunities in both the traditional backup and SAN markets.

Formerly a strategic business unit of AT&T Network Systems, CommVault Systemswas founded in 1988 as an independent section of Bell Laboratories chartered todevelop an automatic back-up, archive, and recovery software product for AT&T’sown internal use. Over the last decade, CommVault Systems has grown rapidly;from commercializing its storage technology solutions in 1989 under BellLaboratories to becoming an independent, privately owned company.

CommVault Systems and Bell Laboratories’ pioneering efforts led to thedevelopment of ABARS, an Automated Back-up, Archiving, and RecoverySoftware product; a centralized storage solution in open networked computingenvironments.

In late May, 2000, CommVault Systems released its Galaxy software suite, a storagemanagement solution architected around the logical rather than the physical view ofstorage. Galaxy’s presentation of information provides granular access to storeddata, permitting improved restoration progress. CommVault Galaxy also improvesdata and storage resource management, protection, access, and recovery. Designedfor Microsoft Windows 2000, the galaxy architecture works seamlessly with today’sSAN and NAS systems. Galaxy is powered by an embedded Microsoft SQL 7server meta database and enables the intelligence of storage management to beembedded into SANs, storage devices, or Fibre Channel switches.

Galaxy delivers best of breed storage management solution for Microsoft Exchange,Oracle, Red Hat Linux, UNIX, SQL server, NT server, Windows 2000 server,clustering, NetWare, Lotus Notes R5/Domino, Network appliance systems, andLAN-free backup with shared storage capabilities. CommVault Galaxy was recentlycertified with Brocade’s Silkworm switches.

In June, 2001, CommVault announced the availability of Galaxy for EMCCLARiiON NAS systems. The qualification of Galaxy software with CLARiiONIP4700 systems offers customers a pre-tested, easy-to-use, data protection solutionthat scales to handle multiple terabytes of capacity, delivering lower administrationcost, better access to application data and drastically improved backup and recoveryflexibility, according to the company. Earlier the same month, the companyannounced that Galaxy is certified for 2000 Datacenter, Windows 2000 AdvancedServer, and Windows 2000 Server.

CommVault Systems is establishing an indirect distribution organization tocomplement direct sales strategy. This indirect channel distribution will be made upof international and regional integrators concentrating on NT applications. Inaddition to the current international resellers Prosys, Acclaim Technology,MicroAge, Bay Data, and Logical Choice, GE-IT signed an agreement withCommVault.


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CreekPath Systems (Storage Software)Headquartered in Longmont, Colorado and formed by Exabyte Corporation inJanuary, 2000, CreekPath Systems creates solutions that enable Internet andapplication service businesses to find, attract, and retain new customers, increaseoverall customer satisfaction, and increase Web availability.

CreekPath Systems’ software is integrated with its storage management services,and will be offered as a complete package to Internet data centers and managedstorage service providers in the near future. CreekPath’s technology will enable itsclients to deliver more efficient, fully automated storage network management andonline storage resources to their customers, at a more affordable price. Internet datacenters, application service providers, storage service providers, and corporate datacenters working as independent profit centers will use CreekPath technology tomonitor and manage their storage networks, to automatically service theircustomers’ storage requirements, and to integrate the storage services into their totalservice infrastructure.

CreekPath Systems has received $23 million in total financing. Key investorsinclude Exabyte, TeleSoft Partners, and Sequel Venture Partners. In July, 2001,CreekPath Systems acquired Datavail Systems, which created end-to-end contentstorage management and delivery system software.

Datacore Software (Storage Software)Datacore Software operates on the belief that all storage resources should beavailable over a network in a single pool, so storage can be easily distributed andaccessed exactly when and where it’s needed, no matter the hardware platforms,operating systems, or storage devices in place.

Established in 1998, and an employer of more than 190 people, Datacore Software’sprimary product offering is SANsymphony, a program that converts islands ofdissimilar storage into a networked storage pool. This network storage pool makesall storage on the network easily accessible. The software is scalable from theworkgroup level to full scale enterprise SAN and allows organizations to add andredistribute capacity on the fly with a drag-and-drop interface. Administratorsallocate storage to individual computers with this interface, permitting volumes to beshared between multiple cooperating servers by assigning appropriate read and writeprivileges to different users.

Datacore Software designed SANsymphony for ease of use, allowing the integrationof new storage and servers more seamlessly. Changing computers is also simplified:Network volumes need only be reconfigured from one system to another.


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Figure 290. The Datacore Software Drag-and-Drop Interface


SANsymphony is interoperable with the different components of a traditional SAN,integrating UNIX, Windows, Netware, and Linux servers as well as diverse disksubsystems, recognized hubs, and switches that form the Fibre Channel SANinfrastructure. Providing interoperability with existing components, SANsymphonyallows for SCSI and SSA external storage disk arrays to be attached to the StorageDomain servers and presented as Fibre-Channel resources from the network storagepool using built-in protocol bridging.

SANsymphony also provides boosted retrieval times across high-speed SANsbecause of the program’s caching technology. The introduction of Storage DomainServers boosts the usable cache along the data retrieval-path, minimizing direct diskaccess and improving performance. Datacore also assigns multiple I/Os to thephysical storage devices, enabling a more efficient data stream, according to thecompany. SANsymphony creates real virtualization of storage assets by makingvirtual disk assignments, eliminating the costs and hassles of softwarereconfiguration. The result is efficient, fast LAN-free backups that maximizeproductivity and allow for current backup software, tape drives, and tape libraries tobe accessed on the SAN.

Datacore Software introduced three new interactive tools to help companies evaluatethe Return on Investment (ROI) and total cost of ownership (TCO) of storagenetworking alternatives from different suppliers. The tools form the cornerstone forDataCore’s expanded global professional services program, which helps customersscope, design, deploy, and manage vendor-independent SAN solutions.


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In June, 2001, JNI’s entire family of FibreStar Fibre Channel HBAs was verifiedcompatible and interoperable with DataCore’s SANsymphony software.Additionally, the company announced that SANsymphony was selected as one ofthe top five storage products of the year in InfoWorld’s, Reader’s Choice Awardissue.

DataDirect Networks (SAN Appliance and StorageSubsystems)DataDirect Networks was formed out of the merger between ImpactData, a SANsoftware development company, and MegaDrive Systems, a provider of high-speedFibre Channel RAID-based storage solutions. Through the integration of thesecompanies’ hardware and software capabilities, the company has developed acomprehensive SAN data system based on its DataDirect Network Architecture(DDNA). The DDNA is composed of three main segments which can be sold andimplemented separately, or together as a complete SAN solution; the SAN DataDirector, an integrated SAN appliance, which incorporates switching, caching,RAID and data management technologies; a SAN Operating System (SAN-OS)which provides on-demand information access and a common interface forheterogeneous systems and servers; and a SAN Data Manager, which providescentralized management of the SAN network.

By providing intelligent data retrieval and management through its centralizedplatform, DataDirect’s storage solutions are able to improve performance, increaseflexibility and lower the total cost of ownership with reduced equipmentrequirements and low-latency shared access. The company’s SAN Data Directordelivers 1 Gbps performance per port even as additional devices and storage areadded to the SAN, helping to alleviate I/O bottlenecks and facilitating high-speeddata transfer among heterogeneous servers and storage systems.

Figure 291. DataDirect Networks’ SAN DataDirector


The SAN DataDirector provides continuous access to your data and integrates easilyinto multiplatform environments.


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Figure 292. Multiplatform Environments


Interoperability among these systems is enabled through the company’s DDNAarchitecture, which includes its SAN-OS software that allows UNIX, Linux,Windows NT, and Mac OS servers and workstations to use SAN data as if it werelocally attached. These systems can be incrementally expanded through theinterconnection of switches in high-density fabrics managed by the company’s DataDirector. Through its highly integrated approach to the SAN, DataDirect hopes toevolve the SAN from a complex, unmanaged network of switches, routers, andcontrollers to a transparent network of centrally-managed devices. This migration isprimarily enabled through the company’s advanced software platform.

The company also offers the SAN directION, which combines the full capabilities ofthe SAN DataDirector SANappliance in a versatile “pay-as-you-go” model thatgrows with users’ storage networking needs. SANdirectION allows users to buildan entry level SAN infrastructure with a minimum of two Fibre Channel host ports(200MBps) and grow to eight (800MBps) host ports as needed. It is a networkinfrastructure device, with intelligent front-end and back-end Fibre Channelconnectivity, that provides servers and workstations with instantaneous access toshared storage. The SAN directION SAN appliance employs internal intelligence tomanage data access throughout the SAN infrastructure by creating host independent,interoperable network storage pools by virtualizing host and storage connections.This unique capability provides technology and vendor-independent storage poolingas well as path and port independence.

DataDirect Networks offers SANware application suites, a series of SAN-certifiedapplication suites that incorporate hardware, software, professional services, andsupport to solve individual customer’s needs. DataDirect is able to leverage the


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software base provided in its SAN Operating System and supported in its SAN DataManager to enable a centrally-managed control point from which its entire SANsolution can be integrated. As such, DataDirect is able to significantly differentiateits hardware offering and ensure it is positioned for future growth as newcapabilities, systems, capacity, and applications are added into its customer’s SANs.

DataDirect Networks also offers SAN RAID Systems, a family of products thatprovide full redundancy, speed, high data availability, capacity, and scalability todeliver terabytes of data in a single system from 200 MBps to 35 Gbps.

Figure 293. DataDirect Networks’ OEM Exclusive EV-5000, Fastest Fibre Channel Network RAID System— 185MB/Sec Sustained Throughput


Figure 294. DataDirect Networks’ EF-2000 Fibre Channel SAN Ready RAID Solution


DataDirect Networks has sold over three petabytes of storage on more than 30,000systems. The company’s customers include Amoco, Eastman Kodak, Microsoft,NASA, Panasonic, Pinnacle Systems, Sony, and StorageTek. DataDirect Networkshas strategic partnerships with ATTO technologies, Brocade, Emulex, Gadzoox,JNI, Qlogic, Seagate, and Vixel.


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DataDirect Networks has introduced its “SAN Appliance Resource ManagementSuite” for the company’s SAN appliance family of products. The SAN ApplianceResource Management Suite enables administrators to centrally manage storage andnetwork resources, helping organizations reduce the overall costs of ownership andincrease the efficiency of their SANs.

Eurologic Systems (Storage Subsystems)Founded in 1988, Eurologic Systems is a leading worldwide provider of networkstorage technology to the OEM and indirect channel markets. Eurologic’s partnersinclude Dell Computer, Network Appliance, Lucent Technologies, Motorola, AgfaPrepress, and Siemens Medical.

Eurologic is a global provider, with headquarters in Dublin, Ireland, and offices inAsia, Europe, and North America. It has R&D centers located throughout Ireland,the UK, and the United States, as well as an ISO-9002 certified, world-classmanufacturing facility in Ireland. It provides onsite product support around theglobe.

Eurologic Systems offers a comprehensive family of network storage solutions for awide range of markets. These products include the FLEXIbloc family of networkstorage solutions based on Eurologic’s Flexible Storage Architecture, SANblocnetwork storage system for storage area networks, Spheras Network StorageManagement software, the XL Series of fault-tolerant network storage solutions forthe OEM market, and the Voyager Series of systems for vertical marketapplications.

ExaNet (Storage Subsystems)Founded in 2000, and headquartered in Santa Clara, California, Exanet develops,manufactures, and markets next-generation storage systems that enable massive,seamless scalability of storage capacity and bandwidth, while maintaining ease andefficiency of storage management.

Exanet has created an ultrascalable storage system, the ExaStore System. Thisproduct scales in all dimensions, including capacity, bandwidth, backup/recovery,manageability, geography and economy, while consolidating all storage devices intoa single, unified resource. The ExaStore System consists of patent-pendingExaMesh software technology, running on a hardware platform built from standard,cost-effective, off-the-shelf components. ExaMesh provides a fully scalable meshinterconnect and a fully scalable storage cache. In addition to selling its StorageServer directly to selected end-user customers, Exanet will license its software toequipment manufacturers, who will create and sell their own ExaMesh-based storagesystems.

Exanet has a working prototype of its system now and is preparing for betadeployment in late 2001. Exanet plans to ship its first Storage Servers in the firsthalf of 2002.

The company has so far raised $15 million in funding. Key investors includeEvergreen, Venture TDP, Keppel TatLee Bank, and Microdent.


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Hitachi Data Systems (Storage Subsystems andSoftware)Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd, offers one of themost extensible storage solutions available in the market today.

Key to the performance of the Lightning 9900 storage systems is the Hitachi Hi-Starinternally switched architecture. Hi-Star’s internal switching technology replacestraditional shared-bus architectures. It helps to assure that high-speed data deliveredthrough the SAN fabric will not encounter a performance bottleneck inside thestorage unit itself.

Hitachi Data Systems (HDS) has successfully transitioned from a major mainframeserver player to a dominant supplier of storage solutions. Focused on becoming apure-play storage company, HDS has etched out a consistent track record of growth,evidenced by its fiscal 2001 storage revenues of $1.2 billion, or 54% growth. Thegoal: to become an $8 billion storage company by 2004 (which would represent88% CAGR), through both organic growth and acquisitions. HDS has aggressivelyattacked the enterprise (high-end) storage market by combining its leading edge Hi-Star internally switched architecture with key partnerships such as Hewlett-Packard,Sun Microsystems, and Veritas. We believe HDS is one of the most visible up-and-comers in the storage industry.

A wholly owned subsidiary of Hitachi, Ltd (“HIT”), HDS offers one of the mostextensible storage solutions available in the market today to enable more scalable,manageable, and cost-efficient data management. HDS’s Freedom Storage familyof products provides the foundation for Freedom Data Networks which leveragesSAN and NAS technology and supports multiple platforms including S/390, UNIX,Linux, Windows NT/2000, and Novell NetWare.

In addition to its storage systems, HDS offers software and services to providestorage on demand, remote copying for disaster recovery or backup, andmultiplatform data exchange. HDS also offers a full suite of customer-centricservices for data protection and SAN to provide individual configurationmanagement, system design, project management, installation, and support. Tofacilitate implementation, HDS rigorously tests its products, as well as alliancepartners and third-party products, at its Interoperability Lab in Santa Clara,California, as well as in its various R&D labs in Odawara, Japan.

The HDS Freedom Storage 9000 family of products comprises the high-endenterprise class Lightning 9900 Series and the midrange Thunder 9200 storagesubsystems. HDS also offers its Freedom NAS product (a Network StorageSolutions file server connected to either its Thunder 9200 or Lightning 9900 storagesubsystems), which enables customers to form a common storage pool for SAN,NAS, and direct attach storage, in contrast to SAN-only or NAS-only offerings.Management of and functionality for these systems are provided through HitachiFreedom Storage Management software including Hi Command, HRC (remotecopy), ShadowImage, and other software products. Additionally, HDS offers Just InTime Storage, a capacity on demand program. Just In Time Storage is designed tosimplify the storage management challenges faced by large enterprises and StorageService Providers (SSPs).


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Figure 295. Hitachi Data Systems Solutions

Lightning9900

Thunder9200


Lightning 9900 Series (High-end Disk Storage Subsystem)The HDS flagship product, the Lightning 9900 Series is available in Models 9910 or9960 and ranges in capacity from 3.5 TB to 37 TB. These systems offer a 100%data availability guarantee, with no single point of failure, hot-swappablecomponents, and duplexed write cache with battery backup. The Lightning 9900offers one of the industry’s only internally switched fabric architecture, to deliver upto 6.4 GBps internal system bandwidth. Operating through Hitachi FreedomSoftware solutions, the Lightning 9900 is interoperable with UNIX, Windows 2000,Windows NT, LINUX, Novell Netware, and S/390 hosts. The Lightning 9900competes in the enterprise (high-end) market.

Thunder 9200 (Mid-range Disk Storage Subsystem)Recently introduced to address the mid-range segment of the market, the Thunder9200 is scalable up to 7.2 TB enabling responsiveness to unexpected user demandand customer transaction surges. Consistent with HDS’s focus on reliability andavailability, the 9200 offers remote monitoring and an array of redundant and hot-swappable components. The Thunder 9200 allows customers to establishcentralized, manageable storage control from a single location. This satisfies opensystems demands heterogeneously across a broad spectrum of environments,including clustered Windows NT and 2000, Novell NetWare, and UNIX servers.

Key to the performance of the Lightning 9900 storage systems is the Hitachi Hi-Starinternally switched architecture. Hi-Star’s internal switching technology replaces atraditional shared-bus architecture to provide the high levels of scalability requiredto meet the growing information-access demands of e-commerce. The Hi-Stararchitecture complements external switch connectivity to SANs and helps to assurethat high-speed data delivered through the SAN fabric will not encounter aperformance bottleneck inside the storage subsystem. The multiple, non-blocking


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data paths created within the internally-switched architecture enable increasedthroughput across workloads even as it is scaled to its full capacity (37 TB).

Figure 296. Hitachi Hi-Star Switched Architecture


Key Alliances

VERITAS Software

On February 14, 2001, HDS, Hitachi, Ltd., and VERITAS Software announced theformation of a Global Storage Management Agreement, which focuses on thecoordinated integration and testing of the companies’ storage solutions, in order toarchitect highly interoperable data availability configurations that ensure increasedflexibility for the end user. As part of this Global Storage Management Agreement,HDS will offer the latest versions of a wide range of VERITAS Software productsand professional services to its customers around the globe. The companies willalso unite in joint product integration and certification efforts.

Hewlett-Packard

On the OEM side, one of HDS’s top server partners is Hewlett-Packard. On April28, 1999, HDS announced that under a three-year OEM joint technology agreement,Hewlett-Packard will enhance its broad range of SAN and storage-managementproducts with HDS’s products and technology (this agreement was recently renewedfor another three years). More specifically, Hewlett-Packard will OEM high-endsubsystem technology from HDS (the Lightning 9900) and cooperatively enhanceproducts with Hewlett-Packard-contributed firmware and fibre channel interconnectsfor improved open systems performance. Hewlett-Packard will also leverage HDS’s


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manufacturing facilities and supply-chain management to optimize the availabilityand flexibility of the Hewlett-Packard SureStore E Disk Array XP512, Hewlett-Packard’s premier multiplatform high-end storage solution. Approximately 23% ofHDS’s revenues come from Hewlett-Packard and other OEM partners whileapproximately 25% of sales are derived from its indirect channel partners such asDatalink, GE Access, and Avcomm.

Sun Microsystems

On August 8, 2001, Sun and Hitachi Data Systems (HDS) announced a three-yearpartnership agreement. Under the terms of the agreement, Sun will include HDS’shigh-end Lightning 9900 in its new Sun StorEdge 9900 series. In addition to thesubsystem itself, the Sun StorEdge 9900 also includes access to three jointly-staffedsupport centers and certification in SunPlex and SunCluster environments. Otherterms of the agreement include cross-licensing of software and collaboration onfuture software products.

We believe HDS is clearly focused on expanding its breadth of storage OEM andreseller partnerships. Based on HDS’s success, we believe these partnerships couldmake a lot of sense in the near term. We expect revenues will grow as a result ofthese partnerships and HDS’s stated intention to grow channel sales twice as fast asdirect sales going forward. HDS expects indirect sales to account for 50% of totalsales within two years.

I-TECH Corp. (Storage Testing)I-TECH Corp. serves the SCSI and Fibre Channel Test Equipment market, offeringhigh-performance testing solutions to peripheral manufacturers, system integrators,and network suppliers. I-TECH’s product offerings address a range of testingrequirements, from emulation systems to passive bus analyzers, developmentsystems to production test systems, and field service.

I-TECH provides three interface-testing solutions developed to meet demands forhigh-speed Fibre Channel analysis. Beyond operating rates of two Gigabits persecond, the products also provide multilevel and multi-user “intelligent analysis”capabilities. I-Tech’s IFC-3 tester operates at data transfer rates of 1 Gbps. Therecently introduced IFC-4 tester transfers either 1 or 2 Gbps, and allows for creationof low-level primitives. Both testers operate on the EAGLE universal softwarearchitecture that also drives the company’s full line of SCSI testers.


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Figure 297. I-TECH — IFC-4 Fibre Channel Tester


The company’s Satellite Fibre Channel analyzer offering includes the portable IFC-30 and IFC-40 Fibre Channel analyzers that monitor two channels of data at transferrates of 1 or 2 Gbps, respectively. It also includes the IFC-3016 and IFC-4016desktop models that simultaneously monitor up to 16 channels at the samerespective speeds — for optimum efficiency and control at an extremely low costper channel.

Figure 298. I-TECH —Satellite IFC-4016 Fibre Channel Analyzer


Ikadega (Storage Subsystems)Founded in 2000, and headquartered in Northbrook, Illinois, Ikadega is a companythat develops high-performance, low-cost hardware solutions for efficiently storingand delivering rich media content and other large data files over the Internet and inother IP-based networks.

Ikadega’s patent-pending DirectPath Architecture is a switched-fabric serverarchitecture specifically designed for highly optimized storage and delivery.DirectPath is specifically designed to serve as the underlying architecture foroptimized and affordable storage and delivery devices. These devices form the basisof high-performance systems and solutions spanning many markets, including


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Internet-based streaming media, enterprise information services, and residentialvideo-on-demand. Direct Path is able to achieve storage capacity and deliveryperformance in serving large data files at low storage costs through animplementation of proven data transfer technologies that bypass bottlenecks intraditional architectures.

Features include:

➤ high speeds that reduce the need for load balancing by utilizing internalintelligent “load delegation” methodology;

➤ maximizing delivery and storage performance while minimizing administrationrequirements, driving down the total cost of ownership;

➤ highly scalable, while maintaining a constant performance-to-cost ratio;

➤ high capacity and cost-effective storage functionality;

➤ reduced need to employ redundant resources.

Ikadega is creating its own open-standards DirectPath-based servers for direct andOEM sales to large system manufacturers serving the targeted markets. Thecompany also plans to license its DirectPath Architecture to major OEM hardwarevendors and license DirectPath implementations to various niche market vendors.

Ikadega secured $8 million in its first institutional round of funding in March, 2001,bringing the total funding received to $15 million. Key investors include KettlePartners LP II, BlueStar Ventures, Leo Capital Holdings, and OCA VenturePartners.

InfiniCon Systems (InfiniBand Networking)InfiniCon Systems was established in 2000, with the goal of addressing the marketopportunities associated with bandwidth and connectivity limitations in data centerinfrastructure. The company is a premier developer of intelligent system areanetwork fabric and multi-protocol I/O infrastructure, enabled by InfiniBandtechnology. The company’s products are designed to enable low-latency server-to-server communication and eliminate the network and storage I/O bottlenecksemerging in large data centers, resulting in higher bandwidth, better data availabilityand lower administration costs. InfiniCon’s products will be introduced by the endof 2001. InfiniCon Systems is headquartered in King of Prussia, Pennsylvania.

Infiniswitch Corporation (InfiniBand Networking)InfiniSwitch Corporation, founded in the fall of 2000, is a developer of InfiniBandswitching solutions designed for the data center. The company has developed arack-dense InfiniBand switching solution. Its first generation 1u (1.75-inch) 32-portInfiniBand switch, called Leaf Switch, is designed to provide high availability,scalability, and multi-protocol flexibility at the core of the InfiniBand fabric.InfiniSwitch technology will integrate with other InfiniBand products, reinforcinginteroperability, a cornerstone of the InfiniBand standard. In addition, itsupgradable designs include three generations of link speeds and should support


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today’s existing network protocols to protect the customer’s investment.InfiniSwitch is located in Westborough, Massachusetts.

InterSAN (Storage Software)Headquartered in Scotts Valley, California, InterSAN develops highly scalableapplications-based Storage Area Management (SAM) software. The company’ssoftware enables enterprises to maximize the benefits of large, heterogeneousstorage networks.

Central to the company’s product is its Virtual Private DataPath (VPD) technology,in which the InterSAN solution is based. VPD relates applications to their data andeverything in between, including multi-protocol switches, heterogeneous storagesubsystems, storage virtualizers, appliances, and multiple security implementations.The solution provides improved application availability, data security, and servicelevel management. The InterSAN solution improves the operational efficiency andbusiness scalability of large enterprises by centralizing and automating managementof complex storage networking infrastructure. InterSAN products have graphicaluser interfaces for ease of use and support all major platforms including WindowsNT, Windows 2000, Solaris, and Linux.

On July 26, 2001, the company announced a partnership with EMC to integrate itssoftware with EMC’s information storage systems. Other partners include Brocade,Emulex, Hitachi Data Systems, JNI, LSI Logic, and Qlogic.

In its first round of financing in April, 2001, InterSAN raised $8 million. Keyinvestors in the company include Alliance Venture Management, Morgan Keegan &Co., Wit SoundView Ventures, and Mr. Kumar Malavalli (Co-founder and vicepresident of Technology, Brocade). The company has approximately 30 employees.

