Storage Software Industry - Hitachi Data Systems

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Storage Software Industry - Hitachi Data Systems Powered By Docstoc
					                                                                              A.G. Edwards

                              Storage Software Industry
                                   Public and Private Company Analysis
                                                                                   APRIL 28, 2003

                                                                                                                                       Shebly Seyrafi, CFA (314) 955-6665
                                                                                                                                          Aaron Rakers, Associate Analyst
                                                                                                                                               Bob Betz, Associate Analyst

                                                                            Table of Contents
Table of Contents ................................................................................................................................................................1
Executive Summary ............................................................................................................................................................3
Overview ................................................................................................................................................................................4
    What Is a SAN? ....................................................................................................................................................................4
Storage Software Market ..................................................................................................................................................7
Storage Resource Management.................................................................................................................................................8
Storage Virtualization...............................................................................................................................................................10
Backup/Archive Software.........................................................................................................................................................12
Policy Based Automation .........................................................................................................................................................13
Initiatives .................................................................................................................................................................................14
CIM/WBEM (DMTF) .................................................................................................................................................................14
Bluefin/SMI-S Initiative (SNIA) ................................................................................................................................................15
Storage Software Companies (Public) .......................................................................................................................16
VERITAS Software ...................................................................................................................................................................21
Computer Associates...............................................................................................................................................................25
Legato Systems .......................................................................................................................................................................29
    If EMC were to Acquire Legato Systems.............................................................................................................................30
BMC Software..........................................................................................................................................................................33
Hewlett-Packard ......................................................................................................................................................................36
Hitachi Data Systems (HDS) ....................................................................................................................................................37
Microsoft .................................................................................................................................................................................39
Sun Microsystems...................................................................................................................................................................43
Storage Software Companies (Private) .....................................................................................................................46
Storage Resource Management (SRM)¾Private Companies................................................................................................46
AppIQ ......................................................................................................................................................................................46
Arkivio .....................................................................................................................................................................................49
CreekPath Systems..................................................................................................................................................................52
Invio Software .........................................................................................................................................................................59
PowerQuest .............................................................................................................................................................................62
Storability Software .................................................................................................................................................................66
TeraCloud ................................................................................................................................................................................69
Storage Backup/Recovery.......................................................................................................................................................72
Avamar Technologies ..............................................................................................................................................................72
CommVault Systems ...............................................................................................................................................................75
NSI Software ...........................................................................................................................................................................78
Storactive ................................................................................................................................................................................81
Topio .......................................................................................................................................................................................86
Bocada ....................................................................................................................................................................................88
File System/Distributed File System Management................................................................................................................90
KOM Networks ........................................................................................................................................................................90
PolyServe ................................................................................................................................................................................93
Sistina Software ....................................................................................................................................................................100
Spinnaker Networks...............................................................................................................................................................103
Xythos Software ....................................................................................................................................................................107
Virtualization Software .........................................................................................................................................................110
DataCore Software.................................................................................................................................................................110
StoreAge Networking Technologies .......................................................................................................................................114
Vicom Systems, Inc...............................................................................................................................................................117
Other Storage Software ........................................................................................................................................................119
Netliant ..................................................................................................................................................................................119
OuterBay Technologies ..........................................................................................................................................................121
SANgate Systems ..................................................................................................................................................................124
SteelEye Technology..............................................................................................................................................................126
Glossary .............................................................................................................................................................................128

                                           Executive Summary
Storage software has become an increasingly important focus for most storage players, partly because of
the increasing rate of hardware commoditization and partly because of the higher margins involved.
Traditionally, the backup/recovery software market has been the key subsegment of this market.
However, over the past few years there has been increasing interest in storage resource management
(SRM) along with the latter’s subsegments such as policy-based automation and provisioning (also
known as active SRM). Other areas of interest include storage virtualization and distributed file systems.

Storage software companies (such as VERITAS) and storage hardware companies with a large software
business (such as EMC and IBM) are entering these newer markets both by internal development (e.g.,
VERITAS with SANPoint Control; EMC with ARM) and by acquisitions (IBM buying Trellisoft; EMC
acquiring Astrum Software, Computer Associates [CA] buying Netreon). EMC, the largest storage company
in the world (when one includes array-based software), has been quite open that it intends to use
acquisitions to help the company achieve its target of 30% of revenue from software (versus 21% in the first
quarter). Rumors have been swirling that EMC may be interested in buying Legato Systems for between
$750 million and $1 billion. Such a deal would help EMC fill its “hole” in backup software.

IDC predicts that the storage software market will grow from $5.6 billion in 2002 to $9.2 billion in 2006.
This CAGR of 13% is roughly half of Dataquest’s prediction (made in May 2001) of a 24% CAGR during this
period. As investors have lowered their growth expectations for the space, P/E multiples accorded the
leading names (such as VERITAS Software) have fallen precipitously.

Due to the attractiveness of the storage software business, companies have greatly escalated their
presences in this market (sometimes to the detriment of prior relationships between companies). For
example, Sun Microsystems (known primarily for its server hardware) bought SRM leader HighGround
Systems a few years ago and bought a file system company called LSC. These actions created friction
between Sun and VERITAS Software, a solid partner of Sun in the past.

A newer force in storage management software is Hitachi Data Systems (HDS). Although the company
entered the top 10 a year ago (and the top six in 2002), its clear momentum in high-end RAID (redundant
array of independent disks) together with its strong history of execution cause us to believe that the
company will continue to post strong rates of growth in storage software. The company, with its
TrueNorth framework, has strong relationships with VERITAS Software and Commvault Systems (a high-
profile private storage backup company).
Finally, one should never forget Microsoft. The company formed a storage software division headed by Bob
Muglia about a year ago. Upcoming features in Windows Server 2003 include Volume Shadow Copy Service
(improved snapshots) and virtual disk service (LUN [logical unit number] masking, LUN mapping). Upcoming
releases to watch out for from Microsoft include Yukon (next SQL server) and SAK 3.0.
In this report, we profile the leading public companies (EMC, VERITAS, IBM, CA, etc.). This is followed by a
detailed private company discussion where we separate the companies into the following groups: Storage
Resource Management (where InterSAN, Creekpath, and Invio are high profile), Storage Backup (where
Commvault is high profile), File Systems/Distributed File Systems, Virtualization Software, and Other.
Storage virtualization, defined to be simply a higher level of aggregation with which to manage data, has
gone through a classical “hype” cycle over the past few years. The original promise of storage
virtualization was to be able to aggregate heterogeneous volumes (i.e., storage from different vendors’
products) to create virtual volumes (thus obviating the need to stay with one vendor’s products). Such
reasoning was the impetus for Hewlett-Packard’s (HP’s) acquisition of StorageApps a few years ago. Since
then, HP has morphed StorageApps’ SANLink appliance from a virtualization appliance into CASA
(content-addressable storage appliance) which is used for heterogeneous data replication.

Distributed file systems are used in the network-attached storage (NAS) world to enable many servers to
connect to many NAS devices as a single storage pool. Spinnaker Networks is working on this. IBM’s
StorageTank initiative (coming soon) is a storage area network (SAN)-wide file system that works with a
virtualization engine (VE).

The storage software market is considered to be one of the most important submarkets of enterprise
storage for a few reasons:

1.) Hardware commoditization. Companies such as EMC have seen their hardware gross margins
    (GMs) get decimated during the post-bubble period. (EMC’s hardware GM declined from almost 60%
    to below 10% before rebounding to slightly over 20% today.) Because of their decline, hardware
    companies are bolstering their software offerings in order to create more value.

2.) Value-added differentiation. Software allows for new capabilities (e.g., automation, provisioning)
    that are highly differentiated.

3.) Higher margins. Software gross margins are still around 80%-90% versus 20%-30% levels for hardware.

IDC (12/02) predicts that the storage software market will grow at an 8.4% compound annual rate between
2001 and 2006 (13.3% CAGR between 2002 and 2006) with accelerating rates of growth between 2002 and
2006. (See Figure 1.) These growth rate estimates are down from those made just six months earlier
(when IDC projected a 17% CAGR between 2002 and 2006) and significantly down from Dataquest’s May
2001 projection that this market will grow at a 24% compound annual rate between 2002 and 2006. We
believe that the period of downward revisions to storage software growth is over for now. IDC predicts
that the fastest growing subsegment of enterprise storage is the storage resource management (SRM)
segment (projected to grow at a 16.9% compound annual rate). The backup and archive market remains
the largest segment of storage software.

    FIGURE 1          Worldwide Storage Software Revenue by Market Segment, 2002E-2006E
                      (Dollars in Millions)

      Segment                                     2002E         2003E         2004E         2005E         2006E     02-06E CAGR
       Backup/Archive Software                $     2,421   $     2,583   $     2,893   $     3,298   $     3,760      11.6%
       Storage Resource Management            $     1,583   $     1,780   $     2,065   $     2,447   $     2,961      16.9%
       Replication Software                   $     1,136   $     1,232   $     1,417   $     1,675   $     1,984      15.0%
       Other Storage Software                 $       470   $       479   $       494   $       509   $       524       2.8%
       Total Storage Software Market          $     5,610   $     6,074   $     6,869   $     7,929   $     9,229      13.3%

Source: IDC (12/02)

According to Gartner, EMC in 2002 held on to its leading position in the storage software market with a
25.6% share. (See Figure 2.)

Figure 3 shows quite vividly that EMC, VERITAS, and IBM account for more than half of the market.

What Is a SAN?
As storage area networks (SANs) have become more popular, new storage software approaches have been
introduced. In the past, the main storage architecture used was direct-attached storage (DAS). This is
where storage systems are directly attached to servers. Although this kind of point-to-point architecture
does produce highly reliable systems, storage systems become captive to a particular server. In order to
get around this issue, other kinds of storage architectures evolved¾network-attached storage (NAS) and
storage area networks. Under NAS, storage is connected directly to the network, allowing servers from
all locations easy access to its files.

 FIGURE 2            Top 10 Storage Management Software Vendors

                                                              2002        2002        2001           2001
                                                                                                             Y/y Growth
                         Vendor                             Revenue      Market     Revenue         Market
                                                              ($M)      Share (%)     ($M)         Share (%)
                         EMC                                1,205.10      25.6      1,496.10           30       -19.5
                         Veritas                              874.1       18.6        977.3          19.6       -10.6
                         IBM                                  592.6       12.6        639.8          12.8        -7.4
                         Hewlett-Packard                       264         5.6        268.6           5.4        -1.7
                         Computer Associates                  235.3         5         202.9           4.1         16
                         Hitachi/HDS                          209.7        4.5        118.5           2.4         77
                         Legato                               135.5        2.9        180.9           3.6       -25.1
                         BMC Software                         121.7        2.6        161.3           3.2       -24.6
                         Network Appliance                    107.1        2.3         89.4           1.8       19.8
                         StorageTek                            106         2.3        120.1           2.4       -11.7
                         Others                               847.4         18        734.7          14.7        15.3
                               Total Market                 4,698.50       100      4,989.60          100        -5.8
                         Source: Garnter (4/03)

 FIGURE 3            Top 10 Storage Management Software Vendors

                                                                18%                    EMC
                         Network Appliance
                         BMC Software
                             3%                    Legato
                                              5%                           IBM
                                                               HP          13%

Source: Gartner (4/03)

A SAN is defined to be a network of server and storage devices communicating through a SAN
switch/director. In the past, this meant using the Fibre Channel protocol. However, it is important to
realize that a SAN does not have to use Fibre Channel for transport. It could also use Internet Protocol (IP)
(hence, IP SANs) or Infiniband.

Uses of SANs. A recent Aberdeen Group survey found that the most frequent reason that customers
implemented SANS was storage consolidation followed by improved backup/restore. The key benefits of a
SAN were

a) Storage consolidation. Before, with DAS, one server would have fully utilized storage (say a web
   server with a lot of hits) while another server (say a database server) would have lots of available
   storage (so low capacity utilization). There would be no way to transfer the excess database storage to
   the web server that could use it. With SAN, one can easily reallocate storage as needs dictate.

b) Improved backup/restore process. Before SANs were used, an information technology (IT)
   administrator performing disk backup would transport data over IP to a backup server. This resulted in
   a slowdown in the backup process as it required a separate backup server to become involved. SANs
   offer the promise of serverless backup, where direct disk to tape backup occurs without an intermediary
   backup server.

c) Other. Improved application performance, lower total cost of ownership (TCO), availability, and
   overall reliability of the storage infrastructure.

                                                                          Storage Software Market
The overall storage software market has been a rapidly evolving and growing segment of the overall SAN
space. IDC breaks down the storage software market into four major categories consisting of the following
subsegments: 1.) backup/archival, 2.) storage resource management, 3.) storage replication software, and
4.) other storage software (including storage utilities and other functionality). This report provides an in-
depth analysis of the overall storage software market, as well as its various subsegments.

As seen in Figure 4, IDC currently expects the overall storage software market to grow from a $5.6 billion
market in 2002 to a total addressable market of $9.2 billion by the end of 2006, representing a CAGR of
approximately 13.3%. The Unix market is expected to remain the primary operating environment, with
an estimate share of roughly 39% in 2002. However, by the end of 2006 IDC expects the faster growing NT
and Linux markets to gain significant share, growing from 28% and 2% to an estimated 43% and 4% of the
total addressable market opportunity, respectively.

    FIGURE 4                                  Storage Software Market Forecast, 2001-2006E

                                    $10,000                                                                                20%
                                                                                                13.1%                      15%
                                     $8,000                                                                       16.4%
    Storage Software Revenue ($M)

                                                                                $6,074          $6,869   $7,929
                                     $7,000                                                                                10%
                                                  $6,169                                 8.3%
                                     $6,000                      $5,610

                                                                                                                                  Y/y % Ch.

                                     $3,000                                                                                -5%
                                     $1,000                       -9.1%
                                       $-                                                                                  -15%
                                                   2001          2002E          2003E           2004E    2005E    2006E

Source: IDC (12/02)

Key trends within the storage software market include the following:

    Continued migration to networked storage infrastructures. As the SAN and NAS markets grow as a
    percentage of the overall storage disk market, the inherent complexity of storage environments will
    increase end-user dependency on storage resource management software, automation, and
    virtualization technologies. Currently, IDC expects the total networked information storage (SAN + NAS)
    to grow to represent 66% of the total disk storage market by the end of 2005 (versus an estimated 43% in

    Storage consolidation. With a continued focus on resource utilization, end users continue to deploy
    storage/server consolidation strategies despite the ongoing slowdown in the overall IT spending

Storage Resource Management
Storage Resource Management (SRM) provides capabilities such as discovery, reporting, configuration
analysis, and topology mapping throughout a storage infrastructure through a centralized console,
enabling end users to cost effectively run an increasingly complex networked storage architecture. With
storage/server consoled and the centralization of SAN management capabilities becoming a growing need
in today’s environment, the SRM market is expected to remain the fastest growing subsegment of the
overall storage software market for the foreseeable future. As seen in Figure 5, IDC currently expects the
SRM market to grow from a $1.6 billion market in 2002 to a $3.0 billion market opportunity by the end of
2006, representing a CAGR of approximately 16.9% and growing to represent 36% of the total software
market (up from the estimated 31% in 2002).

    FIGURE 5                    SRM Market Forecast, 2001-2006E

                       $3,500                                                                          30%

                                                                                              $2,961   25%
                       $3,000            23.8%                                       18.5%
                                                                            16.0%                      20%
                       $2,500                                     12.4%                       21.0%
    SRM Revenue ($M)


                                                                                                              Y/y % Change
                       $2,000       $1,813                                                             10%
                                                                   $1,780                              5%


                         $-                                                                            -15%
                                    2001          2002E            2003E     2004E   2005E    2006E

Source: IDC (12/02)

We note that IDC considers the virtualization market to be a submarket within the SRM market overall.
Overall SRM remained the fastest growing subsegment of the overall storage software market (up 28%
year over year in 2001; albeit a deceleration from the more than 50% growth posted in the prior two years),
which we believe will continue going forward. We believe that the continued groundswell of interest in
storage virtualization will support attractive growth rates in the SRM market for the foreseeable future.
However, we believe it is also important to break out the storage virtualization market given the
tremendous interest in this segment.

Future of SRM. As we continue to see end users become more accepting in the deployment of SRM
solutions within the growing storage environments, we believe the next phase of this robust market
opportunity will begin to emerge. This is the point in which SRM solutions providers draw the line
between “active” versus “passive” SRM capabilities. More specifically, we believe many vendors have
begun to take the SRM market to the next level through the initiation of policy-based management which
not only monitors and reports on the overall storage topology but implements the ability to take action
when certain policies/thresholds are met within the network. Ultimately, this is the next step in reducing
the total cost of ownership within a SAN, as it essentially frees up the labor-intensive task associated with
the administrative aspects of a networked storage environment.

Drilling even deeper within this emerging landscape is the notion of complete automation or administered
automation within a policy-based SRM solution. Put simply, this is the differentiation between solutions
that provide a completely automated solution (i.e., no administrative interference required) and what we
would call semi-automated solutions (i.e., the process of sending a check via e-mail before an SRM
solution executes the automated processes). We believe these two aspects will create significant
differentiation aspects between the growing number of SRM software providers going forward.

Relative Market Share. As shown in Figure 6, IDC estimates that EMC represented nearly 53% of the
overall SRM market revenue in 2001 (versus an estimated 43% in the prior calendar year). VERITAS is
estimated to be a distant second player with an estimated 13% of revenue (down from the estimated 14% in
the 2000), while Compaq and IBM gained relative share to account for approximately 8% and 2% of the
overall SRM market in 2001, respectively. Figure 7 provides a table depicting IDC’s estimated market
share changes within this market over the last four years. However, we must note that Computer
Associates’ change in accounting practices (implemented at the end of calendar 2000) has dramatically
changed that company’s perceived market share position within the SRM market. In short, this change
reflected an approximate 50% reduction in reported storage software revenues compared with its prior
accounting policies.

