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Article

Title: IBM Buys Israeli Data-Storage Firm Headed by Ex-Foe

Author: Bulkeley, William M Article Type: Company
Source: San Francisco Chronicle, pE2(1) Publication Date: Jan 14, 2008
URL of Publication: http://www.sfgate.com

IBM bought XIV Corp. in January, and along with the company comes Moshe Yanai, the man who designed Symmetrix disk drives. Yanai will become a senior fellow specializing in storage-technology strategy at IBM and hopefully will help the company turn its fortunes around in the market for computer storage disks. Yanai helped pioneer a technology that is now standard in the storage industry called RAID (redundant arrays of inexpensive disks) that links the kinds of disk drives used in PCs together. XIV has just 50 engineers and only a handful of customers, but the rumor is that the deal was sealed at $300 million. However, the technology developed by Yanai, and Yanai himself, could upend the storage industry. IBM currently has roughly 14 percent, compared to EMC's 22 percent, of the external-disk storage business, which is expected to reach about $20 billion in 2008. The need for increased storage space comes from the explosion of things like digital music, web videos, and social-networking sites. IBM bought XIV due to its potential to handle large volumes of unstructured data.

Companies:
EMC Corp IBM Corp
XIV Ltd

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