Lane15 Software (InfiniBand Software)OverviewLane15 Software, headquartered in Austin, Texas, is the leading developer ofmanagement software for InfiniBand networks. Lane15 is well positioned in thisemerging technology with a highly experienced management team, strong financialbacking, and an active involvement in the InfiniBand Trade Association (“IBTA”)that is determining industry standards. The first InfiniBand-based solutions arescheduled for release in late 2001 and scale production is planned for 2002. Webelieve that the company is establishing a leadership position in InfiniBandmanagement products and will play a key role as this technology is implemented inthe coming years.

InfiniBand is a developing technology that will replace the PCI I/O bus andrevolutionize the way data is transferred between servers and shared I/O systems.This next-generation I/O architecture is poised to dramatically increase networkperformance, reliability, and scalability. IDC Corp. estimates that more than 75% ofall servers shipped in 2004 will have InfiniBand connectivity. Testament to thisprojection is the strong support from leading vendors such as Intel, Sun, Compaq,Dell, Hewlett-Packard, and Microsoft.


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Lane15 Software, named for the “virtual lane” within the InfiniBand architecturethat is reserved for management systems, is a developer of vendor-neutral fabricmanagement solutions that can be readily adopted by any InfiniBand technologyprovider, including chip manufacturers, server vendors, networking deviceproviders, and I/O vendors. In early July, 2001, Lane15 successfully demonstratedits Fabric Manager technology at the IBTA Spring Developers’ Conference. Withits strong backing and demonstrated product, Lane15 Software is actively advancingthis next generation switched fabric I/O architecture.

Managing the InfiniteLane15 Software has developed a clear product strategy focusing on enhancingnetworks’ reliability, availability, and scalability in an InfiniBand environment.Lane15 Software’s first generation fabric manager (2001) will focus on managementof InfiniBand devices and subnets while the second generation manager (2002) willtarget a heterogeneous, policy-based management. Lane15 Software plans to addsecurity and performance based features (2003) to its software and ultimately arriveat a software solution capable of evaluating InfiniBand quality of service as well asautomated provisioning of resources. While the first and second generationmanagers will utilize an OEM strategy, Lane15 plans to develop a channel strategyfor the distribution of future management products.

Currently in development for a 2001 rollout, Lane15 Software will deliver twoproducts: a Fabric Manager product to be distributed through switch and servervendors, and a Management Agent to be distributed through all InfiniBand vendors.The initial Lane15 Software Management Suite will provide the necessaryfoundation for added-value management products in the future.

The comprehensive Lane15 Management Agent and Lane15 Fabric Managerofferings will include:

➤ subnet management and general services management agents for servers,switches, routers, and I/O devices;

➤ comprehensive fabric manager solutions, including redundant subnetmanagement options that can reside in servers, switches, routers, and I/Odevices;

➤ a management console for network-wide InfiniBand fabric management andadministration; and the

➤ ability to function with network products from any vendor.


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Figure 299. Lane15 Software’s Product Architecture

http(s)xml

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extensions extensions extensions

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Lane15 Software views the adoption of InfiniBand to start in 2001 with InfiniBandsilicon available (see partnerships below), 2002 for initial production systems, 2003for early mainstream adopters and large scale deployment in late 2003 to early 2004.

Banding TogetherLane15 Software and Banderacom, a fabless InfiniBand semiconductor company,have formed a partnership to deliver integrated silicon, software, and developmenttools to InfiniBand equipment manufacturers. Banderacom will provide the silicon,and Lane15 will supply the software. Lane15 and Banderacom along withWindRiver Systems, a provider of software and services for connected smartdevices, demonstrated a prototype of the industry’s first InfiniBand Ethernet routertarget channel adapter at the Intel Developer Forum crossing another key milestonein the development of InfiniBand products. Note: Lane15 is also working with otherInfiniBand silicon suppliers such as Mellanox and Intel.

Funding HistoryLane15 Software was founded in April, 2000, by Alisa Nessler, a Venture Fellow atAV Labs. Based in Austin, Texas, the company was incubated within AV Labs afterreceiving initial funding of $750,000. Lane 15 has raised approximately $9 millionin two separate rounds from a broad range of investors including Intel, Compaq,Dell, Austin Ventures, AV Labs, and Lightspeed Venture Partners.

LeftHand Networks (Storage Subsystems)Located in Boulder, Colorado, LeftHand Networks is a provider of Network UnifiedStorage (NUS) solutions. LeftHand Networks’ network-centric architecture letscompanies scale storage modules and increase storage flexibility.

Through its NUS approach, LeftHand Networks enables companies to scale storagemodules seamlessly, in either a block or file configuration. Unlike previous


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approaches that rely on a single network connection to a storage volume, the NUSarchitecture avoids CPU bottlenecks and increases flexibility by mounting modulesin parallel on the network. NUS uses the network itself as the storage bus which letscustomers choose how to organize their storage volumes across Ethernet or gigabitEthernet networks to emphasize performance, redundancy, or both. Striping andmirroring are possible within, and among, LeftHand’s devices — regardless ofgeographical distance. The overall performance is similar to that of a Fibre-ChannelSAN, on standard Ethernet networks. The NUS architecture combines theperformance of a SAN with the ease-of-use of NAS in a stand-alone, integratednetwork storage module. The company is expected to begin product shipment inthird quarter 2001.

LeftHand Networks recently received follow-on funding for its Series A round,bringing the total to $13 million. Key investors include Boulder Ventures, SequelVenture Partners, and Vista Ventures I.

ManagedStorage International (Storage Service)ManagedStorage International (MSI) is a provider of online managed informationaccess and data protection targeting large enterprises and e-businesses. Thecompany was incubated inside StorageTek in 1997 and then launched in March,2000. StorageTek retains a minority ownership in ManagedStorage.

MSI offers data storage services on a utility basis including storage-on-demand,server backup, PC backup, and exclusive value-add software for contentmanagement. These solutions reduce the complexity and risks associated with thestorage management activities necessary in high storage demand and Internet-basedbusiness applications.

The company offers a suite of fully managed storage utility services, providingvirtually unlimited enterprise-class disk and tape storage capacity; centralized,secure server backup and recovery; and fully managed information archives withstorage, backup, recovery, and lifecycle management capabilities. All services areavailable on a pay-as-you-use basis and can be provided on an on- or off-site basis.The company’s fully managed e-storage “Power” services, includingPowerCONTENT, PowerNODE, and PowerBAK Personal and Server Editions,reduce the costs and complexities associated with data storage management andenable companies to focus on expanding their core businesses.

Storage-on-Demand offers “pay-as-you-go, pay-as-you-grow” disk storage space ina shared or dedicated disk infrastructure. ManagedStorage provides several differentservice levels tailored to each customer’s unique needs. ManagedStorage sellsdirectly to the end client and wholesales the service for reselling. Storage-on-Demand is available to users located in many Internet Data Centers. Privateofferings are also available for “Fortune 500.coms.”

ManagedStorage’s Content Management service is application oriented, consistingof data repositories supplied and maintained by ManagedStorage and aimed atvertical markets such as medical imaging. ManagedStorage’s services includecapturing, indexing, archiving, preserving, searching, retrieving, and publishing any


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form of digital content, from e-mails to audio to still images and movies. Webelieve application-oriented services aimed at vertical markets offer higher value-add and likely command higher gross margins.

The company has raised over $60 million to date from investors including Great HillEquity Partners, Providence Equity Partners, First Union Corporation, J.P. Morgan,and EMC. StorageTek still owns approximately 15% of the company.

Mellanox Technologies (InfiniBand Networking)Mellanox Technologies is a private company providing solutions for the server,communication, and data storage markets, based on the InfiniBand TradeAssociation standard for mid- to high-end embedded systems. Founded in March,1999, Mellanox is a semiconductor company that supplies I/O building blocks forthe Internet infrastructure. Design, engineering, quality, and reliability operationsare based in Israel, while business operations, sales, marketing, and customer serviceare in Santa Clara, California. The company develops semiconductors for thisburgeoning Internet infrastructure in the server, communication, and data storagemarkets.

In order to accelerate customers’ time to market, the company offers system productdevelopment kits (PDKs) including functional systems, board design database, andsoftware drivers. Mellanox recognizes system vendors’ hardware and software, andprovides a mechanism to support legacy I/O controller cards while enabling asmooth transition from traditional I/O infrastructure to the new generation ofInfiniBand fabrics. Its emphasis is on delivering robust, high-performance, scalabledevices to serve the Internet infrastructure I/O fabric market. The company worksclosely with customers and partners to define products and develop the system levelunderstanding necessary in order to effectively serve these new markets.

Figure 300. Mellanox Technologies — Two-Port Card

Source: Mellanox

Mellanox Technologies products include its InfiniBridge family of devicessupporting the new InfiniBand architecture. The InfiniBridge family of productsincludes Switches, Host Channel Adapters (HCAs), and Target Channel Adapters(TCAs). Mellanox is shipping InfiniBridge silicon, development boards, and


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software products to customers, marking the first commercial availability of devicessupporting both 2.5 Gbps (1x) and 10 Gbps (4x) links compatible with theInfiniBand 1.0 specification.

NetConvergence (Storage Networking)Headquartered in Santa Clara, California and founded in 1998, NetConvergencedesigns and markets IP storage systems using the industry-standard iSCSI protocol.

NetConvergence develops IP storage solutions that leverage and extend existingnetwork technology. NetConvergence’s xeniphast iSCSI technology enablesestablished network and storage vendors to implement a full range of IP storagesolutions. NetConvergence is currently rolling out a comprehensive suite ofxeniphast iSCSI host drivers to its partners and will expand its xeniphast productfamily to include TCP/IP-offloaded iSCSI network interface cards, storage interfacecards and intelligent storage routers. The xeniphast product family delivers highperformance and fully scalable iSCSI solutions for IP SANs.

The company’s underlying technology consists of the following software andhardware technology solutions:

➤ patent pending switch architecture that eliminates unwanted protocol overhead,thereby delivering up to 10x performance improvement;

➤ unique software architecture bypasses the need for custom hardwaredevelopment by using off-the-shelf hardware, resulting in a substantial reductionin the time to market, high performance, and low cost of ownership;

➤ xeniphast software platform’s layered driver architecture can adopt any NetworkInterface Card (NIC) technology including proven driver software;

➤ accelerated TCP/IP offload to ensure iSCSI will have performance comparableto Fibre Channel. This involves using recently developed TCP/IP off-loadengines on NetConvergence’s hardware platforms;

➤ iSCSI, which is the premier open standard IP Storage protocol;

➤ NetConvergence’s hardware strategy involves using “state of the shelf”hardware, including a new class of processor called Network Processing Units(NPUs).

NetConvergence raised $5 million in its second round of financing.

Nishan Systems, Inc. (Storage Networking)Nishan Systems is a data networking company developing end-to-end SANsolutions through existing IP and Gigabit-based Ethernet. Nishan Systems’ solutionto networking storage is SoIP (Storage over Internet Protocol) which possessesfeatures of IP networks such as product compatibility, established standards, andreliability as well as characteristics of SAN technology such as high availability andperformance. Nishan Systems believes its solutions are ideal for today’s data-intensive businesses because they introduce interoperability to storage networking.Nishan plans for SoIP to allow the connection of today’s storage interfaces, such asSCSI, Fibre Channel, and InfiniBand, with the standard IP infrastructure.


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SoIP has utilized the recent improvements in an IP infrastructure to provide vendorinteroperability for enterprise and service provider customer segments, as well asopening the door to the newer online storage market. Recent developments inhigher speed Ethernet, Multi-protocol Label Switching (MPLS), and switchingfabrics are the basis of the technology employed by SoIP. Nishan believes its SoIPoffers the ideal framework to enable a single network for data, voice, and storage.Nishan systems is a member of the SNIA and JIRO alliances.

Figure 301. Nishan Systems’ SoIP Product Family


Nishan Systems has introduced three switches:

➤ The IPS (IP Storage) 1000 gateway includes two Gigabit Ethernet SAN portsand two iSCSI/iFCP Gigabit Ethernet ports to extend IP storage fabrics acrossMANs and WANs.

Figure 302. Nishan Systems’ IPS (IP Storage) 1000 Gateway


➤ The IPS 2000 switch includes up to six ports: two Gigabit Ethernet connectionsand four Ultra2 SCSI (80 MBps) or Wide Ultra SCSI (40 MBps) ports.


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Figure 303. Nishan Systems’ IPS 2000 Switch


➤ The IPS 3000 switch has eight MultiService Interface ports, enabling users tomix Fibre Channel and Gigabit Ethernet connections.

Figure 304. Nishan Systems’ IPS 3000 Switch


Nishan Systems also offers the SANvergence Management Suite, which is based onSNMP and Java, for managing the SoIP devices,. The software enables users tomanage an IP storage fabric consisting of Nishan’s switches and gateways. Thegraphical interface of these tools provides an intuitive display and modification ofconfiguration data — simplifying the setup of switches and gateways.

Figure 305. Nishan Systems’ SANvergence Management Suite


Earlier this year, Nishan Systems formed a broad strategic agreement with JNICorporation covering joint research, development, and marketing opportunities forthe integration of Storage over Internet Protocol (SoIP), including iSCSI, solutionswith Fibre Channel–based SANs in Metropolitan Area and Wide Area Networks(MANs and WANs). The companies have entered into a “first-to-market”agreement under which the two companies will jointly market and sell theirproducts.

Recent news includes Veritas interoperability certification of Veritas Backup Execwith Nishan’s IP Storage Switches as well as a joint announcement with IBM andIntel that software for the IP Storage protocol, Internet Storage Name Service


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(iSNS), has been released as open source code. In addition, Nishan announced thatIntel will also support the iSNS protocol by enabling the Intel PRO/1000 IP StorageAdapter, which will be available later this year, to utilize iSNS information.

NSI Software (Storage Software)NSI Software is a developer of data protection and availability solutions.Headquartered in Hoboken, New Jersey and founded in 1991, the company was builtupon the goal to provide network administrators a solution to improve the reliabilityand serviceability of their networks.

The company’s Double-Take product is a real-time data replication system forWindows 2000/NT, Solaris, and NetWare that reduces downtime and data loss,allows for centralized backup, and can be used to provide offsite disaster recovery.Within two years of first marketing Double-Take, NSI licensed it to more than 5,000companies. Additionally, Double-Take was awarded Network Magazine’s Productof the Year for 2001.

Double-Take monitors changes continuously to open files as they occur. Only byte-level changes are replicated to one or more servers over standard networkconnections. Data is continuously protected, and an up-to-date copy is available inan off-site location. Replication occurs continuously over any shared or private IP-based LAN, WAN, or SAN connection. In the event of a disaster, Double-Take’sfailover capabilities allow a secondary server to stand in automatically for theprimary server, transparently.

Figure 306. NSI Software’s Double-Take



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NSI’s GeoCluster integrates with Microsoft Cluster Service to create geographicallydistributed clusters with replicated data to eliminate the hardware dependency andsingle point of failure of a shared disk cluster. Servers in an MSCS configurationshare one storage subsystem and must be in close proximity to each other — from afew feet if connected via SCSI, to no more than several kilometers if connected byFibre Channel. In this arrangement, computers take turns accessing the sharedstorage — a single point of failure that leaves the entire cluster vulnerable tohardware-related or geographic disasters. With GeoCluster, each server has its owndata copy, and geographic limitations are removed.

All NSI products are developed for centralized cross-platform management andinteroperability and include patented data replication and failover technologies. NSIalso offers a line of network performance enhancement utilities including BalanceSuite for NIC I/O load balancing and fault tolerance.

NSI has strategic technical and marketing relationships with industry leadersincluding Microsoft, IBM, Dell, Hewlett-Packard, Compaq, and Data General (adivision of EMC). NSI relies on its OEM partners and reseller channel to delivercomprehensive solutions and support to business users.

nStor Corporation (Storage Subsystems and Software)Headquartered in Lake Mary, Florida (near Orlando) and San Diego, California,nStor Corporation develops information storage management solutions, includingenterprise RAID solutions, desktop storage systems, data storage enclosures, andassociated network management software. nStor Corporation develops its storagesolutions primarily for the PC LAN network and RISC-based UNIXworkstation/server markets.

The technology used as the foundation of the nStor RAID product family was firstintroduced in 1994, when the Storage Systems division of Conner Peripherals beganinvesting in the CR6 RAID subsystem. Conner Storage Systems grew quickly andwas responsible for a number of developments in RAID subsystem technology,including Single Connector Attach (SCA) drives for hot-swap capability, graphicaluser interface (GUI) RAID alert management software and enclosure technology forfault-tolerance and network manageability. nStor has since expanded its productfamily to include a full range of disk array solutions, providing high availabilitystorage per subsystem, and support for a variety of operating systems, includingNovell NetWare, Microsoft NT Server, SCO UNIX, IBM OS/2 LAN Server, andIBM OS/2 Warp. Its 1999 purchase of rival ANDATACO more than tripled nStor’ssize and will allow it to market its products over a much broader geographic base.

nStor’s product offering includes both SCSI RAID and JBOD products. Thecompany’s SCSI RAID product offering provides both high-capacity (eight-bay) andhigh-performance (12-bay) solutions within the same 3.5-inch form factor. TheNexStor eight-bay SCSI High-Capacity Series products scale by 1.4 TB incrementsand stores up to 4.3 TB. The NexStor 12-bay SCSI High-Performance Seriesproducts provide twelve spindles per 3.5-inch for instantaneous data access. TheNexStor 3200S and 3250S high performance solutions are focused toward high-availability MS Exchange server and database application environments, where the


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number of drives (spindles) become crucial for immediate I/O access, according tothe company.

Figure 307. The NexStor 3250S — Dual RAID Controller SCSI Storage System


The NexStor 802S and 1202S provide unique SCSI JBOD storage solutions that fitin a compact space. The NexStor 802S accommodates up to eight 1.0-inch or 1.6-inch Ultra160 SCSI disk drives, including the 180 GB drive, mounted horizontallyin a 3.5-inch (2U) enclosure, while the NexStor 1202S accommodates up to 12 one-inch drives in the same form factor. NStor’s design supports 7,200 RPM, 10,000RPM, and 15,000 RPM disk drives, and allows an easy upgrade path to anactive/active SCSI or Fibre Channel host-attach RAID solution.

Figure 308. The NexStor 1202S — JBOD SCSI Storage System


nStor has ensured that all of its products are SAN-ready and has developed a numberof products specifically for the SAN market, including its GigaRAID/FC familywhich offers Fibre Channel host connectivity with performance up to 200 MBps.nStor sells its products through a worldwide network of OEMs, and distributors.The nStor customer base ranges from small businesses to Fortune 1000 firms andgovernment organizations, including Motorola, Yellow Pages, Whirlpool, Bank ofAmerica, Trans America, Union Pacific, Prudential Insurance, The Trane company,Intergraph, Warner Brothers, EDS, Lucas Film Ltd., Dream Works, the U.S. Navy,and the U.S. Air Force.

Additionally, nStor’s AdminiStor Plus RAID configuration and storage managementsoftware suite is fully integrated for use with nStor storage solutions. AdminiStor’sadvanced capabilities give customers the ability to configure, monitor, and managetheir nStor storage resources via Web browsers on a LAN/SAN network or over theInternet.


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Figure 309. AdminiStor Storage Management Software


Recent news includes an announcement that nStor had received an offer from aprivate investor to purchase approximately 45% interest in the company for $12million. According to the press release, the offer requires the company to cause allof its preferred stock to be converted into common stock, as well as other conditions.Also in the press release, management stated that the company will evaluate theoffer, confer with the holders of preferred stock and respond to the proposal on orbefore a late July, 2001 deadline provided for in the offer.

OmegaBand, Inc. (InfiniBand Networking)Based in Austin, Texas, OmegaBand was formed in 2000 to adopt the use ofInfiniBand technology to solve the SAN issues in today’s Internet infrastructuretopologies. The company is focused on developing products to meet high-performance systems needs. OmegaBand uses its proprietary core architecture andpartners with third-party vendors to provide systems that solve I/O problems forlarge-scale data centers, Internet service providers, application service providers,telecommunications, and e-commerce companies.

OmegaBand provides solutions that allow data centers to independently scale theirnetwork-based resources and direct the connectivity of the incoming “fat” data pipesto all data centers. The company’s products support interprocess communicationand high-performance shared I/O in the data center. These products are designed toreduce complexity and overhead, while seamlessly integrating into existinginfrastructure.

Figure 310. OmegaBand’s IBgate 1000


The IBgate 1000 is the first of a new series of InfiniBand Architecture (IBA)-to-Gigabit Ethernet (GbE) gateways available from OmegaBand. It provides astandards-based IBA-GbE interface that combines performance with networking


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flexibility, providing customers with a simple, cost-effective way to introduceInfiniBand-enabled equipment to an Ethernet network.

Over the longer term, OmegaBand’s data center service platforms will allowcustomers to scale independently for increased network traffic and let multipleservers share high performance I/O. Future generation OmegaBand products willexpand significantly on the first generation, bringing value through use ofOmegaBand’s proprietary technology to greatly increase data throughput and toprovide a rich feature set. The company plans to introduce much faster, 4x productsearly in 2002.

The company raised $9 million in a first round fundraising in September, 2000. Keyinvestors include TeleSoft Partners and InveStar Capital.

Panasas, Inc. (Storage Subsystems)Headquartered in Fremont, California and founded in 1999, Panasas is a networkstorage company creating a smart and scalable storage solution by combiningdistributed storage software with low-cost, industry-standard hardware.

Panasas is focused on developing a better way for organizations to arrange storage ina network by creating “smart drives” that work with distributed software that will befully compatible with existing storage products and offer improved data security,performance, scalability, and management capabilities. The result will be gigabytethroughput performance and a reduced total cost of ownership for storage systems.With this system, networked data can be directly stored and retrieved by client PCsinstead of going through a bottlenecked server that is overwhelmed with data from avariety of sources. The system is built on a foundation of industry standardsallowing customers to maximize their return on their current infrastructureinvestment.

Panasas supports NFS and CIFS network file system protocols for UNIX andWindows client access, NDMP protocol for backup, and Ethernet-based TCP/IP forconnectivity. Panasas is currently in the product development stage, with a productlaunch expected by mid-2002.

Panasas received $10 million of financing in September, 2000.

Pirus (SAN Appliance)Founded in 1999 and based in Acton, Massachusetts, Pirus is a developer of carrier-class networking systems that connect Fibre Channel SANs with IP systems. Thecompany’s products will connect SANs with LANs and WANs to manage andimprove data communications. The Pirus solution converges IP and Fibre Channelstorage networking to build next generation networks that reduce storage ownershipcosts and streamline data management through the development of a centralcomponent that combines disparate infrastructures without displacing existingprotocols or storage systems.

Pirus’s Storage Utility Switch is designed to enable the creation of scalable, reliable,highly manageable, and cost-effective storage networks. The Pirus infrastructureincorporates multiple protocols (Fibre Channel and Ethernet) and data access


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methods (block and file services), as well as supports a wide range of industry-proven storage subsystems, under centralized and secure management.

Figure 311. The Pirus Storage Utility Switch


The Pirus solution addresses key storage issues facing large enterprise customers by:

➤ unifying file (NAS) and traditional block (SAN) components, IP with Ethernetand Fibre Channel;

➤ securely sharing storage network resources among diverse communities of usersthrough the Pirus Secure Virtual Storage Domains;

➤ scaling new connections, such as new servers or storage resources, and enablingadditional processing power or capacity on demand;

➤ ensuring integration with the installed base of existing equipment, includingFibre Channel fabric and director-class switches;

➤ bridging and converging network environments to enable integratedmanagement, efficient network utilization and greater connectivity across theLAN, WAN, and MAN.

As the evolution of storage networking is an ongoing process, Pirus seeks topreserve existing investments in storage systems while providing a smoothmigration path to next-generation storage architectures.

In March, 2001, Pirus acquired Blue Spruce Networks, a storage softwareengineering firm located in Wichita, Kansas. Financial details of the acquisitionwere not disclosed. Blue Spruce Networks will contribute its expertise in the areasof storage architecture design, fibre channel, storage software development, and OSplatform integration — which complement Pirus’s own storage and networkingexperience. Blue Spruce Networks will remain in Wichita, Kansas, serving as aPirus branch office, and report directly to Pirus’s vice president, engineering.

Additionally, the same month, Pirus announced that it closed over $27 millionthrough its Series B financing round, bringing total funding to over $45 million.Strategic investors in this round of funding include StorageNetworks and Veritas. InSeptember, 2001, Pirus received an additional $9.5 million in funding from JAFO


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Ventures. The new funding is targeted for the continued expansion of thecompany’s research and development, marketing, and sales efforts.