    FIGURE 6          SRM¾Relative Market Share by Vendor, 2001

                                             1%                Others
                                          BMC Software
                                    StorageTek    2%
                                Computer Associates                     53%

                                     Compaq Computer

                                            Veritas Software

Source: IDC (12/02)

Key product offerings in the SRM Market include (public and private):

Public Companies
 EMC’s ControlCenter.
 Sun Microsystems (HighGround System’s Storage Resource Manager; acquired in early 2001)
 IBM’s¾TrelliSoft (acquired in October 2002)
 Legato’s Global Enterprise Management of Storage (GEMS Console)
 VERITAS’ SANPoint Control and SANPoint Direct.
 BMC Software’s Patrol Storage Network Manager (Patrol SNM)
 Computer Associates’ BrightStor SRM

    FIGURE 7         SRM¾Relative Market Share by Vendor, 1998-2001

                          Vendor                   1998        1999     2000      2001
                          EMC                      32.4%       37.2%    43.1%     52.7%
                          VERITAS Software         12.2%       14.0%    14.3%     12.8%
                          Compaq Computer          0.0%        0.0%     7.0%      7.9%
                          Computer Associates      49.7%       32.8%    11.1%     4.9%
                          StorageTek                1.6%        2.3%    3.1%      2.7%
                          IBM                       4.1%        3.9%     1.9%      2.4%
                          BMC Software              0.0%        6.8%     3.0%      2.2%
                          Hewlett-Packard           0.0%        1.0%     1.4%      1.1%
                          Others                    0.0%        2.0%    15.0%     13.4%
                          Total SRM Market        100.0%      100.0%   100.0%    100.0%

Source: IDC (6/02)

Private Companies
 Precise Software’s StorageCentral SRM (via acquisition of W. Quinn)
 Astrum Software’s StorCast Suite
 TeraCloud’s SpaceFinder (OS/390 SRM) and SpaceNet (Open System¾Active SRM Solution)
 Tek-Tools¾Storage Pro Filer 1.1
 Invio Software
 CreekPath Systems’ AIM (Application Intelligence Management) Suite
 ProvisionSoft’s DynamicIT Software

Storage Virtualization
Storage virtualization is essentially the function of hiding or masking a physical storage device from a host
server or application in order to create improved storage utilization and total cost of ownership. In other
words, this enables end users to share a disparate storage infrastructure as a shared pool of resources
rather than an aggregated repository of capacity. Figure 8 illustrates the difference between in-band
virtualization, where the device sits directly between the servers and storage, and out-of-band, where the
traffic does not pass directly through the virtualization appliance.

Replication is the process of creating copies at either the file or volume level of data through a variety of
methods including either cloning, mirroring, or snapshot capabilities. In addition, synchronization and
movement of data via files, directories, volumes, or entire file systems would fall into this market segment.
Throughout the last two years, this has become increasingly important as storage administrators look to
increase the availability of their data, or focus on increased disaster recovery and avoidance capabilities
within their infrastructure.

As seen in Figure 9, IDC expects the storage replication market to grow from a $1.1 billion market in 2002
to an estimated $2.0 billion market by the end of 2006, representing a CAGR of approximately 15%. EMC
continues to dominate the storage replication market with an estimated 51% share in 2001 (down from
58% in the prior year), while independent vendors such as VERITAS and Legato possess insignificant
pieces of this market. (See Figure 10.) Although this market continues to be heavily tied to initial
hardware sales by leading vendors such as EMC, Network Appliance, and StorageTek, we believe that
independent vendors such as VERITAS will continue to penetrate this market opportunity going forward.

 FIGURE 8                              In-Band Versus Out-of-Band Virtualization

                              In-Band Virtualization                                Out-of-Band Virtualization

            Host Server
            Host Server                        Host Server
                                               Host Server                          Host Server
                                                                                    Host Server        Host Server
                                                                                                       Host Server
                                                                                     (Volume Driver)
                                                                                     (Volume Driver)   (Volume Driver)
                                                                                                        (Volume Driver)

                                 Data & Control
                                 Data                                                                             Control

                                Physical Storage
                                Physical Storage                                           Physical Storage
                                                                                           Physical Storage

Source: A.G. Edwards

 FIGURE 9                              Replication Software Market Forecast, 2001-2006E

                              $2,500                                                                                                  25%
                                                                                                         18.2%              18.4%
                              $2,000                                                                                                  15%
                                                                           8.5%                        $1,675
   Replication Revenue ($M)

                                                                                                                          $1,984      10%
                                           $1,446                                         $1,417

                                                                                                                                             Y/y % Change
                              $1,500                                                                                                  5%
                                                           $1,136                                                                     0%
                                            -6.0%                          $1,232
                              $1,000                                                                                                  -5%


                                $500                     -21.4%                                                                       -15%


                                $-                                                                                                    -25%
                                            2001           2002E           2003E          2004E        2005E              2006E

Source: IDC (12/02)

FIGURE 10                           Replication Software¾Market Share

                                               Vendor                1998          1999        2000         2001
                                               EMC                  61.3%         55.6%       57.8%        50.5%
                                               Inktomi               0.0%         4.0%        3.1%         5.4%
                                               Network Appliance     0.0%         0.0%        4.3%         4.7%
                                               Compaq               0.0%          0.0%        2.7%         4.0%
                                               StorageTek           12.6%         4.1%        2.8%         3.7%
                                               Fujitsu              6.1%          3.0%        2.4%         2.9%
                                               Hewlett-Packard       0.0%         1.0%        1.7%         1.8%
                                               IBM                   1.7%         1.3%        1.3%         1.5%
                                               Veritas Software      0.2%         0.2%        0.5%         1.1%
                                               Legato               6.4%          3.0%        0.8%         0.7%
                                               Others               11.8%         27.8%       22.5%        23.5%
                                               Total SRM Market    100.0%        100.0%      100.0%       100.0%

Source: IDC (6/02)

Backup/Archive Software
The backup and archival market is the largest and most mature subsegment of the overall storage software
landscape. Put simply, the primary function of these solutions is to take data stored on disk devices and
copy that to alternative devices (tape, disk, or optical), providing security and business continuance to
enterprise-class storage infrastructures. IDC currently estimates this market to grow from a $2.4 billion
market in 2002 to an estimated market opportunity of $3.8 billion by the end of 2006, representing a CAGR
of roughly 11.6%. (See Figure 11.)

FIGURE 11                           Backup/Archive Market Forecast, 2001-2006E

                           $4,000                                                                                           20%

                           $3,500                                                                     $3,298       $3,760
                                                                     $2,583                            14.0%       14.0%
     Backup Revenue ($M)

                                       $2,421            $2,421                                                             10%
                           $2,500                                                    12.0%

                           $2,000                                                                                           5%     Y/y % Change
                           $1,000                         0.0%

                             $-                                                                                             -10%
                                        2001             2002E          2003E        2004E            2005E        2006E

Source: IDC (12/02)

As shown in Figure 12, VERITAS has taken the leading position in the backup/archival market with an
estimated 2001 market share of roughly 34%, according to IDC (up from an estimated 23% in 2000).
Computer Associates and Legato are estimated to represent 17% and 8% of this market in 2001,
respectively, while leading hardware vendors such as EMC, Sun Microsystems, and Hewlett-Packard have
seen their share decline over the last year. We expect VERITAS to continue to be the leading player in this
market for the foreseeable future.

FIGURE 12            Backup/Restore Software¾Market Share

                           Vendor                      1998     1999     2000      2001
                           VERITAS Software           12.5%    16.8%    23.4%     34.2%
                           Computer Associates        42.7%    39.2%    30.8%     16.5%
                           Legato Systems              6.4%     8.9%     7.7%      8.3%
                           IBM                         4.5%     6.0%     6.9%      7.8%
                           Hewlett-Packard             3.4%     2.6%     2.5%      2.3%
                           OTG Software                0.7%     0.6%     1.3%      2.0%
                           EMC                         2.0%     2.2%     2.2%      1.4%
                           Sun Microsystems            1.8%     1.7%     2.1%      1.5%
                           Others                     26.1%    22.1%    23.0%     25.9%
                           Total Backup Market       100.0%   100.0%   100.0%    100.0%

Source: IDC (6/02)

Policy Based Automation
One of the hotter topics today is the use of policies to automate storage management. This is part of IBM’s
StorageTank initiative (expected by the end of 2003), EMC’s Automated Resource Manager (ARM), BMC’s
Patrol Storage Manager, Creekpath’s AIM suite, VERITAS SANPoint Control 3.5 and others. Policies help
allocate storage priorities (level of protection and ability to obtain more storage) to certain applications.


As we have seen a widely varied infrastructure of networked storage architectures develop over the last
few years, many concerns have emerged around the growing complexity and management turmoil
inherent in such deployments. Effectively managing such multivendor environments, as well as the
extensive resources that go into such installations, has been a key concern for administrators and
integrators for some time now. Therefore, at the center of this dilemma is the overriding notion of one day
achieving industrywide standardization and interoperability at all levels with a SAN/NAS environment in
order to provide an increasingly efficient shared resource infrastructure for improved utilization,
management, and security capabilities. At the software level, today’s end users must implement a suite of
uncoordinated application sets from different vendors or essentially fall victim to a proprietary (non-best-
of-breed) architecture. With this in mind, the Storage Networking Industry Association (SNIA) has taken
over the task of creating an industrywide protocol for standardization within the storage software market
named SMI/Bluefin. Configurations today implement interfaces, which were developed prior to the
emergence of the SAN and, therefore, are unable to provide the functionality, security, reliability, and
overall manageability required in today’s mission critical networked storage environments on a multi-
vendor basis. Bluefin, on the other hand, will capitalize on the previously developed WBEM/CIM
architecture to provide enhanced interoperable capabilities at all levels of the SAN (i.e., Tape devices,
storage arrays, host bus adapters [HBAs], switches, etc.) This standardization looks to reap the full
potential of the SAN’s value proposition going forward. In summary, key initiatives driving the race to
standardization include the following:

     Increased time to market for new applications. With a de facto standard set, SAN application vendors
     and integrators look to benefit from a more efficient development process within the SAN management
     market. Developers will be able to utilize one document in order to understand the implementation of
     SAN management components.

     Increasing functionality of the SAN. SAN environments strive on the notion of best-of-breed solutions
     sets consisting of a multivendor architecture. Therefore, SNIA hopes to increase the adoption of
     networked storage by enhancing the fundamental value proposition of SAN installations.

     Lower cost of management. This centers around the belief that one day SAN administrators will be
     able to centralize their management capabilities around a single unified console rather than a disparate
     network of management suites. Therefore, cost savings will entail both a lower initial deployment layout
     as well as a lower total cost of ownership given a reduction in IT staffing.

The Distributed Management Task Force (DMTF) is an industry organization working on the
development and adoption of management standards. This organization helped develop CIM (Common
Information Model), which is a model that allows for the exchange of management information between
applications and management systems.

There are two parts to CIM: 1.) the CIM Specification and 2.) the CIM Schema. The CIM Specification
describes the language, naming, Meta Schema (Classes, Properties, and Methods), and mapping techniques
to other management models such as SNMP (Simple Network Management Protocol), MIB (Management
Information Base), and DMTF MTFs. The CIM Schema, composed of three layers (Core, Common, and
Extension Schemas) supplies a set of Classes with properties.

On April 21, 2003, the DMTF released the final version of the CIM Schema Version 2, Release 7. CIM 2.7
added new models, including Databases and Metrics. It also added improvements to storage modeling in
the Core and Device models. The latter was done in conjunction with the SNIA (another key storage body)
which is working on the Storage Management Initiative Specification (SMI-S), formerly Bluefin.

Below we provide an analysis of SNIA’s proposed answer to the interoperability issue via the Bluefin

Bluefin/SMI-S Initiative (SNIA)
Bluefin was the first name accorded to the first storage-related specification of CIM.

Key features of Bluefin:
 Common Interoperable and Extensible Management Transports¾Bluefin management is capable via
 1.) ”in-band” via Fibre Channel (FC), 2.) ”out-of-band” via Ethernet, or 3.) mixed interconnect

    Automated Discovery Systems¾based on SLP (Service Location Protocol), the Bluefin topology is one
    that provides automatic discovery capabilities when implemented in the SAN. This, combined with
    Web-Based Enterprise Management (WBEM), provides enhanced simplification of SAN management.

    Resource Locking¾ability to have multiple Bluefin applications within a SAN on a multivendor basis
    and provide shared resources via a “lock manager”. This is a key feature for interoperable virtualization

Later, Bluefin was changed to the Storage Management Initiative Specification. In April 2003, at the
StorageNetworkingWorld conference, SNIA announced that it has published for public comment version
1.0 of the SMI-S. SNIA chairman Sheila Childs said that she expects the specification to be finalized by
October 2003.

                                 Storage Software Companies (Public)


One liner      Large, diversified storage company
Location       Hopkington, MA                          Stage               Public
Web site                             Employees           17,200
Founded        1979                                    Patent portfolio    600
Competition    Hitachi Data Systems, IBM, Veritas Software, Network Appliance

Storage Software Business Summary
      escription¾EMC is the largest storage software vendor in the world with calendar 2002 storage
D     software revenue of $1.233 billion (approximately 23% of total revenue). The company has leading
positions in replication (with TimeFinder and Symmetrix Remote Data Facility [SRDF]) and in storage
management software (ECC). The company has embarked on a very aggressive campaign with its Auto-IS
initiative (launched on in October 2001). Building on the notion of open application program interfaces
(APIs), EMC developed a heterogeneous middleware layer that abstracts storage and networking
functionality called WideSky. Below we provide a few details on EMC Auto-IS initiative and the company’s
WideSky technology:

     Auto-IS (Automated Information Storage). Initially launched in October 2001, EMC’s Auto-IS
     initiative is the company’s initiative focusing on developing a set of open/heterogeneous storage
     software solutions that provide management features to EMC’s hardware as well as storage arrays
     from its competitors. More specifically, EMC’s Auto-IS initiative is focused on three key areas
     1.) Intelligent Supervision¾to monitor, report, and control networked storage infrastructures and
     higher level storage services, 2.) Infrastructure Services¾for the abstraction, presentation, and mobility
     of networked data, and 3.) Information Safety¾for data protection and recovery. Figure 13 provides a
     summary of the current software capabilities within Auto-IS. With its initial launch in late 2001, Auto-
     IS consisted of an enhanced version of ECC (ECC Open Edition). (ECC serves as the umbrella of
     EMC’s overall Auto-IS product suite.) Initial management solutions consisted of ECC Replication
     Manager (replication) and ECC StorageScope (centralized charge-back/reporting). EMC subsequently
     announced the following enhancements in September 2002: 1.) Automated Resource Manager (ARM)
     and 2.) EMC SAN Manager (formerly ESN Manager). ARM supports both EMC and non-EMC storage
     devices, including EMC’s Symmetrix and CLARiiON arrays, as well as HP’s StorageWorks solutions.
     However, it does not currently support disk arrays from either HDS or IBM.

     API Swaps. In order for EMC to be successful in managing heterogeneous storage arrays, it will need
     to have technology that allows EMC to manage such arrays. Such technology could be APIs, CLIs
     (command-line interfaces), or more standardized approaches such as CIM/Bluefin/SMI-S. To date,
     EMC has entered into full API swapping agreements with HP/StorageWorks, VERITAS Software, and
     HDS. However, it is currently working on an agreement with IBM.

     ECC (EMC Control Center) Open Edition. ECC Open Edition is the name of EMC’s graphical user
     interface (GUI)-based framework that includes several storage software products, including
     monitoring, discovery, automation, provisioning, and reporting capabilities in a multivendor
     heterogeneous environment. Open Edition is a three-tiered client-server architecture that provides
     SNMP-based communication between the ECC framework and solutions such as CA’s Unicenter, HP
     OpenView, IBM Tivoli, and others. Note that although most of the products within the Control Center
     suite are multiplatform, two products¾Symmetrix Manager and Symmetrix Optimizer¾are EMC-only
     products currently.

FIGURE 13                  EMC’s Software Stack

                                                                             S to ra g e S c o p e
                                                                           W o r k lo a d A n a ly z e r

                                        Database Tuner

                                                                                                                        Common Array
                                                             SAN Manager






                                                         O p e n In t e g r a t io n C o m p o n e n t s
                                                                         W id e S k y

Source: EMC

WideSky. Supporting EMC’s Auto-IS initiative is WideSky, an open-API that translates CIM, CLIs, and
APIs into a common language that management applications can understand. WideSky is a storage
software layer providing API support to the various layers within the Auto-IS solution set. In other words,
this is EMC’s middleware layer allowing agents (i.e., hosts/servers, multivendor storage arrays, and
connectivity solutions such as SAN switches) to support the various elements of Auto-IS. To date, this has
currently been used to provide heterogeneous storage array access to IBM’s Shark via its CLI and HP’s disk
arrays via APIs, as well as support for VERITAS’ backup and file management software. Therefore,
WideSky is not a product sold separately but, rather, is technology embedded into its Control Center
products and into the products of its competitors. EMC currently has 75 partners for WideSky. Figure 14
provides a summary of the current solutions supported by EMC’s Auto-IS initiative. As we can see, EMC
has made a great deal of progress in expanding its heterogeneous support for competitive solutions,
however, replication and provisioning support for HDS and IBM arrays remains to be seen.

Although we continue to believe that EMC has made tremendous strides in positioning itself as an open
provider of storage software, the company’s penetration into the heterogeneous (multi-platform)
environment has been slow. As shown in Figure 15, EMC’s multi-platform solutions currently represent
approximately 33% of the company’s total software revenue, while software tied to EMC’s proprietary
hardware remains relatively high, at 66% of total software revenue.

EMC-Only Software
 TimeFinder. TimeFinder is EMC’s Snapshot/replication software which provides independently
 addressable online Business Continuance Volumes (BCVs). TimeFinder enables enhanced business
 continuance through its ability to segregate a standard volume of data into three separate BCVs based on
 applications. TimeFinder is standard in EMC’s Symmetrix arrays. Typical uses of EMC’s TimeFinder
 include Backup, Disaster Recovery, Data Warehousing, and Workload Compression.

    SRDF. SRDF (Symmetrix Remote Data Facility) is EMC’s remote copy software for its high-end
    Symmetrix arrays. Like TimeFinder, SRDF comes standard in the Symmetrix solutions in order to
    provide data migration between disparate locations quickly.

                                                                                                                                                                                      (continued on page 19)

FIGURE 14           EMC Auto-IS Vendor Support

              Supported Prior to Oct. 2001
              Supported Prior to Sept. 2002
              Supported as of Sept. 2002

                                                                                            SAN/DAS                            NAS




















                    Discovery                 Topology
                                              Logical Relationships

                    Monitor/Report            Array, SAN, NAS, and Host Health
                                              Array Performance
                                              SAN Performance                                             N/A       N/A
                                              Host Performance
                                              Database Performance

                    Provision                 File Systems & Volume Managers
                                              Zoning                                                      N/A       N/A
                                              LUN Masking                                                 N/A       N/A
                                              Storage Devices

                    Automate                  Alert Resolution

Source: EMC

FIGURE 15           EMC-Only Versus Multi-Platform Software

                                     Multi-Platform Software

                                                                                       EMC-Only Platform Software

Source: EMC

(continued from page 17)
    Symmetrix Manager. Symmetrix Manager discovers, monitors, and configures Symmetrix platforms
    from a single console. More specifically, end users are able to manage Symmetrix installations, as well
    as its front- and back-end directors, and ports from a GUI. Although we have categorized EMC’s
    Symmetrix Manager as being EMC-only, we would note that this is also available as a plug-in to ECC
    but not included in the multi-platform section below.

    Symmetrix Optimizer. This software feature within the Symmetrix family automates performance
    tuning via a GUI. More specifically, this automated process replaces the time-intensive aspects of manual
    load-balancing and provides enhanced business continuance during physical drive reconfigurations.

