In his latest piece on research project site Wikibon, Scott Lowe discusses the pros and cons of choosing a startup over a tier one vendor in the hybrid storage space. He details the risks that CIOs need to take into account when doing business with emerging players, and outlines the long-term rewards of choosing the right one.

Lowe writes that “not all startups are created equal.”  Some may fail to gain traction in the market and go down, while others may get bought out.  In either case, an organization’s hardware investment faces the risk of being left unsupported – a threat that becomes a non-factor when buying from vendors such as IBM.

Low notes that the “risks are real”,  but points out that there are several ways CIOs can avoid making a fatal choice:

“For those concerned about startup risk, look for these kinds of items:

§  References. What do current customers think of the product and the company?

§  Funding. Is the company well-funded or is there enough business to sustain operations and innovation?

§  Awards. Is the company gaining mindshare through awards from industry peers?

§  Analyst recommendation. How do analysts feel about the long-term viability of the company?”

There is risk, and it can be circumvented, but are there any advantages that justify it?

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Lowe says that the answer is yes. He highlights that startups don’t have legacy roots that prevents them from innovation, and adds that a small supply chain often translates into competitive rates. He lists two additional benefits: a “great feature set”, such as what Nimble, Tegile, and Tintri are offering, and a constant stream of new functionality that is driven by customer feedback. Startups listen to clients because they need to hold onto every last one.

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