The company is currently involved in many industry standard initiatives such asIETF IPS Group (IP Storage), SNIA IP Storage Forum, ANSI T11, and FCIA. Todate, Pirus has raised over $55 million from strategic investors includingStorageNetworks and Veritas Software as well as financial investors such asBlueStream Ventures, Bessemer Venture Partners, Charles River Venture Partners,Comdisco Ventures, GATX Ventures, JAFCO, Morgan Keegan, and Silicon ValleyBank.

PolyServe (Storage Software)Based in Berkeley, California and incorporated in 1999, PolyServe provides systemssoftware products that enable enterprise customers to more effectively share data onSANs within their data centers. These products help customers greatly improvemanageability, scalability, and availability of server and networked storageresources.

PolyServe provides infrastructure software that helps enterprise customersimplement manageable, highly available applications in their data centers based onenterprise-class distributed computing technology. PolyServe’s SAN file systemproduct, the PolyServe Matrix Server, is a key component in implementing scalableserver farms using SAN storage. The PolyServe Matrix Server allows multipleservers to share data on a SAN as a centrally managed, unified resource. Theproduct provides standard applications with concurrent high-performance read andwrite access to data with a high degree of data integrity and recoverability.PolyServe Matrix Server will be available in first quarter 2002.

Figure 312. PolyServe’s SANs Vision


PolyServe’s current product, PolyServe Application Manager, allows data centercustomers to implement highly available clustered applications. This product is usedworldwide to simplify implementation of clustered Web and application servers andreduce associated system deployment and management costs.


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Features include:

➤ comprehensive wellness management for high node count environments

➤ granular monitoring of server, blade, and application health

➤ any-to-any configurations with easy “Distributed Management Console”interface

➤ continuous processing during multiple hardware or software failures

➤ starting, stopping, and moving applications around the entire server environment

➤ efficiency improvement of load balancing efforts

Figure 313. PolyServe Matrix Server


PolyServe Matrix Server is server software that enables multiple servers toconcurrently read and write data stored on SAN. With PolyServe Matrix Server,each server has direct concurrent access to shared data in the SAN.

Features include:

➤ concurrent, high-performance read and write access to shared data on a SAN

➤ highly scalable

➤ dynamic addition of servers and storage elements

➤ no single point of failure

➤ online recovery of file system without interruption

➤ single point of administration from any server

➤ no changes to applications required

Polyserve has received over $25 million in total financing. Key investors includeGreylock and New Enterprise Associates, as well as the founders of StorageNetworks.


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PowerQuest Corporation (Storage Software)PowerQuest Corporation develops software and technology that provide solutions tocomplex storage management environments through data management, deployment,and protection software. Focusing on the small- to medium-sized enterprise market,PowerQuest’s current technology enables: server deployment and management,hard-drive management, incremental real-time back-up, point-in-time replication,sector-based disk imaging, data recovery, workstation imaging and deployment, anddata migration and elimination.

PowerQuest’s server deployment and management software is ServerMagic, asoftware solution that supports both NetWare and Windows NT/2000. ServerMagicallows IT professionals to deploy NetWare servers quickly, with a consistentconfiguration or to upgrade NT or NetWare server storage by copying, moving, andresizing volumes and partitions on the fly without destroying or omitting data.ServerMagic 3.0, released in 1999, allows NetWare volume segments to be mergedinto one easily-managed volume.

PowerQuest’s set of desktop solutions includes PartitionMagic, a storage solutionthat allows computers to create, resize, and move hard-disk partitions withoutdestroying data. PartitionMagic resizes and moves the NTFS and FAT32 filesystems used by Microsoft operating systems. In terms of data protection,PowerQuest recently released DriveImage 4.0, a program that periodically createsand saves images of the hard drive, and Drive Copy, which allows users to safelyand easily copy one’s old hard drive to a new hard drive in minutes instead of hours,according to the company.

Figure 314. Power Quest Desktop Solutions


For enterprise product and service solutions, PowerQuest offers its PowerManageSuite, which provides users a data availability solution for enterprise-wide WindowsNT and 2000 Servers. This suite allows users to quickly isolate and resolve storageproblems on a real-time basis. According to the company, the suite combinesPowerQuest VolumeManager, PowerExpert ST, and StorageMonitor, for a solutionthat prevents storage problems before they occur, minimizes system downtime in theevent of a problem, and reduces the overall cost of network storage administration,all while controlling critical data assets.


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Figure 315. PowerManage Suite


Prisa Networks (Storage Software)OverviewFounded in 1994 and employing over 50 people, Prisa Networks is focused on thecritical area of Storage Resource Management within Fibre Channel SANs. Prisadevelops network management software, consisting of service level managementand performance management tools, for System Area Networks as well as SANs.Prisa Networks is active in the industry as a member of the Fibre Channel IndustryAssociation and the InfiniBand Trade Association. With few other companiesfocused exclusively on providing network management software for the I/Onetwork, Prisa is uniquely positioned to capitalize on the tremendous growthexpected for both System Area and Storage Area Networks.

Prisa’s suite of network management software, VisualSAN, emphasizes service levelmanagement and performance management, supporting the requirements for high-availability storage networking and network performance. VisualSAN helps systemadministrators maximize network uptime, optimize performance, and reduce overallcost of networked administration while improving productivity. The key to theVisualSAN suites is that its software will operate on SANs built upon FibreChannel, InfiniBand, and high-speed Ethernet technologies.

Prisa’s flagship product line, VisualSAN Network Management Suite, is soldthrough hardware and software OEMs and service providers, including server andstorage systems manufacturers, storage and data management software vendors, andstorage-intensive ISPs, ASPs, and SSPs. At the Intel Developer Forum Conferencein February, 2001, Prisa announced its plans to extend VisualSAN to support SANsbased on InfiniBand Architecture in the second half of 2001.

Seeing Is believingPrisa’s Visual SAN Network Management Suite comprises two products:VisualSAN Network Manager and VisualSAN Performance Manager. This suiteenables service level and centralized management of storage area networks,generates a topology map providing updates of real-time link performance to allowquick discovery of hot spots or high traffic areas, and produces the information inintuitive graphs and displays that increase productivity.


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VisualSAN Network Manager (NM)

VisualSAN NM is the first module of the VisualSAN software suite. It providesservice level management of Storage Area Networks through graphicalvisualization, event correlation, and alert generation. Network Managerautomatically discovers, manages, and monitors multi-vendor SAN devicesincluding switches, hubs, routers, host bus adapters and storage systems, generatinga topology map that depicts the SAN network elements, servers, storage systems,and their interconnects. This map, viewed via an intuitive GUI, indicates whichdevices and interconnects are active and which need attention. Network Manager’sEvent Manager provides fault isolation, real-time event correlation and alertnotification, allowing service providers and enterprises to maintain the availabilityof the SAN network.

Figure 316. Prisa’s VisualSAN Network Manager


VisualSAN Performance Manager (PM)

VisualSAN PM is an add-on application within the VisualSAN suite that seamlesslyintegrates with Visual SAN NM. Performance Manager monitors real-timeperformance of SANs and renders this data in an intuitive visual format with alertgeneration. Data collected by Performance Manager is used for historical andtrending analyses that can help predict when and where future problems may arise.The program is designed as a modular portable software application that can beeasily integrated into OEM SAN appliance solutions, accelerating their time tomarket.

In addition, Prisa offers VisualSAN Object Server that enables third-party SANmanagement applications to take advantage of VisualSAN’s automatic discovery,


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network topology association, and event management capabilities. Consistent withNM, PM’s remote access, Web-enabled interface provides the flexibility to accessSAN performance data from anywhere at any time.

Figure 317. Prisa’s VisualSAN Performance Manager


Prisa Networks is working with Compaq Computer to codevelop and bring tomarket Open SAN management solutions. The development efforts will deliverSAN management software for Compaq’s SANworks Management Appliance,providing customers with enhanced management of mixed-storage environmentswithin an open SAN. Additionally, Prisa plans to work with VIEO, a privatecompany specializing in fabric management software in the InfiniBand space, toextend VisualSAN to support System Area Networks based on InfiniBandArchitecture in the second half of 2001.

Funding HistoryPrisa Networks has raised approximately $20 million to date from investors such asCompaq, GE Equity, and Intel Capital. In October, 2000, Prisa Networks enteredinto an agreement with Compaq Computer to codevelop and bring to market OpenSAN management solutions. In the same month, the company received investmentfunding of more than $11.8 million from Compaq Computer, GE Equity, IntelCapital, and other private investors. The funding from these companies reinforcestheir confidence in Prisa’s ability to become the leader in its industry space.

Raidtec Corporation (Storage Subsystems)Founded in 1992, Raidtec is a leading designer of storage management software,SAN RAID systems, and NAS products. Raidtec offers end users the ability tomanage their growing storage needs with a broad range of cost-effective storagesolutions. Raidtec has successfully brought a series of high performance RAID,


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Fibre Channel, and NAS products to market, with several thousand sold in over 45countries worldwide.

Raidtec provides the market with end-to-end Fibre Channel PCI RAID controllersand systems. The company manufactures its products in company-owned facilitiesin Atlanta, Georgia, and Cork, Ireland. The engineering team in Cork, focuses onFibre Channel, SAN software and RAID controller and enclosure design, and onNAS technology through the nEngine business unit. Raidtec has developed a widerange of SCSI and FC products covering Server attach, Network attach, and SAN.Raidtec’s broad product offering enables the company to be a “one stop shop” fordistributors, integrators, and VAR’s RAID storage requirements. Raidtec’s valueproposition is that it delivers extra features, performance, and reliability that are onthe forefront of customer needs.

Figure 318. Raidtec’s Products


Raidtec’s product strategy is based on four core technology areas: Fibre Channel forhigh performance RAID and SAN, NAS systems with embedded RAID, FibreChannel and LVD SCSI subsystems, and RAID power and packaging from two to120 bays per system.

Raidtec’s nEngine business unit is focused on the development of e-commerce andInternet infrastructure solutions, providing embedded, industrial-strength serverappliances for online commerce to take place in a secure, robust manner. Raidtec isfocused on the NAS market with its software and hardware for the workgroup anddepartmental NAS server appliance segment of the market.

RedSwitch (InfiniBand Networking)RedSwitch is a fabless semiconductor company that develops and distributes switchfabric silicon solutions implementing InfiniBand, RapidIO, and other industrystandards for the storage, server, networking, and telecom markets. Incorporated inJune, 2000, RedSwitch was formed by senior executives and design professionalsfrom HAL Computer Systems Inc. (a wholly owned subsidiary of Fujitsu Limited).RedSwitch is focused on developing standards based switches, in addition to thedevelopment of proprietary solutions customers.

RedSwitch has delivered two generations of switch fabric comprising the Synfinityproduct family for OEM customers. This switch and interconnect technology is theresult of eight years of internal research in cc:NUMA server systems, physical I/O


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technology, and high-speed clusters. These system interconnect solutionsdemonstrated link speeds of 2.5 Gbps and fall-through latencies of less than 35nanoseconds. Consequently, RedSwitch has already built switch fabrics withbandwidths comparable to those of the two emerging industry interconnectstandards, InfiniBand and RapidIO.

RedSwitch’s existing core technologies, design methodology, technical team, andoperation offer the advantage of rapid time-to-market. RedSwitch will leverage itsexisting experience in switch fabric by focusing on the deployment of futureproducts in the storage, enterprise servers, networking, telecommunications, andother embedded systems markets.

With a unique vision on the design and management of the next generation of switchfabric products, RedSwitch is focusing on three technologies for building itsswitches and interconnects: InfiniBand, RapidIO, and Customer-specific designs.

Figure 319. Focus Technologies


RedSwitch and Agilent Technologies have a joint development program focusing onInfiniBand. Together, they unveiled a 160 Gbps throughput switch product forInfiniBand architecture, the first product of their joint development efforts.

This eight-port InfiniBand switch, scheduled for sample availability from bothcompanies in the third quarter of 2001, is designed for a wide range of applicationsincluding storage and data networks, servers and workstations, server clustering,input/output adapters, and high-speed backplanes. The product is a comprehensivesolution that embeds serializer/deserializer (SerDes) technology on-chip for reducedcost, increased performance, decreased design complexity, and faster time-to-market. The switch supports 2.5 Gbps (1x) or 10 Gbps (4x) InfiniBand link speeds,on each of the eight ports, for a maximum aggregate bandwidth of 160 Gbps (bi-directional).

Rhapsody Networks (Storage Networking)Headquartered in Fremont, California, Rhapsody Networks is a storage networkinfrastructure company that develops products that will enable corporate enterprisesand managed service providers to realize the benefits of large-scale storageconsolidation.

While the company’s product is still in stealth mode, Rhapsody Networks’ missionis to build a switch to sell to large enterprises and storage service providers.Rhapsody hopes to focus on security and manageability for large operations.


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Rhapsody has received an initial round of funding worth $12 million and is close tocompleting a second round of funding expected to be around $40–$50 million. Keyinvestors include Accel Partners and Sequoia Capital.

SanCastle Technologies (Storage Networking)SanCastle Technologies was established in May, 1998 and is a provider of SAN-to-WAN and SAN-to-MAN switching solutions based on both IP and Fibre Channelcommunications standards. The company is offering a full fabric switch that canconnect SAN “islands” over long distances using the IP and Ethernet standards.Applications for the SAN/WAN switch include mirroring (asynchronously) as wellas remote data access and disaster recovery. Applications for the SAN/MAN switchinclude synchronous remote mirroring and data replication.

SANcastle is offering an edge switch with routing capability. It is positioning itselfas a partner to the core switch vendors such as Brocade and McData, connecting atthe edge of the network with switching capabilities as well as the ability to translateprotocols. While the initial product will translate from Fibre Channel to IP,translations to other protocols, such as iSCSI, InfiniBand, or ATM, are possible.The company does not position itself as a switch company competing with Brocade,nor as a router company simply conducting protocol translation.

SanCastle’s Switch, the SANStorm 3000, is a SAN Switch that offers complete non-blocking class 1, 2, and 3 levels of service, high availability, and a scalable SANswitching fabric. SanCastle’s SANView software uses SNMP to fully manage andconfigure the switch. SANcastle’s offerings are a hybrid of the two functions,combining switching and routing to provide long distance capabilities to a SANfabric. It will be possible to use the edge switch as the only switch in a SAN, butthis is not the company’s objective. Rather, SANcastle, with its eight-port offering,is providing the ability to increase ports in the SAN fabric and an access point toother networks.

SANcastle is targeting the MAN market in addition to the WAN market. MANsbased on Ethernet offer high-bandwidth, low-cost, easy-to-learn and easy-to-managealternatives to traditional TDM metro technologies such as SONET.

SANcastle’s GFS-8 allows a company’s FC and IP networks to work togetherseamlessly as a single connected network fabric. GFS-8, with its OpenIParchitecture, provides bridging, routing, tunneling, broadcasting, and resourceallocation services across the FC to GbE boundary and back again. No changes arerequired to either network since GFS-8 is compatible with both network standards.GFS-8 uses enhanced Transmission Control Protocol to ensure delivery and deliverysequence of FC packets over the IP network without sacrificing integrity.

Sanera Systems, Inc. (Storage Networking)Sanera Systems, headquartered in Sunnyvale, California and founded in October,2000, is developing a carrier-class data center switch that enables enterprise andservice providers to implement the next generation storage/system area network. Thecompany’s solutions are designed to enable service providers and enterprises to


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centralize storage capacity and management, as well as, consolidate servers into alarge computing farm over all of the industry standard network interfaces.

Sanera Systems is currently in stealth mode and has yet to announce its officialproduct offering. According to the company, its disruptive, high-performancehardware and software architecture design boasts unmatched switching capacity,multi-protocol connectivity, and unmatched performance. This enables serviceproviders and enterprises to deploy and manage a very large distributed storage areanetwork and server farms in a low latency, high bandwidth, service rich fabric.

In November, 2000, Sanera Systems secured its first round of financing of $17.5million. Participants included Storm Ventures, CMEA Ventures, E*TRADEVenture Capital, together with certain private investors. In April and May, 2001, theCompany received an additional $10 million financing from Western TechnologyInvestments and other private investors.

SANgate Systems (SAN Appliance)SANgate Systems, founded in January, 2000, is developing an Enterprise StorageAppliance (ESA) that supports both open systems and mainframe storageenvironments. By implementing the SANgate ESA, SANgate believes customerscan dramatically decrease I/O response times, lower the total cost of ownership, andstreamline their data management process. These products enable relationshipsbetween any two storage subsystems, any vendor, and any model. By supportingboth open systems and mainframe environments with features such as remotemirroring, point-in-time copies and data migration, this unique hardware/softwarecombination solves major interoperability issues found in today’s enterprise storageenvironments.

SANgate is headquartered in Southborough, Massachusetts and has an additionalengineering team based in Even-Yehuda, Israel.

Figure 320. SANgate’s Enterprise Storage Appliance (ESA)



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HardwareThe SANgate Systems ESA is an enterprise-class storage appliance that supportsboth mainframe and open systems environments and operates with many vendors’storage subsystems (according to the company). This intelligent platform —specifically designed to run data storage applications — lets an enterprise increasethe capacity of its storage subsystems while increasing performance. It deliversmassive amounts of processing power, all dedicated to data storage management. Itsopen architecture and comprehensive APIs allow it to be adapted to support futurestorage system standards.

SoftwareThe SANgate ESA Storage Management Software is an enterprise-class softwarethat performs seamless remote mirroring between any storage subsystems from anyvendors. It protects information while increasing the performance of your existingenvironment.

SANgate Storage Management Software runs on the Enterprise Storage Appliance(ESA). In addition to remote mirroring, it provides point-in-time copying and datamigration capability. SANgate Storage Management Software is a vendor-independent software for managing data storage that supports both mainframe andopen systems environments.

Sanrise Group (Storage Services)Based in Dublin, California, Sanrise is a managed data storage service providertargeting the Internet data center and enterprise markets. The Company’s businessmodel includes a “same-store” manufacturing and distribution model that providesconsistent replication of its “storagecels” (the means by which Sanrise deliversmanaged storage services), which accelerate speed to market and time to revenuewhile enhancing manageability and minimizing interoperability constraint. Thecompany’s infrastructure provides 99.999% availability and offers monitoring andmaintenance capabilities.

Storagetone solutions consist of instantaneous, as-needed access to terabytes of“disk-on-demand” scalability via optical fiber; backup and restore of data; andsafestorevaulting services. Customers benefit from Sanrise’s flexible SAN solutionthrough greater network efficiency, complete automation and online monitoring andmanagement, thereby lowering their total cost of ownership. Other customerbenefits include data availability, reliability, security, scalability, and performance.

The Storagetone.com customer portal allows users to view real-time global news,reports, and information about their storage.


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Figure 321. Storagetone.com Portal


The Storagetone Fibrecloud solution is a complete managed portfolio of datainfrastructure services including: backup and restore, disk-on-demand, safestore(off-site archiving), and thestoragetone.com customer portal.

Figure 322. Storagetone Fibrecloud


StoragetoneOS is the core of the company’s Global Storage Intelligence (GSI) in-house operating system that enables storage resource management, monitoring, andcustomer provisioning within each storagecel. The company has 45 storagecels thatprovide managed storage services to over 600 customers across a global footprintfrom Germany to Japan. Sanrise provides these customers with real-time views oftheir managed storage services through its secure website, mystoragetone.com. Thisenables charting of mission-critical information flows which allows an enterprise tomore effectively manage its business and forecast future storage requirements.


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Sanrise also provides a full suite of professional services to solve its customers’ ITdata management challenges. By conducting a complete storage assessment, theSanrise team of storage services experts is able to determine a customer’s managedstorage requirements and design a customized managed storage solution.

Sanrise has partnerships with leading technology providers including Brocade,Hitachi, Oracle, StorageTek, Sun Microsystems, and Veritas, in addition to Internethosting companies such as Exodus Communications. The company has raised over$160 million from investors including Comdisco Ventures, Crosspoint VenturePartners, Exodus Communications, GATX Ventures, Hitachi Data Systems, HitachiLimited, Morgan Stanley Dean Witter, Texas Pacific Group (ACON VenturePartners), and Veritas.

SAN Valley Systems (Storage Networking)SAN Valley Systems aims to deliver highly reliable, cost effective, and scalablenext-generation storage infrastructure solutions. The company develops highperformance end-to-end networking products that provide storage solutions forenterprise, service provider, and carrier networks. The company believes thatextending SAN infrastructure across Metropolitan Area Networks through the use ofnew Gigabit Ethernet technologies including faster and fatter pipes will addressgrowing storage demands and solve today’s IP performance issues. Newalternatives to traditional tele-networks such as dark fiber allow users to leverageexisting IP infrastructure.

SAN Valley’s IP-SAN connectivity solution, the SL1000 Gateway, is specificallydesigned to enable customers to interconnect legacy Fibre Channel storage areanetworks into next-generation carrier access networks at gigabit speeds. SANValley NMS provides a single interface that enables complete management of theIP-SAN network. The auto discovery feature automatically manages new SL1000sas they are added to the network. Complete configuration management includesdetailed port and channel configuration, enabling administrators to match differingrequirements across the network. Multi-OS, Java-based programming allows easymigration of SAN Valley NMS among administrators’ desktops — crucial in today’sheterogeneous networks.

Figure 323. SL1000 Gateway


In addition, the company also offers the SVS Management System, an integratedmanagement tool for comprehensive management of the SL1000 IP-SAN Gateway.Administrators can manage network performance, run statistical analysis, andconfigure the SL1000 through its graphical user interface.


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The SVS Management System provides a single interface enabling completemanagement of the IP-SAN network. The autodiscovery feature automaticallymanages new SL1000s as they are added to the network. Complete configurationmanagement includes detailed port and channel configuration, allowingadministrators to match differing requirements across the network. Multi-OS, Java-based programming allows migration of the SVS Management System amongadministrators’ desktops.

Figure 324. SVS Management System


SAN Valley has released its Aspen Fibre Channel Managed Hub to the marketplace,offering the industry’s only lifetime warranty. SAN Valley is a member of the FibreChannel Industry Association and the Storage Network Industry Association.

Scale Eight (Storage Services)Founded in 1999, San Francisco, California–based Scale Eight develops technologyto provide rich-media storage services. Scale Eight has built a global storage systemthat handles thousands of terabytes of rich digital media and allows customers toaccess rich digital media from anywhere across the globe and view all their filesthrough a single file system image.

Through its patented architecture and software, the company’s storage system canharness the capacities of disk drives and processors over the Internet to managethousands of terabytes of digital media including graphics, animation, audio, andvideo. Scale Eight operates an Internet storage infrastructure which is an intelligentglobal network that stores, manages, and serves files over the Internet. Based onpatent-pending technologies, the Scale Eight MediaStore service provides customerswith a global infrastructure for storing and serving files, provided as a fully managedservice. Once stored, the information can be directly accessed via any authorizedserver or end user web browser. Additionally, Scale Eight provides virtuallyunlimited storage, available on demand, allowing customers to instantly expandstorage capacity without limits.


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Scale Eight’s technology provides a fully managed service that simultaneouslydelivers the following:

➤ Ubiquitous Access: The Scale Eight Global Internet File System automaticallyreplicates content across multiple Storage Centers, creating a unified view andglobal access of the file system from any customer location around the world.

➤ Massive Scalability: Storage architecture scales to thousands of terabytes.

➤ Instant time to market: Capacity can be deployed and expanded within hours.

➤ Continuous availability: Uptime is guaranteed by service-level agreements and24/7 service management and maintenance.

➤ Cost effectiveness: Economics that support Internet-based business models.

➤ Guaranteed reliability: Data is geographically mirrored across Scale EightStorage Centers to ensure protection against catastrophic events.

➤ Steady Operations: Scale Eight Storage Centers are overseen by the Scale EightOperations Center, which monitors and manages overall system operationaround the clock, every day of the year.

➤ Fully redundant architecture: provides no single point of failure.

Scale Eight’s MediaStore is seamlessly integrated with leading content deliverynetworks and provides advanced capabilities for monitoring and controlling theMediaStore service via Scale Eight ServiceView, Scale Eight’s Web-basedmanagement platform.

Key to addressing enterprises’ security needs, Scale Eight’s product offering alsoprovides full data protection, with each file automatically replicated to ageographically remote Scale Eight StorageCenter, carrier-class service, withcommitted service availability of 99.99%, and 24x7 monitoring, management, andphone support. The company’s Service Management Center serves as the centralmonitoring and control facility for the worldwide MediaStore service. Scale Eightoperates four StorageCenters, including two in the United States and one each inLondon and Tokyo.

Strategic partners include Akamai Technologies and Exodus Communications, whilefinancial investors include InterWest Partners, CenterPoint Ventures, CrownAdvisors, and Oak Investment Partners. The company has raised over $31 millionto date.