    Navisphere. Navisphere is EMC’s management solution for the CLARiiON family of mid-range storage
    arrays. This solution has been integrated with EMC’s ECC Open Edition as four basic products. These
    include 1.) Navisphere Manager Base for management of a single CX200 array, 2.) Navisphere Manager
    providing discovery, monitoring, and configuration features for CLARiiON environment via a single
    console, 3.) Navisphere Analyzer for performance data collection, and 4.) Navisphere Agent, which
    provides a host-array communications bridged in order to automate common storage management

    SAN Copy. This supports data movement between CLARiiON and either CLARiiON or Symmetrix
    systems over a high-speed SAN or wide area network (WAN). This offloads the application server
    workload and local area network (LAN) bandwidth for improved performance in mid-range
    environments and performs tasks such as resource balancing and RAID scheme changes. While SAN
    Copy is a Clariion-resident product, it does facilitate replication between Clariion and HP StorageWorks.

    SnapView. EMC SnapView software provides point-in-time snapshots and full-copy business
    continuance volumes of production data for the CLARiiON arrays. With the ability to retain files
    independent of changes to the actual physical data, SnapView allows disparate servers to access backup
    data remotely.

    MirrorView. MirroView is a synchronous data mirroring software solution between disparate
    CLARiiON arrays.

This enables end users to implement remote mirroring via dark fiber or through IP links.

Multi-Platform Software
 PowerPath. Put simply, this is EMC’s I/O (input/output) path failover (using a different HBA if one path
 fails) and I/O optimization/load balancing software layer. EMC PowerPath software resides in the server
 in which I/O paths can be integrated into compressed packaging in either a Symmetrix or CLARiiON
 environment (or both).

    Workload Analyzer. As indicated by its title, Workload Analyzer collects and graphs performance data
    on the Symmetrix, CLARiiON, host servers, and SAN equipment. This is a standard feature via ECC for
    Symmetrix and an additional option on EMC’s CLARiiON offerings.

    SAN Manager. Formerly EMC ESN Manager, SAN Manager has been implemented in the ECC Open
    Edition and provides a centralized management console for topology mapping and discovery in
    multivendor environment. Multivendor support includes Brocade, McDATA, and QLogic SAN switches,
    as well as HP StorageWorks and HDS’ 7700 and 9900 storage arrays.

    Automated Resource Manager (ARM). Announced in September 2002, ARM provides storage
    provisioning from a single console and supports both EMC and HP’s StorageWorks arrays. Key features
    include 1.) automated resource identification from either the array itself, or through HBAs, ports, or
    devices, 2.) streamlined problem resolution via automated alerts, and 3.) multivendor database, backup
    system, and mainframe tape device support.

     StorageScope. As shown in Figure 13, StorageScope sits at the front end of EMC’s ControlCenter stack
     and provides resource utilization reports on storage capacity and allows end users to implement charge-
     back functionality. More importantly, StorageScope allows IT managers to enhance their storage
     infrastructures by identifying underutilized resources and capacity planning across an entire
     infrastructure. StorageScope provides support for SAN, NAS, JBOD (just a bunch of disks), server-
     attached multivendor storage.

Our Opinion¾EMC remains a formidable player in storage software, but it has challenges managing
hardware that is not EMC.

Executive Team and Board of Directors
Name                   Title                               Background

Michael J. Cronin      Chairman of the Board               CEO of Cognition Corp. (Knowledge Management)
Joseph Tucci           CEO                                 Previously President and COO; Wang Global; Unisys Corp.; RCA Corp.
Chris Gahagan          SVP, Infrastructure Software        Previously at BMC Software
Michael C. Ruettgers   Executive Chairman                  Former CEO of EMC from 1992-January 2001; Raytheon
William Teuber         Executive VP and CFO                Coopers & Lybrand
David Donatelli        Executive VP of Storage Platforms   Most recently the Senior VP of Corporate Marketing
Erez Ofer              Executive VP of Open Software       Scitex Corp. (Silver Arrow)
Mark Lewis             Executive VP¾New Ventures and       Hewlett-Packard/Compaq; Digital Equipment Corp.

                                             VERITAS Software

VERITAS Software
One liner      VERITAS Software is a storage management software company making backup/restore, file systems/volume
               management, clustering/replication, and SAN-related software products.
Location       Mountain View, CA                        Stage              Public
Web site                          Employees
Founded        1989                                     Founded            1989
Competition    EMC, IBM, Legato, HP

Storage Software Business Summary

V   ERITAS is a provider of storage management software for data protection, application availability, and
    disaster recovery. VERITAS’ storage management solutions offer interoperability across diverse
applications, servers, storage hardware, and appliances. While backup products continue to represent the
largest portion of the company’s revenues, VERITAS also offers products for file systems and volume
management and clustering and replication. We discuss these products in more detail below.

Backup Products. Currently, VERITAS derives slightly more than half of its license revenue from backup
software. The company’s two main products in this area are NetBackup, targeted toward larger
environments, and Backup Exec, which is aimed at the small business or workgroup segment.

    NetBackup. For data protection in medium sized businesses, VERITAS offers NetBackup
    BusinessServer 4.5. This software allows for the backup and restore across a large variety of
    environments, including Microsoft Windows, Sun Solaris, HP-UX, IMB AIX, Red Hat Linux, Novell
    Netware, and Apple Macintosh. This product supports the on-line backup of many leading applications,
    including Oracle, Lotus Notes, Microsoft SQL server and Exchange server, Informix, and Sybase. In
    addition, NetBackup Business Server is easily upgradeable to NetBackup DataCenter 4.5, to allow for
    virtually unlimited scalability. The DataCenter edition of NetBackup offers support across the same
    platforms and applications as the BusinessServer version but includes additional capabilities to better
    handle the workloads in a large data center. Some of these characteristics include unlimited scalability
    and centralized, policy-based management. In addition, NetBackup products support a broad range of
    tape library, tape drive, and SAN interconnect technologies. NetBackup also offers an optional NDMP
    (network data management protocol) agent to allow for the protection of network attached storage

    Backup Exec. The target market for Backup Exec is small businesses and departmental or workgroup
    level environments. The product is available for Microsoft Windows and Novell Netware. The product
    is designed to provide an easy to use and cost effective solution for smaller environments. VERITAS
    recently unveiled Backup Exec 9.0 for Windows Servers, which added several new features, such as
    integrated support for Windows Server 2003, incremental/differential mailbox backups, and a web based
    graphical user interface that allows administrators to monitor and manage their backup remotely.

File Systems/Volume Management. This segment comprises roughly 20% of VERITAS’ product license
revenue. The VERITAS Foundation Suite consists of VERITAS Volume Manager and VERITAS File
System. VERITAS Volume Manager is a virtualization product that allows managers to configure, share,
and manage storage without worrying about the physical limitations of disk storage. The product supports
Solaris, HP-UX, AIX, Linux, Windows 2000, and Windows NT. VERITAS File System augments Unix file
management to improve availability and performance. It enables continuous availability, increased I/O,
and provides extremely fast recovery following a system crash.

Clustering/Replication. These products help enterprises increase the performance of their networked
applications, promote continuous availability of data through replication and disaster recovery, and
improve their overall efficiency through server consolidation and centralized management.

     VERITAS Cluster Server is designed to optimize application and database availability, thus reducing
     downtime and facilitating server consolidation. It supports a wide range of platforms, including
     Windows, Linux, Sun Solaris, HP-UX, and IBM AIX. Cluster server automates availability requirements
     through intelligent workload management and is an essential component in disaster recovery and high
     availability solutions. Cluster server support up to 32-node clusters (16 nodes for AIX and Linux). With
     the addition of Global Cluster Manager, an enterprise can manage up to 256 clusters across a single site
     or between separate geographical locations. Global Cluster Manager also offers support for third party
     replication, including EMC SRDF and Hitachi TrueCopy. A database edition of Cluster Server is also
     available that is specifically designed to take advantage of the clustering features of Oracle9i RAC.

     Replication and Remote Mirroring. VERITAS offers several products designed to assist in the
     replication and recovery of data, both within and in between sites. These products include VERITAS
     Storage Replicator (designed to help small, satellite offices replicate to a centralized location) and
     VERITAS Volume Replicator (designed to allow enterprise class data replication and disaster recovery
     between sites).

SANPoint Control (version 3.5) provides the user with a single, centralized interface from which he can
manage all of the tasks involved in deploying and managing a complex multivendor storage environment.
This product integrates performance and policy management, storage provisioning, and zoning
capabilities. In addition, SANPoint Control allows for real-time monitoring and historical reporting.

Our Opinion¾VERITAS remains well positioned in the storage management software space. The
company’s recent acquisitions of Precise software and Jareva technologies should provide it with the
necessary technology to keep up with the evolving requirements of storage managers. However,
competition in the space has been increasing dramatically. Most notable is EMC’s AutoIS initiative.

Executive Team and Board of Directors
Name                 Title                                          Background
Gary Bloom           Chairman, President, and CEO                   Oracle, IBM, and Chevron
Edwin Gillis         Executive Vice President and CFO               Parametric Technology, Lotus Development, Coopers & Lybrand
Fred van den Bosch   Executive Vice President and CTO               Philips Information Systems
Mark Bregman         Executive Vice President, Product Operations   Airmedia, IBM
Paul Sallaberry      Executive Vice President, Sales Strategy       OpenVision, Oracle
Jay Jones            Senior Vice President, CAO                     OpenVision, Oracle, Word Star International
Jeremy Burton        Senior Vice President, CMO                     Oracle


One liner       IBM is a manufacturer and marketer of mainframes, servers, personal computers, software, technology
                products, and services.
Location        Armonk, NY                          Stage             Public
Web site                         Employees         316,000
Founded         1911                                Patent Portfolio  37,000
Competition     EMC, Veritas, Legato, HP

Storage Software Business Summary

T   he majority of IBM’s storage software products are sold under its Tivoli subsidiary (acquired in 1996).
    IBM’s much publicized Storage Tank/Virtualization Engine products are expected in late 2003. Below,
we discuss some of IBM’s major storage software offerings.

Tivoli Software. As mentioned above, IBM acquired Tivoli software in 1996 in the company’s pursuit to
expand its software offerings. Tivoli’s products address four key segments: security management, storage
management, performance and availability, and configuration and operations. Below, we discuss two of
Tivoli’s most major products in the storage software space¾Tivoli Storage Manager and Tivoli Storage
Resource Manager.

    Tivoli Storage Manager provides a central framework for data backup and restore as well as managed
    data archival and retrieval. These functions allow the enterprise to recover quickly in case of a failure.
    Storage Manager supports a wide range of platforms, including AIX, HP-UX, Windows XP, Windows
    2000, Windows NT, Sun Solaris, and Linux. In order to deliver the exact level of service required by each
    customer, there are several add-ons available for Tivoli Storage Manager. To meet the needs of large
    data centers, IBM has combined several of these products to create the Tivoli Storage Manager
    Enterprise Edition. This edition expands on the base capabilities of Storage Manager by adding
    hierarchical storage management, disaster planning capability, NDMP control for Network Appliance
    filers, support for large tape libraries, LAN-free data movements over a SAN, and sharing of tape libraries
    between multiple Tivoli Storage Manager servers.

    Tivoli Storage Resource Manager provides administrators with a set of policy-driven automated tools
    for managing storage capacity, availability, events, and assets in the enterprise. The end goals of Tivoli
    SRM are to improve storage utilization, reduce storage costs, increase the productivity of existing IT staff,
    and ensure application availability. Tivoli Storage Resource Manager can help administrators to
    identify, evaluate, control, and predict problems that may arise in the data center. Since it is policy
    based, it can detect and adjust automatically for potential problems that may arise, using its self-healing
    and self-configuring capabilities. Some of the other features offered by Tivoli SRM include automatic
    capacity provisioning, file level analysis, backup planning, capacity reporting, subsystem reporting, and
    availability reporting.

Storage Tank. The goal of the Storage Tank project is to produce a complete storage management
solution in a distributed heterogeneous environment that employs policy based automation in order to
reduce the cost and complexity of managing large environments. Storage Tank is different from current
distributed file systems in that clients are not required to go through a server to get to the data in the
storage network. Instead, clients access a metadata server (or cluster of servers), which contains only the
location of the data in the network. The client then accesses the data directly from the storage device.
This process utilizes the high bandwidth of the Fibre Channel network, and provides increased

performance by eliminating the server bottleneck. Although Storage Tank was originally promised for
early 2001, IBM now expects to deliver this product in late 2003.

Virtualization Engine. IBM’s Virtualization Engine is designed to increase productivity and utilization,
while at the same time decreasing the cost and complexity of managing a storage area network. The
product accomplishes this task by combining the entire storage network into a common “pool” that can be
administered to from a centralized point. By creating this pool of logical disks, the Virtualization Engine
allows storage administrators to reallocate storage between servers irrespective of their physical location.
In contrast to Storage Tank, which provides file level access, the Virtualization Engine will provide block
level access to servers. IBM will use an in-band implementation of clustered servers running Linux to
deploy the Virtualization engine. It is expected sometime in 2003.

Peer-to-Peer Remote Copy (PPRC). PPRC is a hardware based disaster recovery solution available for
the company’s ESS storage arrays that maintains a synchronous (up-to-date) copy of data in a remote
location. In the event of a failure, this copy can be used to immediately recover the system, in order to
maintain the availability of mission critical applications. IBM also offers PPRC-Extended Distance (PPRC-
XD), which offers a nonsynchronous long-distance data copy option. This option is more suited for tasks
such as data migration and offsite backups.

Executive Team and Board of Directors
Name                 Title
Samuel Palmisano     Chairman and CEO
John Joyce           Senior Vice President and CFO
Steven Mills         Senior Vice President, Software
Michael Lawrie       Senior VP, Sales & Distribution
Linda Sanford        Senior VP, Enterprise On-Demand

                                          Computer Associates

Computer Associates
One liner     CA is a diverse software vendor leveraging its high-end open portal architecture within its storage
              management solutions, the BrightStor family of products.
Location      Islandia, NY                            Stage            Public
Web site                              Employees        16,000
Founded       1974; public in 1981                    Patent Portfolio N/A
Competition   VERITAS Software, EMC, BMC, IBM, Hewlett-Packard, Legato, HDS

Business Summary
     escription¾Founded in 1976 and based in Islandia, New York, Computer Associates (CA) is a
D    diversified provider of computing infrastructure software for the enterprise class environment. Over
the past year or so, we have seen CA retrench its focus into six core software markets which include
solutions ranging from enterprise management, business intelligence, security portal, to enterprise storage
management products. Although CA continues to have a wide array of software products, this report will
detail the company’s storage solutions, which more specifically fall into the BrightStor product family.
Based on a “bottoms-up” approach to storage management, CA’s BrightStor family has become an
increasingly important piece of the company’s long-term roadmap for the enterprise storage market.
Within this, CA looks to provide heterogeneous management support ranging serverless backup/recovery
capabilities to storage resource management functionality.

Customers/Markets/Sales Model¾Computer Associates primarily generates the majority of its business
from enterprise class customers including approximately 95% of the Fortune 500. In terms of revenue
streams, the majority of its revenue from subscriptions (more than 40% of total revenue), which
encompasses software license across all of the company’s software solution sets. Original equipment
manufacturers (OEMs) and distribution partners, representing the majority of the company’s software fees
business, accounts for approximately 12% of the company’s total revenue (versus about 15% a year ago)
while maintenance, financing fees, and professional services make up the remaining 47% of revenue
(maintenance representing the largest of this at 27% of total revenue).

Product Offering¾As previously mentioned, CA’s storage management solutions are bundled within its
diverse BrightStor product family consisting of data availability, media management, networked storage
management, and resource management solutions. This is a developing piece of CA’s business in which
the company looks to capitalize on the industry movement toward complete heterogeneous storage
management solutions with the implementation of a unified management control console rather than
separate levels of management throughout a SAN/NAS architecture. The BrightStor products are
integrated to a single GUI via the BrightStor Portal (storage management portal), which leverages the
company’s CleverPath Portal from the company’s portal and business intelligence solutions. In short, this
is CA’s implementation of a common application protocol interface which provides an integrated solution
set for the management of the various multivendor components (disk arrays, SAN switches, HBAs, etc.)
within a networked information architecture from a single console. This is a feature that CA has
implemented in its mainframe/database offerings for some time.

At the automation level (Enterprise Storage Automation) CA is including features such as 1.) dynamic
provisioning, 2.) functional intelligence (discovery, monitoring, etc.), 3.) policy-based management
functionality, and 4.) hot activation with plug and play capabilities. This feature is built on a standards-
based architecture that supports HTTP/HTTPS (Hyper Text Transfer Protocol Secure sockets), XML
(eXtensible Markup Language), XSL (eXtensible Stylesheet Language), and SOAP (Simple Object Access
Protocol) within an open API implementation through third party agreements from a wide array of third
party storage hardware providers. Although the open portal enables BrightStor’s ability to interface with
best-of-breed solutions, we view the Enterprise Storage Automation capability as the “brains” behind this
continually developing solution set.

In terms of specific application capabilities, BrightStor has four key storage management processes:
1.) Data Availability, 2.) Media (tape libraries) Management, 3.) Networked Storage (SAN and NAS)
Management, and Storage Resource Management. We view the latter two market pieces as the most
promising growth engines for the company going forward. Below we provide details on each of these
solution sets:

     Data Availability¾building on the company’s existing enterprise backup, ARCserve backup, and mobile
     backup solutions, CA has enhanced its backup capabilities by providing increased policy-based backup,
     recovery, and replication functionality. Essentially, this newly integrated solution is a combination of
     the company’s existing Alexandria product (this provides increased performance and scalability for
     higher end environments), as well as the company’s ARCserve backup solution. (This provides
     enhanced usability and heterogeneous support needed in a SAN.) More importantly, we expect CA to
     migrate its current backup/recovery solutions to the high-end market in which data replication will be

     Media Management¾This is CA’s tape, virtual tape, and disk protection, integration, tracking, and
     reporting product line. This includes the BrightStor CA-1 Tape Management, Dynam/TLMS tape
     Management, and the CA-VTAPE (Virtual Tape).

     SAN/NAS Storage Management¾Expected to become generally available in early 2003, CA’s integrated
     networked storage management solutions will provide automatic discovery capabilities (features just
     added in EMC’s Auto-IS), monitoring, administration, and visualization for SAN and NAS environments.
     We view this as one of the key products in CA’s developing BrightStor lineup.

     Storage Resource Management¾Consisting of data collection, reporting, and integration capabilities,
     CA’s SRM products provide support for applications, file systems, storage arrays, and NAS filers. The two
     key heterogeneous solutions within this space are CA’s BrightStor SRM and the CA-VANTAGE SRM
     solutions. VANTAGE is the implementation of Sterling Software’s product set, which was acquired by CA
     in early 2000. BrightStor SRM is the distributed (heterogeneous) solution, where as the CA-VANTAGE
     SRM is implemented in mainframe environments. CA provides these functionalities through an
     extensive list of open API agreements with leading storage RAID vendors, as well as leading SAN
     component companies such as Brocade, McDATA, QLogic, and others. This allowed the company to
     provide increased support and functionality within its SRM 6.2 release previously this year. These
     enhancement include the following:

         Increased mainframe support¾SRM 6.2 now supports IBM’s DB2 mainframe as well as Unicenter
         with additional features such as an ODBC (Open Database Connectivity) interface for increased

         New Java-based host configuration client¾This provides a much more user friendly interface for
         setup and configuration within networked environments.

         Microsoft Exchange and BrightStor Enterprise Backup support.

