(photo credit: Wikipedia Commons)
IBM Corp. has entered into a definite agreement to buy US-Israeli data-storage start-up Storwize for an estimated $140 million.
“Real-time data compression helps address a significant client need: making it affordable to analyze and make sense of massive amounts of data in order to provide new services,” IBM System Storage and Networking general manager Brian Truskowski said Thursday. “By adding Storwize to our innovative portfolio of storage solutions, IBM is better equipped than ever to help clients handle growing quantities of data and make more of it available for analytics.”
Storwize is IBM’s second Israeli purchase in the past year and the seventh overall. The acquisition is expected to close in the third quarter of 2010, subject to the approval of customary closing conditions.
“The acquisition of Storwize further strengthens Israel’s position as a main center for IBM’s activity in the field of storage data,” IBM Israel CEO Meir Nissensohn said Thursday. “It also is a sign of confidence by IBM in the innovation and technological know-how developed in Israel in recent years.”
Storwize is a privately held company that was founded in Israel in 2004
and has offices in Marlborough, Massachusetts. It has a research and
development center in Yehud that employs 40 workers. Following the
acquisition, all of Storwize’s workforce will join IBM’s storage R&D
center in Israel.
Storwize provides real-time data-compression technology to help clients
reduce physical storage requirements by up to 80 percent, according to
the company. By compressing primary data, Storwize users can store up to
five times more data using the same amount of storage, preventing
storage sprawl and lowering power and cooling costs.
IBM said data compression for storage systems has become more important
as the world’s data already vastly exceeds available storage space, and
enterprise demand for storage capacity worldwide is projected to grow at
an annual growth rate of more than 43% from 2008 to 2013.