Seagate/XIOtech (Storage Subsystems)XIOtech Corporation, a wholly owned subsidiary of Seagate, developscomprehensive network storage solutions for business customers. Seagate acquiredXIOtech in December, 1999, and the acquisition united the leader in physical drivetechnology with the pioneer in network storage to deliver enterprise-class storagesolutions to its customers.

XIOtech was established to design, manufacture, and market a revolutionary,reliable, easy-to-use, efficient, and centralized SAN. XIOtech integrates its SAN


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hardware and software into a storage solution that can become the foundation forany organization’s storage utility. This convergence greatly reduces infrastructurecomplexity, demands on IT resources and risk to data, while increasing dataaccessibility. XIOtech products are optimized for dynamic enterprise storageenvironments with compatibility for enterprise applications.

Figure 325. XIOtech Product Family


The XIOtech MAGNITUDE was designed to incorporate all the components of aSAN in one centralized, easy-to-manage, highly-available configuration. TheMAGNITUDE incorporates a high-performance RAID controller, an eight-portFibre Channel switch and logical volume management software, making it easy toimplement multiple SAN components from a wide variety of vendors. XIOtech’sexclusive Real-time Data Intelligence (REDI) Software Family, which is based ontrue storage virtualization, provides the foundation necessary to significantly scale aSAN as business needs grow.

➤ The REDI Access Software Suite enables multiple servers to access the samestorage volume, allowing server clustering and automatic server failover.

➤ The REDI Control Software Suite allows configuration and monitoring of theMAGNITUDE from remote locations as well as automation of manyMAGNITUDE processes.

➤ REDI Copy Software provides the ability to duplicate storage volumes. Itenables a zero window backup as well as data testing, versioning, and datamigration capabilities.

➤ REDI SAN Links and REDI SAN Links Replicator Software extend thecapabilities of the MAGNITUDE across an enterprise. MultipleMAGNITUDEs can be connected to simplify capacity planning, provide remotedata protection, and offer tremendous scalability.

XIOtech is currently working with IP vendors to create certified IP storage solutions.XIOtech has strategic alliances with: Brocade, Gadzoox Networks, Imation,Microsoft, Novell, Oracle, and Veritas.


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Shugart Technology (Storage Software)Headquartered in Irvine, California, Shugart Technology is a developer of integratedproducts for testing, monitoring, and analyzing a wide variety of data storagesystems.

Shugart Technology provides premier software tools that simplify, automate, andspeed SCSI device testing in demanding and diverse storage environments. Thecompany’s software tools ensure consistent and reliable storage device testing acrossa broad range of operating systems including Windows NT, Windows 2000, SolarisSPARC, Solaris x86, HP-UX, and Linux.

Shugart’s product offerings are focused on software tools that can be used toenhance and simplify testing of SCSI-based storage devices such as tape, disk,RAID, or storage library. Shugart’s suite of calc software tools includesFIBREcalc+, FIBREcalc and SCSIcalc for the testing of SCSI on Fibre Channel andSCSI based data storage systems. These products are designed to supportdevelopment, production testing, field service troubleshooting, fault isolation, andend user product compliance testing.

Shugart’s software automates the most commonly applied protocols and testapplications, while also facilitating quick and easy custom test development.Shugart’s software is also portable across all popular operating systems andhardware platforms and applications can be quickly added to meet the requirementsof a rapidly evolving network storage market.

The foundation of the software suite is the calc software tools such as FIBREcalc+,FIBREcalc, and SCSIcalc. These software tools include the following components:

➤ Buttons: Calc tools’ command buttons are used to execute SCSI commands,sequences, scripts, or test applications specific to the unit under test. Thesecommand buttons makes testing easy, convenient, and consistent. A set ofdefault command buttons and device-specific command buttons are provided.

➤ Sequences: Command buttons can be included in sequences for various testingscenarios that require a series of ordered steps. Sequences make it easy to ensureall required testing procedures have been successfully completed and can becreated with ease.

➤ Data buffers: The calc software tools include eight data buffers that provideadditional testing flexibility. These data buffers can be used for a variety of testssuch as functionality, performance, stress, and data integrity.

The calc software tools also include the following optional components:

➤ Scripts — custom programs that use a C-based programming language. Scriptsprovide additional control over the testing environment because they can useprogram functions such as variables and conditional statements.

➤ Application packages — fixed test applications that automate more complextesting tasks. These test applications can be used for various testing scenariossuch as performance, functional, stress, data integrity, and interoperability testsfor specific devices.


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➤ Remote management — allows users to use the calc software tools remotely.

Shugart Technology is currently looking for a first round of financing of $15–$20million.

Storability (Storage Services)Founded in 2000 and based in Southborough, Massachusetts, Storability is a storageservice provider that designs, installs and manages data storage for corporations withlarge databases that are critical to the enterprise and Internet data centers.Storability’s storage management services take on the storage burden fororganizations with critical data requirements in a wide variety of endeavors,including medical, pharmaceutical, industrial, financial, and e-commerce. For theselarge enterprises, Storability can build an open SAN from the ground up or take overthe company’s existing storage environment and manage either solution remotely oron-site.

Storability’s solution leverages new technologies to address customer concerns forscalability, security, control, flexibility, and return on investment. Storability’sleverage comes through the use of remote monitoring and operations facilitiesoverseeing dozens or hundreds of individual customer storage systems from a fewcentral locations. Storability delivers value directly to customers through its StorageAssurance Services family of offerings. Storability’s customers enjoy instant accessto the company’s storage expertise and best practices, best-of-breed technologies,predictable expense, and high return — all while being assured a high level ofservice and security.

Storability’s Storage Assurance Services condense the traditional process ofdeploying storage infrastructure to two unique concepts in storage assuranceprovisioning. AssuredStorage provides ongoing managed data storage, whileAssuredAbility provides access to Storability’s experience, knowledge, andmethodologies for storage solution development. Through these offerings,Storability assumes responsibility for the design, deployment, and ongoing operationof the customer’s storage infrastructure. Ongoing services include 24x7x365 remotemonitoring and management, a 24-hour help desk, and problem managementprocesses. In addition, each customer is assigned a designated AssuredStorageOperations Center engineer who is knowledgeable with the customer’s ITenvironment.

AssuredStorage — MSSAssuredStorage provides storage capacity and services tailored to unique customerneeds on a “pay as you grow” basis. As with other managed storage service models,companies do not need to purchase equipment. In addition, Storability assumes therisks and burdens associated with storage, including implementation, productreliability, storage management automation and oversight, monitoring andequipment service, procurement, and capital financing.

AssuredAbility — Traditional ServicesAssuredAbility are Storability’s consulting services for designing, implementing,and managing open SANs. Storability’s personnel determine requirements and


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develop deployment models, while highly trained technicians manageimplementation.

The company has raised over $18 million from Battery Ventures, Madison DearbornPartners, and Lightspeed Venture Partners.

StorageApps (SAN Appliance)Formerly known as RAID Power Services Inc., StorageApps providescomprehensive, customer-driven enterprise storage solutions. StorageApps providesa host of open, flexible products that offer global companies complete andindependent choice of server platform (operating system), storage device(hardware), and connectivity (SCSI, Fibre Channel, TCP/IP). StorageApps providesa complete, enterprise storage infrastructure to blue chip and Fortune 100companies. The company offers 24x7x365 worldwide customer service.StorageApps offers its own SAN storage Server, SANSuite.

In addition, StorageApps provides a number of SAN applications allowing datareplication, data snapshots, storage virtualization, and data migration. StorageAppsis a member of the Storage Networking Industry Association and has formed astrategic partnership with Dell.

At the core of the company’s appliance is SAN.OS, an operating system that enablesin-band virtualization with host and storage device independence. The SANSuiteportfolio also includes security, data replication, and point-in-time image software.SANMaster is StorageApps’ application for Web-based device and topologymanagement. Dell’s PowerVault 530F includes StorageApps’s portfolio of storagemanagement software as well as the SAN.OS.

StorageApps SANLink is a SAN-in-a-box capable of bringing storage outside of thebox into the virtualization scheme. Its tight integration allows for performancetuning and high availability configurations with n-way peers. The SANLink Plusappliance unifies all NAS/SAN management into one centralized managementconsole and permits scaling of NAS across multiple vendors’ storage.

On July 25, 2001, Hewlett-Packard announced it would acquire StorageApps for$350 million.

StoreAge Networking Technologies (SAN Appliance)StoreAge Networking Technologies is a private, Israel-based enterprise storagesolutions provider. Founded in 1999, StoreAge’s solutions are aimed at opensystem, host-independent, multi-server distributed enterprises. StoreAge producesadvanced SANs that are highly modular, scalable, and cost effective. These SANsare possible through the use of StoreAge’s own hardware and software modulessuch as PCI SAN controller, RAID Manager, Volume Manager, and otherproprietary applications. StoreAge offers data integrity and system availabilitythrough redundancy of all system components and automatic failover techniques.

The company is a spin-off from IIS, Intelligent Information Systems Ltd, which hastransferred to StoreAge all its intellectual property rights related to storage andstorage networking technology, including the Distributed RAID technology.


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StoreAge is a member of the Fibre Channel, Storage Networking IndustryAssociation, and Celestra Alliances.

StoreAge is also focusing on virtualization in enterprise storage and has teamed withSanOne in an effort to bring this technology to market. The two-year agreementcalls for StoreAge’s SVM technology to serve as the core virtualization engine forSanOne’s DAMstor modular storage system. DAMstor represents breakthroughtechnology integration of the latest storage-on-demand and capacity utilizationsoftware, multiprocessor-based RAID and SAN fabric connectivity providing price/performance improvements in networked storage solutions. SanOne and StoreAgewill cooperate in developing additional innovative and vertically-focused networkedstorage solutions.

Figure 326. Storage Virtualization Manager (SVM)


Tantia Technologies (Storage Software)Tantia Technologies, a wholly-owned subsidiary of BETA Systems Software AG,provides enterprise backup and recovery solutions that leverage SAN technology.The company is composed of enterprise SAN experts, who bring mainframetechnology to the open systems market delivering ultra-high availability, intelligentSAN solutions. Tantia Technologies builds and markets the storage solutionsoriginally developed by HARBOR Systems, which was acquired by BETA Systemsin December 1998. Tantia’s product line provides integrated, enterprise-widestorage-management solutions for heterogeneous IT storage environments.

Tantia Technologies’ software leverages the SAN implementation by separating thecontrol path from the data path. Using a storage device’s open system dataexchange feature as a transport mechanism, physical data moves internally throughthe box directly over an ESCON Channel to the OS/390 tape or disk. Only controlinformation moves via the TCP/IP backbone. This results in a ten-fold increase inperformance, and an 80% reduction in CPU utilization at the host, according to thecompany. Because data moves through the disk storage, the network remainsuncongested, avoiding typical bandwidth constraints associated with TCP/IP and


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SNA. Tantia plans to support non-OS/390-centric SAN environments, with fullsupport for emerging fibre protocols.

Tantia’s product lineup includes:

➤ Tantia’s NSM Enterprise-class backup and recovery solution, which providescentralized control of backups that are performed at various remote offices of anorganization or within individual departments at a single location.

Figure 327. Tantia NSM Enterprise-class Backup and Recovery Solution


➤ Tantia Harbor Backup — an innovative, high-performance client/server solutionfor backup/recovery, archive/retrieval, and automated disaster recovery fordistributed system environments, and allows for the re-centralization of allbackup data into the data center.

Figure 328. Tantia Harbor Backup


➤ The Tantia Enterprise Agent Suite, which allows online backup and recovery ofbusiness applications: Oracle, IBM DB2, Microsoft SQL Server, Sybase,Informix, SAP R/3, Lotus Domino, and Microsoft Exchange.


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Figure 329. Tantia Enterprise Agent Suite


➤ Tantia High-Speed File Transfer (Tantia HFT) — high-speed file transfer usinga variety of high-speed connectivity options across enterprise platforms.

Figure 330. Tantia Technologies — RS/6000 Solution


Figure 331. Tantia Technologies — Bus-Tech Datablaster 2 Solution


Figure 332. Tantia Technologies — Crossroads PCI ESCON Solution



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➤ Storage Monitoring Manager (Tantia SMM) — graphics-based, real-timecontrol and management of tape silo clusters.

Figure 333. Storage Monitoring Manager (Tantia SMM)


➤ Storage Optimization Manager (SOM) — BETA 55: Automated tape stackingsystem ensures the most cost-effective usage of expensive storage resources.

Tantia is headquartered in Boulder, Colorado and also maintains a developmentcenter in Calgary, Alberta. Tantia provides enterprise-class backup and recoverysolutions to Fortune 500 companies throughout the world.

Times N Systems (Storage Subsystems)Headquartered in Austin, Texas and founded in 1999, Times N Systems is a providerof next-generation midrange storage systems. The company’s parallel, share-memory architecture is designed to significantly enhance the I/O performance andstorage capacity of IT infrastructures with flexible platforms that scale with end userneeds.

Times N’s parallel architecture takes advantage of multiple I/O capabilities for fasterdata access, while enabling the system to scale efficiently. Times N Systems’software tightly clusters parallel drives together into a cohesive solution, usingstandard disk and networking technologies on a Windows or Linux platform. TimesN technology serves either files or data blocks, and runs applications while flexiblyintegrating into existing infrastructure.

Times N Distributed Drives provide performance-oriented virtualized storage that isnot only fast, but also completely transparent to the operating system, end user, andtheir applications. Multi-terabyte virtual hard drives are built from disks across thesystem. These distributed hard drives take advantage of multiple I/O channels andmultiple disk heads for the fastest possible data access. RAIDO, RAID1, andRAID1+0 capabilities are all provided as software features. The company’s uniqueDistributed RAM Drives, ranging up to 24 gigabytes, consist of memory resourcescontributed from individual servers within the system. Users access database indexfiles, website graphics, or other static data at RAM speed rather than disk speed.


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TNS GUI-based configuration and monitoring tools make setup and administrationeasy. The TNS 1600 solutions support Windows 2000 Server, Advanced Server,and Redhat Linux, allowing easy migration to a familiar network platform,increasing users’ comfort levels, speeding access times, and simplifying systemmanagement. The company’s solutions use standard protocols and are compatiblewith popular third-party backup and management tools.

The company’s product should appeal to a small or mid-sized business, where acomplex SAN or NAS has not yet been installed. Time N Systems’ solution couldprovide an attractive alternative for companies not willing to install a rudimentaryFibre Channel SAN configuration or high-end server.

The company has raised approximately $15 million in two rounds of fundraising.Key investors include Austin Ventures, Convergent Investors, and Sternhill Partners.

Troika Networks, Inc. (Storage Networking)Founded in 1996 and based in Westlake Village, California, Troika Networks is anemerging multiprotocol controller storage networking company with expertise invarious protocols including SCSI-over-Fibre Channel, IP-over-Fibre Channel, andVI-over-Fibre Channel. Troika’s product offering of intelligent controllers andconfiguration management software provides essential elements for designing,building, and managing Fibre Channel-based server clusters and storage networks.

We believe that Troika is well positioned to take advantage of the tremendousgrowth in clustering and storage networking. Troika’s product offering addressesone of the most critical issues facing IT administrators everywhere — the need forsimplified server cluster and storage network management with better utilization ofexisting infrastructures. Additionally, Troika’s partnership with Network Applianceand Hitachi Data Systems, and its involvement in the DAFS Collaborative, place thecompany in a strong position to advance its new technology, which we expect willpromote network convergence to a single system area network.

Essentially, Troika Networks exploits data-center-wide SAN connections for allserver and storage networking by integrating the SAN, data center LAN, and clusternetworks into a single, multi-protocol network infrastructure based on underlyingFibre Channel technology. Troika’s design makes it possible to avoid the practice ofadding separate network elements (for example, clusters of application servers, fileservers, and email servers and their associated protocols) as application requirementsdemand them.


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Figure 334. The Troika Networks Solution


Troika Networks’ bundled Zentai Controller and SAN Command managementsoftware allow administrators the ability to monitor and manage Fibre Channelresources, as well as tune performance, security, and high availability, depending onapplication requirements. Additionally, this bundle gives the network the ability torecover from server-to-storage path failures within the MAN through its PathCommand software (included with the Zentai Controller), providing users withautomated and transparent path failover/failback capabilities. This continuousavailability of path failure tolerance increases SAN reliability. Dynamic LoadBalancing makes multiple paths available for re-routing data during failover; andfailback does not require human intervention. Using the “Set-and-Forget” interface,users can apply Path Command to specific paths to maintain network stability. Inaddition, Path Command is capable of self-management and will automaticallyrespond to changing network situations, making efficient use of storage resources.


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Figure 335. Troika Networks’ Zentai Controller


The PCI-based Zentai Controller provides an intelligent server portal to support astorage and/or system area network. The Zentai Controller is a multifunctioncontroller with 1) SCSI for storage, 2) IP (Internet Protocol) for backupmanagement, and 3) VI (Virtual Interface) for high performance application sharing.Controllers feature Troika-designed ASIC technology and Fibre Channel software.Troika controller products provide policy features for Quality of Service (QOS) thatcan be leveraged across multiple protocols. The Zentai Controller, compared toother HBAs, NICs, and controllers, uses minimal host processing power, permittingthese cycles to return for application processes.

Included with the Zentai Controller is SAN Command. As mentioned above, SANCommand is a software interface that allows users to monitor, manage, andtroubleshoot their Fibre Channel networks. Specifically, SAN Command softwareprovides a graphical interface for administrators to configure, monitor, and controlZentai Controllers and the Fibre Channel network. Together, Zentai Controllerenables consolidation of a system network with a storage network, while SANCommand enables monitoring and management of the network’s Fibre Channelresources. Additionally, SAN Command allows administrators to tune performance,availability, and security, based on application requirements.

Announced on April 9, 2001, Troika’s most functional software line is the SANCommand Enterprise-Active Controller Manager (ACM), which provides activeconfiguration and centralized control of distributed controllers. ACM enables datacenter administrators to actively manage Zentai controllers and gain visibility into


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connected SAN devices from a single location anywhere on the network, and webelieve this type of technology is essential for large-scale networks.

As an enterprise-level device management solution, ACM serves as a stand-aloneapplication or can be fully integrated within higher-level management frameworksto provide a comprehensive SAN management solution. Additionally, ACM allowsadministrators to easily create highly available network configurations by centrallyapplying Path Command to specific paths to provide dynamic load balancing andautomated failover and failback capabilities.

ACM improves SAN performance, enhances end user applications, and resolvesnetwork problems by providing remote configuration and firmware and driverupgrades, diagnostic and troubleshooting capabilities, and performance tuning tools.This centralizes network control and helps to reduce network administration costs, inour opinion, essentially freeing administrators from the manual installation ofsoftware, controller setting configuration, and troubleshooting otherwise needed tomaintain an efficient Fibre Channel network.

To date, Troika Networks has raised over $150 million from a number of financialand strategic investors. Early investors included Draper Fisher Jurvetson andDynafund Ventures. Later investors include New Enterprise Associates, WinwardVentures, Amerindo Investment Advisors, Intel Capital, and Network Appliance.

Troika Networks has partnered with Network Appliance to integrate Troika’s ZentaiController technology into Network Appliance’s enterprise filters. Troika’s solutionutilizing the VI (Virtual Interface) standard will enable integration of NetworkAppliance storage appliances within Fibre Channel storage networkingenvironments, powering high-performance server-to-server and filer-to-filer dataexchange. Troika is also a member of McData’s OpenReady program forcomprehensive SAN interoperability, and on February 27, 2001, Troika announcedthat its Zentai Controller had passed interoperability testing for Brocade products inthe “Brocade Fabric Aware” program.

Troika is an active member of the Storage Networking Industry Association (SNIA),the Direct Access File System (DAFS) Collaborative, the Fibre Channel IndustryAssociation, the Fibre Alliance, and the InfiniBand Trade Association.

TrueSAN Networks (SAN Appliance)Founded in 1997 as Synapsys Digital, TrueSAN Networks is a privately heldintegrator of end-to-end data-center class Fibre Channel RAID and Storage AreaNetwork solutions for enterprise networks and advanced computing applications.These solutions are based on its TrueFibre architecture, a 64-bit RISC-based host-independent RAID architecture that uses the 200 MBps Fibre Channel protocolthroughout the entire subsystem for maximum available bandwidth. Whereas allother dual-loop implementations involve two 100 MBps loops that cannot sharethroughput (according to the company), TrueSAN solutions offer an architecture thatdelivers one continuous 200 MBps segment of bandwidth. With TrueFibre,TrueSAN Networks can deliver nearly 200 MBps of performance at the disk level,enabling significant data throughput efficiencies and performance increases.


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In addition, TrueSAN Networks’ SANengage technology enables host-independentdeployment of the company’s SAN solutions. With SANengage, multiple hosts canaccess a single solution regardless of platform or interconnect method. LUNmasking, access privileges controls, and volume locking capabilities are offered viaindependent hardware. TrueSAN also employs Fibre Uptime technology, whichprovides hot-spare support and dedicated LAN-free DLT backup so that multipledisk and controller failures can occur without losing data or compromisingperformance. In support of this offering, TrueSAN has developed its EnterpriseCare program, which features services such as 30-minute on-site response, storageoutsourcing, 24x7x365 toll-free support, and a single point of contact.

TrueSAN’s SANengine storage networking platform combines storage domainmanagement, adaptive caching, resource optimization, and other technologies toempower open systems with carrier-class performance, manageability, andavailability. With the SANengines series, isolated islands of storage are unified,bandwidth barriers are broken, and vendor-independent SAN management isrealized.

TrueSAN’s Paladin product is a storage architecture that combines a modular andscalable storage foundation with intelligent storage network management softwareand flexible connectivity options. The Paladin architecture consists of three primarycomponents: foundation, connectivity, and intelligence.

The foundation is based on a pool of high-performance fibre channel disk storagemodules with embedded hardware RAID functionality interconnected through theMetaFabric subsystem. Storage modules are available in increments of 200 GB, 400GB and 800 GB with 512 MB of cache and 2 Gbps of bandwidth per module.

The Paladin Storage Network System is scalable to 50 TB of storage capacity, 32GB of cache, and 128 Gbps of bandwidth. With its modular design and embeddedfabric architecture, users can add storage on-the-fly without downtime, even toexisting volumes. In addition, Paladin incorporates storage virtualization, snapshotcopy, and active resource management as standard features.


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Figure 336. Paladin C-series


TrueSAN sells its products and services directly to end users and integrators in orderto leverage the advantages of the direct business model.

Viathan Corporation (Storage Software)Headquartered in Seattle, Washington and founded in February, 1999, ViathanCorporation is a storage infrastructure company developing revolutionarytechnology and products to enable storage virtualization and load balancing ofelectronic data.

Viathan develops cutting-edge technology to help companies manage theexponential growth of data. Viathan’s unique storage virtualization softwareprovides a comprehensive data management platform for use by Fortune 1000companies and e-commerce vendors with large and growing storage needs.Viathan’s proprietary technology adapts to meet the evolving requirements ofstorage environments by creating a single virtual storage system. Additional storagedevices can be aggregated seamlessly into the environment without interruption orreprogramming of the clients. Once part of the virtual storage environment, files aredynamically allocated across all available devices for efficient storage utilization.

Viathan’s core technology is a flexible, scalable infrastructure for virtualizing andmanaging NAS devices. Architecturally, Viathan’s technology is a layer ofinfrastructure that sits between clients and storage devices. The primary purpose ofthis layer is to virtualize the data sources from the perspective of the client. Layeredon top of the base technology are “value-add” components enabling heterogeneousstorage devices to be efficiently deployed, accessed, diagnosed, and managed bycorporations or storage application service providers.

On October 2, 2001, Viathan was acquired by Dantz Development, a privately-heldcompany that develops backup software.


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Vicom Systems (Storage Networking)Vicom Systems is a leading supplier of SANs with more than 1,000 systemsinstalled worldwide. Based on innovative storage routers, Vicom’s SANs provide anew generation of RAID storage systems and a cost/effective means to create FibreChannel storage fabrics.

Vicom’s Serial Loop IntraConnect (SLIC) technology provides seamlessconnectivity of FC-AL, SSA, or SCSI cabling in copper or glass fiber with up to5.12 GBps internal bandwidth. Its SLIC technology is offered in two pre-packedproduct lines; a SLIC storage system with sizes ranging from 81 GB to 147 TB anda SLIC TeraRouter FC which utilizes a more-efficient FC-AL architecture thantraditional methodologies of stacking hubs and switches.

The company’s products are shipped with Vicom Systems Storage managementsoftware, called SLIC Manager, which incorporates features such as remote copying,dynamic configuration, exception monitoring and reporting, and off-site storageaccess.