        Automatic Discover¾This is the ability to visualize and configure new components added within the
        network regardless of vendor. This simplifies the laborious task of setup and configuration in an
        expanding infrastructure.

        hallenges¾Below we provide a list of various challenges that we believe CA will encounter over the
C       next few years:

    Increased momentum toward integrated heterogeneous solutions from leading hardware vendors such
    as EMC, IBM, Sun Microsystems and others will increase the competitive landscape in the storage
    management software market going forward. This will become increasingly apparent as we see
    standardization such as Bluefin and CIM become more prevalent as we get into 2003, therefore,
    diminishing the current necessity of open API agreements with diverse hardware and SAN component

    Continued economic turmoil (most notable within the high-end capital IT spending environment) will
    limit new subscription penetration given muted new infrastructure deployments.

Our Opinion¾CA has an expanding position in the storage management software market. We believe
continued product enhancements and increased interoperability with the key storage array and
component providers will position the company as a formidable competitor in this evolving market.
However, likely standardization through SNIA’s Bluefin/CIM initiatives could impede the company’s
position as an agnostic provider of heterogeneous solutions as we see the competitive landscape become
more aggressive with companies such as EMC, HP, IBM, and others.

Executive Team and Board of Directors
Name               Title
Sanjay Kumar       President & CEO
Charles Wang       Chairman
Russell Artzt      Executive VP & Director
Gary Quinn         Executive VP¾Sales &
Stephen Richards   Executive VP & GM¾Sales
Ira Zar            Executive VP & CFO
Michael McElroy    Senior VP & Secretary
Steven Woghin      Senior VP & General
Mary Stravinskas   VP & Treasurer

                                                 Legato Systems

Legato Systems
One liner      Storage backup company that fell on hard times a few years ago.
Location       Mountain View, CA                       Stage                Public
Web site               Employees            1,577
Founded        1988                                    Patent Portfolio     N/A
Competition    VERITAS Software

Storage Software Business Summary

L   egato Systems plays in three areas: 2.) information protection (backup) with its NetWorker product,
    2.) Availability, and 3.) Content Management (leveraging its acquisition of OTG Software a few years
ago). Rumors are rampant that the company is in negotiations to be acquired by EMC. We discuss this in
depth below.

Information Protection
    Legato NetWorker. Flagship backup software product. Sun resells this product as Sun Solstice.

    AlphaStor¾This is Legato’s mainframe-class media management solution which, coupled with the
    company’s NetWorker backup software, provides a complete end-to-end centralized backup/media
    management solution. More specifically, AlphaStor is a policy-based media life-cycle management tool
    in which administrators are able to monitor and track off-site tape repositories from a centralized
    management console, which was acquired by Legato in mid-2001 through the company’s acquisition of
    SCH Technologies. One of the most important features that Legato obtains within the AlphaStor is its
    ability to manage disparate data zones from a single installed AlphaStor Server through its
    implementation of NetWorker and, therefore, utilize the ability to share tape devices and library
    equipment throughout a SAN environment.

    DiskXtender. This product automatically moves inactive data to more cost-effective storage.

Automated Availability Solutions
    AAM (Automated Availability Management). AAM automates availability of applications and data by
    monitoring the health and performance of applications, alerting when resources begin to run out, by re-
    provisioning and restarting services when failures occur, and by automating process control and data

    RepliStor. Data replication software for Windows.

Content and Messaging
    ApplicationXtender. Content management software that works by capturing all different kinds of
    electronic content¾documents, images, video, audio, COLD (Common Object-oriented Language for
    Design)/ERM (Enterprise Relationship Management) and more¾and making them easily accessible.

    EmailXtender. Enterprise storage and content management for e-mail applications (Microsoft
    Exchange/Outlook, Lotus Notes/Domino, Unix Sendmail, and Bloomberg Mail).

If EMC Were To Acquire Legato Systems

R    umors have been increasing lately that EMC may announce an acquisition of Legato Systems (LGTO),
     possibly for around $750 million. In early February, sources told Reuters that Legato hired a securities
firm to seek potential buyers (Reuters claims for around $800 million-$1 billion). We believe that after
losing significant ground to VERITAS Software in 1999, Legato became receptive to offers from EMC and
Computer Associates. We hear that EMC did actually perform ample due diligence a few years ago but
eventually passed.

Legato is a storage software company that posted revenue in calendar 2002 of $261.9 million composed of
$132.5 million in product revenue (50.5% revenue), and $129.4 million (49.4% revenue) was from services.
We estimate that backup software (NetWorker) accounted for 66% of product revenue, or $88.8 million, in
calendar 2002. We estimate that revenue from EMC’s current backup solution (EDM) was around
$50 million in calendar 2002. This solution is mostly server hardware based but it does compete against
VERITAS’ NetBackup on select occasions. With Legato, EMC would obtain a backup business that is 15%
of VERITAS’ backup business (which we estimate at $591 million in calendar 2002).

Pro forma. As Figure 16 shows, we believe acquiring Legato would allow EMC to increase its software
business in calendar fourth quarter 2002 from 23.3% of revenue to 24.7% of revenue and to increase its
gross margin by 3.2 percentage points to 42.6% from 39.4%. Figure 17 shows how EMC has been
gradually increasing software as a percentage of revenue over the past three years. (The company’s stated
long-term goal is for software to make up 30% of revenue.) As Figure 18 illustrates, the gross margin
improvement offered by Legato would be a big boost to EMC whose gross margin has been trending up
only slightly over the past several quarters.

 FIGURE 16         Calendar Fourth Quarter 2002 Pro Forma
                   (Dollars in Millions)

                                      Legacy EMC            Legacy Legato     Combined Company
Revenue ($M)                             $1,489.4               $76.6               $1,596.8
Gross Margin                             $ 586.9                $62.8                $ 680.5
Gross Margin %                               39.4                81.9%                  42.6%
Operating Exp.                           $ 569.9                $62.2                $ 642.0
Operating Margin %                            0.5%                 0.8%                  2.4%

Hardware % Rev.                             53.9%                 0.0%                  51.2%
Software % Rev.                             23.3%                52.1%                  24.7%
Services % Rev.                             20.8%                47.9%                  22.1%
Other % Rev.                                 2.1%                 0.0%                   2.0%
Total                                      100.0%               100.0%                 100.0%

Sources: EMC and Legato

Sun relationship. Legato has enjoyed a long relationship with Sun Microsystems. Sun accounts for the
majority of Legato’s OEM relationship (11% of revenue in calendar fourth quarter 2002). Sun sells
Legato’s NetWorker as its Solstice backup software product. A key question for investors is what Sun will
do after this deal. We believe that Sun will eventually dump EMC/Legato for Veritas as Sun and EMC
are fierce competitors and Sun resells storage from Hitachi (which is an arch-rival of EMC). This is a
positive for VERITAS but a small one as the entire Legato OEM business was around $18.6 million in
2002 (or 1.8% of VERITAS’ license revenue).

 FIGURE 17                     Software as a Percentage of Total EMC Revenue
                               (Revenue in Millions)

                  3000                                                                                                                                         0.3

                  2500                                               $2,345           24.6%             23.3%                     23.1%              23.3%     0.25

                                                                                                                                                                      Percent from Software
                  2000     $1,823                           18.4%                                                 21.7%                   22.5%                0.2
  Total Revenue

                                      16.3%                          19.9%                20.0%
                                                                                                      $1,513                                         $1,489
                  1500                                                                                                      $1,388                             0.15
                                                                                                                $1,302                    $1,259
                           14.8%                   14.6%

                  1000                                                                                                                                         0.1

                   500                                                                                                                                         0.05

                       0                                                                                                                                       0
                            Q1 00     Q2 00        Q3 00    Q4 00    Q1 01      Q2 01     Q3 01       Q4 01       Q1 02      Q2 02        Q3 02       Q4 02

Source: EMC

 FIGURE 18                     EMC’s Overall Gross Margin


          60%                                                                 55.1%
                                                   57.7%    59.2%
          50%               56.6%      57.9%

                                                                                                                                     38.3%                    39.4%
          30%                                                                                                             36.3%                     37.0%


                           Q1 00     Q2 00         Q3 00     Q4 00     Q1 01      Q2 01       Q3 01       Q4 01       Q1 02          Q2 02         Q3 02      Q4 02

Source: EMC

Legato as part of EMC. After VERITAS Software bought Seagate Software in 1999, Legato started having
an increasingly difficult time competing against VERITAS. This pressured Legato management to report
misleading numbers that had to subsequently be restated. As news of this restatement became
widespread, Legato’s problems became even more acute. Sales force turnover increased and market share
losses to VERITAS accelerated. Legato has since stemmed this erosion, but it became so far behind
VERITAS that it had a difficult time surviving on its own. We expect EMC to integrate NetWorker with its
Control Center framework to offer customers the same “look and feel”. This could, over time, result in
meaningful gains against VERITAS in backup software. This is a concern for VERITAS. EMC has
improved on a target company’s product before. After it acquired Data General several years ago, EMC
meaningfully improved sales of the Clariion storage array.

Executive Team and Board of Directors
Name              Title         Background
David B. Wright   CEO           13 years at Amdahl.
Andrew J. Brown   SVP/CFO       CFO of Adaptec
David Beamer      EVP/COO       President/COO of FileTek; 16 years at Amdahl.

                                                           BMC Systems

BMC Systems
One liner          BMC is a leader in the development of enterprise management applications.
Location           Houston, TX                            Stage             Public
Web site                             Employees         Approximately 6,200
Founded            1980                                   Patent Portfolio  CA, Veritas, EMC, IBM, HP
Competition        N/A

Business Summary
      escription¾Founded in 1980 and based in Houston, Texas, BMC Software is a diverse management
D     software provider, with products ranging from database management and enterprise applications
software to storage management and backup/recovery solutions. Entering the open systems market in
1994 (via its acquisition of Portal Software), BMC now provides a comprehensive set of storage
management solutions for both distributed and mainframe environments. In late 2000, BMC announced its
Application-Centric Storage Management initiative, which serves as the underpinning for the company’s
storage resource management, backup/recovery, and storage network management (SNM) solutions
utilizing open interfacing capabilities with leading storage component providers through the company’s
proprietary Knowledge Modules (KMs).

As shown in Figure 19, BMC derives approximately 17% of its total revenues from the PATROL Storage
Management product family. Of the roughly $65 million in PATROL revenue in the company’s most
recent quarter (fiscal fourth quarter 2003), BMC derives approximately 54% from license revenues and the
remaining 46% of the business from maintenance/renewals within this product family. This compares
with 78% license and 28% from maintenance just two years ago. Therefore, we have seen BMC lose
ground in terms of new deployments while its install base has driven an increased mix in maintenance
revenue. Overall, BMC’s PATROL revenue has declined from its high of about 20% of revenue posted a
year ago.

 FIGURE 19         BMC Revenue Breakdown

                                                           Professional Services
                                              12.5%                                Mainframe Data
                          High Potential Product Lines

                           Scheduling and Output                                     Distributed Systems Data
                               Management                                                   Management
                                   9.7%                                                        8.4%

                                                MAINVIEW               PATROL
                                                 12.5%                  17.1%

Source: BMC Software

Product Offering¾Building on the company’s Application-Centric Storage Management initiative
(launched in late 2000, detailed below), BMC provides a wide array of storage management capabilities
based on its PATROL and MAINVIEW family of solutions. The company’s PATROL Storage Management
serves as the umbrella under which BMC provides its “application-specific” storage management
capabilities implementing the company’s proprietary Knowledge Modules. Knowledge Modules enable
BMC to integrate its solutions with third party software vendors such as VERITAS, Legato, and IBM’s
Tivoli, as well as provide heterogeneous hardware support with such companies as EMC, Brocade,
Emulex, QLogic, and others. This open support thrives off of the company’s ACSM Consortium consisting
of approximately 22 resellers, development partners, and OEMs with the majority of today’s leading
storage hardware and software providers.

Application-Centric Storage Management (ACSM) Initiative¾In short, BMC’s ACSM architecture is a
modular set of software solutions that provides heterogeneous storage management functionality from a
centralized management console. This solution set builds off of the company’s implementation of vendor
agnostic Knowledge Modules, which provide support to either DAS, SAN, or NAS storage topologies.
Additionally, BMC provides interfacing (KM) technologies at the application, OS, and storage device levels.
Moving upward, we can see how BMC integrates its Storage Network Manager, Storage Resource Manager,
and Application Resource Manager into its existing software tools such as application recovery, snapshot,
and correlation capabilities.

Below we provide details on the key products within the PATROL and MAINVIEW family of storage
management solutions:

     PATROL Storage Management (Distributed Environments)¾As previously mentioned, BMC’s
     PATROL family of storage management solutions provides a comprehensive set of vendor agnostic
     management capabilities, including dynamic resource discovery, storage device monitoring, and
     enhanced backup/recovery functionality via the company’s implementation of Knowledge Modules.
     Below we provide some of the key products within the PATROL product portfolio.

         Backup/Recovery¾With third party vendor support including VERITAS’ NetBackup, Legato
         NetWorker, and IBM’s Tivoli Storage Manager, BMC’s PATROL Storage Management Backup
         Technologies provide enhanced backup features such as performance analysis, alerting capabilities,
         and various other features/metrics from a centralized interface.

         Storage Management¾This consists of BMC’s stand-alone storage software offerings, including
         products such as 1.) Storage Network Manager, 2.) Storage Resource Manager (SRM), and 3.) the
         Application Storage Resource Manager (ASRM). The difference between the latter two solutions
         revolves around the notion of either a host (server)-centric view versus an application-centric
         topology. SRM supports both Unix and Windows based storage resources with features such as
         planning, quota management, and automation, whereas the ASRM solution drills down into various
         applications including support of Oracle, Microsoft SQL server, Exchange, Sybase, and Siebel (given a
         device specific PATROL KM is installed). Recently added features within all of these storage
         management solutions include cost accounting (enabling charge backup and TCO calculation
         capabilities at either the application, file systems, or server levels), capacity planning, and enhanced
         custom reporting features. Multivendor support includes IBM ESS (Shark), EMC Symmetrix and
         CLARiiON, HDS Lightning, HP StorageWorks, Network Appliance, QLogic switches and HBAs,
         Emulex, Nishan, Brocade’s SilkWorm family, McDATA directors, and others.

     MAINVIEW Storage Resource Manager (Mainframes)¾This is BMC’s SRM solution for the mainframe
     (OS/390) environments, which essentially combines the company’s distributed SRM capabilities into the
     company’s legacy MAINVIEW architecture. Through the company’s Enterprise Storage Automation
     capability, MAINVIEW SRM manages storage ranging from DFSMS, DFSMShsm, IBM VTS, and various
     RAID devices within high-end mission critical environments. Key functions of this solution include
     1.) Historical performance and usage analysis, 2.) logical and physical volume mapping within RAID

  (EMC< IBM, and StorageTek disk arrays are currently supported), 3.) business-relevant automation
  capabilities based on the company’s application-centric focus, and 4.) dynamic recovery capabilities.

Executive Team and Board of Directors
Name                  Title                                     Background
Robert Beauchamp      President & CEO                           BMC Software
Garland Cupp          Chairman                                  American Express, McDonnell Douglas
John Cox              CFO                                       Ernst & Young, LLP
Jerome Adams          Senior VP, Administration                 Shell Oil Company, USF&G Insurance, TRW, General Electric
Dan Barnea            Senior VP, Research & Development         New Dimension Software, Laser Industries, Elscint
Darroll Buytenhuys    Senior VP, Worldwide Sales, Services, &   New Dimension Software
Jeff Hawn             Senior VP, Operations                     McKinsey & Company, First Boston
Robert Whilden, Jr.   Senior VP, General Counsel & Secretary    Vinson & Elkins LLP


One liner       Large enterprise business. Recently more focus on storage software.
Location        Palo Alto, CA                          Stage                Public
Web site                             Employees            140,000
Founded         1939                                   Patent Portfolio     17,000
Competition     IBM, Sun Microsystems, EMC

Storage Software Business Summary
OpenView SAM. Suite with five components:

     1) HP OpenView Storage Node Manager. For device management.

     2) HP OpenView Storage Builder. For capacity management.

     3) HP Openview Storage Optimizer. For performance management.

     4) HP OpenView Storage Accountant. For metering and billing.

     5) HP OpenView Storage Allocator. For access control and storage allocation.

HP OpenView Storage Provisioner¾Minimizes the steps to perform manual storage provisioning.

HP OpenView Storage Data Protector¾For backup.

CASA. (Content-addressable storage appliance)¾used for heterogeneous storage replication. HP
repurposed its products obtained from its acquisition of StorageApps away from virtualization to

HP accounts for its storage software in its storage business, not its software business.

Executive Team and Board of Directors
Name                    Title                              Background
Carleton Fiorinia       CEO                                20-years at AT&T and Lucent
Bob Wayman              CFO                                Joined HP in 1969.
Mark Sorenson           VP, Storage Software Division

                                              Hitachi Data Systems (HDS)

Hitachi Data Systems (HDS)
One liner            Large company in enterprise storage.
Location             Santa Clara, CA                        Stage              100% owned by Hitachi
Web site                               Employees          Approximately 2,700
Founded              1989                                   Patent Portfolio   N/A
Competition          EMC, Veritas Software, IBM

Storage Software Business Summary

A   mong the top 10 storage software companies in 2002, HDS was the most rapidly growing. The
    company grew its business by 77% year over year as it posted $209.7 million of storage software
revenue (according to Gartner). The company’s key software products include

The Hi-Command Management Framework (based on CIM and SOAP) is composed of current and
forthcoming Hitachi products and provides a framework into which products from its partners can plug
and play. Separate from this framework is the Hi-Command suite of products. There are five key
modules that comprise this framework. (See Figure 20.)

 FIGURE 20           Hitachi High Command Management Framework

Source: Hitachi Data Systems

Hi-Command Device Manager (resides in a server and can provide integrated management of multiple
arrays such as Lightning and Thunder).

     Tuning Manager. This product does array performance monitoring and management. It leverages
     existing features like Cruise Control, Priority Access, and GraphTrack to provide adaptive tuning.

     Protection Manager. Available in second half 2003. This will provide easy implementation of two of
     HDS’ important existing software products¾ShadowImage (snapshot) and TrueCopy (remote
     replication)¾and backup/restore products from Veritas and Legato.

     Provisioning Manager. Available in second half 2003. This product will provide consolidation via
     storage pooling. Policy Manager makes it easy for Provisioning Manager to work, but Provisioning
     Manager does not need Policy Manager.

Policy Manager. Available in second half 2003. This product will be an extremely important product for
the company as it will allow HDS to enter the very important policy-based automation business. This
product is based on key modules from Hitachi’s successful JP1 systems management software product,
which holds approximately 30% market share in Japan.

TrueCopy. TrueCopy is HDS’ software for both snapshot and remote copy. HDS offers both synchronous
and asynchronous capabilities.

NanoCopy. NanoCopy allows users to copy data without quiescing the applications (i.e., taking them
down) or causing a disruption to end-user operations.

Hitachi’s Research And Development (R&D) Investment Plans. Hitachi intends to spend $500 million
in R&D on storage management software between 2002 and 2004. Hitachi has a total of 600 engineers
working on storage management software (basically the Hi-Comamnd Suite). Separately, Hitachi plans to
spend $650 million in co-development with ISVs (independent software vendors) and IHVs (independent
hardware vendors), and M&A (mergers and acquisitions).

Executive Team and Board of Directors
Name                    Title                       Background
Shinjiro Iwata          CEO                         With Hitachi since 1972 serving in a variety of roles.
Dave Roberson           President and COO           With Hitachi for over 20 years. High-profile, solid executive.
John Taffinder          EVP and GM/EMEA             With Hitachi for over 25 years.
Greg Cornfield          EVP/GM, Asia-Pac            Spent 15 years in HDS Asia.
Jim Davidson            EVP/GM                      With HDS since 1989.
Hubert Yoshida          VP and Chief Technologist   Held a variety of positions at IBM until joining HDS in 1997.
Marlene Woodworth       EVP/GM, Global Marketing    Before her current position, Ms. Woodworth was VP/Global Channel
                        and Operations              Operations for the Sun/HDS relationship. Spent 14 years at IBM.
Christine Wallace       SVP, Global Strategy        Joined HDS in 1998 from a software development tools company.
                        and Planning
Greg Coplans            SVP/General Counsel         At HDS since 1992.
Scott Genereux          VP of Global Marketing      Joined HDS in 1989. Formerly VP/US Sales and Support.
                        and Bus. Dev.
Ken Beaudry             SVP/GM, Global              20 years at StorageTek handling services-related management tasks.
                        Solution Services


One liner      Microsoft is a large diversified software company that has become increasingly focused on the storage
               software market.
Location       Redmond, WA                                Stage              Public
Web site                          Employees          50,500
Founded        1975                                       Patent Portfolio   N/A
Competition    EMC, Sun Microsystems, Veritas, IBM, Hewlett-Packard

Storage Software Business Summary
     escription¾Microsoft is a leading provider of a wide array of software products ranging from the
D    desktop/client environments to server and storage infrastructures. In this report, we will focus on
Microsoft’s storage management features provided under the umbrella of its Windows Server 2003 product
family. Overall, server platform software currently represents about 23% of Microsoft’s total revenue,
which includes the company’s legacy SAK software, as well as its ramping Windows Server 2003 business.
The server platform software business has grown from 21% of Microsoft’s total revenues in the beginning
of 2001. Put simply, Microsoft’s vision of the storage software market focuses on an integrated approach of
providing both file system and data storage management features through the support of its OEM and ISV
partners within its new Windows Server 2003 family.

Windows Server 2003 (formerly called Windows .NET Server). Windows Server 2003 is Microsoft’s
widely anticipated successor to the Windows 2000 Server operating system. Officially launched on
April 24 (note: Windows Server 2003 code has been available through selected OEMs since June 2001),
Windows Server 2003 is based on Microsoft’s .NET Framework and provides standards-based
functionality through the use of XML-based web services. The initial launch provides four editions of the
Windows Server 2003 Family. These include the following:

    Windows Server 2003¾Standard Edition¾Primarily focused on entry-level environments, this edition
    provides file and print sharing, secure Internet connectivity, and centralized desktop application
    deployment. Therefore, this edition does not implement the storage management features that we will
    focus on in this report.

    Windows Server 2003¾Web Edition¾This lower end edition is focused on optimizing web hosting and
    serving implementations. Key features include Network Load Balancing, Volume Shadow Copy Service,
    and SAN support. Web Edition is ultimately a platform for the development and deployment of XML
    Web services and applications via the ASP.NET technology.

    Windows Server 2003¾Enterprise Edition¾Implemented in small/medium businesses and large-scale
    computing environments, the Enterprise Edition supports up to eight-node clusters and can be
    implemented in both 32GB (gigabyte) and 64GB environments (x86-based and Itanium-based server
    implementations). Therefore, through its partnership with Intel, we believe Microsoft is positioning this
    edition as a primary beneficiary of the Itanium rollout later this year. Other features include 1.) eight-
    way symmetric multiprocessing (SMP), 2.) automated features such as Microsoft Software Update
    Services (SUS) and a Group Policy Management Console (GPMC), 3.) Volume Shadow Copy Service
    (VSS; also supported in the below Datacenter Edition) for enhanced backup capability, and 4.) Hot-Add
    Memory in order to provide enhanced uptime.

    Windows Server 2003¾Datacenter Edition¾Windows Server 2003 Datacenter Edition is available in
    either 32- or 64-bit architectures and provides support for eight-node clustering (up from four node

     cluster support with Windows 2000). Additionally, the Datacenter, as well as the Enterprise Editions
     provide clustering capability in either a single cluster configuration or multiple clusters on a SAN. Other
     key enhancements include 1.) Intel Hyper-Threading support, 2.) Direct access to SANs via Windows
     Sockets (TCP/IP), 3.) Windows System Resource Manager (WSRM), and 4.) a 128-way support will be
     available in a future version of the Datacenter Edition.

Below we provide a summary of the key storage management features within the Windows Server 2003

Windows Server 2003¾Key Storage Management Features. The key features included within
Microsoft’s Windows Server 2003 release are built around the notion of increased automation coupled
around the integration of the Windows Management Interface (WMI). Key features include the following:

     Volume Shadow Copy Service (VSS). This snapshot copy feature is a new addition to Microsoft’s
     Windows Server framework. VSS is focused on increasing momentum associated with disk-to-disk
     backup while still supporting legacy backup implementations utilizing tape with the ability to backup
     and restore files at either the file, volume, or application level. As we see it, VSS is probably the most
     significant enhancement from the Windows 2000 architecture and provides Microsoft with an entry
     point into the server-based backup/recovery market. In addition, this new feature on the Windows
     Server 2003 also provides end users with the ability to automatically retrieve previously backed-up
     point-in-time data through shared folders through a “previous version” tab embedded in Windows
     Explorer. This ultimately eliminates the necessity of contacting an IT administrator in a retrieval

     Automated Systems Recovery (ASR). ASR is a CD implementation of a backup and restore feature
     enabling server migration from Windows 2000 or Windows Server 2003-based environments by
     providing the ability to completely restore the environment to its original state after completion. This
     would also be implemented when restoring of failed systems is necessary. This new solution can be
     combined with Microsoft’s Remote Installation Services (RIS) to provide a completely automated systems
     restore function across a network.

     Virtual Disk Service (VDS). This is a new service in Windows Server 2003, which provides a single
     interface for block level storage virtualization management. In other words, this allows for the
     management of both block level logical units (LUNs) and logical (virtualized) volumes of data. Key
     management features include 1.) data binding, 2.) automated topology discovery and tracking,
     3.) volume status, and 4.) performance tracking.

     DFS File Replication Services (FRS). FRS works with the DFS (Distributed File System) in order to
     provide file replication with the ability to automatically maintain synchronization between the copies
     being created across a disperse set of servers. New to the Windows Server 2003 is the DFS MMC UI,
     which enables the configuration of replication topologies, while FRS provides increased compression of
     replication traffic across a network.

     Volume Management. Microsoft has also improved its Logical Volume Management (LVM) within this
     new Windows Server architecture. LVM provides a mapping layer between the disk driver and the file
     system in which performance has been enhanced. Put simply, this embedded feature allows IT
     managers to add volumes via online without a system reboot, volume conversion from basic to dynamic
     (virtual), and allows for volume expansion without a reboot.

     Diskpart Command. This builds on the functionality of Logical Disk Management (implemented in
     Windows 2000) and allows IT managers to create and manage basic, as well as dynamic disk volumes in
     order to repair fault-tolerant volumes, expand basic physical disk, and extend disk volumes
     automatically. Windows Server 2003 provides an enhanced version of Diskpart Command in order to
     implement the previously detailed Virtual Disk Service (VDS).

     Backup/Restore¾Data Protection functionality was initially implemented within Microsoft’s Windows
     2000 Server through an integrated security model using ActiveDirectory service, public key
     infrastructure (PKI), NTFS file systems, and Encrypted File System (EFS).

     Automated Storage Resource Management (SRM). Building off Window 2000 Server’s support for
     RAID (i.e., allowed the IT manager to increase storage capacity without downtime), Windows Server
     2003 supports the ability to automate storage management through its ability of scripting disk
     management operations.

     Improved SAN Support. Along with the above-mentioned VSS addition, Microsoft’s enhanced SAN
     support is also viewed as one of the key enhancements to this next-generation server operating system
     family. This includes the ability to boot Windows Server 2003 images from a Fibre Channel-based
     storage environment, as well as support for emerging SAN protocols such as iSCSI.

     Improved NFS/CIFS File Service. Performance of Microsoft’s embedded distributed file system has
     been increased by as much as 70X through the release of Windows Server 2003, which provides
     increased functionality for Microsoft’s check disk repair tool (chkdks.exe). More specifically, CIFS
     performance has improved by roughly 2.5X since its initial implementation in Windows NT 4.0, while
     NFS performance improved by 15X from its NT 4.0 version.

     Improved Multi-Path I/O (MPIO). By utilizing third parties, Windows Server 2003 provides an
     integrated MPIO driver that enables users to easily connect Windows 2000 server and Windows Server
     hosts on a SAN without any fault-tolerance issues. This looks to rectify the issues associated with
     implementing diverse vendor specific configurations of MPIO functionality and implementation codes
     within the infrastructure. This supports up to 32 processor paths in the Datacenter edition (up to eight
     paths in the Enterprise edition).

Figure 21, below, provides a summary of the key new/enhanced features within Microsoft’s Windows
Server 2003.

    FIGURE 21       Microsoft¾Windows 2003 Server¾Key New/Enhanced Features within Windows Server 2003

                                                   Features                            Enhanced   New
                                                      Automated System Recovery
                                                                      Backup Utility
                                                           Distributed File System
                                                                  Disk Management
                                                                Disk Quota Support
                                                            File System Encryption
                                                                   Hot Add Memory
                                                  Network Load Balancing Clusters
                                   Operating System Migration/Support/Integration
                                                        Password Backup/Restore
                                                           Remote O/S Installation
                                                     Remote Storage Management
                                                     Removable & Remote Storage
                                                                  Server Clustering
                                              Volume Shadow Copy Service (VSS)
                                                  Shado Copies for Shared Folders
                                                             Volume Management
                                                        Virtual Disk Service (VDS)
                                                          SAN Support (SAN Boot)
                                              Windows Resource Manager (WRM)
Source: Microsoft

Executive Team and Board of Directors
Name            Title                      Background
William Gates   Chairman, Chief Software   Founder
Steve Balmer    CEO                        Joined Microsoft in 1980; Promoted to President in 1998; CEO in 2000
John Connors    Senior VP and CFO          PIP Printing; SAFECO Corp.; and Deloitte, Haskins, and Sells
Rick Devenuti   Corporate VP and CIO       Previously VP of worldwide operations, GM of North America
Jim Allchin     Group VP¾Platforms         VP and CTO of Banyan Systems
Jon DeVaan      Senior VP¾Software         Previously the Manager of the TV Division and the MicrosoftTV
                Engineering Strategy       software platform.
Paul Flessner   Senior VP¾Server           Previously VP of SQL Server
                Platform Division
Bob Muglia      Senior VP¾Enterprise       Previously Manager of MSN Service and Microsoft Office; ROLM, Co.
                Storage Division
Bill Veghte     Corporate VP of Windows    Previously VP of Microsoft’s Embedded/Appliance Platform Group;
                Server Division            Manager of Microsoft Office.

                                               Sun Microsystems

Sun Microsystems
One liner     Getting more involved in storage through acquisitions (Pirus, LSC, HighGround)
Location      Santa Clara, CA                          Stage                 Public
Web site                              Employees             35,745
Founded       1982                                     Patent portfolio      N/A
Competition   IBM, HP, EMC, Dell, Microsoft

Storage Software Business Summary
Four Key Suites
Sun StorEdge Resource Management Suite Software (SRM). This suite, based on Sun’s acquisition of
HighGround Systems a few years ago, is used to analyze storage usage, understand consumption, identify
bottlenecks, forecast growth, and plan efficiently.

Sun StorEdge Availability Suite Software. This is composed of remote mirroring and point-in-time copy

Sun StorEdge Utilization Suite Software. Local and remote disk-to-disk archiving. Features SAM-FS

Sun StorEdge Performance Suite Software. This suite, based on QFS software, provides content
distribution for large volumes of data such as CAD (computer aided design) and streaming media.

Sun StorEdge Enterprise Storage Manager. This product provides centralized core SAN management
services (topology configuration and health management).

Sun’s acquisition of Pirus Networks led to the release of its N1 Data Platform. This product provides
storage pooling and consolidation through virtualization.

Executive Team and Board of Directors
Name                  Title
Scott McNealy         CEO
Steve McGowan         CFO
Mark Canepa           EVP, Network Storage
                      Products Group


One liner        Storage software company formed on the expertise of Amdahl (which Fujitsu owns) from which it was carved
                 out 2 years ago.
Location         Sunnyvale, CA                        Stage               Subsidiary of Fujitsu Ltd.
Web site    Employees           More than 300
Founded          April, 2001                          Patent portfolio    N/A
Competition      VERITAS Software, EMC, IBM

Storage Software Business Summary

F   ormed in April 2001, Fujitsu-Softek is a rapidly growing company in the storage software space. The
    company’s long-term strategy is called Softek Automated Storage. This entails associating storage
resources to business applications by automating workflows and integrating the storage services (people,
processes, and tools) to visualize, provision, and protect data.

The company has a wide variety of products in the storage software space:

Storage Infrastructure Products
Products include:

     Softek TDMF (mainframe and open system storage migration).

     Softek Virtualization (which is sourced from DataCore).

     Storage Provisioner 2.1 was just released. This product automatically assigns and allocates disk storage
     space to applications as needed.

Storage Resource Management
Products include

     SANview (SAN fabric management).

     Softek Storage Manager (provisioning, management). This product won the Storage Management
     Product of the Year by Storage magazine and SearchStorage in their first annual competition. Magazine
     eWeek followed through in February 2003 by noting that Softek Storage Manager offers return on
     investment (ROI) value and is one of the “Best IT Buys”. On March 31, 2003, Softek Storage Manager 2.1
     (second generation of the product) was introduced. New features include integration with Storage
     Provisioner, Linux support, support for Oracle and SQL database applications, and support for
     backup/recovery applications including Tivoli TSM and VERITAS NetBackup. It also enhances the
     previous capabilities for Legato NetWorker.

Storage Data Management
Products include

     Softek DR Manager (speeds data recovery).

     Softek Backup Networker edition (backup software).

Executive Team
Name                 Title                          Background
Steven Murphy        President and CEO              Formerly President of Amdahl Systems
Sandra L. Curry      CFO                            Formerly Controller of Fujitsu
Nicholas Tabellion   CTO                            Formerly an IBM executive involved in storage systems.
Shaun Hammond        VP/GM EMEA
Erna Arnesen         VP/WW Channels
Scott Kennedy        VP, Strategic Business
Chris Wagner         VP, Marketing Communications

                                Storage Software Companies (Private)

                  Storage Resource Management (SRM)¾Private Companies


One liner      CIM-based automated storage resource management software
Location       Burlington, MA                        Stage             Shipping Product
Web site                         Employees         56
Founded        2001                                  Patent portfolio  6 patents pending
Competition    VERITAS, CreekPath, Invio, InterSAN

Business Summary
     escription¾AppIQ provides CIM-based solutions for managing application infrastructure lifecycles in
D    the distributed datacenter. By managing the application infrastructure from the perspective of
business and service level requirements, AppIQ empowers storage managers, application managers and
executive officers to align datacenter management with a business’s true operational needs. The result is
more efficient use of existing assets, quicker deployment of storage infrastructure and business
applications, significantly improved availability of the business applications, predictable performance
through ongoing system analysis and automated policy-based actions.

Product Offering¾The AppIQ Solution Suite¾which includes AppIQ Manager, AppIQ for Oracle and
AppIQ for Exchange¾is a CIM-based application storage resource management solution that reduces the
costs and simplifies the management of users’ complex storage environment. The key to AppIQ solutions
is a common information knowledgebase that aggregates detailed information on all aspects of the
application infrastructure. AppIQ’s solutions correlate the related elements¾from the storage subsystem
to the application¾into a single entity so that IT managers can view and manage the infrastructure as a
whole. This alignment enables customers to meet the real time needs of the enterprise applications they
support and easily solve the problems associated with growth, heterogeneity and interdependency.

AppIQ’s application modules provide deep integration with key applications such as Exchange and Oracle
to enable proactive application storage design, deployment, provisioning and change lifecycle
management. The solution automatically discovers and renders the application, physical and logical
resource paths enabling simplified management of the end-to-end application infrastructure. The result is
an easy to deploy and simple-to-use solution that improves availability and provides a high return on
assets. The AppIQ solution is able to auto-discover, monitor, manage and analyze all the application
storage components either as individuals, or more relevantly, as a system. Purposely built to be easy to
deploy and intuitive to use, the suite manages the application infrastructure as a system to provide
complete control over the entire lifecycle from initial configuration and provisioning through eventual
migration to new technologies. This application-integrated approach reduces the total cost of ownership
by eliminating disparate tools, significantly improves availability through end-to-end root cause analysis
and, because it is standards-based, eliminates vendor dependencies.

AppIQ’s key advantages include

     CIM-Based Management¾The AppIQ Solution Suite is built on CIM, Web-Based Enterprise Management
     (WBEM) and the Storage Management Initiative (SMI)/Bluefin industry standards for heterogeneous
     storage network management. The implementation of these standards allows the AppIQ solution to

    support all users’ heterogeneous storage needs and ensures that investments in infrastructure can be
    leveraged in the future. AppIQ also recently announced CIMIQ, a comprehensive software development
    and deployment platform for CIM that is available to storage vendors interested in accelerating the
    development of CIM-compliant products. In conjunction with the release, AppIQ also launched an
    associated partner program that has been instrumental in broadening AppIQ’s device support.

    Deep Application Integration¾AppIQ solutions are founded on the premise that applications create,
    manage and associate value to data. By integrating real time information from individual storage
    devices, network components, servers, operating systems and, finally, the applications, AppIQ can help
    organizations manage the distributed datacenter as an integral part of overall business operations.

    Consolidated Storage Management¾The AppIQ Solution Suite consolidates SRM, SAN, device and
    storage area management into a single, easy to deploy and use application working off a common
    information knowledgebase. To ensure that the management solution provides relevant analysis and
    action, AppIQ integrates best practices for seamless integration of IT activities with business objectives
    including integrated asset management, chargeback, warranty management and real-time infrastructure
    cost analysis.

The AppIQ Solution Suite, which the company announced on October 21, 2002, includes a storage
management platform, AppIQ Manager and two application modules, AppIQ for Oracle and AppIQ for
Exchange. The AppIQ Solution Suite offers many of the features and functions found in today’s tools that
focus on SRM, SAN, device and storage area management consolidated into one standards-based, easy-to-
use console. This integrated, application-focused approach helps simplify and lower the cost of acquiring
and managing a heterogeneous storage network.

    AppIQ Manager¾An integrated storage management solution for managing the lifecycle of application
    infrastructures. Based on industry standards, AppIQ Manager provides the integrated management of
    applications, servers, storage network and storage subsystems in line with business and service level
    objectives. The key to AppIQ solutions is a common information knowledge base that aggregates
    detailed information on all aspects of the application infrastructure. AppIQ Manager correlates the
    related elements¾from the application to the storage subsystem¾into a single entity so that IT managers
    can view and manage the infrastructure as a whole.

    AppIQ for Oracle¾AppIQ for Oracle is a CIM-based application storage management solution that
    allows users to realize the benefits of networked storage by more effectively managing the end-to-end
    Oracle infrastructure from a single, easy-to-use console. By integrating real time information from
    storage devices, network components, servers and operating systems with the application database,
    AppIQ for Oracle can improve Oracle database performance, availability and reliability and maximize
    return on Oracle storage assets. With AppIQ for Oracle users can designate a shared storage pool
    between multiple Oracle servers so that when tablespace utilization reaches a certain utilization level
    (for example 90%), AppIQ for Oracle will automatically provision from the shared pool to the tablespace
    to prevent database downtime.

    AppIQ for Exchange¾AppIQ for Exchange is a CIM-based application storage management solution
    that simplifies the management of the end-to-end Exchange infrastructure. Using Microsoft supported
    interfaces, the Windows 2000 platform and other related services, AppIQ for Exchange provides deep
    application comprehension that enables the design, provisioning, monitoring, managing and migration
    of enterprise-wide Microsoft Exchange 2000 instances. This tight application integration allows
    Exchange administrators to improve availability, ensure predictable performance and lower the overall
    cost of Exchange storage management.

Customers/Markets/Sales Model¾Not available.

Partnerships¾The company has established a partner program that includes Brocade, EMC, Hitachi Data
Systems, LSI Logic, Network Appliance, Oracle, McDATA, Sun and VERITAS.

Recent Developments/Announcements
February 27, 2003
  Announced that it had raised $12 million in its second round of venture financing.

January 23, 2003
  Announced the appointment of David Lemont as president and CEO.

October 21, 2002
 Debuted the AppIQ Solution Suite and announced the immediate availability of CIMIQ.

Executive Team and Board of Directors
    Name                         Title                              Background
    David Lemont                 President & CEO                    Revit Technology, Oracle, Concentra,
                                                                    Computervision, Electronic Data
    A. Ashutosh                  EVP & CTO                          StorageNetworks, Blue Spruce
                                                                    Networks, Serano Systems
    Doug Cahill                  VP, Business Development &         Highground, Shiva, Progress
                                 Strategy                           Software
    David Chang                  VP, Product Management             StorageNetworks, LSI Logic
    Jon Stevenson                VP, Engineering                    Parametric Technology, Shape Data,
                                                                    UG Solutions
    Alex Neihaus                 VP, Marketing                      Revit Technology, Lotus Development
                                                                    Corp., IBM
    Roger Cummings               VP, Sales                          TrelliSoft, Orbit Commerce, Platinum
    John Pearce                  CFO                                Silver Stream Software, Watermark
    James Goldstein              Board Member, Venture Investor     North Bridge Venture Partners
    David Skok                   Board Member, Venture Investor     Matrix Partners

Financing ($ in millions)
    Round          Date       Amount               Post Valuation    Investors
    1              11/01      $8.0                 NA                North Bridge Venture Partners,
    2              2/03       12.0                 NA                Matrix Partners
                   Total      $20.0


One liner      Storage resource management software.
Location       Mountain View, CA                     Stage                 Shipping Product
Web site                       Employees             35
Founded        December 2000                         Patent portfolio      NA
Competition    Astrum, BMC, PowerQuest, Precise, Storability, Sun, TeraCloud

Business Summary
     escription¾Arkivio provides enterprise storage management automation software that minimizes
D    administration and infrastructure costs while optimizing IT resources. Arkivio’s first product, Arkivio
auto-stor, became generally available on September 16, 2002. Auto-stor operates across a user’s storage
infrastructure, including NAS, SAN and direct attached storage environments.

Product Offering¾Arkivio auto-stor enables medium to large enterprises the ability to automate storage
and data resource management by integrating automated data migration and placement with proactive
resource management. Auto-stor collects and analyzes detailed information about data and storage
resources across the network. Utilizing patent-pending automation technology, auto-stor dynamically
places a user’s data on the most appropriate storage resources, according to administrator-defined rules
such as frequency of access, owners, size, type and business value. Arkivio’s solution enables transparent
migration from full storage volumes to underutilized volumes or migration from more expensive, high
performance storage devices to less expensive storage without affecting the end-users’ or applications’
view of data. As a result, auto-stor reduces storage acquisition and administrative costs by automating
management tasks, increasing storage asset utilization and preventing application downtime that might be
caused by capacity-induced outages. Arkivio’s automated storage capacity management allows users to
classify heterogeneous storage devices based on characteristics such as cost, available capacity,
performance, manufacturer, model and type. Additionally, users can create customizable global storage
management policies such as balancing storage capacity across server-attached storage and optimizing
storage costs across heterogeneous storage devices.

Auto-stor’s continuous monitoring and detailed reporting of data and storage utilization provide
administrators with a better understanding of what data is consuming storage resources, as well as the
following features:

    Servers and storage devices can be monitored through installed software agents or remotely.

    Closed-loop monitoring and reporting of global policy results allows administrators to gauge the
    effectiveness of implemented policies and adjust them as needed.

    Historical trending on data and storage resource growth allows more accurate planning for more cost-
    effective storage purchases.

Threshold-based alerting provides timely warning to administrators to purchase additional storage or to
adjust their implemented policies to free up additional space.

Customers/Markets/Sales Model¾The company is targeting customers in the professional services,
manufacturing, government, health care, CAD/CAM (computer aided manufacturing) and financial
services industries.

Partnerships¾Auto-stor is certified with VERITAS, Legato and CA, as well as security software providers
McAfee, Norton and TrendMicro.

Recent Developments/Announcements
January 21, 2003
  Announced that Allegra Systems has purchased a GA-version of the Arkivio auto-stor software.

October 22, 2002
 Announced that Total Tec will resell Arkivio auto-stor.

September 16, 2002
  Announced the general availability of the Arkivio auto-stor software solution.

July 15, 2002
  Announced that Howard Silver had been appointed to the post of senior vice president of Engineering.

Executive Team and Board of Directors
Name                    Title                                Background
Giovanni Paliska        President & CEO                      Creative Design Solutions, Micronet,
                                                             PLI, RasterOps
Albert Leung            Chief Technical Officer              Creative Design Solutions, Novell,
Howard Silver           Senior VP, Engineering               VERITAS Software, AST Research,
                                                             Forward Technology
James Potochny          VP, Finance & CFO                    Creative Design Solutions, Hewlett-
                                                             Packard, Axicon Technologies, Intel
Bob Grewal              VP, Sales                            Maxtor, Bell Microproducts
Buzz Walker             VP, Marketing and Business           Hewlett-Packard, Procter & Gamble
Wo Overstreet           Chairman                             The Trellis Group
Curtis Feeny            Director, Venture Investor           Voyager Capital
Quinn Morgan            Director, Venture Investor           Moore Capital Management
Barry Schiffman         Director, Venture Investor           JAFCO Ventures

Financing ($ in millions)
Round          Date    Amount               Post Valuation    Investors
1              3/01    $3.0                 NA                JAFCO Ventures, Moore Capital
2              3/02    9.5                  NA                Management, Voyager Capital
               Total   $12.5

                                               CreekPath Systems

CreekPath Systems
One liner       Backup reporting software
Location        Bellevue, WA                           Stage              Shipping Product
Web site                      Employees          35
Founded         January 1999                           Patent portfolio   NA
Competition     Legato, Veritas, Computer Associates

Business Summary
     escription¾CreekPath Systems is a software development company leading the market in delivering
D    SRM solutions. CreekPath develops an integrated storage management platform for the global
enterprise that reduces capital and operation expenses, while leveraging the complexity of evolving
storage infrastructures.

Product Offering¾CreekPath’s (Application Intelligent Management) AIM Suite consists of the CreekPath
AIM Platform and the CreekPath Process Automation Modules. The company believes that its AIM suite is
the first storage management solution that includes rules-based policy and workflow engines in support of
storage networks.

The AIM Platform combines critical elements of storage node management, storage resource management
and virtualization with policy management to provide closed-loop, heterogeneous storage management.
The AIM platform consists of the following storage networking management features:

     Discovery¾Automatically discovers managed storage devices such as servers, HBAs, Fibre Channel
     switches and directors and storage arrays. Storage managers can configure scanning frequency and
     device address ranges as well as class of device for scanning.

     Visualization¾Graphically displays the managed storage network and features drill-down capability to
     access detailed information and enable device specific management tools. Topology maps include both
     physical and logical views of the storage network, mapping critical applications to their storage.
     Additionally, the health of each managed device is indicated by the color of its icon.

     Application Dashboard¾Allows users to instantly view the status of each application with regard to its
     storage infrastructure. Maintains a list of application instances and displays their storage usage as well
     as compliance with storage service level objectives. The multipane view includes these selected
     applications’ storage infrastructure, current storage reports and any alarms that have been sent.

     Event and Alarm Management¾Provides events and alarms that indicate problems, failures or status
     of managed storage devices that are collected and stored in the AIM Platform. Storage managers have
     the capability to set thresholds for events and alarms, which can then generate actions via e-mail,
     scripting or SNMP traps.

     Reporting¾Provides storage reporting of the applications, hosts and storage arrays, identifying capacity,
     utilization, performance and cost information for the entire storage network. Capacity reports are
     available for hosts that display utilized, free and unallocated storage. Utilization reports for storage
     arrays include unconfigured, free, reserved, mapped and bound storage.

     Service Level Objectives (SLOs)¾Provides closed-loop performance guarantees that tie back to a
     particular application. SLOs support the Service Level Agreements between the IT organization and

    business managers. The AIM Platform supports the Time to Provision SLO (for storage capacity
    requests) in a closed-loop mode by measuring and monitoring the SLO and taking action when the
    objective is not being met. Additional SLOs, such as Storage Performance, Storage Cost and Storage
    Availability are supported by AIM Platform policies, scenarios and reporting.

    Policy Management¾Includes a policy engine that captures the IT organization’s best practices related
    to storage management. The AIM Platform provides storage managers with default policies as well as
    the capability to edit and save new policies that support their best practices. Policy parameters include
    RAID level, mirroring, array type, array vendor, capacity, utilization, performance and zoning. The AIM
    Platform uses the policies provided to make critical decisions and provide CreekPath Guardrails for safe,
    automated provisioning.

    Storage Scenario Management¾Includes a rule-based workflow engine for optimizing provisioning
    decisions, controlling the storage process and performing “what if” analysis in the storage networks.
    Scenarios provide audited and timed workflows that walk the user through the storage provisioning
    process. The AIM Platform provides default scenarios for specific application types, such as Oracle and
    UNIX file system storage provisioning. Scenarios also provide closed-loop storage control that is tied
    back to SLOs. Multiple storage administrators or managers may take part in the enactment of a
    particular scenario. AIM Platform allows the storage manager to set distinct system security levels
    depending on the role of a particular administrator or manager.

    Storage Network Reporting¾Provides storage managers with device-specific information relating to
    the health and availability of storage devices as well as capacity, utilization, performance and cost
    information for the storage network. The AIM Platform also uses this reporting information internally to
    make storage-provisioning decisions within the storage network. Capacity reports are available for free,
    allocated, assigned and utilized storage by server, disk array and application.

The AIM Suite’s Process Automation Modules are based on patent-pending technology, a complex device
data model and workflow engine. Process Automation Modules include the following features:

    Automated Storage Provisioning¾Provides integration with the CreekPath AIM Platform to automate
    the provisioning process using the IT department’s storage policies to enforce their SLOs. Process
    Automation Modules eliminate the need to learn unique consoles and command line interfaces for
    managing storage networks, thus significantly increasing productivity. Storage managers can select
    which storage tasks they wish the AIM Platform to automate, or they may decide to perform the tasks
    manually through the Wizards. Process Automation Modules also maintain an audit trail by tracking
    and record and automated actions they perform.

    Provisioning Wizards¾Allow the storage manager the ability to manually provision heterogeneous
    switches and storage arrays from a common user interface or “single pane of glass”. The AIM Platform
    includes Wizards for volume creation, deletion, LUN management and zone management.

The Process Automation Modules are available to monitor, visualize, manage and automatically manage
storage devices from Brocade, EMC, Hitachi Data Systems, LSI Logic, McDATA and Sun.

Customers/Markets/Sales Model¾Not available.

Partnerships¾CreekPath has developed technology alliances with a number of key software and
hardware vendors, including Brocade, EMC, Hitachi Data Systems, JNI, LSI Logic, McDATA, Network
Appliance, Oracle and Sun.

Recent Developments/Announcements
January 27, 2003
  Announced that CreekPath has been honored as the “Emerging Company of the Year 2003” by members
of the I/O community.

November 25, 2002
 Announced full support of Brocade Fabric Access API for safe automation of heterogeneous network
 storage environments.

November 12, 2002
 Announced the release and delivery of the CreekPath AIM Suite, the industry’s first integrated storage
 resource management solution.

     Announced the appointment of Dennis Grant as chief executive officer.

November 5, 2002
 Announced the closing of its oversubscribed Series B financing with total funding of $16.8 million.

June 20, 2002
  Announced the immediate availability of its flagship product, AIM Suite 2.0.

May 8, 2002
 Announced the addition of Scott Hansbury to the executive management team as the company's chief
 marketing officer.

Executive Team and Board of Directors
 Name                              Title                               Background
 Dennis Grant                      Chairman & CEO                      HighGround, Sun Microsystems,
                                                                       StorageTek, DML
 Victor Walker                     President & COO                     Tantia Technologies, Groupe Bull,
                                                                       StorageTek, U.S. Army
 Mike Koclanes                     Chief Technology Officer            Exabyte, Sun
 Paul Cardosi                      CFO & Director, Business            Exabyte, Mitsubishi, Hewlett-
                                   Operations                          Packard, Apricot Computers
 Scott Hansbury                    VP, Marketing & Business            Sun, HighGround Systems, Groupe
                                   Development                         Bull, IBM
 Jason Howe                        VP, Sales                           OuterForce, Unibex, Medical
 Mike Pardun                       VP, Worldwide Channel               Telesoft Partners,, US
                                   Development                         WEST Media One
 Craig Reed                        VP & Chief Architect                Exabyte, Texas Instruments,
                                                                       Convex Computer, Kulicke and Soffa,
                                                                       Electro Scientific Industries
 Mark Feilinger                    VP, Engineering                     FastIdeas, Sybase, Exabyte, Adolph
                                                                       Coors Technology
 Arjun Gupta                       Director, Venture Investor          TeleSoft Partners
 Thomas Washing                    Director, Venture Investor          Sequel Venture Partners
 Peter Behrendt                    Director, Venture Investor          New Enterprise Associates
 Mark Perry                        Director, Venture Investor          New Enterprise Associates

Financing ($ in millions)
 Round           Date            Amount               Post Valuation    Investors
 1               1/00            $8.5                 $10.0             A.G. Edwards & Sons, New
 2               12/00           17.0                 29.0              Enterprise Associates, Exabyte,
 3               11/02           16.8                 37.0              GC&H Investments, Sequel Venture
                         Total       $42.3                              Partners, TeleSoft Partners

AGE Capital has an investment in Creekpath.


One liner      Automated storage resource management software
Location       Scotts Valley, CA                   Stage                    Shipping Product
Web site                    Employees                55
Founded        January 2000                        Patent portfolio         NA
Competition    AppIQ, CreekPath, Invio, Veritas

Business Summary
     escription¾InterSAN provides application-based storage area management (SAM) software that
D    enables customers to fully exploit all the benefits of their large, heterogeneous storage networks. The
company’s threefold mission is to provide superior, forward-thinking storage management solutions,
overcome its customers’ most challenging storage problems and support its customers’ dynamic business

Product Offering¾The company believes that its flagship product, PATHLINE, is the first SAM solution to
manage the relationship between applications, their data storage and everything in between, thereby
reducing the total cost of ownership of storage networks. PATHLINE centralizes and automates
configuring, monitoring, provisioning and control of complex, geographically distributed, heterogeneous
storage networks. In addition, PATHLINE does all of this by taking an applications-oriented view that
masks the complexity of the SAN infrastructure. That is, PATHLINE allows enterprises to manage their
large, complex SANs by focusing on applications, thus eliminating the need to manage on a device-by-
device basis. PATHLINE manages the application-to-data storage path without placing any hardware or
software in the data path, so it avoids performance and availability penalties. These unique capabilities of
PATHLINE are enabled through the company’s patent-pending Virtual Private DataPath (VPD) technology,
which establishes relationships between applications and data storage. Like a virtual private network, a
VPD establishes a secure end-to-end connection, in this case, between an application and its data over a
shared storage network, abstracting away the complexities and disparate technologies of the intervening
devices and their physical connections.

With its modular, scalable architecture, PATHLINE can support any number of storage networks, of any
size. This comprehensive solution enables enterprises to effectively monitor, control and optimize service
to business applications, while reducing the required expertise of IT.

Key features of PATHLINE include the following:

 Feature                  Function                               Business Benefit
 Automated, SLA-based     Transforms the complex, multistep      n
                                                                   Reduces the time to deploy storage
 Storage Provisioning     task typically performed by an         n
                                                                   Increases administrator efficiency
                          expert, into a simple, one-step        n
                                                                   Eliminates manual errors
                          operation that anyone can              n
                                                                   Enables seamless integration of multivendor
                          accomplish.                              products
 Application Impact       Identifies the applications impacted   n
                                                                   Improves application availability
 Analysis                 by infrastructure degradation and      n
                                                                   Improves problem resolution prioritization
                          outages and shows how the              n
                                                                   Aligns IT with business metrics¾applications
                          application has been affected
 Application SLA          Continuously monitors availability     n
                                                                     Enables differentiated and measured service
 Tracking                 or the uptime that infrastructure is       levels
                          delivering to each application,        n
                                                                     Enables infrastructure rightsizing activities
                          comparing it with the service-level

                             objectives specified by the
                             enterprise’s business policies
    Business-Relevant        Provides unique views that identify   n
                                                                       Allows management, control and monitoring
    Management               the application(s), locations and         of storage networking infrastructure from a
                             line of business affected by              business perspective
                             infrastructure degradation and
    Discovery and Topology   Automated, continuous discovery       n
                                                                       Automates asset management
    Rendering                and visualization of SAN devices      n
                                                                       Ensures currency of device and topology
                             and their interconnects                   information

    Health Monitoring        Real-time monitoring of the health    n
                                                                       Ensures rapid diagnosis of problems
                             and status of all SAN devices
    Enterprise Span of       User-friendly Management Console      n
                                                                       Uniform and unified management of large,
    Control                  that runs on any platform,                complex storage networks
                             anywhere to manage and control        n
                                                                       Centralized health “status-at-a-glance”
                             global storage networks

Customers/Markets/Sales Model¾InterSAN’s products are sold through value-added resellers (VARs)
and professional services partners, including CTS and Greenwich Technology Partners.

