Reuters is putting out a story that Storwize is going to be bought by IBM for $140 million. Storwize, which develops online data compression software that increases storage space in network storage environments, has raised $40 million since it was founded in 2004.
Storwize was funded by Sequoia Capital, Bessemer Venture Partners, Tenaya Capital, Tamares Group and Tokyo Electron Device.
Word on the street is that this deal is heavily being sought out by many companies. These guys have some intellectual property in storage optimization and real time data compression. Storwise has something like 35 patents (according to their videos on their site). They also seem to have a good client base. Not sure what their revenues are. No brainer for IBM to buy these guys mainly for their intellectual property.
Evolution of Storage – Nice Video Found on YouTube
Who doesn’t want more storage. I just bought two HD cameras and 16Gb SD cards are dropping fast in price. Can’t wait for the 1Tb SD card. Storage is becoming a central part of the convergence in the cloud with computing, networking, and storage converging into one integrated high performance solution.
Companies like Storwize need to be integrated which makes sense for IBM to buy them. IBM has an army of sales people and could take Storwize and drive some real value. $140m for Storwize is decent price and good exit for Storwize.