CommVault enters backup appliance market via ... - SLIDEBLAST.COM

CommVault enters backup appliance market via NetApp partnership Analyst: Dave Simpson 29 Jan, 2015 CommVault recently put an end to rumors regarding its entry into the hardware appliance business when it launched its own branded appliances for backup and de-duplication, which are bundled with its Simpana data-protection suite. And it was no surprise that CommVault chose its long-standing partner NetApp as its disk system supplier: CommVault CEO Bob Hammer in late 2014 preannounced the partnership in a 'soft launch' preview for its customers and partners. The result is a system officially called the 'CommVault Backup Appliance with NetApp.' And it's not good news for backup appliance leaders EMC and Symantec, or any of the many other vendors of so-called purpose-built backup appliances (PBBAs).

The 451 Take Our reaction to CommVault's entry into the backup appliance market: What took you so long? We've known for some time that many IT organizations prefer bundled backup systems that include an appliance that's preconfigured with backup software, in large part because it's just simpler to deploy, and there's only 'one throat to choke.' In addition, integrated appliances eliminate the need for separate media servers and backup targets. CommVault historically fulfilled customer demand for integrated appliances via partnerships – first Dell and then STORServer and Fujitsu. But it was clear that CommVault needed its own branded appliances and that it was losing deals because it didn't have them. We think that CommVault will be a formidable player in the PBBA market and will give market leaders such as EMC (Avamar and Data Domain) and Symantec a run for their money. This is in large part because of the momentum of CommVault's Simpana software, but also because both CommVault and NetApp channel partners will be reselling the appliances.

Copyright 2015 - The 451 Group

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Context It's been clear for a long time that some IT organizations prefer to buy backup and recovery via integrated appliances rather than buy the software and hardware separately from different vendors and cobble them together themselves. For years, CommVault relied primarily on an OEM relationship with Dell to meet those requirements. However, in 2012, Dell acquired data-protection software vendor AppAssure, which eventually led to the dissolution of its partnership with CommVault as Dell began focusing on its own backup appliances. (At the height of the relationship, Dell accounted for about 22% of CommVault's revenue.) In 2014, CommVault entered into a similar partnership with STORServer, which began selling appliances powered by CommVault in North America. CommVault also entered into an OEM partnership with Fujitsu Ltd, which sells appliances powered by CommVault in Europe. However, CommVault was still losing deals because it didn't have its own backup appliances, which led to the recent partnership with NetApp. The backup appliance partnership is the second major collaboration between NetApp and CommVault. The two vendors jointly developed NetApp's SnapProtect software, which is array-based snapshot management and data-protection software that's based on CommVault's Simpana software and IntelliSnap technology. SnapProtect is used in NetApp's Data ONTAP environments. CommVault claims that the introduction of its own appliances will not affect its existing reseller partnerships with STORServer and Fujitsu. CommVault also claims that it will not favor its branded appliances over those from either STORServer or Fujitsu. Products CommVault's backup appliances are based on NetApp's E-Series model 2712 disk systems, which have dual SAS controllers and SATA disk drives. A 2.5-inch SSD is used for the de-duplication database. Base models are available in 18TB and 36TB configurations, and users can add up to eight expansion shelves for a maximum capacity of 288TB per appliance. Multiple appliances can be managed from a single console. The appliances will be sold by both NetApp's and CommVault's resellers and channel partners, which, in turn, can buy the preconfigured appliances from distributors Arrow Electronics or Avnet Technology Solutions. CommVault provides support for the appliances. The bundled Simpana software is a full version of the software and even includes endpoint backup and CommVault's Copyright 2015 - The 451 Group

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Simpana OnePass technology, which is typically sold separately. Simpana OnePass combines backup and file-archiving functionality, and it is a differentiator for CommVault vs. most competitors. Simpana options for the backup appliances include array-based snapshot management, email archiving, search and e-discovery, and support for tape. A separate endpoint data-protection package that CommVault recently introduced is also available as an option. CommVault is emphasizing simplicity with the backup appliances and claims that systems can be fully configured in less than one hour. Pricing for an entry-level, 18TB configuration is $82,189. It's difficult to make pricing comparisons in the backup appliance market because it's often characterized by heavy discounting, but we expect CommVault to be priced competitively with its primary rivals. Competition With the introduction of its backup appliances, CommVault will compete primarily with market leaders Symantec (the NetBackup 5230 and 5330 appliances) and EMC (both the Data Domain and Avamar product lines). Other vendors in the backup/de-duplication space (integrated and non-integrated) include vendors such as HP, IBM, Dell, Quantum, ExaGrid Systems, FalconStor Software, Barracuda Networks and Unitrends. Compared to CommVault's primary competitors (EMC and Symantec), we don't see much differentiation in the hardware appliances themselves. As such, CommVault's differentiator in the backup appliance space is the same as it is in the backup software space: its Simpana software. And as we have noted in the past, its key advantage is that the Simpana suite integrates under a single code base all data-protection functions, eliminating the need for users to buy separate applications (although, as noted previously, some of CommVault's functions are available only as separately priced options). One specific feature that's worth mentioning in the backup appliance context is that CommVault's implementation includes parallel de-duplication for load balancing and resiliency of de-dupe workloads. This is a differentiator from competitors such as Symantec. In addition to Simpana's traditional strengths, we think that other differentiators from most of CommVault's competitors in the backup appliance space include integrated endpoint backup/recovery, single-pass backup and archiving and, as an option, array snapshot management. The key challenge for CommVault in the backup appliance space will be to prove that it can transition from being a pure-play software Copyright 2015 - The 451 Group

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vendor into selling and supporting hardware. SWOT Analysis Strengths

Weaknesses

The broad functionality of the Simpana suite – under a single code base – gives CommVault an advantage in the crowded market for backup appliances. Having NetApp – and its channel strength – is another key advantage.

CommVault has no experience in selling or supporting hardware, and it will have to prove that it can make that transition.

Opportunities

Threats

Having greater access to NetApp's reseller base is an opportunity that essentially broadens CommVault's reseller reach.

EMC and Symantec will be ongoing threats, and we expect vendors such as HP and Dell to gain share in the backup appliance market. In addition, vendors that have been focused predominantly on hybrid cloud models for data protection – such as Barracuda and Unitrends – could provide stiff competition at the low end of CommVault's target market.


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Reproduced by permission of The 451 Group; © 2015. This report was originally published within 451 Research's Market Insight Service. For additional information on 451 Research or to apply for trial access, go to: www.451research.com


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