Partnerships¾InterSAN’s technology partners are Brocade, EMC, Emulex, Hitachi Data Systems, Inrange,
JNI, LSI Logic, McDATA and QLogic.

Recent Developments/Announcements
December 17, 2002
 Announced a partnership with Rhapsody Networks aimed at delivering the industry’s first
 comprehensive SAM solution to provide advanced management of network-based application services.

October 28, 2002
 Announced a global reseller agreement with HDS.

    Announced that InterSAN PATHLINE software has been verified by Brocade as interoperable with
    Brocade-based SAN infrastructure.

July 30, 2002
  Announced that McDATA had awarded its OpenReady Tested status to PATHLINE.

July 23, 2002
  Announced the launch of the company’s Professional Services Partner Program and the program’s first
  members, Greenwich Technology Partners and Communication Technical Systems.

July 8, 2002
  Announced that Byte and Switch had named the company number one on its list of Top 10 Private
  Companies within the storage industry.

May 13, 2002
 Announced that it had closed its Series C funding round of $17.8 million.

Executive Team and Board of Directors
 Name                     Title                               Background
 Chris Melville           President & CEO                     Auspex Systems, SCO
 Christina Mercier        VP & Chief Technical Officer        Auspex Systems, Los Alamos
                                                              National Laboratory, TRW, EDS, E
 Dennis Morrison          VP, Operations & CFO                OpenHouse, Crosswise Management
                                                              Consulting Group, NetCarta
 Karen Dutch              VP, Marketing                       Brocade, IBM
 Jean Antisdel            Director, Support Services          SCO
 Jim O’Rourke             VP, Sales                           StorageNetworks, Vality Technology,
                                                              Exchange Applications, Avalon
                                                              Software, Walker Interactive
                                                              Systems, Dun & Bradstreet Software,
                                                              Management science America, Wang
                                                              Laboratories, The Service Bureau
 Troy Pladson             VP, Business Development            SupportSoft, IBM
 Eileen Murphy            Director, Operations                SCO, McGraw-Hill
 Truls Myklebust          Director, Product Management        SCO
 Clarissa Eastham         Director, Customer Service          SCO Professional Services, TRW
 Deb Howard               Director, Marketing Programs        Nishan Systems, Onyx Networks,
                                                              Internet Service Providers’
 Phillip Neuman           Director, Information Technology    Creative Advanced Technology
                                                              Center, CoVia Technologies, Legato,
 John Chen                Director, Quality Assurance         iVAST, GRIC, OpenTV, Oracle,
                                                              Taligent, Tandem, Hewlett-Packard
 Jack McGrogan            Director, Human Resources           RangeStar Wireless, Amdahl,
                                                              Honeywell, Technical Aid
 Joanne Syben             Board of Directors, Product         Caldera, SCO, MAI Basic Four
 Ned Carlson              Board of Directors, Venture         Soundview Ventures
 V.R. Ranganath           Board of Directors, Venture         Alliance Venture Management
 Colin Savage             Board of Directors, Venture         Worldview Technology Partners
 Kumar Malavalli          Board of Directors                  Brocade

Financing ($ in millions)
 Round           Date    Amount              Post Valuation    Investors
 1               4/00    $2.5                NA                Alliance Venture Management,
 2               4/01    7.8                 NA                Fidelity Ventures, Morgan
 3               3/02    17.8                NA                Keegan & Company, SoundView
                 Total   $28.1                                 Ventures, Worldview Technology

                                                    Invio Software

Invio Software
One liner        Automated information management software
Location         Palo Alto, CA                          Stage              Shipping Product
Web site                  Employees          50
Founded          September 2000                         Patent portfolio   NA
Competition      AppIQ, Astrum, CreekPath, InterSAN, Veritas

Business Summary
     escription¾Invio provides enterprise software that automates information management processes
D    across a networked storage environment and the applications it serves. With Invio, an IT organization
can apply the power of automation to dramatically lower its total cost of storage ownership while
consistently exceeding service level targets. Unlike traditional approaches, Invio solutions are designed to
enable a true storage utility, allowing applications to directly access storage resources and information
management services on demand, according to a user’s best practices.
Product Offering¾Invio’s product offering is threefold and includes Storage Practice Manager, Active
Practices and Storage Practice Foundry. These combine to create an automated storage management
solution, enabling a user to quickly derive more value from a networked storage environment. Invio’s
products allow a user to
    Eliminate application outage due to error or delays in practice execution.
    Empower storage administrators to manage larger environments, freeing storage experts for higher
    impact activities.
    Reduce unused storage needed to buffer applications from provisioning delays.
    Ensure optimal performance through adherence to policy.
    Accelerate adoption of technology and practice innovation while reducing maintenance burden.
    Storage Practice Manager¾The Invio Storage Practice Manager integrates and transforms networked
    storage management practices into an automated process. Storage management practices encompass the
    policies, user activities, system processes and workflow by which a user delivers information
    management services across a storage network. Through the power of automation, Practice Manager
    increases the quality, consistency and responsiveness of practice execution. Unlike traditional solutions,
    Storage Practice Manager is designed to automate the complete range of processes across the diverse
    systems and organizations required to deliver application-consumable storage management services. By
    packaging complex or repetitive tasks performed by IT administrators as reusable, on-demand services,
    Practice Manager lets a user move from passive monitoring to proactive control of his/her storage
    network¾enabling delivery of higher service levels to storage service consumers while reducing the
    total cost of storage ownership.

    Active Practices¾Active Practices are prebuilt modules that encapsulate industry best practices for
    storage management as reusable software. When configured to a specific environment, Active Practices
    enable Practice Manager to execute processes in a consistent, repeatable fashion¾leveraging a unique
    infrastructure and conforming to specific management policies.

    To improve service levels, Active Practices draw from a number of storage management disciplines,
    including service-level management, performance management, data management, resource
    management and change/configuration management. By ensuring consistent, repeatable, auditable
    execution management processes, they help decrease the amount of time spent on troubleshooting and
    rework. Additionally, by abstracting and simplifying the storage management process from underlying
    infrastructure, Active Practices lessens the need for staff training (and retraining) on multiple point

     Storage Practice Foundry¾Storage Practice Foundry is a complete toolkit for the creation of new Active
     Practices and Adapters. Storage Practice Foundry provides a foundation for common Active Practice and
     Adapter functionality and enables interoperability with other Invio products. Developers using the
     Foundry can provide customized business process and device support that allows enterprise-specific
     best practices to be deployed for use by administrators and operators. In addition, these practices can
     take advantage of custom-built or highly specialized systems that are unique to the successful operation
     of each organization.

Customers/Markets/Sales Model¾not available.

Partnerships¾Invio has formed many strong technology partnerships with companies such as Brocade,
EMC, Oracle, McDATA and VERITAS to help design, develop and deploy solutions to provide their
customers with the greatest possible competitive advantages.

Recent Developments/Announcements
November 26, 2002
 Announced the availability of automated provisioning and topology management solutions for HDS 99x0
 arrays in a heterogeneous SAN environment.

October 28, 2002
 Announced the formation of a strategic OEM partnership with BMC Software.

September 16, 2002
  Announced that Invio has joined BMC Software’s ACSM consortium as an Integrated Technologies
  Program partner.

June 25, 2002
  Announced that Invio will ship SAN automation solutions that leverage Brocade Fabric Access API 2.0.

Executive Team and Board of Directors
Name                    Title                              Background
Ranga Rangachari        President & CEO                    Legato, Sun Microsystems
Tad Lebeck              Chief Technology officer           Legato
Paul Zuhorski           VP, Product Management             Asera, Prism Solutions, IBM, Taligent
Chris Hyrne             VP, Marketing                      Compaq, Digital Equipment
                                                           Corporation, Bendix
Steve McDermott         VP, OEM Sales & Business           Marimba, Legato, Comdisco
Augustus Tai            Director, Venture Investor         Trinity Ventures
John VanderVort         Director, Venture Investor         BlueStream Ventures
Daniel Cooperman        Director                           Oracle
Carol Realini           Director                           Chordiant Software

Financing ($ in millions)
Round       Date      Amount              Post Valuation    Investors
1           11/00     $6.3                NA                BlueStream Ventures, Trinity
2           6/02      11.0                NA                Ventures, Validus Partners
            Total     $17.3


One liner       Storage resource management software
Location        Orem, UT                                 Stage              Shipping Product
Web site                       Employees          310
Founded         January 1993                             Patent portfolio   NA
Competition     Arkivio, Astrum Software, Netreon, Storability, TeraCloud

Business Summary
    escription¾PowerQuest provides storage lifecycle automation solutions that enables mid-range
D   enterprises to effectively and efficiently manage, deploy and protect server and desktop storage

Product Offering¾PowerQuest provides products to both businesses and consumers, with its business
solutions falling into two categories: Manage and Deploy. With PowerQuest’s Manage solutions users can
quickly add new storage, reconfigure existing storage, monitor and manage storage devices and easily plan
for the future. The company’s Manage products are

     PowerExpert SRM¾From a single server or NAS box to a multi-terabyte SAN, PowerExpert SRM
     controls storage problems in real-time, using policy-based parameters. PowerExpert SRM allows
     administrators to improve storage performance by identifying and reclaiming wasted disk space,
     blocking unwanted file types, allocating appropriate space controls for applications, directories and
     users. The enhanced reporting features in the software include capacity planning, detailed trend
     analysis, reports by Active Directory hierarchy, nightly backup capacity requirements, reporting on
     percentage of space allocations and enhanced drill-down reporting capabilities. Also, a robust custom-
     report generator enables users to narrow down the contents of an initial report by applying additional
     filtering and sorting criteria. PowerExpert SRM also facilitates charge-backs by tracking disk usage
     accountability by department, division, location or workgroup by running standard report sets of usage
     space consumed by certain groups.

     VolumeManager¾Allows users to quickly and easily reconfigure volumes/partitions on Windows
     NT/2000 Servers for storing valuable resources such as data files, applications and operating systems. In
     addition to powerful volume configuration management, VolumeManager allows for quickly identifying
     all basic disk volume/partition and server information on all servers or grouped servers in a LAN/WAN
     environment, displaying and monitoring uptime and analyzing storage usage via PowerQuest
     StorageMonitor, a web-based console included with PowerQuest VolumeManager.

     PartitionMagic Professional¾With PartitionMagic Pro, IT professionals can easily create partitions on
     desktop hard disks for storing valuable corporate information such as data files, applications and
     operating systems. PartitionMagic Pro enables corporations to secure their data by physically separating
     it from other files.

     ServerMagic 4.0 for NetWare¾ServerMagic 4.0 for NetWare, the newest update to PowerQuest’s most
     successful version of ServerMagic helps users protect their network storage while reducing downtime
     due to server deployment, hardware and software upgrades, or failure.

     V2i Protector¾A fast, point-in-time backup and disaster recovery solution designed to provide system
     administrators the ability to quickly recover from server failure caused by hardware, software or user
     error. Utilizing PowerQuest’s Virtual Volume Imaging (V2i) technology, users can create a backup

    without interrupting server operations and schedule additional backups as needed. In the case of server
    failure, users can quickly restore the server to a specified point-in-time within minutes.

PowerQuest’s Deploy solutions enable complete lifecycle management of enterprise computer systems in
an integrated solution that provides for imaging and deployment, system migration and management of
system updates. PowerQuest Deploy solutions include

    DeployCenter¾With DeployCenter 5.5, users can deploy an exact image of a hard disk, distribute new
    software applications in just minutes and manage multiple workstation images from anywhere in the
    world through a secure web interface. In addition, DeployCenter sends an alert via e-mail when the task
    has been successfully completed, allowing users to focus attention on other things while DeployCenter
    does the work. Small to enterprise-sized organizations use DeployCenter 5.5 to remotely manage
    multiple clients, deploy or upgrade Windows workstations, create a standard, customized work
    environment for faster deployment of new computers and automatically distribute and install new
    software applications or upgrades across the network and Internet.

    Migration Manager¾PowerQuest Migration Manager allows users to accurately and efficiently perform
    system migrations and recoveries, while saving time, money and keeping end users satisfied. Migration
    Manager automates the capture and restoration of personal information and data on each end-user’s
    system, including network and Windows settings as well as end-user data files. Migration Manager is
    not only a solution for Windows and PC migration but also a valuable tool for Help Desks. With
    Migration Manager, Help Desks can ensure on-demand profile and system setting capability, streamline
    Help Desk operations and reduce support costs, and assure business continuance and minimize user

    DataGone¾Solves today’s data security problem faced by many companies by overwriting every byte of
    data on the media. This ensures that sensitive, confidential files cannot be recovered using software or
    hardware-based file recovery tools.

    EasyRestore¾Combined with DeployCenter, EasyRestore 5.0 provides a complete system recovery
    solution for resellers and corporations. Using DeployCenter, IS departments, system integrators, VARs
    and OEMs can create and store an exact image of a hard drive. After a system crash, EasyRestore
    provides a simple, one-click interface that the end user can use to restore the entire system back to its
    original configuration, reducing downtime and IS resources.

    PowerDeploy Suite¾Provides an integrated solution for computer systems throughout their entire
    lifecycle, including imaging and deployment, system migration, management of system updates and
    system retirement. The PowerDeploy Suite includes PowerQuest DeployCenter, PowerQuest Migration
    Manager, DataGone and a centralized and secure web interface console known as PowerQuest
    ControlCenter ST. From anywhere in the world users can create, schedule and execute management
    tasks including imaging, deploying, restoring and managing networked systems.

PowerQuest’s home and small office products provide step-by-step, easy-to-use wizard interfaces to help
manage and protect data or upgrade to a new system.

    PartitionMagic¾PowerQuest’s award-winning PartitionMagic allows users to separate data files, operating
    systems, applications, games and downloads by creating and resizing partitions quickly and easily, without
    reformatting the hard drive or harming data. BootMagic, included with PartitionMagic, enables users to
    safely load and run multiple operating systems on the same computer without conflict and test a new
    operating system (OS) without giving up the stability of the OS being used. PartitionMagic also includes
    PQBoot, which enables a user to select which OS to run on the next reboot while running in Windows.

    Drive Image 2002¾Allows users to reduce risk by protecting their data by creating hard drive images
    for backup. Drive Image 2002 also easily enables the restoration of data after a computer disaster or
    system upgrade. Using a familiar Windows interface, users can create an exact copy of the entire hard

     drive or partition in minutes onto a Zip, Jaz, CD-R/W, network drive or another partition. That way,
     when a virus or system crash occurs, there is an exact image of the drive secured, ready to use.

     DriveCopy 4.0¾DriveCopy creates an exact copy of the old disk, including the operating system,
     applications, preferences, settings and data, which then can be quickly put onto a new hard drive. With
     DriveCopy’s easy-to-use wizard interface, a user can perform the entire process in just 10 simple steps.
     DriveCopy supports all popular operating systems and the file systems they use.

Customers/Markets/Sales Model¾Used by a growing number of companies, PowerQuest products are
available through a network of partners and distributors in more than 34 countries worldwide.

Partnerships¾PowerQuest has assembled a large group of OEM partners that includes Acer, Dell, Fujitsu-
Siemens, Gateway, Hewlett-Packard, Intel and Toshiba.

Recent Developments/Announcements
February 24, 2003
  Announced the release of PowerQuest DeployCenter 5.5, the latest upgrade of its solution to help
  corporations rapidly deploy images, including operating systems and applications.

January 21, 2003
  Announced the appointment of storage veteran Mark Milford as senior vice president of Worldwide

January 15, 2003
  Announced the release of PowerQuest V2i Protector 1.1, the latest upgrade of its disk-to-disk backup and
  disaster recovery solution.

October 28, 2002
 Announced the acquisition of core assets of Cognet Corp., a developer of software for managing
 corporate information technology assets.

September 23, 2002
  Announced the release of PartitionMagic 8.0, the latest version of the company’s partitioning solution.

August 21, 2002
 Announced the release of the PowerQuest V2i Protector.

August 14, 2002
 Announced expanded professional services offerings, including (1) QuickStart Services for deployment,
 protection and storage management; (2) In-Place Migration Services, which use a patent-pending user-
 state migration practice to accelerate migration to a new operating system; (3) Customized Deployment
 Services; and (4) Customized Storage Services, such as storage audit and analysis, storage quota
 management and file screening.

August 13, 2002
 Announced the naming of B.D. (Bill) Johnson as senior vice president of Business Development and
 OEM Partnerships.

July 22, 2002
  Announced the opening of a Southern Europe office, located in France and the appointment of Eric
  Heddeland as Regional Director, Southern Europe.

Executive Team and Board of Directors
Name                        Title                               Background
Paul Winn                   President & CEO                     Genicom, IBM
Ronald Hammond              Senior VP, Finance & CFO            Quarterdeck, KPMG
Bill Johnson                Senior VP, OEM Partnerships         ManagedStorage International,
                            Business & Development              StorageTek, Banyan Systems,
                                                                Western Digital, Amdahl
Donald Kleinschnitz, Jr.    CTO & SVP, Storage Products         Hewlett-Packard, Storage
Kelly Devereaux             VP, Global Marketing      , Hewlett-Packard
Steve Fairbanks             VP, Product Management              Not available
Steve Jackson               VP, Development                     Center7, AXENT Technologies, Novell
Tessa Matthews              VP, Human Resources                 Corel, Connections, Covey
                                                                Leadership Center
Mark Milford                Senior VP, Worldwide Sales          Computer Associates, Hewlett-
Robert Frankenburg          Chairman                            Encanto Networks
James Collings              Director, Venture Investor          Cornerstone Capital Group
Brian Smith                 Director, Venture Investor          Dominion Ventures
L.D. Bowerman               Director                            Individual Investor
Eric Ruff                   Director                            Individual Investor, PowerQuest
John Fife                   Director, Venture Investor          Chicago Venture Partners

Financing ($ in millions)
Round          Date        Amount              Post Valuation    Investors
1              3/97        $3.5                NA                Chicago Venture Partners,
2              4/99        10.0                NA                Cornerstone Capital Group,
3              8/00        2.7                 NA                Dominion Ventures, Edgewater
4              12/01       5.0                 NA                Private Equity, Invest Linc Capital,
                                                                 Thompson Clive
               Total       $21.2

                                               Storability Software

Storability Software
One liner       Storage resource management software.
Location        Southborough, MA                       Stage              Shipping Product
Web site                    Employees          55
Founded         February 2000                          Patent portfolio   NA
Competition     AppIQ, Astrum, CreekPath, InterSAN, TeraCloud, Veritas

Business Summary
     escription¾Storability was formed to provide companies with a better, more cost-effective way of
D    managing vital corporate data. Driven by the vision of its founders, the company is committed to
leveraging storage technology and expertise to help customers turn information into opportunity.