Vicom’s storage products and systems are compatible with all NT and Unixplatforms, and are compliant with all peripheral connectivity standards, enabling theStorage Area Networks to accommodate a mix of incompatible hosts and multiplestorage device standards. With a Vicom SAN, data center managers can migrateupward to new, high-performance data storage architectures while improving theutilization of existing storage equipment.

Vicom’s storage products and systems are installed in data centers worldwide forenterprise network and mission-critical applications and are supported with onsite,24-hour, same-day service through a joint-venture with IBM Global Services. Thecompany’s products are sold through value added resellers and in partnership withmajor computer and peripheral manufacturers.

Vicom’s SAN Virtualization Engine (SVE) supports storage pools that can scale upto 500 TB for disk-level virtualization of Fibre Channel, SCSI, or SSA storage forUNIX and NT servers. Vicom has extended its expertise to storage virtualization inopen systems environments with its fabric-based SVE appliance. SVE is built onVicom’s SV Router. The SV Router provides data and command routing pathsamong servers, storage subsystems, and network devices. The SVE also includessoftware with a Web-based interface for centralized monitoring, configurationmanagement, copy services, and zone management. The SVE is used incombination with switches and hubs to expand the capability of the fabric since it isnetwork agnostic. Operation of the SV Router can be customized with UNIX scriptsand through an open API. Scalability is accomplished by adding routers to increasebandwidth and connectivity.


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Figure 337. Vicom Systems’ Independent Distributed Routing


Figure 338. Vicom Systems’ SV Routers


Figure 339. Vicom Systems’ SV Bridges



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Vicom and StorageNetworks have entered into an engineering development allianceunder which Vicom and StorageNetworks will develop storage virtualizationtechnology for StorageNetworks’ Global Data Storage Network (GDSN). Vicomalso announced that StorageNetworks has made an equity investment in thecompany.

VIEO, Inc. (InfiniBand Software)OverviewVIEO, formerly Power Micro Research, was established in 1994 to develop highperformance I/O solutions for a range of customers including leading systemplatform and interconnect vendors, the national laboratories and governmentagencies. Earlier this year the company was renamed VIEO reflecting its newmission to deliver InfiniBand fabric management and application software. TheVIEO engineering team members have on average over twenty years of experiencein developing high performance systems. Members of the team have designed andimplemented general purpose and embedded operating systems, cluster anddistributed systems, high speed I/O architectures and systems and networkmanagement software.

The company owns intellectual property that gives it a head start in developingsoftware to enable tomorrow’s InfiniBand-exploitive applications. VIEO’s softwarewill be deployed across all components of InfiniBand fabrics — in servers, switches,and I/O devices. Optional interfaces to conventional management applications willbe provided so that IT users do not have to add another management tool to theiralready complex environments.

Tight-knit LineupVIEO provides end-to-end, modular software for InfiniBand management. Thisgreatly simplifies the software integration task for partners because the entire stack,from chipset control software to the management interface, is available from a singlesource. VIEO’s ongoing product support and maintenance allow partners to remainfocused on their core business competencies. VIEO’s current products include:VIEO Fabric Manager, VIEO FabricView, and the VIEO Software Developer Kit.

VIEO Fabric ManagerVIEO Fabric Manager includes all fabric management functions required by theInfiniBand architecture, plus extensions specifically for VIEO. The softwareframework, on which the management applications are built, provides support formultiple chipsets, operating systems, and execution environments. The maincomponents of Fabric Manager are 1) core services, 2) subnet management modules,and 3) general services modules.

Core Services

Core services provide a software framework for writing InfiniBand transports suchas Virtual Interface, Sockets Direct, and the VIEO Management API. Thisframework is independent of the specific InfiniBand chipset, operating system, andexecution environment and exists at all levels of an operating system stack. AllVIEO provided applications are written using this framework.


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Figure 340. VIEO Fabric Manager: Core Services — WAN/MAN Solution

Common Services

Microcode and Chipset Support Firmware

Management API

Agents Managers

ChannelAbstraction

Layer

O/S ServicesAdaptation

Layer

O/S BypassHardwareLibrary

Core Services


Subnet Management Modules

These modules are responsible for configuring the fabric, incorporating changes thatoccur after initialization, and maintaining the integrity of the fabric. In order toaccomplish these tasks, the Subnet Manager performs several sub-functionsincluding topology discovery, local and global identifier assignments and mapping,subnet partitioning, and topology sweeping.

Unlike Ethernet networks where switches dynamically learn the configuration of thenetwork by traffic analysis, InfiniBand fabrics are statically configured atinitialization time and in response to fabric changes and external policy managementrequests. Topology discovery is how the Subnet Manager discovers fabric elementsand interconnects. Local and global identifier assignments assign locations andprogram the switches to correctly route to them and provide all necessary mapping.In addition to initial connections, subsequent events can change the topology of aninitialized fabric (e.g., links may break, nodes can be added or removed, or a portmay fail). The Subnet Manager sweeps the topology regularly to review its state, toidentify changes and to change the topology to incorporate the changes.

General Services Modules

These modules provide numerous tools such as management of communicationports, data extraction, baseboard management such as power control andtemperature sensor reporting, and I/O configuration management such as powercontrol and temperature sensor reporting and I/O configuration. These modules alsoinclude Networking Services that map InfiniBand services into the traditionalservices domain, Node Initialization which is code that enables nodes to initiallyattach to, and/or boot over the InfiniBand fabric, API and sample code modules thatenable partners to develop their own Vendor-Specific Managers that use VIEOsoftware framework, as well as many other monitoring and data extraction services.

VIEO FabricViewThe VIEO FabricView family of software modules enables data centers to manageInfiniBand fabrics and components using existing systems, storage, and networkmanagement products. Companies that have already invested capital and human


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resources to acquire, customize, and deploy these products can continue to use theirfamiliar human interfaces and semantics, thereby greatly simplifying the InfiniBandmanagement task and reducing cost.

FabricView gives software developers a convenient and stable programminginterface to the VIEO Fabric Manager. This interface provides two-waycommunications allowing InfiniBand fabric management information to be passed tothe external management application for display and monitoring, and formanagement commands to be sent to fabric components by the external application.The combination of VIEO Fabric Manager and VIEO FabricView provides OEMpartners with a fully supported, end-to-end InfiniBand management software stack— from the chipset control software to the management console.

VIEO FabricView includes several modules including Fabric Executive, anapplication that aggregates fabric management data, serving as a single source forrequests from external applications, an API Library, that contains a set ofdevelopment tools for software developers, VIEO FabricView Console, whichallows access to management facilities using a JAVA-enabled browser, andtranslation modules that allow external SNMP messages to pass through theInfiniBand fabric. As with the Fabric Manager, third-party applications may also bedeveloped by VIEO partners and can use the VIEO FabricView API Library toaccess the VIEO Fabric Executive in the same way as VIEO developed applications.

Software Developer KitThe Software Developer Kit includes a developer-only license for VIEO’sInfiniBand software stack enabling the card to be used as a Host Channel Adapter,Target Channel Adapter, or switch. The Software Developer Kit also offers VIEO’send-to-end InfiniBand software stack (VIEO Fabric Manager, as described aboveand VIEO FabricView Advanced Management Modules, which enable out-of-bandmanagement of InfiniBand subnets using other VIEO products such as VIEO FabricExecutive, VIEO FabricView API Library, and VIEO FabricView Console).Licensees of the Software Developer Kit receive software updates as they arepublished. This ensures partners stay current with VIEO’s latest maintenance andfunctional enhancements.

Funding HistoryOn February 5, 2001, VIEO raised $20 million in Series A funding from investorsincluding TL Ventures, One Liberty Ventures, Audax Ventures Fund, and Eyes ofTexas Partners. The $20 million in capital will be used to grow VIEO’s softwaredevelopment and support teams as well as marketing and sales efforts to secureadditional partnerships, and to expand the company’s infrastructure at its Austin andRichardson, Texas, and St. Paul, Minnesota offices. Moreover, VIEO just recentlyannounced an additional $4 million in Series A funding from BMC Software andDell.

Bringing It All TogetherVIEO is conducting pre-beta tests of its technology, with plans to deploy a full betatest with a number of undisclosed companies later this year. This includes the VIEO


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Fabric Manager, which is currently in development and is expected to becommercially available in late 2001.

Voltaire (InfiniBand Networking)Headquartered in Bedford, Massachusetts and with its R&D facilities in Herzelia,Israel, Voltaire is developing connectivity solutions for the Infiniband market.

Voltaire has created a product called nVigor which is a TCP/ IP to InfiniBand routerthat provides accelerated connectivity, reliability, availability and scalability. Theproduct in designed to free the communication bottleneck between Ethernet TCP/IPtraffic and the InfiniBand Fabric. Additionally, nVigor offers application-basedintelligent connectivity with cluster-based centralized management.

Investors include Concord Ventures, Pitango Venture Capital, SFKT, TamirFishman Ventures, TechnoPlus Ventures, and The Challenge Fund (Etgar LP).

YottaYotta (Storage Subsystems)YottaYotta is the developer of NetStorage (the company’s term for networkedstorage) technology for yottabyte (1 trillion terabytes storage). The YottaYottaNetStorage Cube is based on the company’s scalable architecture which usesdistributed computing and clustering, and has at its core the NetStorage ArrayController. The NetStorage Cube meets upcoming NetStorage requirements of theWide Area Network (WAN) for Internet backbone providers; Portal Area Network(PAN) for Internet-based services such as SSPs and ASPs; Metro Area Network(MAN) for metro loop storage; Storage Area Network (SAN) for corporations; andBroadcast Area Network (BAN) for interactive broadcast providers such as video-on-demand.

YottaYotta brings together the management and engineering teams of Seek StorageSystems, a Washington-based company specializing in high performance storageand Myrias Computer Technologies, a parallel super computers company based inEdmonton, Alberta. YottaYotta’s family of products, which includes NetStorageCube, enables distributed direct access/clustering without the severe bottlenecks inserver controllers which are present in discreet, independent RAID systems.

Figure 341. YottaYotta’s Scalable Solution

EthernetFibreChanneliSCSI

YottaStorageCapacity

NetStorageBladesProvide:ScalableBandwidthand I/O’S

Host Channel Fabric

FCAL Drive Interface



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YottaYotta acquired intellectual property from QLogic. The technology, known asAdaptiveRAID will further strengthen YottaYotta’s core I/O technologies portfolio.As part of the transaction, YottaYotta will assume the QLogic facility in Boulder,Colorado and it will become the company’s second strategic development center.

Figure 342. YottaYotta’s WAN/MAN Solution

Host Channel Fabric


Host Channel Fabric


Host Channel Fabric


Host Channel Fabric


City 1 City 2, Site A

City 3 City 2, Site B

Optical Core / Metro Network


Founded in 1999, YottaYotta is a privately held company based in Montreal withR&D in Edmonton, Alberta and business development in Kirkland, Washington.The Company has raised $35 million to date with a $25 million second round closedin August, 2000. Investors include Davenport Capital Ventures, Optical CapitalGroup, Grosvenor Venture Partners III, Morgan Keegan, and TechnoCap.

Zambeel (Storage Subsystems)Zambeel is a developer of technology to create solutions and platforms for datamanagement and storage. The company’s technology will allow users to store,access, and manage large quantities of data on the Internet through high-speednetworks; and the company hopes to build the foundation of data centers of thefuture.

Zambeel counts Kleiner Perkins Caufield & Byers (KPCB), New EnterpriseAssociates and Integral Capital Partners as financial backers. In a recent RedHerring article, Vinod Khosla, general partner at KPCB, mentioned Zambeel as oneof several new bets on real-time computing. Additionally, Zambeel was named a2001 Red Herring “Ten to Watch” company. Zambeel is currently in stealth mode.

Zantaz (Storage Services)Zantaz is a provider of Internet-based services and technology that can capture,store, and retrieve business-critical communications (including email and relatedattachments), documents, and transactions. The company’s first service offering,Digital Safe is compatible with major email and telecom systems. Applicationsinclude electronic message archiving, management and rapid retrieval solutions forregulated industries and the worldwide corporate enterprise market. Zantaz alsoprovides professional services to implement, support and enhance the Digital Safeservice. First funded in 1998 and located in Pleasanton, California, Zantaz is aprivately held company.


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Zantaz’s Digital Safe has been in development since 1996 and was first introducedin March, 1999. It is a trusted service for the real-time archiving of high volumeInternet-based email, documents, and transactions. It fully meets the requirementsof the SEC and IRS for companies having regulatory requirements for archiving.Key benefits include:

➤ outsourced service, no special hardware or software required

➤ highly scalable, allows you to pay only for what is used

➤ instantaneous retrieval with Web-based search engine

➤ transparent to users, no behavioral change required

➤ highly redundant for complete enterprise safety

Digital Safe’s technology draws heavily from the experiences of its founders, whopreviously owned and ran traditional paper archiving warehouses. It compriseshighly redundant, geographically diverse data centers that provide completeenterprise safety. Its proprietary, patent-pending technology brings certifiedarchiving to companies with regulatory and/or best-business-practice archiving totheir eBusiness operations.

Zantaz has current business relationships with Ernst & Young, Hewlett-Packard,Cisco (as a member of the Hosted Applications Initiative), Sun Microsystems (as an“executive” member of Sun Microsystems’ “service provider” program), CriticalPath, and Pilot Network Services, Inc.

Zantaz targets any company for which the retention and retrieval of documents ispart of their long-term business and legal programs and practices. This includescompanies such as securities dealers, brokers, and investment managers, andapplications such as online consumer financial products, corporate e-mail, storageand data management.

Zantaz has a strategic alliance with Critical Path, a provider of Internet messaginginfrastructure, to provide an Internet-based messaging and eBusiness Archivingservice to the financial industry and corporate markets. The strategic allianceexpands distribution of the Zantaz Digital Safe services to Critical Path’s new andexisting corporate customers who will benefit from long-term email archivingservices.


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Glossary


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100Base-T Fast Ethernet A 100 Mbps technology based on the Ethernet/CD network access method.

10BaseT The IEEE 802.3 specification for ethernet over unshielded twisted pair (UTP).

Agent In the client-server model, the part of the system that performs information preparationand exchange on behalf of a client or server application. In SNMP, the word agent refersto the managed system.

Alarm vs. Alert In the most precise usage, an alarm is an off-normal condition (or state) indicating aperformance or equipment degradation or failure. An alert is an indication of a change(or status) from a normal to an alarm condition or vice versa. However, the term “alarm”is often used where “alert” would be more accurate. For example, “alarm dialout”actually occurs on changes from alarm to normal as well as from normal to alarm.

ANSI American National Standards Institute. Standards-setting body responsible for the FibreChannel standard.

Application Layer Layer 7 of the OSI Reference Model; implemented by various network applicationsincluding file transfer, electronic mail, and terminal emulation.

Application Program Interface (API) Means of communication between programs to give one program transparent access toanother.

Arbitrated Loop (FC_AL) A Fibre Channel topology that provides a low-cost solution to attach multiplecommunicating devices in a single loop. It can support up to 126 nodes and one switch-attached node in a single loop.

Archive To erase files from primary storage (disk), after a copy has been stored on tape or othersecondary media. The intent is long term storage where the file contents remainunchanged. This function is also referred to as “retirement” or “shelving.”

Areal Density Bits per square inch of disk surface. Obtained by multiplying the bit density (bits perinch) by track density (tracks per inch).

Array Management Software The body of software that provides common control and management for a disk array.Array Management Software most often executes in a disk controller or intelligent hostbus adapter, but may also execute in a host computer.

Asynchronous I/O Requests I/O requests which bear no relationship to each other in time. Asynchronous I/Orequests may overlap in time. Independent access RAID arrays are able to provideconcurrent execution of asynchronous I/O requests which overlap in time, and whosespecified data addresses map to different member disks.

Asynchronous Operations Operations which bear no relationship to each other in time. Asynchronous operationsmay overlap in time. The concept of asynchronous I/) operations is central to the use ofindependent access arrays in throughput-intensive applications.

Glossary


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Asynchronous Transfer Mode (ATM) (1) The CCITT standard for cell relay wherein information for multiple types of services(voice, video, data) is conveyed in small, fixed-size cells. ATM is a connection orientedtechnology used in both LAN and WAN environments. (2) A fast-packet switchingtechnology allowing free allocation of capacity to each channel. The-SONETsynchronous payload envelope is a variation of ATM. (3) ATM is an international ISDNhigh speed, high-volume, packet switching transmission protocol standard. ATMcurrently accommodates transmission speeds from 64 Kbps to 622 Mbps. (4) Permitshundreds of megabits per second to move on-demand throughout LANs, WANs anddesktops. Uses fixed length cells. Highly scalable, making it suitable for many differentkinds of traffic, from data and voice to video.

Autoloader A device that automatically inserts cartridges into a tape drive. Automation providesunattended operation and helps ensure that back-ups take place on schedule.

Availability The probability that a system is available at time. Averaged over time, this functionexpresses the expected percentage of time a system is available to do useful work.

Backbone (1) The part of a network used as the primary path for transporting traffic betweennetwork segments. (2) A high-speed line or series of connections that forms a majorpathway within a network.

Backup (1) A copy of computer data that is used to recreate data that has been lost, mislaid,corrupted, or erased. (2) A duplicate copy of data placed in a separate, safe “place”--electronic storage, on a tape, on a disk in a vault--to guard against total loss in theevent the original data somehow becomes inaccessible. Generally for short-term safety.

Backup File Consolidation The ability for the backup software to recreate a full backup every time an incrementalbackup is performed.

Backup Server A computer and storage system which provides backup and restore services for thenetwork as a network resource.

Backup Version A file, directory, or file space that a user has backed-up, which resides in an backupstorage pool in data storage. Though there may be more than one backup version of afile in the storage pool, only one is considered the active version.

Backup-Archive Client A program that runs on a workstation and provides a means for users to backup,archive, restore, and retrieve files. Contrast with Administrative Client.

Bandwidth (1) Measure of the information capacity of a transmission channel. (2) The differencebetween the highest and lowest frequencies of a band that can be passed by atransmission medium without undue distortion, such as the AM band--535 to 1705kilohertz. (3) The maximum amount of data that can be transmitted through a datachannel per unit time. Usually expressed in megabytes per second. Analog bandwidthis the range of signal frequencies that can be transmitted by a communication channelor network. (4) A term used to indicate the amount of transmission or processingcapacity possessed by a system or a specific location in a system (usually a networksystem).

Bridge/Router A device that can provide the functions of a bridge, router, or both concurrently.Bridge/router can route one or more protocols, such as TCP/IP and/or XNS, and bridgeall other traffic.


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Browser (1) Term used to describe the client program for the World-Wide Web. Popular browsersinclude Mosaic and Netscape. Sometime called “navigator.” (2) Software program thatretrieves, displays, and prints information and HTML documents from the World WideWeb.

Buffer A portion of storage used to hold input or output data temporarily.

Cache Memory A portion of memory dedicated to collecting and holding related data until a processingor a storage module is ready to process it. The intent is to improve the overall systemperformance. Cache for a disk drive is usually implemented as fast semiconductormemory. See Read Cache and Write Cache.

Caching File System This is a process that operates on top of the file system to improve performance, dataaccessibility, and client storage capacity. Client files are continuously copied to adesignated server so that they are backed-up and always redundant. Inactive files areremoved from the client to improve performance. Client desktop and portable filesystems are maintained and kept synchronized with the server.

CD/Compact Disc An optical disc that stores up to 650MB of data or 74 minutes of audio. CDs can holdtext, photo, image, audio and video files.

CD-R/Compact Disc Recordable Recordable CD technology that allows a user to write to a disc one time.

CD-RW/Compact Disc ReWritable Rewritable CD technology that allows a user to write to the same disc many times. HPCD-Re-Writable media can be written up to 1,000 times per sector per disc.

CD WORM Compact Disc Write-Once Read-Many.

Central Administration A feature of network or enterprise software that allows a distributed process to becontrolled from an administration console. Control can reside both locally and remotelyeither at any point or multiple points in the enterprise.

Channel A point-to-point link, the main task of which is to transport data from one point toanother. An electrical path for the transfer of data and control information between adisk and a disk controller.

Class 2 Service A method of communicating between N_Ports in which no connection is established.Frames are acknowledged by the receiver. Frames are routed through the Fabric, andeach frame may take a different route. In-order delivery of frames is not guaranteed.Uses both buffer-to-buffer flow and end-to-end flow control.

Class 3 Service A method of communicating between N_Ports similar to Class 2 service, except there isno acknowledgment of received frames. This is the lowest service level. Frames arerouted through the Fabric as in Class 2, and in-order delivery is not guaranteed. Usesonly buffer-to-buffer flow control.

Class 1 Service A method of communicating between N_Ports in which a dedicated connection isestablished between them. The ports are guaranteed the full bandwidth of theconnection and frames from other N_Ports may be blocked while the connection exists.In-order delivery of frames is guaranteed. Uses end-to-end flow control only.


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Client (1) A recipient of services in a client/server application. Clients can be workstations orother servers. (2) The part of Staffware which Users interact with. (3) A softwareprogram used to contact and obtain data from a “server” software program on anothercomputer--often across a great distance. Each “client” program is designed to workspecifically with one or more kinds of server programs, and each server requires aspecific kind of client program.

Client Platforms The computer platforms from which the file or media catalogue can be accessed andspecific requests made.

Client/Server (1) The relationship between machines in a communications network. The client is therequesting machine, the server the supplying machine. Also used to describe theinformation management relationship between software components in a processingsystem. (2) A system architecture in which one or more programs (clients) requestcomputing or data services from another program (server).

Compression Reducing the size of a data set to lower the bandwidth or space required fortransmission or storage.

Concurrency The ability of backup software to allow a storage device to receive data from more thanone system at a time; interleaving the data streams.

Controller A physical module that interprets signals sent between the host processor and aperipheral device.

DASD Direct Access Storage Device. A term used by IBM in reference to disk drives.

DAT/Digital Audio Tape A 4mm helical scan magnetic tape technology originally designed for music and lateradapted for backing up computer-created data. DAT drives use cartridges that conformto the DDS standard for data storage.

Data Accessibility A term defining the system requirements for network storage as continuous access tofiles and data, high performance and protection from data loss.

Data Availability An application’s ability to access correct data in a timely manner. Usually impliescontinued data availability in the presence of a component failure.

Data Compression Reducing the amount of electronic “space” data takes up. Methods include replacingblank spaces with a character count, or replacing redundant data with shorter stand-in“codes.” No matter how data is compressed, it must be decompressed before it can beused.

Data Reliability Expressed in Mean Time to Data Loss (MTDL), is the average length of time over whichdata stored in a disk subsystem can be correctly retrieved.

Data Transfer Rate The rate at which data is transferred to or from the storage media. It is usually given inthousands of bytes per second (kbytes/second).


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Database Backup The software has the capability to backup open relational databases. This is achieved bya continuous monitor and backup of disk writes (raw partition) the backup of log fileswhich are files containing the continuous changes to the open database, or API(Application Program Interface) database backup that allows the use of the nativebackup process for the database application. Both methods are analogous to anincremental backup policy that calls for an initial full backup only once and incrementalbackups thereafter at intervals set by the system administrator.

Database Structure The underlying database engine on which the file and media database runs.

Density Generally, recording density.

DDS/Digital Data Storage The most widely used storage standard. DDS is the computer specification for 4mmDAT technology. This standard was codeveloped by Hewlett-Packard and Sony.

Direct Access Storage Device

(DASD)

Any on-line data storage device. A disc, drive or CD-ROM player that can be addressedis a DASD.

Director (Fibre Channel Director) A superior class of switching device. The term is not widely used in the Open Systemworld, and was introduced by McData as an extension of the IBM ESCON Director.

Disaster Protection A set of rules and procedures that allow a computer site to be put back in operationafter a disaster has occurred. The concept of moving backups off-site constitute theminimum basic precaution for disaster protection. The remote copy is used to recoverdata when the local storage is unaccessible after the disaster.

Disk A non-volatile, randomly addressable, rewritable mass storage device. This definitionincludes both rotating magnetic and optical disks and solid-stale disks, or non-volatileelectronic storage elements. It does not include specialized devices such as write-once-read-many (WORM) optical disks, nor does it include so called RAM disks implementedusing software to control a dedicated portion of a host computer’s volatile randomaccess memory.

Disk Array A collection of disks from one or more commonly accessible disk subsystems,combined with a body of Array Management Software. Array Management Softwarecontrols the disks and presents them to the array’s operating environment as one ormore virtual disks.

Disk Mirroring A fault-tolerant technique that writes data simultaneously to two hard disks using thesame hard disk controller. The disks operate in tandem, constantly storing and updatingthe same files. Mirroring alone does not ensure data protection. If both hard disks fail atthe same time, you will lose data.

