Tandberg Buys Tape Maker Exabyte - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News
News
8/30/2006
06:48 PM
50%
50%

Tandberg Buys Tape Maker Exabyte

It's the second recent major merger in the tape industry, following the close last week of Quantum's $770 million acquisition of ADIC.

The consolidation of the tape industry continues as Tandberg Data has agreed to acquire Exabyte in a $28 million deal.

It is the second major move to consolidate the tape industry following the close last week of Quantum's $770 million acquisition of ADIC.

The two acquisitions come during a crucial time for the tape industry, as the growth in disk-to-disk backup and archiving, as well as the increasing use of online services for backup and archiving, threatens tape's dominance in this space.

However, said Bob Abraham, president of Freeman Reports, an Ojai, Calif.-based tape industry analyst, things are not as bad as they seem in the industry.

In his most recent report on the industry, Abraham said that tape market revenue has declined for five straight years while volume has dropped for 10 straight years, but that he expects both unit sales and revenue to grow from 2006 to 2011 as businesses continue to adopt higher-end tape for safe long-term archival and data retention requirements.

With the acquisition, Tandberg, Oslo, Norway, gets access to Exabyte's VXA tape technology, along with new tape autoloaders and small tape libraries, said Ken Cruden, executive vice president and general manager of Tandberg's U.S. subsidiary, based in San Diego. Both companies offered tape automation products using LTO tape drives.

Tandberg also gets Exabyte's OEM relationship with Apple to go with its own OEM relationship with Dell. The two companies both count IBM and Fujitsu-Siemens as OEM partners.

Tandberg also gets access to a larger channel in the U.S., as the two companies had little overlap in their channel partner base, Cruden said.

The Exabyte spokesperson said the acquisition will be good news for Exabyte's channel, as the Boulder, Colo., vendor had been struggling financially for five years while Tandberg is financially strong.

Kevin Murray, owner of Compuplus, a Costa Mesa, Calif.-based solution provider, said he hope little changes as a result of the acquisition

"I'm a premier Exabyte partner, and get the premier discount," said Murray. "I wonder how this will impact me."

Cruden said the need to consolidate in the tape industry drove his company's acquisition of Exabyte.

"We've been looking at various alternatives," he said. "It's very clear that with the consolidation in tape, businesses need to get bigger. The key issue is, companies need to get bigger to stay in the game."

The Exabyte spokesperson said all of Exabyte's rank and file employees are going to be offered a position in Tandberg at the same salary, and the top executives, including Exabyte CEO Tom Ward, will stay with the company for the near term.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll