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Compaq commits $100 million to storage investments in 2001

The "development of the open SAN" is at the top of Compaq's list of new year's resolutions for 2001. The company announced Monday that it will invest $100 million next year to expand its line of storage offerings with the continued development and adoption of storage hardware, software and utility provider solutions.

Compaq has already invested in a slew of storage companies during the past year. Some of the recipients of Compaq dollars include HighGround Systems, Inc. (recently acquired by Sun), Nupremis, Inc., Prisa Networks and StorageNetworks, Inc. In addition to equity investments, Compaq's strategic service provider partners including Acxiom Corp., Data Return Corp., Digex, Inc., Exodus Communications, Inc., and NaviSite, Inc., are adding or expanding managed hosting and storage services and utility offerings to their portfolios.

Compaq said additional companies will be selected for funding that share Compaq's "strategic vision" for storage networking; create enabling technology; and offer the potential for financial return. Priority strategic investments include innovative new technologies in hardware and software and service and solution providers.

"Compaq's direct economic support should be sufficient incentive for the flourishing of many beneficial network storage innovations," said David Hill, research director, storage and storage management, for the Aberdeen Group. "Compaq's innovative-storage-idea-promoting investment fund that complements the open standards of its Enterprise Network Storage Architecture (ENSA) strategy is therefore welcome news for many enterprises." Compaq's ENSA strategy enables users to efficiently manage complex, mixed storage environments in an Open storage area network (SAN).

Open SANs adhere to industry standards at all levels including servers, disk arrays, tape storage, and switches, and can be managed with common tools. This open technology allows any-to-any connectivity among servers and storage systems, regardless of operating system or manufacturer.

Many companies now dedicate half their hardware investment to storage systems. Storage capacity more than doubles each year and analysts expect the largest 2,500 companies worldwide to spend more than $19 million each on storage by 2003 (Forrester Research).

According to International Data Corp., Compaq shipped with 42 Petabytes of storage capacity in 1999.

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Compaq Computer Corp./Storage Products

Let us know what you think about the story, e-mail Kevin Komiega, assistant news editor

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