Disk Striping A type of disk array mapping in which consecutive stripes of data are mapped round-robin to consecutive array members. A striped array, also known as a RAID Level 0array, provides high I/O performance at low cost, but provides lower net data reliabilitythan any of its member disks.

Disk Subsystem A collection of disks and the hardware required to connect them to one or more hostcomputers. The hardware may include an intelligent controller or the disks may attachdirectly to a host computer’s I/O bus adapter.


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Disk-Based Backup The process of sending backup data to hard disk storage rather than directly to tape.The backup storage pool on disk is managed for fast restore capability. Backgroundcopies are made to tape or to a remote vault.

Distributed Computing Environment

(DCE)

An architecture of standard programming interfaces, conventions, and server functionpersonalities (e.g., naming, distributed file system, remote procedure call) fordistributing applications transparently across networks of heterogeneous computers.Promoted and controlled by the Open Software Foundation (OSF), a vendor consortium.

DLT/Digital Linear Tape Quantum’s linear magnetic tape technology, used in many high-performance, high-capacity data backup solutions.

Duplexing A configuration in which each element of a system or subsystem is duplicated, inaddition to the disk drive, example a controller, a host adapter, a power supply. SeeMirroring.

DVD/Digital Versatile Disk (orDigital Video Disc)

A CD-sized optical disc with potentially up to 14 times the capacity of a CD (when bothsides of the DVD are used). A single-sided DVD disc might store an entire movie or a fullset of reference books.

EIDE/Enhanced Integrated Device(Drive) Electronics

An extension to an IDE interface that supports different IDE device types, such as harddisk drives, CD-ROM drives and tape drives.

Encryption Data can be coded into an unreadable form and decoding is restricted by password,user access, or other means. Some software allows decoding to be transparent to theauthorized user, while to the unauthorized user, data is unreadable.

End User Any customer of an interstate or foreign telecommunications service that is not acarrier, except that a carrier other than a telephone company shall be deemed to be an“end user” when such carrier uses a telecommunications service for administrativepurposes. It is also a person or entity that offers telecommunications servicesexclusively as a reseller shall be deemed to be an “end user” if all resale transmissionoffered by such reseller originate on the premises of such reseller.

Enterprise Data ManagementSoftware

This is a class of software that builds on Network Data Management software, addingthe capabilities of interoperating and providing backup and restore services acrossmultiple, heterogeneous computing environments. Backup and restore is performedbetween any combination of PC’s, UNIX, Midrange systems, and mainframes.

Enterprise Network A geographically dispersed network under the auspices of one organization.

Enterprise Storage Management A family or suite of related processes and applications which manage storage devicesas enterprise resources across heterogeneous environments. Storage managementapplications range from asset management to hierarchical storage management.

Ethernet A 10 Mbps, 100 Mbps, and 1 Gbps baseband local area network protocol that allowsmultiple stations to access the transmission medium at will without prior coordination. Itresolves contention by using carrier sense and multiple access with collision detection(CSMAICD). Defined under the IEEE 802.3 protocol.

Exchange A group of sequences which share a unique identifier is called an exchange. Allsequences within a given exchange use the same protocol


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F_Port Fabric port. A port on a fabric switch to which N_Ports may be directly connected. AnF_Port is uses the address identifier hex’FFFFFE’.

Fabric A Fibre Channel network consisting of multiple devices interconnected by one or moreswitches that use Fibre Channel methodology to link nodes and route frames.

Fabric Switch In this category of switch, any port on any switch can provide (subject to bandwidthavailability) full speed access to any other port on the network. The network consists ofa fabric of linked switches.

Failure A detectable physical change to hardware. Failures may be repaired by the replacementof a physical component.

Fast LAN Term given to two emerging standards; IEEE 802.3u (called Fast Ethernet) for Ethernetoperating at 100 Mbps over Cat-3 or 5 UTP, and IEEE 802.12 (called 100VG-AnyLAN) forEthernet or Token Ring operating at 100 Mbps over CAT-3/4/5 UTP, STP or optic fiber.

Fault tolerance The ability for a system to remain operational, sometimes in a degraded mode, eventhough one or more elements of the system have failed. Fault tolerance is obtainedthrough the use of redundant components or modules.

FDDI II The proposed ANSI standard to enhance FDDI. FDDI II will provide isochronoustransmission for connectionless data circuits and connection-oriented voice and videocircuits.

Fiber Distributed Data Interface

(FDDI)

An emerging high-speed networking standard. The underlying medium is fiber optics,and the topology is a dual-attached, counter-rotating Token Ring. FDDI networks canoften be spotted by the orange fiber “cable.” The FDDI protocol has also been adaptedto run over traditional copper wires.

Fibre Channel Arbitrated Loop(FC/AL)

This is one of the possible physical topologies of Fibre Channel. In this topology, theFibre Channel is connected in a loop with devices all connecting to the loop. It can bethought of as a similar structure to a token ring network. Up to 126 nodes can beconnected to the loop.

Fibre Channel Fabric This is a structure where addressing of ports on a network of Fibre Channel is madeindependently of the physical location or address of the target port. Switches areresponsible for passing Fibre Channel packets to the target port regardless of whichFibre Channel loop or switch the port physically resides on. Multiple switches can beconnected to create large networks with up to 224 addressable ports.

Fibre Channel Point-to-Point This topology for Fibre Channel provides a simple direct connection between just twonodes. This is the closest approximation to the traditional SCSI topology.

Fibre Channel Topology A number of possible topologies exist for the connection of Fibre Channel. One is point-to-point, where a direction connection is made between nodes on the Fibre Channel.Another is Arbitrated Loop where multiple nodes can be connected together. Lastlythere is a Fibre Channel Fabric topology which allows for multiple loops and point-to-point connections to be combined into networks using switches.


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File Allocation Table (FAT) Data written to a magnetic disk is not necessarily placed in contiguous tracks. It isusually divided into many clusters of data in many locations on the disk surface. TheFAT is the special area on a disk which keeps track of where clusters of data have beenwritten for later retrieval later.

File and Software Distribution There are many levels to this application set. The simplest is the ability to recognizerevision levels of software installed on the network and to broadcast upgrades so thatrevision levels can be maintained automatically.

File Migration File migration is an automated process where candidate files are removed from primarystorage, leaving a phantom (or stub) file in place of each file. Candidate files areautomatically identified for removal based on their inactivity or file type. When thephantom file is read, it triggers a transparent retrieval from the secondary storage pool

File Retrieval The return of migrated files from the lower level of the storage hierarchy to activestorage in response to user access request.

File Server Local Area Network (LANs) were invented to allow users on the LAN to share andthereby conserve the cost of peripherals (printers, modems, scanners) and to likewiseshare software. The file server is the machine on the LAN where the shared software isstored.

File System Part of an OS that tracks, retains and monitors all files. The FS can be assessed by otherparts of the OS such as the computer back plain and storage along with applications viawell-documented APIs.

File Tracking The ability of the on-line catalogue to provide complete file versioning and historyinformation along with specific media locations.

File Transfer Protocol (FTP) (1) An IP application protocol for transferring files between network nodes. (2) AnInternet protocol that allows a user on one host to transfer files to and from another hostover a network.

File Transfer, Access, and

Management (FTAM)

The OSI remote file service ad protocol.

File-Oriented Backup Any backup software that instructs the computer to store information in files just as theyappear on the originating computer, making restoration easier and more logical.

FINL_Port An NL_Port which is capable of providing certain Fabric services to other NL_Ports on aLoop in the absence of a Fabric. This NL_Port will respond to requests to opencommunication with AL_PA hex’00’, even though it may actually have another value forits AL_PA.

FL_Port Fabric-Loop port. An F_Port which is capable of supporting an attached Arbitrated Loop.An FL_Port on a Loop will have the AL_PA hex’00’, giving the Fabric highest priorityaccess to the Loop. An FL_Port is the gateway to the Fabric for NL_Ports on a Loop.

Flow Control Flow control is a method of exchanging parameters between two connected devices andmanaging the rate of frame transmission. Fibre Channel uses credit-based flow controlto prevent the possibility of frames being transmitted so rapidly that the buffers overflowand lose data. Flow control. Enables concurrent multiple exchanges. Some Classes ofService use end-to-end flow control to ensure that lost frames are detected.


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Format The arrangement of data on a storage medium.

Frame (1) A frame is the most basic element of a message in Fibre Channel datacommunications. It consists of a 24-byte header and zero to 2112 bytes of data. (2) Thebasic unit of communication between two N_Ports. Frames are composed of a startingdelimiter (SOF), a header, the payload, the Cyclic Redundancy Check (CRC), and anending delimiter (EOF). The SOF and FOF contain the Special Character and are used toindicate where the frame begins and ends. The 24-byte header contains informationabout the frame, including the S_ID D_ID, routing information, the type of datacontained in the payload, and sequence/exchange management information. Thepayload contains the actual data to be transmitted, and may be 0-2112 bytes in length.The CRC is a 4-byte field used for detecting bit errors in the received frame.

Frame Relay High-performance interface for packet-switching networks. Considered more efficientthan X.25 which it is expected to replace. Frame relay technology can handle “bursty”communications that have rapidly changing bandwidth requirements.

Frame Switch A device, similar to a bridge, which forwards frames based on the frame’s layer 2address. Frame switches are generally of two basic forms, cut-through switch (on thefly switching), or store and forward switch. LAN switches such as Ethernet, Token Ringand FDDI switches are all examples of frame switches.

Full Backup A backup of all files on a storage device. If files or directories have been excluded frombackups, they will not be contained in a full backup.

Gigabit (Gb) One billion bits.

Gigabyte (GB) (1) A billion (slightly more) bytes of data, or a thousand megabytes. Presently, gigabytesare in the stratosphere of storage capability, but imaging applications commonly take uphuge amounts of data. For example, it only takes ten 8 1/2” by 11” color pictures,scanned at 600 dpi, to fill a gigabyte. (2) Shorthand for 1,000,000,000 (109) bytes. Someprefer to use the (109) convention commonly found in I/O-related literature rather thanthe 1,073,741,824 (230) convention sometimes used in describing computer systemmemory.

Graphical User Interface (GUI) A type of user interface that includes a combination of graphics and the use of pointingdevices, menu bars, overlapping windows and icons.

Groupware A network-based application that lets users collaborate.

GUI Graphic User Interface.

Hardware The mechanical, magnetic and electronic components of a system, e.g., computers,telephone switches, terminals and the like.

HBA See Host bus adapter.

Hierarchical File System (HFS) In DOS, the file management system that allows directories to have subdirectories, andsub-subdirectories. In Macintoshes files may be placed into folders, and folders to beplaced within other folders.


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Hierarchical Storage Management(HSM)

The process of automatically storing data on the lowest cost devices that can supportthe performance required by the applications. To users, data storage never fills and fileaccess, regardless of location in the storage hierarchy, is completely transparent. Thesoftware automatically manages multiple levels of storage hierarchy primary, secondary(nearline), or off-line

Host Backup Server The backup server that is the central repository (vault) in an enterprise datamanagement architecture. Local backup servers ship data to the host backup server.Centralized administration is performed and controlled from the host backup server. Thehost backup server can be located anywhere in the enterprise and on any platform inwhich will support the requirements.

Host Bus Adapter A host bus adapter allows to connect a server system bus with an external device.

Host Computer Any computer system to which disks are directly attached and accessible. Mainframes,and servers, as well as workstations and personal computers, can all be consideredhost computers in the context of this book, as long as they have disks attached to them

Host-Based Array A disk array whose Array Management Software executes in its host computer(s) ratherthan in a disk subsystem.

Hot Backup A backup performed on a local disk drive as opposed to (or in addition to) the classicalbackup to tape. It allows faster and more frequent data transmission, and quickerrecovery.

Hot Spare Or On-line spare. A drive that is present in the system but normally unused until anotherdrive fails, at which time the hot spare is automatically substituted for the failed drive.

Hot Swap The substitution of a replacement unit (RU) in a disk sub-system for a defective one,where the substitution can be performed while the subsystem is running (performing itsnormal function). Hot swaps are manual performed by humans

Hub This is a simple connectivity device that allows for devices to be connected to a fibrechannel loop by being attached to a hub port. The advantage of this is that failures of asingle device on the loop can be isolated from the other ports on the loop. Theaggregate bandwidth of the hub is still that of a single fibre channel loop however.

IDE/Integrated Device (Drive)Electronics

A common hard drive interface built into most 386/486 PCs. This interface has beenreplaced by EIDE in Pentium and newer PCs.

I/O - Input/output Input/Output. Term applied to a channel or device ( such as an EIDE, parallel port orSCSI connection) that can perform an input process and an output process at the sametime.

I/O Driver A host computer software component (usually part of the operating system) whosefunction is to control the operation of peripheral controllers or adapters attached to thehost computer. I/O drivers communicate between applications and I/O devices, and insome cases may participate in data transfer, although this is rare with disk drivers,since most disk adapters and controllers contain hardware for data transfer.


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I/O Load The sequence of I/O requests made to one or more disk subsystems by a hostcomputing environment. The host computing environment includes both applicationsand host overhead functions, such as swapping, paging, and file system activity.

I/O Load Balancing The adjustment of system and/or application components so that application I/Odemands are spread evenly across the I/O system’s physical resources. I/O loadbalancing may be done manually (by a human) or automatically (by some means thatdoes not require human intervention).

I/O Operations per Second (IOPS) A generic measure of I/O performance. To be meaningful, the type and operationmixture of I/O must be specified as well, such as read IOPS.

I/O-Intensive A characterization of applications. An I/O-intensive application is one whoseperformance depends strongly on the performance of the resources that provide its I/Oservices.

Incremental Backup An operation that backs up all data that has been modified or added since a given date.The date is usually the date of the last full or incremental backup.

Input/Output (I/O) Refers to the process, techniques and media used for human/machine communication.Also refers to data submitted between computing components.

Intermix A mode of service defined by Fibre Channel that reserves the full Fibre Channelbandwidth for a dedicated Class 1 connection but also allows connectionless Class 2and 3 traffic to share the link if the bandwidth is available.

Internetwork Packet Exchange,

Network Protocol (IPX)

LAN protocol developed by Novell for NetWare.

IP Number/IP Address Also referred to as a “dotted quad.” A code number consisting of 4 parts separated bydots, e.g., 165.113.245.2. Every computer on the Internet has its own unique IPnumber.

IPI Intelligent peripheral interface.

Isochronous Transmission Data transmission which supports network-wide timing requirements. A typicalapplication for isochronous transmission is a broadcast environment which needsinformation to be delivered at a predictable time.

JBOD Just a Bunch of Disks. Refer to a disk drive configuration in which there is noredundancy.

Jukebox A device that holds multiple optical disks and one or more disk drives, and can swapdisks in and out of the drive as needed. Same as an autochanger.

L_Port Loop port. Generic term for an NL_Port or FL_Port i.e., any Fibre Channel port whichsupports the Arbitrated Loop topology.

Large I/O RequestLarge Read RequestLarge Write Request

An I/O, read, or write request that specifies the transfer of a large amount of data.‘Large’ usually depends on the context, but often refers to 64 KBytes or more.


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Latency A measurement of the time it takes to send a frame between two locations. Low latencyis a fundamental requirement for storage applications and is typical of I/O channeltechnologies. Fibre Channel connections are characterized by low latency. In a diskdrive, latency relates to the disks rotational speed and must be considered indetermining a disk drives total access time.

Library Manager A library manager sits as the piece of middleware between a backup, archive, or someother application and an automated media repository such as an optical jukebox or tapelibrary. The library manager intercepts the call for a specific file, looks up the files’location (which piece of media, surface block ID) and issues commands to the jukeboxor library manager to mount a specific media and retrieve the data requested. Thelibrary manager contains the file history databases, media location database, devicedrivers for the supported media repositories and other management functions. Mediamanagement capabilities are usually built into a library manager. It is a superset offunctions to a media manager.

Life Cycle Management A process of tracking and monitoring the number of times that the media is recorded orcertain zones are overwritten (this translates to the number of passes over the heads).Management also requires the monitoring of raw error rates in order to preventexcessive usage and data loss.

Local Area Network (LAN) (1) A network covering a relatively small geographic area (usually not larger than a flooror small building). Compared to WANs, LANs are usually characterized by relatively highdata rates. (2) Network permitting transmission and communication between hardwaredevices, usually in one building or complex. (3) High-speed transmissions over twistedpair, coax, or fiber optic cables that connect terminals, personal computers, mainframecomputers, and peripherals together at distances of about one mile or less.

Local Backup Server A CPU and storage pool which acts as a centralized backup device and repository for aset of workstations and servers in a network. Multiple local backup servers are tiedtogether and act synchronously to provide backup for the network under central control.Data is ported offsite to the host backup server. Administration is performed, centrally,for all local backup servers either locally or from the host backup server.

Logical Disk A set of contiguously addressed member disk blocks that is part of a single virtual disk-to-member disk mapping. Logical disks are used in some array implementations asconstituents of logical volumes or partitions

Logical Volume A virtual disk made up of logical disks. Also called a virtual disk, volume set, or partition.

Magneto-Optic (MO) Recording Recording data using optical means to change the polarity of a magnetic field in therecording medium. Data is erasable and/or rewritable.

Managed Hub This is a technique for providing statistics information about the traffic on a hub. Noactual management of the hub is usually possible using this interface, but informationand notification of failures can be achieved. This interface often uses Simple NetworkManagement Protocol (SNMP) Management Information Bases (MIBs) as a standardprotocol for providing this information.


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Mapping The conversion between multiple data addressing schemes. Most commonly used torefer to conversion between member disk block addresses and block addresses of thevirtual disks presented to the operating environment by Array Management Software.

Mean Time Between Failures

(MTBF)

A measure of equipment reliability, the higher the MTBF, the more reliable theequipment.

Media Plural of medium. The physical environment through which transmission signals pass.Common network media include twisted pair, coaxial and fiber optic cable, and theatmosphere (through which microwave, LASER, and infrared transmission occurs).

Media Management The software will monitor the number of write passes or use other techniques tomonitor media quality, aging, and recommend new media and/or suggest using themedia for another purpose such as archiving. It is a pro-active and automated featureallowing preventive media failures and requiring less system administrator time inmanual media management and error control.

Media Types Managed Optical or tape media are common. There are many types of tape media that aresupported by libraries; 3490, DLT. 8 MM. 4 MM, and VHS (VLDS).

Megabits Per Second (Mbps) A digital transmission speed of millions of bits per second.

Megabyte A million bytes. A thousand kilobytes.

Megabyte, Mbyte (MB) Shorthand for 1,000,000 (106) bytes. Pronounced megabyte. This book uses the 106

convention commonly found in I/O related literature rather than the 1,048,576 (2220 )convention commonly used to describe computer system memory.

Metadata Data that describes data. In disk arrays, metadata often consists of items such as arraymembership, member segment sizes, descriptions of logical disks and partitions, andarray state information.

Mirroring A form of RAID in which Array Management Software maintains two or more identicalcopies of data on separate disks. Also known as RAID Level 1 and disk shadowing.

MirrorsMirrored DisksMirrored Array

Common terms for a disk array that implements RAID Level 1, or mirroring technology.

MTBF Mean Time Between Failure; a measure of reliability.

Multicast Sending a copy of the same transmission from a single source device to multipledestination devices on a fabric.

Multiple Parallel Backup The ability to manage multiple jobs (backup/restore) at the same time by keepingmultiple tape drives operating in parallel.

Multiple Virtual Storage (MVS) One of the family of IBM operating systems for the System/370 or System/390processor, such as MVS/ESA. MVS is one of the supported server environments.

Multiplex The ability to intersperse data from multiple sources and destinations onto a singletransmission medium.

N_Port Node port. A port on a computer, disk drive, etc. through which the device does its FibreChannel communication.


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Near-Line Data that is available on a secondary storage device that the user can access, but at aslower rate than the on-line data is accessed.

Nearline Storage Or Near Online Storage. Storage that can be accessed online only through the use ofrobotics. It does not require human intervention, and can be accessed much quickerthan off-line storage, though not as quickly as online prime storage.

Network (1) A collection of computers and other devices that are able to communicate with eachother over some network medium. (2) An aggregation of interconnected nodes,workstations, file servers, and/or peripherals, with its own protocol that supportsinteraction.

Network Analyser A hardware/software device offering various network troubleshooting features, includingprotocol-specific packet decodes, specific pre-programmed troubleshooting tests,packet filtering, and packet transmission.

Network Attached Storage (NAS) This is the provision of storage in a form that is readily accessible on a network.Traditionally this meant having a storage array device that incorporated a file systemand presented either a networked file system protocol such as NFS, or else emulated adisk device so that the array could be connected to a storage I/O interconnect to thehost.

Network Availability A measure of network uptime. High network availability is a term designed to conveythe message that 100% network uptime is very desirable. Most networks only achieve96% uptime due to planned and unplanned outages.

Network Backup Software Backup software capable of providing backup and restore of network files for serversand clients. This software is capable of backup and restore only. It is flexible and hasmany features such as tape catalogue s, tape libraries, and many storage devices.

Network Data ManagementSoftware

Backup software which includes high performance backup and restore features plusmanages data and files in the network. Features such as disk-based database/librarian,automated archiving, and file migration set it apart from Network Backup.

Network File System (NFS) (1) A protocol defined by Sun Microsystems that that extends TCP/IPnetwork file services. NFS permits remote node files to appear as thoughthey are stored on a local workstation. (2) A distributed file system inUNIX developed by Sun Microsystems which allows a set of computersto cooperatively access each other’s files in a transparent manner.

Network Storage Management (1) Network Storage Management is not an application. Rather, it is a family of relatedprocesses and application that manage storage devices as network resources. Storagemanagement applications range from asset management to hierarchical storagemanagement. (2) A system responsible for managing at least part of a network. NMSscommunicate with agents to help keep track of network statistics and resources.

Network Storage Resource A storage pool that can be accessed by every client in the network. Its access iscompletely transparent to the user, whether the storage is online or nearline.

Network Topology Physical arrangement of nodes and interconnecting communications links in networksbased on application requirements and geographical distribution of users.

NL_Port Node-Loop port. An N_Port which can operate on the Arbitrated Loop topology.


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NOS Network Operating System; UNIX, WIndows NT, and Novell Netware are examples.

Off-Line Data that is not physically stored on an accessible drive, such as removable tapes ordisks.

On-Line Data that is available on a primary storage device so that it is readily accessible to theuser.

Open File Backup The backup of open files (which may be modified during backup). The file must remainstatic for backup but available for reading and writing.

Open Network Architecture (ONA) The structure of a communications network that permits all types of terminals and usersto have access to any network capability without compatibility restrictions.

Operating system Collection of programs that, taken together, manage the hardware and software; it isthe operating system that makes the hardware usable, providing the mechanisms thatapplication programs use to interact with the computer.

Optical (1) Containing lenses mirrors, etc., as in optical view-finder and optical printer. (2) Ingeneral, having to do with light and its behavior and control, as in optical properties,optical rotation. (3) Pertaining to the science of light and vision.

Optical Disk A storage device that is written and read by laser light. Certain optical disks areconsidered Write Once Read Many (WORM), because data is permanently engraved inthe disk’s surface either by gouging pits (ablation); or by causing the non-image area tobubble, reflecting light away from the reading head. Erasable optical drives usetechnologies such as the magneto-optic technique, which electrically alters the bias ofgrains of material after they have been heated by a laser. Compact disks (CDs) andlaser (or video) disks are optical disks. (When referring to CD technology, the spellingdisc is used. In all other cases, the spelling disk is used.)

Optical Drive Machine for reading or writing a data storage medium (disk, tape, card, etc.) that useslight for examining patterns.

Parallel Access Array A disk array in which the data mapping and protection model assumes that all memberdisks operate in unison, and that all member disks participate in the execution of everyapplication 1/0 request. Parallel access arrays may require physical disksynchronization, or they may approximate true parallel access behavior.

Parallel/Concurrent Parallel is the capability to manage multiple jobs (backup/restore) at once by keepingmultiple tape drives operating in parallel. Concurrence allows a storage device toreceive data from more than one system at a time, interleaving the data streams.

Partial File Backup A backup in which only the changes to a file (usually a large file) are copied to backupmedia instead of copying the entire file. This assumes that an older version of the entirefile has already been copied to backup media.

Partition A virtual disk. The term partition is most often used when a redundancy group ispresented to a host operating environment as more than one virtual disk or volume set.Also used in complex arrays with dynamic mapping to denote a collection of redundancygroups dedicated to providing the storage for a subset of an array’s virtual disks.


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Physical Media Any physical means for transferring signals between OSI systems. Considered outsidethe OSI Model, and sometimes referred to as “Layer O,” or the bottom of the OSIReference Model.

Point-to-Point Pertaining to a direct link that supports data transmission between two nodes.

Ports Fibre Channel ports come in a number of flavours depending on the topology of theFibre Channel

N_Ports are simple equipment node ports in a point-to-point connection topology

NL_Ports are node ports connected to an Arbitrated loop.

F_Ports are point-to-point ports connected to a fabric. Generally this means thatthe F_Port is a port on a switch.

FL_Ports are ports connecting from one loop to a switch and thus to a fabric

E_Ports are expansion ports used to interconnect switches together.

G_Ports are classified by some switch companies as ports that can be eitherE_Ports or F_Ports depending on usage.

Protocol Set of data communication conventions, including timing, control, formatting, and datarepresentation. See Transport protocol

QIC/Quarter Inch Cartridge A magnetic tape technology used for backup. QIC tape comes in 3.5-inch minicartridgesand 5.25-inch data cartridges.

RAID Level A number designating the general configuration of an array. RAID configurations aredefined and generally accepted from level 0 through 5.

Random Access The ability to position data (as in disk) without reading intervening data blocks (as intape).

Random I/ORandom ReadsRandom Writes

An I/O load whose consecutively issued read or write requests do not specify adjacentlylocated data. Random I/O is characteristic of I/O request-intensive applications.

Read Cache A cache segment dedicated to saving information read from the disk drives, on theassumption that this data will be soon requested again by the system. The system willinitiate further disk accesses only if the desired information is not located in the cache.

Read Only Memory (ROM) Data stored in a medium that allows it to be accessed but not erased or altered.

Read/Write Ratio The ratio of read operations to write operations in a typical host system workload. Thisis important in selecting RAID configurations, as some configurations are inefficient inwrite intensive environments.

Read-Only Access to Migrated Data The normal retrieval process automatically writes the file back to primary storage. If theuser is scanning a large number of files, this procedure can rapidly overload the primaryfile system. An alternative is to read the files from the migration storage pool directlyinto memory and not write to disk unless the user chooses to do so. This way, theunused files can be discarded without impacting disk storage.


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Reconstruction The regeneration of all of the data from a failed disk in a RAID Level 1, 3, 4, 5, or 6 arrayonto a replacement disk. Reconstruction normally occurs without interruption ofapplication access to data stored on the array’s virtual disks.

Reduced Mode A mode of RAID array operation in which not all components of the array arefunctioning, but the array as a whole is functioning properly (responding to applicationread and write requests).

Reduction The removal of a member disk from a RAID array. Reduction most often occurs becauseof member disk failure, however, some RAID implementations allow reduction forsystem management purposes.

Redundancy The utilization of modules that are not necessary for a normal system operation. Theyget substituted to (or can perform the same function as) another component, allowingthe system to remain operational if the component fails.

Redundant Arrays of Inexpensive or

Independent Discs (RAID)

A storage device that uses several optical discs working in tandem to increasebandwidth output and to provide redundant backup.

Regeneration The process of rebuilding user data that was stored on a failed member disk of a RAIDLevel 1, 3, 4, 5, or 6 array . Regeneration may be used to recover data when a memberdisk has failed. It may also be used to recover data when an unrecoverable media erroris encountered on a member disk. Data regeneration in a RAID Level I array consists ofdelivering the alternate copy of the data. Data regeneration in a RAID Level 3, 4, or 5array consists of executing the array’s parity computation algorithm. Data regenerationin a RAID Level 6 array consists of choosing the more convenient of the two parityalgorithms, rebuilding the data, and adjusting the alternate parity algorithm as required.

Relational Database A database built and operated in accordance with the relational model of data whichholds that all data be organized as a set of two dimensional arrays or tables which havea relation to each other.

Remote Access The process of allowing remote workers to access a corporate LAN over analog ordigital telephone lines.

Remote Access Server Access equipment at a central site that connects remote users with corporate LANresources.

Remote File System (RFS) A distributed file system, similar to NFS, developed by AT&T and distributed with theirUNIX System V operating system.

Remote Vaulting The software has the ability to reach out or transmit over phone or direct connectionwith other sites, and manage that data, essentially treating remote site data as a clientsystem or visa versa.

Remote Vaulting Capability The ability of the media manager to transmit files and data offsite to a remote vault.

Replacement Disk A disk available for use as or used to replace a failed member disk in a RAID array.


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Replacement Unit A component or collection of components in a disk subsystem which are alwaysreplaced (swapped—q.v.) as a unit when any part of the collection fails. AbbreviatedRU. A replaceable unit is commonly called a consumer replaceable unit (CRU) if thereplacement can be performed by the end user, and a field replaceable unit (FRU) if thereplacement must be performed by a vendor service representative. Replacement unitsmay be cold, warm, hot, or auto-swapped (q-v-).

Reporting The ability to develop reports on access, media status, and other management requests.

Request-Intensive A characterization of applications. Also known as I/O -intensive

Restore A function that allows users to copy files from the backup storage pool to an onlinestorage device.

Retrieve A function that allows users to copy files from the archive storage media to an onlinestorage device.

Rewritable Optical Optical media from which data can be erased and new data added. Magneto-opticaland phase change are the two main types of rewritable optical disks.

Router (1) An OSI Layer 3 device that can decide which of several paths network traffic willfollow based on some optimality metric. Also called a gateway (although this definitionof gateway is becoming increasingly outdated), routers forward packets from onenetwork to another based on network-layer information. (2) A dedicated computerhardware and/or software package which manages the connection between two ormore networks.

Routing Bridge MAC-layer bridge that uses network layer methods to determine a network’s topology.

Scalable Capable of growing through additions of modular increments, without necessitatingmajor modifications to the original system. In a storage context, a scalable system iscapable of efficiently handling the requirements from a small system to a large system,in terms of capacity, performance, availability, connectivity, and/or manageability.

SCSI Small Computer Systems Interconnect. A collection of ANSI standards which define I/Obuses primarily intended for connecting mass storage subsystems or devices to hoststhrough I/O bus adapters. Originally intended primarily for use with small (desktop anddeskside workstation) computers, SCSI has been extended to serve most computingneeds, and is arguably the most widely implemented I/O interconnect in use today. SCSIis used for local data communication between a host CPU and an attached SCSI bus thatcontains intelligent peripheral devices such as disks, tapes, scanners and printers. Asmany as six devices can be connected to a single SCSI channel. Variations include:

Narrow SCSI, which transfers 8 bits in parallel;

Wide SCSI, a higher-performing SCSI interface that transfers 16 bits in parallel;

SCSI, which has a transfer rate of 5MB/sec;

SCSI-2, a higher performance SCSI interface with transfer rates up to 10MB/sec onan 8-bit interface and 20MB/sec on a 16-bit interface; and

Ultra SCSI, a faster SCSI-2 interface that transfers 20MB/sec for narrow 8-bitversions and 40MB/sec for wider 16-bit versions.


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Security Features Security features include operator access privileges, authorization levels, and passwordcontrol to limit access to unauthorized files and data.

Seek The physical motion to relocate the arm from one track to another.

Selective Backup A function that allows the backup program to include or exclude certain files from beingsystematically backed up during a full or an incremental backup operation.

Sequence A series of related frames, when strung together in numbered order, creates a sequencewhich can be transmitted over a Fibre Channel connection as a single operation

Sequential I/OSequential ReadsSequential Writes

An 110 load consisting of consecutively issued read or write requests to adjacentlylocated data. Sequential I/O is characteristic of data transfer intensive applications.

Server A computer which is dedicated to one task. A database or directory server would beresponsible for responding to a user’s search request, returning the list of storeddocuments that meets with the parameters of the request.

Shelf Storage Media placed external to an automated repository but, nearby so that an operator canmount it upon request.

Simple Network Management

Protocol (SNMP)

(1) The Internet network management protocol. SNMP provides a means to monitor andset network configuration and runtime parameters. (2) A standard protocol that runsover an IP link to provide management of network type devices without performingcontinual polling.

Small Computer System Interface

(SCSI)

An industry standard for connecting peripheral devices and their controllers to amicroprocessor. SCSI defines both hardware and software standards for communicationbetween a host computer and a peripheral. Computers and peripheral devices designedto meet SCSI specifications should work together. A single SCSI adapter card pluggedinto an internal IBM PS/2 micro channel PC slot can control as many as seven differenthard disks, optical disks, tape drives and scanners, without siphoning power away fromthe computer’s main processor. Formerly known as SASI (Shugart Associates SystemsInterface).

Small I/O RequestSmall Read RequestSmall Write Request

An I/O, read, or write request that specifies the transfer of a relatively small amount ofdata. ‘Small’ usually depends on the context, but most often refers to 8 KBytes or fewer.

Solid State Disk A disk whose storage capability is provided by solid state random access memory ratherthan magnetic or optical media. An electronic storage element generally offers very highperformance, because seek and rotational latency times are negligible, and may offervery high data transfer rate compared to a conventional disk. Cost per byte of storage,however, is quite high compared to conventional disks, and volumetric density is lower.These two factors combine to make solid state disk generally lower capacity thanmagnetic or optical disks.

Spare, Spare Disk Informally, a disk or P_extent reserved for the purpose of substituting for a like entity incase of failure of that entity.

SSA (Serial Storage Architecture) A high speed serial interface designed and marketed by IBM.


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Storage Area Network (SAN) Simply put, this is the evolutionary step of connectivity provided by a support (e.g., FibreChannel) between host and storage. This connectivity provides a true network of storagedevices and the hosts that access the storage.

Storage Capacity Amount of data that can be contained in an information holding device or main memory,generally expressed in terms of bytes, characters or words.

Storage Density Usually refers to recording density (bpi, tpi, or a combination of both).

Storage Hierarchy A logical ordering of the backup and archive storage devices, as defined by anadministrator with system privilege. Generally, the ordering is based on the speed andcapacity of the devices. Typically, each storage pool is associated with a different typeof storage device; online-disk, nearline-optical, jukebox tape library or offline-tape.

Storage Media The physical device itself, onto which data is recorded. Magnetic tape, optical disks,floppy disks are all storage media.

Storage Pool A named collection of storage volumes whether online, nearline, or off line.

Storage Subsystem A disk subsystem (q.v.) whose intelligent controller or I/O bus adapter is capable ofattaching other forms of mass storage such as CDROMs or tape transports.

Striped Array The collection of disks comprising an array which implements the RAID Level 0 or diskstriping (q.v.) mapping technique.

Striping Short for disk striping (q.v.); also known as RAID Level 0. The process of recording dataacross multiple disks rather than on one drive. Data is divided into segments each ofwhich is written to successive drives. Striping is also referred to as RAID 0.

Stub File The record of the original file left on the primary drive after the file itself has beenmigrated to a secondary drive. Also called a key or a place-holder. Click on it and thefile appears on your screen as it normally would, but delivered to you at the sloweraccess speed of the secondary device. The stub file takes up much less space than theoriginal, unmigrated file. When the user attempts to open a stub file, it copies back themigrated material to the primary drive, then opens it.

Subsystem-Based Array A disk array whose Array Management Software executes in the controller or host I/Obus adapter of an intelligent disk subsystem.

Swap The installation of a replacement unit in place of a defective unit. Units are parts of adisk subsystem which may either field replaceable (FRUs) by a vendor servicerepresentative or consumer replaceable (CRUs). The swap operation itself may either bea cold, warm, hot, or auto-swap, depending on the state in which the disk subsystemmust be in order to perform it.

Switch — Switched Fabric A Fibre Channel switch routes the data . It has the ability to shift circuit connections asrequired to support data transmission requests. When this type of connection isexpanded to include more than one switch and multiple nodes, it is called a switchedfabric

Switched Ethernet Configuration supporting an Ethernet hub with integrated MAC layer bridging orswitching capability to provide each port with 10 or 100 Mbps of bandwidth. Separatetransmissions can occur simultaneously on each port of the switching hub, and theswitch filters traffic based on the destination MAC address.


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System Disk The disk on which a system’s operating software is stored. The system disk is usuallythe disk from which the operating system is bootstrapped (initially loaded into memory).The system disk frequently contain the system’s swap and/or page files. It may alsocontain libraries of common software shared among several applications.

Systems Network Architecture

(SNA)

IBM’s very successful means of networking remotely located computers. It is a tree-structured architecture, with a mainframe host computer acting as the network controlcenter. Unlike the telephone network, which establish a physical path for eachconversation, SNA establishes a logical path between network nodes, and it routes eachmessage with addressing information contained in the protocol.

Tape Backup Making mag tape copies of hard disk and optical disc files, for disaster recovery.

Tape Drive The machine, actually a collection of devices, that transports, reads and or writes amagnetic tape.

TCP/IP Transmission Control Protocol/Internet Protocol. A set of communication protocols thatsupport peer-to-peer connectivity functions for both local and wide area networks. Alsoused for Internet access from the desktop.

Terabyte (TB) From “tera,” which means trillion, although it actually means 1,099,511,627,776 bytesin a computer’s binary system. A terabyte is 1,024 gigabytes.

Throughput (1) The amount of time it takes for the processing of data from the beginning of aparticular process, to the end of the process. Throughput also can refer to the numberof items completed in the process. (2) The number of I/O requests satisfied per unittime. Expressed in requests/second, where a request is an application request to astorage subsystem to perform a read or write operation.

Throughput-Intensive A characterization of applications. Also known as request-intensive. A throughput-intensive application is an I/O intensive (q.v.) application which makes large numbers ofrequests asynchronously, as opposed to a data transfer-intensive (q.v.) application.

Transmission Control

Protocol/Internet Program (TCP/IP)

(1) A set of protocols developed by the Department of Defense to link dissimilarcomputers across networks. (2) A reliable, full duplex, connection-oriented end to endtransport protocol running on top of IP.

Transparent Retrieval Transparent retrieval is achieved by several processes. The objective is for the user toaccess all their files and data as if they were on-line. Some methods leave a stub orphantom file which have the same name as the migrated file. When the applicationbegins to read the file, the stub triggers a retrieval. Control is returned to the user alongwith a message so that they can do something else while the retrieval occurs.

Travan A commonly used tape backup technology that grew out of the QIC standard. Becauseof their simplicity and affordability, Travan products tend to be ideal for backup desktopand portable PCs and smaller servers.


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Transport Protocols A set of rules and procedures that support connectivity functions for local or wide areanetworks. Examples are:

TCP/IP (UNIX)

IPX/SPX (NetWare)

SNA (IBM)

UDF/Universal Disk Format A file system for CD optical media. UDF was designed for read-write interoperabilitybetween all the major operating systems as well as compatibility between CD rewritableand CD write-once media.

Unformatted Capacity Storage capacity of disk drive prior to formatting; also called the gross capacity.

UNIX A general-purpose, multi-user, multitasking operating system invented by AT&T. UNIX ispowerful and complex, and needs a computer with a large amount of RAM memory tosupport its power. UNIX allows a computer to handle multiple users and multipleprograms simultaneously. And it works on many different computers, which means youcan often take applications software and move it, with little changing, to a bigger,different computer, or to a smaller, different computer. This process of movingprograms to other computers is known as “porting.” UNIX uses TCP/IP as its standardcommunications protocol.

Value Added Reseller /

Value Added Dealer

(VAR/VAD)

Companies that buy equipment from computer or telephone manufacturers, add someof their own software and possibly some peripheral hardware to it, and then resell thewhole computer or telephone system to end users.

Virtual Disk An alternative name for volume set (q.v.). In order to be consistent with ANSI X3T9.2RAID Study Group terminology, the RAID Advisory Board is gradually replacing thiscommonly used term with the term volume set in its publications.

Volume Label A name assigned to a floppy or hard disk in MS-DOS. The name can be up to 11characters in length. You assign a label when you format a disk or, at a later time, usingthe LABEL command.

Volume Management The ability to make two distinct disk drives or tape subsystems appear to the OS as onelogical system. Therefore, if you have 4 disks drives, you can structure those four disksdrives as one large disk farm enabling data to be written to the entire disk farm at thesame time.

Volume Set (An ANSI X3.T10 term) A contiguous range of logical block addresses presented to theoperating environment by Array Management Software. The volume set, sometimescalled a virtual disk (q.v.), is the array entity which most closely resembles a disk whenviewed by the operating environment.

Web Browser Client software that requests and displays HTML documents and other Internet orintranet resources.

Wide Area Network

(WAN)

(1) A network which encompasses interconnectivity between devices over a widegeographic area. Such networks would require public rights-of-way and operate overlong distances. (2) A network linking computers, terminals and other equipment thatcovers an area larger than a single building or campus.


390

Workstation A desktop computer that performs local processing and accesses LAN or WAN services.

Write Cache A cache segment used to accumulate data before writing to the drive on the theory thata single large write operation is more efficient than several smaller transfers.

Write Once Read Many(WORM)

Optical storage device on which data is permanently recorded. Data can be erased, butnot altered, and no additional data can be added.

Write Penalty The low apparent performance of application write requests to independent access RAIDarrays’ virtual disks. The write penalty is inherent to independent access RAID dataprotection schemes, which require multiple member writes for each application writeand ranges from minimal (RAID Level 1) to substantial (RAID Levels 5 and 6). Many arraydesigns include features such as write-back cache specifically to minimize the writepenalty.

Zoning This is the term used by some switch companies to denote the division of a SAN intosub nets that provide different levels of connectivity or addressability between specifichosts and devices on the network. In effect routing tables are used to control access ofhosts to devices. This zoning can be performed by cooperative consent of the hosts orcan be enforced at the switch level. In the former case, hosts are responsible forcommunicating with the switch to determine if they have the right to access a device.


391

Figure 1. PC Unit Shipments (1981–99) ...................................................................................................7Figure 2. PC Shipments to Large Customers ...........................................................................................8Figure 3. Storage Industry Projections ...................................................................................................10Figure 4. Total Worldwide Server and RAID-based Storage Revenues ..................................................10Figure 5. Data Storage and the Economic Pullback................................................................................11Figure 6. Digital Camera Usage .............................................................................................................14Figure 7. Online Photo Sites ..................................................................................................................16Figure 8. Worldwide Digital Cameras .....................................................................................................17Figure 9. Our Featured Storage End Users ............................................................................................18Figure 10. Intuit’s SAN ROI ....................................................................................................................20Figure 11. Annual Storage Demand for GSFC EOS Satellite System.....................................................23Figure 12. Lawrence Livermore National Laboratories’ Projected Disk and Tape Storage Demand........24Figure 13. Barry Bonds of the San Francisco Giants: An Unlikely Storage End User..............................27Figure 14. Potential Storage Demand for Major League Baseball ..........................................................28Figure 15. Pacific Bell Park: E-turnstiles, 40,000 seats, and 7 Terabytes Storage Capacity ...................29Figure 16. Example of the Demand Effect of Increased Capacity Utilization...........................................31Figure 17. Demand Effect of Increased Storage Capacity Utilization ......................................................32Figure 18. Data Replication Software Revenues ....................................................................................33Figure 19. Price Trends of External Hardware RAID Storage .................................................................34Figure 20. Worldwide Forecast for RAID Storage (in Terabytes Shipped) ..............................................37Figure 21. Revenue Growth of ERP and Business Applications .............................................................38Figure 22. Worldwide Data Warehouse Software Revenue Growth Projections .....................................39Figure 23. E-mail Messages Sent on an Average Day ...........................................................................40Figure 24. Emerging Application Growth Projections..............................................................................40Figure 25. Emerging Application Growth Projections..............................................................................41Figure 26. North American Enterprise Video Streaming Market Opportunity ..........................................42Figure 27. Corporate Bandwidth Penetration..........................................................................................43Figure 28. Storage Opportunity in Streaming Video................................................................................44Figure 29. Previous “Killer Application” Adoption Rates..........................................................................44Figure 30. Size Terminology: From Byte to Yottabyte............................................................................45Figure 31. Sizing for Storage Applications..............................................................................................45Figure 32. High Availability Metrics ........................................................................................................46Figure 33. Downtime Costs ....................................................................................................................46Figure 34. Downtime Costs — Companies.............................................................................................46Figure 35. Traditional DAS (Direct Attached Storage) Architecture.........................................................48Figure 36. SAN Architecture...................................................................................................................49Figure 37. SAN Market Projections ........................................................................................................50Figure 38. RAID-Based Disk Storage in SAN, NAS, and DAS................................................................51Figure 39. Comparison of DAS versus SAN ...........................................................................................51Figure 40. Tape Backup Using DAS.......................................................................................................52Figure 41. Tape Backup in a SAN ..........................................................................................................53Figure 42. Better Capacity Utilization in a SAN.......................................................................................53Figure 43. Many-to-Few “Fan-in” Saves Money or Utilizes Higher-end Subsystems...............................54Figure 44. Cost Advantage of Centralized Storage.................................................................................55Figure 45. SAN Is More Scalable ...........................................................................................................56Figure 46. Any-to-Any Connectivity ........................................................................................................56Figure 47. Traditional DAS (Direct Attached Storage) Backup................................................................57Figure 48. Traditional DAS (Direct Attached Storage) Backup Stops when a Server Fails......................57Figure 49. SANs Create Multiple Paths to Circumvent Server Failures...................................................58Figure 50. SANs Create Multiple Paths to Circumvent Storage Networking Failures ..............................58Figure 51. SANs Create Multiple Paths to Circumvent Storage Subsystem Failures ..............................59Figure 52. Potential SAN Manager .........................................................................................................59Figure 53. RAID-Based Disk Storage by Architecture.............................................................................61Figure 54. Traditional NAS Architecture .................................................................................................62Figure 55. NAS Versus SAN ..................................................................................................................63Figure 56. Market Positioning of NAS Vendors.......................................................................................65Figure 57. NAS Revenues and Projections ............................................................................................66Figure 58. NAS Units and Projections ....................................................................................................66Figure 59. Total NAS Market Share by Revenue, 2000 ..........................................................................66Figure 60. Traditional NAS Architecture .................................................................................................68Figure 61. By Scaling NAS, It Becomes a SAN ......................................................................................68Figure 62. Using a SAN Behind NAS to Provide Failover and Disk Mirroring..........................................69

Table of Figures


392

Figure 63. Traditional Celerra-Based NAS Architecture..........................................................................70Figure 64. Potential Celerra Based SAN Architecture.............................................................................71Figure 65. Data-Centric Architecture ......................................................................................................71Figure 66. Servers Are Clustered to Provide Greater Reliability .............................................................72Figure 67. Server Clustering Using Storage Network Switches ..............................................................73Figure 68. Scalable Storage Networking Cluster ....................................................................................73Figure 69. Designing a Potential Systems Area Network (san)...............................................................74Figure 70. Veritas Clustering Revenues .................................................................................................75Figure 71. SAN Storage Market in 2000.................................................................................................78Figure 72. RAID-Based Disk Storage Revenues and Projections ...........................................................79Figure 73. Total RAID Storage Market Share by Revenue .....................................................................79Figure 74. EMC’s Stock Price Versus the S&P.......................................................................................80Figure 75. Major Hard Disk Drive Components ......................................................................................82Figure 76. Disk Drives............................................................................................................................83Figure 77. EMC Symmetrix Disk Drive Subsystem.................................................................................84Figure 78. Different Server/RAID Configurations ....................................................................................85Figure 79. Internal Versus External Storage...........................................................................................85Figure 80. Internal RAID Storage Market Share by Revenue..................................................................86Figure 81. EMC’s Symmetrix Revenues.................................................................................................87Figure 82. Internal Storage Versus External Storage Market Share by Revenues (in 2000) ...................87Figure 83. JBOD Storage Versus External Storage by Revenues in 2000 ..............................................88Figure 84. Total RAID-Based Disk Storage ............................................................................................88Figure 85. External RAID Storage Market Share by Revenues (1998 and 2000)....................................89Figure 86. Mirroring in RAID 1................................................................................................................91Figure 87. Redundancy in RAID 1..........................................................................................................91Figure 88. Striping..................................................................................................................................92Figure 89. Parity in RAID 5.....................................................................................................................92Figure 90. Redundancy in RAID 5..........................................................................................................93Figure 91. RAID Vendor Comparison .....................................................................................................94Figure 92. Subsystem Architecture.........................................................................................................95Figure 93. Subsystems Architecture Model ............................................................................................96Figure 94. Cache Hit Versus Cache Miss ...............................................................................................98Figure 95. Algorithms Guess Which Files Will Be Accessed Soon..........................................................99Figure 96. Effective Versus Ineffective Caching .....................................................................................99Figure 97. Mirrored Cache Versus Single Cache in Cache Failure .......................................................100Figure 98. Bus Architecture..................................................................................................................101Figure 99. Switched Versus Bus ..........................................................................................................102Figure 100. Switched Architecture and Mirrored Cache........................................................................103Figure 101. Several NAS Configurations Are Possible .........................................................................104Figure 102. Network Appliance’s F840.................................................................................................105Figure 103. EMC’s Celerra...................................................................................................................106Figure 104. Traditional Celerra Architecture .........................................................................................107Figure 105. EMC’s CLARiiON FC4700.................................................................................................108Figure 106. Quantum’s Snap 4100.......................................................................................................109Figure 107. Maxtor’s MaxAttach 4100 ..................................................................................................109Figure 108. A General Purpose Server Is More Complex — and Expensive — Than a NAS Appliance111Figure 109. Adding More Storage: Quantum’s Entry NAS Appliances Versus an NT Server or Hard

Drive Addition....................................................................................................................................111Figure 110. File System and Volume Management Architecture ..........................................................112Figure 111. Block-Based Storage.........................................................................................................114Figure 112. The Hierarchy of Data Storage — Volume Management ...................................................115Figure 113. Volume Management Provides Greater Manageability Than Simple Block Storage...........115Figure 114. File-Based Storage............................................................................................................117Figure 115. The Hierarchy of Data Storage — File Systems ................................................................118Figure 116. File System DAS Architecture ...........................................................................................121Figure 117. File System SAN Architecture ...........................................................................................121Figure 118. File System NAS Architecture ...........................................................................................122Figure 119. Various Data Architectures................................................................................................123Figure 120. Storage Subsystem Connectivity by Operating and File System........................................124Figure 121. Heterogeneous Storage ....................................................................................................125Figure 122. Network Appliance Uniquely Stores Data in a Heterogeneous, Neutral Format .................125Figure 123. Network Appliance’s Heterogeneous Storage....................................................................126Figure 124. Externalizing the File System using EMC’s Celerra ...........................................................127Figure 125. EMC’s Celerra Without HighRoad .....................................................................................128Figure 126. EMC’s HighRoad Software Enables Greater Symmetrix Connectivity................................128Figure 127. EMC’s HighRoads Can Leverage SANs for Best-in-Class Performance ............................129


393

Figure 128. Virtualization in a Server-Centric Architecture....................................................................130Figure 129. Virtualization in a Network-Centric Architecture .................................................................130Figure 130. Virtual Storage Pool of Unlimited Storage on Demand.......................................................131Figure 131. Core Storage Management and Virtualization Software, UNIX platform.............................136Figure 132. Financial Power Comparison.............................................................................................137Figure 133. BMC Software Acquisitions ...............................................................................................137Figure 134. Computer Associates Acquisitions.....................................................................................137Figure 135. EMC Corporation Acquisitions...........................................................................................138Figure 136. IBM Acquisitions................................................................................................................138Figure 137. Legato Systems Acquisitions.............................................................................................139Figure 138. Network Appliance Acquisitions.........................................................................................139Figure 139. Veritas Acquisitions ...........................................................................................................140Figure 140. Storage Software Trends...................................................................................................141Figure 141. Total Worldwide Storage Software Market Revenues by Platform .....................................142Figure 142. Mainframe Storage Software Market Share (2000)............................................................142Figure 143. UNIX Storage Software Market Share (2000) ....................................................................143Figure 144. NT Storage Software Market Share (2000)........................................................................143Figure 145. Total Worldwide Storage Software Market Revenues........................................................144Figure 146. Total Worldwide Storage Software Market Revenues by Selected Vendor ........................145Figure 147. EMC’s ControlCenter Software..........................................................................................148Figure 148. Prisa Networks’ VisualSAN Network Manager...................................................................150Figure 149. Prisa Networks’ VisualSAN Performance Manager............................................................151Figure 150. Storage Resource Management Projections......................................................................151Figure 151. Storage Resource Management Market Share, All OS......................................................152Figure 152. Storage Resource Management Market Share, UNIX........................................................152Figure 153. Storage Resource Management Market Share, Windows NT............................................153Figure 154. Data Replication................................................................................................................154Figure 155. Disaster Recovery Architecture .........................................................................................155Figure 156. Downtime Costs ................................................................................................................156Figure 157. Data Replication Projections..............................................................................................156Figure 158. Replication Market Share, All OS ......................................................................................157Figure 159. Replication Market Share, UNIX........................................................................................157Figure 160. Replication Market Share, Windows NT ............................................................................158Figure 161. EMC’s Replication Software Can Mirror Data in Two Different Locations...........................159Figure 162. Traditional DAS (Direct Attached Storage) Backup............................................................161Figure 163. SAN Backups Can Be LANless .........................................................................................161Figure 164. SAN Backups Can Be LANless and Serverless.................................................................162Figure 165. An Example of How HSM Views Data ...............................................................................164Figure 166. HSM Data Migration — Freeing Primary Storage Capacity by Utilizing Less Expensive

Storage .............................................................................................................................................165Figure 167. Data Migration in a DAS Architecture ................................................................................166Figure 168. Data Migration in a SAN Architecture ................................................................................166Figure 169. HSM and Archive Projections ............................................................................................167Figure 170. HSM and Archive Market Share, All OS ............................................................................167Figure 171. HSM and Archive Market Share, UNIX..............................................................................168Figure 172. HSM and Archive Market Share, Windows NT ..................................................................168Figure 173. The Secret Behind a SAN Cloud .......................................................................................172Figure 174. Mainframe Storage Architecture Using ESCON Directors..................................................174Figure 175. SAN Networking Component Analysis...............................................................................175Figure 176. Storage Networking Growth Is Expected to Lead the Industry (YoY Growth Projections)...176Figure 177. Projected Storage Networking Revenue Growth................................................................176Figure 178. SAN Market Share by Platform..........................................................................................177Figure 179. Fibre Channel Host Bus Adapter Growth Projections ........................................................178Figure 180. HBAs Emerged as a Server-to-Storage I/O Interconnect ...................................................179Figure 181. HBAs Versus NICs ............................................................................................................180Figure 182. Host and Target Controllers Negotiate Data Transfer ........................................................181Figure 183. I/O Interfaces Exist in the Form of Chips, Boards, and Cells..............................................181Figure 184. Dissection of a Fibre Channel Host Bus Adapter ...............................................................182Figure 185. HBAs Slide into the PCI Slot, Which Is Connected to the Server or PC’s Backplane (Left) 183Figure 186. JNI PCI and SBus HBAs ...................................................................................................184Figure 187. QLogic and JNI Designs Have Similar Data Paths.............................................................185Figure 188. Emulex LP8000 and Block Diagram Showing Data Path ...................................................186Figure 189. Historical Growth of Fibre Channel HBA Revenues per Quarter ........................................188Figure 190. Various HBA Companies’ Positions...................................................................................189Figure 191. Board/Silicon Relationships...............................................................................................189Figure 193. HBA Supplier/Customer Relationships ..............................................................................191


394

Figure 194. Emulex’s Platform Profile ..................................................................................................192Figure 195. QLogic’s Platform Profile ...................................................................................................193Figure 196. JNI’s Platform Profile.........................................................................................................193Figure 197. Storage Networking Growth (2000–05)..............................................................................194Figure 198. SAN Switch Diagram..........................................................................................................195Figure 199. Switch Interconnects .........................................................................................................197Figure 200. Brocade’s 2Gbps 16-port Switch Architecture....................................................................198Figure 201. McData’s 2 Gbps 16-port Switch Architecture....................................................................199Figure 202. QLogic’s 2Gbps 16-port Switch Architecture......................................................................200Figure 203. Trunking Functionality .......................................................................................................202Figure 204. Switch Market Growth .......................................................................................................203Figure 206. Switch Market Share (Revenues) 2000 .............................................................................204Figure 207. Switch and Director Revenue Growth — Brocade, McData, Inrange, and QLogic..............204Figure 208. Brocade’s Silkworm Product Family ..................................................................................205Figure 209. QLogic’s Switch and Director Product Family ....................................................................206Figure 210. ESCON and FICON Directors ...........................................................................................207Figure 211. Directors Are Expected to Achieve the Highest Growth in Storage Networking..................208Figure 212. Director Market Share (Revenues) 2000 ...........................................................................209Figure 213. Fibre Channel Product Introductions .................................................................................210Figure 214. Inrange’s Product Portfolio ................................................................................................211Figure 215. Building a 32-port High Availability Fabric Using 16-port Switches.....................................212Figure 216. Building a Simple 30 node Fabric Using 16-port Switches .................................................212Figure 217. Core-to-Edge Storage Networking Architecture .................................................................213Figure 218. More Likely Core-to-Edge Storage Networking Architecture ..............................................214Figure 219. McData’s Core-to-Edge Product Portfolio ..........................................................................214Figure 220. SAN Bridge Diagram .........................................................................................................216Figure 221. SAN Router Diagram.........................................................................................................217Figure 222. Crossroads’ Product Portfolio ............................................................................................217Figure 223. Routers Could Enable Multiple Protocol Connectivity ........................................................218Figure 224. SAN-to-SAN Interconnectivity via a LAN ...........................................................................219Figure 225. Nishan’s FC-to-IP Router ..................................................................................................220Figure 226. SAN Valley’s FC-to-IP Router............................................................................................220Figure 227. SAN Hub Diagram..............................................................................................................221Figure 228. Gadzoox’s Product Portfolio ..............................................................................................222Figure 229. Four-port Hub and Switch Architectures ............................................................................223Figure 230. Six-port Hub and Switch Architectures (16-port Switches Are More Common) ..................223Figure 231. Fibre Channel Arbitrated Loop (FC-AL) Diagram...............................................................224Figure 232. Various Networking Areas .................................................................................................226Figure 233. Past and Potential Future Storage Networking Technology Availability..............................228Figure 234. Evolution of SCSI ..............................................................................................................233Figure 235. Data Transfer Rates of Various Interface Standards..........................................................234Figure 236. Parallel Versus Serial Interface .........................................................................................236Figure 237. SCSI and Fibre Channel Comparisons ..............................................................................237Figure 238. OSI Reference Model ........................................................................................................241Figure 239. OSI Versus Ethernet Versus Fibre Channel.......................................................................242Figure 240. ISO’s OSI Model ...............................................................................................................242Figure 241. Fibre Channel Versus OSI Model ......................................................................................243Figure 242. Fibre Channel Five-Layer Model .......................................................................................244Figure 243. Ethernet Versus OSI Model ...............................................................................................245Figure 244. Ethernet — Protocol Functions.........................................................................................245Figure 245. Ethernet Packets ...............................................................................................................246Figure 246. Ethernet Packet Adds Extension Symbols for Small Data Payloads ..................................246Figure 247. Fibre Channel Frames.......................................................................................................247Figure 248. Ethernet, iSCSI, iFCP, Fibre Channel................................................................................250Figure 249. Newer Protocols Use Elements of Older Ones ..................................................................250Figure 250. Technologies Have Different Degrees of Backward Compatibility......................................251Figure 251. FCIP Combines Two Protocols..........................................................................................252Figure 252. New Technology “Hype” Cycle and Protocol Positioning ...................................................254Figure 253. Premier InfiniBand Supporters...........................................................................................255Figure 254. PCI-X Delivers Higher Bandwidth than PCI .......................................................................256Figure 255. PCI-X Implementation in Next-Generation Servers............................................................257Figure 256. InfiniBand-Enabled Server Shipments ...............................................................................258Figure 257. InfiniBand Network ............................................................................................................259Figure 258. Today’s PCI and PCI-X Server Architectures.....................................................................260Figure 259. Phase 1: Potential InfiniBand Server Architecture..............................................................260Figure 260. Phase 2: Potential InfiniBand Server Architecture..............................................................261


395

Figure 261. InfiniBand Links and Data Throughput Rates.....................................................................261Figure 262. VI Architecture Comparison...............................................................................................262Figure 263. VI in the OSI Model ...........................................................................................................263Figure 264. Potentially RAID and RAIM Architectures Could Look Very Similar ...................................264Figure 265. Networking Diagram..........................................................................................................265Figure 266. IP SAN Router...................................................................................................................267Figure 267. SAN and NAS Convergence with EMC’s Celerra...............................................................270Figure 268. SAN, NAS, and DAS (Direct Attached Storage) Convergence with EMC’s Celerra............270Figure 269. Total Storage Convergence Including Remote Mirroring....................................................271Figure 270. 100x4 Quad-Port Server Accelerator.................................................................................285Figure 271. 100x1 Single-Port Server Accelerator................................................................................285Figure 272. Ancot — FCAccess 2000 Fibre Channel Analyzer.............................................................286Figure 273. Ancot — The Ultra2160 SCSI Bus Analyzer ......................................................................286Figure 274. ATTO Technology’s Enterprise Solutions ..........................................................................289Figure 275. ATTO ExpressPCI FC 3305 ..............................................................................................290Figure 276. ATTO FibreBridge 3200R..................................................................................................290Figure 277. ATTO FibreCenter, Fibre Channel hub..............................................................................290Figure 278. ATTO FibreCenter 2100R .................................................................................................291Figure 279. Baydel’s O/ESR 2000........................................................................................................293Figure 280. Baydel’s O/ESR RAIDER-5 ...............................................................................................293Figure 281. An Example RAIDMON Software Screen. Error Notification: Failed Disk.........................294Figure 282. BlueArc’s Si7500...............................................................................................................295Figure 283. Bus-Tech’s Original DataBlaster........................................................................................297Figure 284. Bus-Tech’s DataBlaster 2..................................................................................................297Figure 285. Bus-Tech’s NetShuttle.......................................................................................................297Figure 286. Bus-Tech’s NetShuttle Product Features...........................................................................298Figure 287. Chaparral Network Storage — FS2620: 2Gbps Fibre Channel-to-Ultra160 SCSI Storage

Router...............................................................................................................................................300Figure 288. Chaparral Network Storage — G6322: Ultra 160-to-Ultra 160 SCSI .................................300Figure 289. CMD Technology — CMD Titan CRA-7280 RAID controller ..............................................301Figure 290. The Datacore Software Drag-and-Drop Interface...............................................................304Figure 291. DataDirect Networks’ SAN DataDirector............................................................................305Figure 292. Multiplatform Environments ...............................................................................................306Figure 293. DataDirect Networks’ OEM Exclusive EV-5000, Fastest Fibre Channel Network RAID

System — 185MB/Sec Sustained Throughput...................................................................................307Figure 294. DataDirect Networks’ EF-2000 Fibre Channel SAN Ready RAID Solution.........................307Figure 295. Hitachi Data Systems Solutions.........................................................................................310Figure 296. Hitachi Hi-Star Switched Architecture ................................................................................311Figure 297. I-TECH — IFC-4 Fibre Channel Tester..............................................................................313Figure 298. I-TECH —Satellite IFC-4016 Fibre Channel Analyzer........................................................313Figure 299. Lane15 Software’s Product Architecture............................................................................317Figure 300. Mellanox Technologies — Two-Port Card .........................................................................319Figure 301. Nishan Systems’ SoIP Product Family...............................................................................321Figure 302. Nishan Systems’ IPS (IP Storage) 1000 Gateway .............................................................321Figure 303. Nishan Systems’ IPS 2000 Switch.....................................................................................322Figure 304. Nishan Systems’ IPS 3000 Switch.....................................................................................322Figure 305. Nishan Systems’ SANvergence Management Suite ..........................................................322Figure 306. NSI Software’s Double-Take .............................................................................................323Figure 307. The NexStor 3250S — Dual RAID Controller SCSI Storage System .................................325Figure 308. The NexStor 1202S — JBOD SCSI Storage System.........................................................325Figure 309. AdminiStor Storage Management Software.......................................................................326Figure 310. OmegaBand’s IBgate 1000 ...............................................................................................326Figure 311. The Pirus Storage Utility Switch ........................................................................................328Figure 312. PolyServe’s SANs Vision...................................................................................................329Figure 313. PolyServe Matrix Server....................................................................................................330Figure 314. Power Quest Desktop Solutions ........................................................................................331Figure 315. PowerManage Suite ..........................................................................................................332Figure 316. Prisa’s VisualSAN Network Manager.................................................................................333Figure 317. Prisa’s VisualSAN Performance Manager .........................................................................334Figure 318. Raidtec’s Products ............................................................................................................335Figure 319. Focus Technologies ..........................................................................................................336Figure 320. SANgate’s Enterprise Storage Appliance (ESA) ................................................................338Figure 321. Storagetone.com Portal.....................................................................................................340Figure 322. Storagetone Fibrecloud .....................................................................................................340Figure 323. SL1000 Gateway...............................................................................................................341Figure 324. SVS Management System ................................................................................................342


396

Figure 325. XIOtech Product Family.....................................................................................................344Figure 326. Storage Virtualization Manager (SVM)...............................................................................348Figure 327. Tantia NSM Enterprise-class Backup and Recovery Solution ............................................349Figure 328. Tantia Harbor Backup .......................................................................................................349Figure 329. Tantia Enterprise Agent Suite............................................................................................350Figure 330. Tantia Technologies — RS/6000 Solution .........................................................................350Figure 331. Tantia Technologies — Bus-Tech Datablaster 2 Solution ..................................................350Figure 332. Tantia Technologies — Crossroads PCI ESCON Solution.................................................350Figure 333. Storage Monitoring Manager (Tantia SMM).......................................................................351Figure 334. The Troika Networks Solution............................................................................................353Figure 335. Troika Networks’ Zentai Controller.....................................................................................354Figure 336. Paladin C-series................................................................................................................357Figure 337. Vicom Systems’ Independent Distributed Routing .............................................................359Figure 338. Vicom Systems’ SV Routers..............................................................................................359Figure 339. Vicom Systems’ SV Bridges ..............................................................................................359Figure 340. VIEO Fabric Manager: Core Services — WAN/MAN Solution...........................................361Figure 341. YottaYotta’s Scalable Solution...........................................................................................363Figure 342. YottaYotta’s WAN/MAN Solution .......................................................................................364


397

Notes


398

Notes


399

Companies Mentioned in this Report3COM (COMS-$4.32; NR)Adaptec (ADPT-$10.04; NR)Advanced Digital# (ADIC-$12.10; 3H)Agilent# (A-$23.23; 2M)AOL# (AOL-$33.50; 1H)Apple (AAPL-$17.99; 3H)Arc International (ARK.L-£38.50; NR)AT&T# (T-$19.20; 3M)Auspex (ASPX-$2.34; NR)Bakbone (BKB.TO-C$1.70; NR)Bell Microproducts (BELM-$8.93; 2H)BMC Software (BMC-$15.53; 1H)British Telecom (BTY-$48.60; NR)Brocade (BRCD-$24.17; 1H)Cisco (CSCO-$16.21; 1H)Citigroup (C-$44.80; NR)Compaq# (CPQ-$9.80; 1H)Computer Associates (CA-$29.51; NR)Computer Network Technologies (CMNT-$15.10; NR)Crossroads (CRDS-$2.55; NR)Dell (DELL-$23.58; 3H)Deutsche Telekom (DT-$15.95; 3H)Dot Hill Systems (HIL-$1.58; 3S)Eastman Kodak# (EK-$34.99; 3M)EMC (EMC-$13.10; 2M)Emulex (EMLX-$20.76; 3S)Falconstor (FALC-$9.10; NR)Fujitsu (6702.JP0-¥997; NR)Gadzoox (ZOOX-$0.93; NR)GE (GE-$38.86; 1L)Hewlett-Packard# (HWP-$18.12; 1M)Hitachi (HIT-$73.40; 3M)Hutchinson Technology# (HTCH-$19.60; 3S)IBM# (IBM-$102.00; 1M)

Inrange# (INRG-$7.17; 1H)Intel (INTC-$24.38; 1M)Interphase (INPH-$4.11; NR)Intevac# (IVAC-$3.75; 3S)Intuit (INTU-$35.22; 2H)Iomega (IOM-$6.72; 3S)iVillage (IVIL-$0.96; NR)JNI# (JNIC-$7.45; 3H)Legato (LGTO-$8.60; 3S)LSI Logic (LSI-$15.80; 3S)Lucent# (LU-$6.83; 2H)Maxtor# (MXO-$4.50; 2H)McData (MCDT-$14.65; NR)Microsoft (MSFT-$58.06; 2H)Motorola# (MOT-$17.58; 2M)NEC (NIPNY-$9.30; 2H)Network Appliance (NTAP-$11.61; 3H)Nortel (NT-$5.94; 2H)Novell (NOVL-$3.85; NR)ONI Systems# (ONIS-$7.07; 1S)OTG Software# (OTGS-$5.50; 2H)Procom (PRCM-$2.03; NR)QLogic (QLGC-$36.12; 3H)Quantum (DSS-$8.55; 3H)Read-Rite (RDRT-$4.48; 2S)Samsung (05930.KS-163,000SKW; 1H)SGI (SGI-$0.45; 4S)Storage Technology (STK-$14.80; 3H)Sun Microsystems# (SUNW-$9.68; 1H)Symantec (SYMC-$51.04; NR)United Online (UNTD-$2.79; NR)Veritas (VRTS-$27.93; 2H)Western Digital# (WDC-$2.54; 3H)


400

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST US09J159# Within the past three years, Salomon Smith Barney, including its parent, subsidiaries, and/or affiliates, has acted as manager or co-manager of a public offering of the securitiesof this company.

Salomon Smith Barney (“SSB”), including its parent, subsidiaries, and/or affiliates (“the Firm”), usually makes a market in the U.S.-traded over the counter securitiesrecommended in this report and may sell to or buy from customers, as principal, securities recommended in this report. The Firm or employees preparing this report may have aposition in securities or options of any company recommended in this report. An employee of the Firm may be a director of a company recommended in this report. The Firm mayperform or solicit investment banking or other services from any company recommended in this report.

Securities recommended, offered, or sold by SSB: (i) are not insured by the Federal Deposit Insurance Corporation; (ii) are not deposits or other obligations of any insured deposit-ory institution (including Citibank); and (iii) are subject to investment risks, including the possible loss of the principal amount invested. Although information has been obtainedfrom and is based upon sources SSB believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute SSB’sjudgment as of the date of the report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for thepurchase or sale of a security.

This report has been approved for distribution in the United Kingdom by Salomon Brothers International Limited, which is regulated by the Securities and Futures Authority. Theinvestments and services contained herein are not available to private customers in the UK and South Africa. This report was prepared by SSB and, if distributed in Japan by NikkoSalomon Smith Barney Limited, is being so distributed under license. This report is made available in Australia through Salomon Smith Barney Australia Securities Pty Ltd. (ABN 64003 114 832), a Licensed Securities Dealer, and in New Zealand through Salomon Smith Barney New Zealand Limited, a member firm of the New Zealand Stock Exchange. Thisreport does not take into account the investment objectives or financial situation of any particular person. Investors should obtain advice based on their own individualcircumstances before making an investment decision. Salomon Smith Barney Securities (Proprietary) Limited is incorporated in the Republic of South Africa (company registrationnumber 2000/025866/07) and its registered office is at Grosvenor Corner, 195 Jan Smuts Avenue, Rosebank, 2198, Republic of South Africa.

Guide to investment ratings: RANK is a guide to the expected total return over the next 12-18 months. The total return required for a given rank depends on the degree of risk (seebelow) in a stock. The higher the risk, the higher the required return. For example, a 1 (Buy) rating indicates a total return ranging from 15% or greater for a low-risk stock to 30%or greater for speculative stocks. Estimated returns for other risk categories are scaled accordingly. RISK takes into account predictability of earnings and dividends, financialleverage, and stock price volatility. L (Low Risk): predictable earnings and dividends, suitable for conservative investors. M (Medium Risk): moderately predictable earnings anddividends, suitable for average equity investors. H (High Risk): earnings and dividends are less predictable, suitable for aggressive investors. S (Speculative): very lowpredictability of fundamentals and a high degree of volatility, suitable only for investors/traders with diversified portfolios that can withstand material losses. V (Venture): indicatesa stock with venture capital characteristics that is suitable for sophisticated investors with a high tolerance for risk and broadly diversified investment portfolios. A thoroughexplanation of the ratings system is available upon request.

Investing in non-U.S. securities, including ADRs, by U.S. persons may entail certain risks. The securities of non-U.S. issuers may not be registered with, or be subject to, thereporting requirements of, the U.S. Securities and Exchange Commission. There may be limited information available on foreign securities. Foreign companies are generally notsubject to uniform audit and reporting standards, practices and requirements comparable to those in the U.S. Securities of some foreign companies may be less liquid and theirprices more volatile than securities of comparable U.S. companies. In addition, exchange rate movements may have an adverse effect on the value of an investment in a foreignstock and its corresponding dividend payment for U.S. investors. Investors who have received this report from the Firm may be prohibited in certain U.S. states from purchasingsecurities mentioned in this report from Salomon Smith Barney. Please ask your Financial Consultant for additional details.

Salomon Smith Barney is a service mark of Salomon Smith Barney Inc.

© Salomon Smith Barney Inc., 2001. All rights reserved. Any unauthorized use, duplication, or disclosure is prohibited by law and will result in prosecution.

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