Product Offering¾Global Storage Manager, Storability’s flagship product, is a unique software solution
that enables large enterprises to efficiently manage multivendor, multisite storage environments. Serving
as a single point of management, this proven technology will enable users to comprehend their
environment, control their assets and capitalize on their storage investments as never before. Global
Storage Manager delivers:

     Reduced storage costs by identifying underutilized assets and allowing users to delay or eliminate
     additional equipment purchases.
     Global visibility of SAN, NAS, direct-attached primary storage, secondary and archive backup systems
     and application storage.
     Reduced storage management costs by eliminating and automating manual tasks.
     Improved quality of service (QoS) through alerting and analysis of detailed real-time and historical
     Enhanced operating efficiency and increased administrator productivity by enabling fewer
     administrators to efficiently control more storage.
     Immediate identification of incomplete backups and increased availability of applications and data.
     A powerful set of applications to help senior level IT management, database administrators, systems
     administrators and storage administrators effectively manage their storage environment.

Global Storage Manager is a robust, open software solution that can be seamlessly integrated into any
storage environment. The standards-based design ensures that Global Storage Manager will interface with
the enterprise management tools of today and with those of the future. The software consists of four major
components: Management Applications, Middleware, Smart Agents and Documented APIs.

     Management Applications¾A powerful set of applications help senior level IT management, database
     administrators, systems administrators and storage administrators effectively manage a storage
     Management Console¾Global Storage Management Console is a web-based portal that provides both
     real-time and retrospective views of a worldwide storage infrastructure, including operational status,
     performance monitoring and trending, utilization, allocation and resource availability. End-to-end
     visualization, from the application layer to the physical storage device to the backup device, provides the
     valuable knowledge needed for proactive management. Data is automatically filtered to match the user’s
     role within the organization, so the CIO can see the entire enterprise, while business unit managers see
     only the components that relate to their operations. Global Storage Manager enables users to effectively
     manage service level agreements and to assign billing or charge-back information based on actual
     storage consumption and backups performed.

    Administration Console¾Global Storage Administration Console provides a real-time operational view
    of the storage environment. A powerful, wizard-driven interface allows the administrator to directly
    query the Smart Agents and monitor thresholds for any data item. The topology view provides a
    graphical representation of the infrastructure and a customizable launch pad allows the administrator to
    run trouble-ticket, SNMP framework and vendor configuration tools from a single, easy-to-use interface.
    The administration console significantly simplifies day-to-day management and enables each
    administrator to efficiently manage more of the distributed storage environment.

    Middleware¾Global Storage Manager’s highly secure, redundant middleware facilitates the collection
    of data from multiple networks, including remote sites. This adaptable technology can be easily
    integrated into an existing infrastructure and works within the security guidelines already in place. The
    middleware is component-based, allowing new storage platforms to be supported quickly and
    nondisruptively. In addition, Storability has developed agent interfaces for applications, host systems,
    switch fabrics, storage devices and the backup infrastructure. These agents run with minimal overhead
    and convert data into a common vendor-neutral format for analysis and reporting. Global Storage
    Manager employs open standards, such as the FibreAlliance MIB and the SNIA HBA API, where
    available, and also leverages vendor APIs to extract data.

    Documented APIs¾A documented API allows a user to develop customized applications that can feed
    data directly to other management systems, including billing, CRM and SNMP systems. Data can also be
    accessed directly via XML or exported into Excel and CSV (comma separated value) formats. The
    database schema is fully documented so administrators can develop their own custom reports or data
    extracts using a standard report-writing tool.

Customers/Markets/Sales Model¾Storability’s customers include Compaq, StorageTek, SecureData and
Cox Communications.

Partnerships¾Storability’s partners include Brocade, Cicso, EMC, Emulex, Hitachi Data Systems, Hewlett-
Packard, ILOG, JNI, Legato, McData, Network Appliance, QLogic, Quantum, Sun, StorageTek and

Recent Developments/Announcements
February 18, 2003
  Announced the availability of Version 3.5 of its successful Global Storage Manager software.

October 24, 2002
 Announced general availability of a significantly enhanced version of its Global Storage Manager and a
 new reseller agreement with Sun Microsystems.

August 13, 2002
 Announced the completion of $12 million in venture capital funding.

March 5, 2002
 Announced general release of the Storability Global Storage Manager.

Executive Team and Board of Directors
 Name                   Title                               Background
 Tim Leisman            President & CEO                     Infinite Content, Compaq, Digital
 Michael Levinger       COO & CFO                           Wang Global, The Bentley Company,
                                                            McCormack & Dodge
 Hemant Kurande         Chief Technology Officer            BankBoston, State Street Bank,
                                                            Rockwell International
 Asim Zaheer            VP, Marketing                       Compaq, Digital Equipment
 Rick Ruskin            VP, Sales                           MTI Corporation, Systems Industries
 Eric Bart              VP, Engineering                     Scudder Kemper Investments,
                                                            Fidelity Investments, Harvard
                                                            Management Company, PRC
 Marco Buchbinder       VP, Business Development            EMC
 John Rando             Chairman                            Compaq, Newco Gen Group
 Todd Dagres            Director, Venture Investor          Battery Ventures
 Alexander Rosen        Director, Venture Investor          Sprout Group
 Jason Yotopolous       Director, Venture Investor          Technology Partners

Financing ($ in millions)
 Round         Date    Amount              Post Valuation    Investors
 1             5/00    $18.5               $37.0             Battery Ventures, Lee Munder
 2             6/01    30.0                         NA       Venture Partners, Liberty Mutual,
 3             8/02    12.0                         NA       Madison Dearborn Partners, Sprout
               Total   $60.5                                 Group, Technology Partners,
                                                             Weiss, Peck & Greer Venture


One liner       Storage resource management software.
Location        Bellevue, WA                            Stage               Shipping Product
Web site                          Employees           50
Founded         January 1991                            Patent portfolio    NA
Competition     Arkivio, Astrum Software, Netreo, PowerQuest, Storability

Business Summary
     escription¾TeraCloud was founded as Trilogy Software in 1991 to help companies manage their
D    storage resources via its mainframe environment software solutions. Today the company provides
strategic solutions to centrally manage storage for both mainframe and distributed environments, allowing
large organizations to manage their storage resources efficiently across the enterprise cloud. TeraCloud’s
central management approach to SRM drastically increases the amount of data a single storage
administrator can manage. At the same time, the company’s solutions reduce a company’s need to invest
in additional hardware by helping that enterprise make more efficient use of its current storage

Product Offering¾The TeraCloud family of products provides the software infrastructure needed for
effective SRM across the entire enterprise¾no matter what type of software or hardware is being used.
The company’s software solutions counteract the costly problems of massive storage growth, system
downtime and file inaccessibility, while ensuring that customers and employees have access to
information “anytime, anywhere”. TeraCloud’s products also reduce the total cost of managing storage,
increase measurable “service levels” for senior IT executives and reduce the risks associated with storage
disasters. The company’s product offering includes SpaceNet, SpaceFinder, SpaceAutomator, TapeFinder
and Remote TapeCopy.

    SpaceNet¾A proactive, enterprise-wide software manager of mainframe and open system storage
    assets. Its reliable, easy-to-use centralized administration improves storage utilization, automates
    routine tasks and helps control future storage expenditures by accurately predicting storage growth
    based on historical data. Since SpaceNet is independent of both operating system, file system and storage
    hardware, SpaceNet allows users to centrally manage storage in any combination of heterogeneous
    environments. Regardless of where business-critical data is stored (Windows NT, Windows 2000, UNIX,
    NetWare, OS/390 or z/OS environments) and what storage topology is used, SpaceNet can easily identify
    and manage any storage enterprise. SpaceNet provides information that is crucial to launching proactive
    management actions and decisions about managing a complex storage environment. With SpaceNet, a
    user can reduce capital and operating expenditures while easily increasing the capacity managed per
    administrator. SpaceNet helps by providing a comprehensive overview of a storage enterprise by
    managing capacity and by automating events to improve storage utilization and availability.

    SpaceFinder¾A suite of tools for managing storage resources and data throughout the entire OS/390
    environment. The SpaceFinder tools allow users to effectively automate, monitor, analyze, report and
    predict data activity to ensure that critical storage systems remain available. These tools include Total
    Recall (HSM Management), Catalog Management, Compare Utility and Unix File Systems Utility.

    SpaceAutomator¾A policy-driven automation tool that can be set up to initiate actions at specific times,
    automatically submit jobs and send alert messages when thresholds are violated. This SpaceFinder tool
    automates the monitoring and managing of IT or storage-related activities.

     TapeFinder¾A removable media management system that, from one central location, monitors,
     analyzes and reports tape storage activity in the OS/390 environment to improve system performance
     and increase the efficient use of tape media. With its high level of media control and specialized
     automation tools, TapeFinder can take over many manual operator and librarian tasks, thereby
     eliminating errors and ensuring data integrity. Also, TapeFinder can help postpone or even eliminate
     the purchase of new robotic tape systems.

     Remote TapeCopy¾Enables users to copy mainframe (OS/390) tape data across physical sites,
     transparently directed to either a disk or tape device, regardless of the hardware in place. In contrast to
     products that require users to “mirror” all tape data sets to disk, this dynamic on- or off-site backup
     solution allows users to select specific tapes, jobs, programs and files to be copied. This greatly reduces
     bandwidth requirements and tape usage time. If a user wants to mirror tapes across physical sites, he
     can do so without the need for costly duplication of VTS (Virtual Tape System) or disk mirroring
     technology. In addition, since Remote TapeCopy is hardware-independent, there is flexibility to mix tape
     and disk hardware solutions from multiple vendors.

Customers/Markets/Sales Model¾TeraCloud provides its storage management solutions to Fortune 1000

Partnerships¾TeraCloud’s partners include Brocade, IBM, Hewlett-Packard, Sun, Network Appliance,
StorageTek, EMC, Oracle, Novell, WideSky and Tidal Software.

Recent Developments/Announcements

February 24, 2003
  Announced the addition of Dr. Brian Henling, Ph.D. as vice president of Engineering.

January 6, 2003
  Announced a partnership with Brocade.

November 25, 2002
 Announced a strengthened commitment to support multiple platforms by expanding its development
 relationship with EMC through its developers program.

September 30, 2002
  Announced that it is providing virtualization support through TeraCloud SpaceNet’s ability to integrate
  with VERITAS Volume Manager.

August 6, 2002
 Announced that Stefan Kochishan had joined the company as vice president of Product Management.

June 10, 2002
  Announced that Thomas Phillips had joined the company as vice president of Sales.

May 17, 2002
 Announced the closing of $5.5 million in the company’s first round of institutional funding. Boulder
 Ventures Limited, the lead investor and Northwest Venture Associates financed the round.

Executive Team and Board of Directors
Name                    Title                               Background
Douglass Ebstyne        President & CEO                     Televar Network Services, Lucent,
                                                            Mosaix International
Robert Bingham          Chief Marketing Officer   , Davox, Mosaix
Robert Holm             VP, Technical Services              Sabre Computer Services
Thomas Phillips         VP, Sales                           InterSAN, LinuxCare, Sterling
James Newkirk           VP, Finance                         NearMe, AdRelevance, CareWise,
                                                            Hillhaven, KPMG
Brian Henling           VP, Engineering                     Ursus Technologies
Stefan Kochishan        VP, Product Management              Fujitsu Softek
Todd Jaquez-Fissori     Director, Venture Investor          Boulder Ventures
Mark Mecham             Director, Venture Investor          Northwest Venture Associates

Financing ($ in millions)
Round        Date     Amount               Post Valuation    Investors
1            2/02     $0.5                 NA                Boulder Ventures Limited, Cascadia
2            5/02     5.5                  NA                Capital Partners, Northwest Venture
             Total    $6.0                                   Associates

                                           Storage Backup/Recover

                                             Avamar Technologies

Avamar Technologies
One liner       Backup and recovery software for distributed enterprises.
Location        Irvine, CA                               Stage             Shipping Product
Web site                           Employees         43
Founded         November 1999                            Patent portfolio  NA
Competition     CommVault, Computer Associates, Kashya, Legato, LiveVault, NSI, Permabit, BakBone, SANgate, Veritas

Business Summary
       escription¾Avamar Technologies provides secondary storage solutions through Axion, its scalable
D      appliance for enterprise backup, restore and archival.

Product Offering¾Avamar’s Axion appliance uses hard-disk storage to deliver on-line accessibility for all
protected data, while its highly efficient software reduces the amount of data stored and moved over
networks by up to 99% compared with conventional solutions. The easy-to-install Axion appliance
provides policy-based scheduling, organization and authentication through a network-ready, centralized
management application. With its highly efficient Snapup technology, Axion eliminates the need for
recurring full backups, easing backup-window requirements and reducing bandwidth utilization in
congested local or wide area networks. An Axion Snapup is a fast, highly efficient event that captures a
point-in-time copy of a system that can be immediately restored as individual files, folders or entire file
systems. Built for scalability and reliability, Axion can be expanded to handle large enterprise
environments, while providing local and remote system fault tolerance. Axion software maximizes
storage and network efficiency by finding small, logical sequences in files, objects and databases and
storing each unique logical sequence only a single time across an entire enterprise. Edited files, copied
attachments, shared applications and even daily changing databases only present a small amount of new
data to an Axion system. Key features of Axion are

     Fast Data Restore¾Restores stream instantly from hard disk storage, without the need to rebuild full
     images from tape volumes.

     High Reliability¾Content Addressed Storage architecture ensures that data remains unchanged and
     protected on a regular basis, eliminating the risk of unknown data loss. In addition, the Axion hard disk
     storage solution provides significantly higher reliability than tape systems.

     End User Access¾Secure web access can be configured to allow end users to access and restore
     permitted data from an intuitive Axion file browser.

     Network Efficient¾Intelligent client agents eliminate redundant data before sending across local or wide
     area networks, reducing network bandwidth utilization and costs.

     Intuitive, Powerful Administration¾Centralized administration console provides policy-based
     management for organizing, monitoring and automating data protection across enterprise systems.

To identify and eliminate redundancy, Axion uses a Content Addressed Storage (CAS) architecture. The
storage address for any data element stored in the Axion system is generated by an analysis of the data
itself, in a process that ensures the authenticity of the data. This unique “content address” can be used to
refer to repeated data elements to eliminate redundancy, dramatically reducing Axion disk storage
requirements. Furthermore, the content address provides direct access to data elements for immediate

restore. Conventional backup solutions use a centralized index to store and locate data. This centralized
index grows increasingly complex and difficult to manage as data volumes increase. CAS simplifies this
challenge by using a direct access methodology, enabling the Axion system to smoothly scale to petabytes
in capacity, with no centralized index. Benefits of Avamar’s CAS include

    Scalability to Petabytes¾Capacity can be seamlessly added to protect even the largest enterprise
    environments with the highest data growth rates.

    Data Authentication¾Every time data is protected or restored, the authenticity of the data is verified. In
    addition, a background process continues to check the authenticity of protected data on a regular basis,
    ensuring data authenticity and integrity.

    Transparent Index Management¾With a fully distributed and highly scalable direct addressing system,
    there is no centralized index that needs to be separately managed and protected.

    Load Balancing¾All protected data is evenly and automatically load balanced across system components
    to optimize usage of available resources, including processing power, input/output and data storage, in
    order to maximize performance and scalability.

Axion provides both local and remote fault tolerance using a sophisticated Redundant Array of
Independent Nodes (RAIN) architecture. An Axion system can be configured with RAIN-5 (storage-efficient
local fault tolerance) and Remote RAIN-1 or 5 (mirroring to a remote site or efficient fault tolerance across
multiple sites), in order to guard against both local and entire-site disasters. Axion RAIN eliminates all
single points of failure in a properly configured and deployed system, ensuring high availability and
system reliability.

Customers/Markets/Sales Model¾Avamar markets its solutions through its direct sales, services and
support organizations, as well as selected business partners and OEMs.

Partnerships¾Not available.

Recent Developments/Announcements
October 15, 2002
 Avamar announced the availability of Axion, with an entry price for a fully mirrored appliance starting
 at $175,000.

July 1, 2002
  Avamar announced the appointment of Kevin Daly as chairman and CEO. Dr. Daly is the former chief
  technology officer of Quantum Storage Solutions Group.

May 14, 2002
 Announced the company had been selected for Red Herring’s annual Top Ten To Watch List.

Challenges¾Data replication and protection is a growth market; however, Avamar faces tough
competition from more established players like EMC, VERITAS and Legato. The company’s technology
has been compared with that of Belgium start-up FilePool NV, acquired by EMC last year. Avamar’s
success will depend in large part upon the speed at which enterprises move to more open, heterogeneous
and best-of-breed environments in which Avamar’s solution can add the most value by eliminating
redundancies and reducing hardware needs.

Executive Team and Board of Directors
 Name                    Title                                Background
 Kevin Daly              Chief Executive Officer              Quantum Storage Solutions Group,
                                                              ATL Products, Odetics
 Jedidiah Yueh           EVP, Product & Operations            NTD
 Janae Lee               VP, Business Development             Legato Systems, IBM
 Maureen Ohara-Norris    VP, Engineering                      Legato Systems, IBM
 William Gurley          Director, Venture Investor           Benchmark Capital
 Peter Mills             Director, Venture Investor           CMGI @Ventures
 Stephen Hansen          Director                             Avamar Technologies, Benchmark
                                                              Capital, GeoCities, Universal Studios,
 John Rezner             Director                             GeoCities

Financing ($ in millions)
 Round         Date     Amount               Post Valuation    Investors
 1             1/00     $1.5                 NA                Benchmark Capital,
 2             11/00    9.0                  NA                CMGI@Ventures, Lightspeed
 3             11/01    NA                   NA                Venture Partners
 4             2/02     12.2                 NA
               Total    $22.7

                                             CommVault Systems

CommVault Systems
One liner      Backup and recovery software for distributed enterprise
Location       Oceanport, NJ                            Stage             Shipping Product
Web site                        Employees         365
Founded        June 1989                                Patent portfolio  NA
Competition    Avamar, Computer Associates, Kashya, Legato, LiveVault, NSI, Permabit, BakBone, Veritas

Business Summary
     escription¾CommVault develops storage software for enterprise data management encompassing
D    data protection, universal availability and simplified management of increasingly complex and
heterogeneous networks. The company’s software ensures reliable and fast restoration of files,
applications and databases. CommVault originated in 1988 at Bell Labs as part of an innovative way of
providing backup and restore capabilities for AT&T. The company released its flagship product,
CommVault Galaxy, in early 2000.

Product Offering¾The CommVault’s QiNetix platform was designed to automate management of data by
changing the approach from static to dynamic. It combines traditionally separate products for data
movement with data management. Built on the proven CommVault Common Technology Engine that
moves, manages and catalogues data, the QiNetix platform integrates data protection, availability,
migration, storage resource and SAN management products into a single, automated platform with a global
catalogue and index. The interaction and integration of these components offers users many business and
operational advantages, such as superior ROI, better use of storage resources, higher staff productivity,
maximum data availability and reduced Total Cost of Ownership. Customers can deploy individual
products or seamlessly integrate new elements into an existing CommVault solution, at a fraction of the
time, effort and money required by separate point products. Making all of this possible is CommVault’s
Common Technology Engine (CTE), an underlying software foundation that gives CommVault software
the unique ability to implement a meta-policy approach. The CTE translates Quality of Service directives
into actionable policies at the software product/module level. With meta-policies, users can use QiNetix’s
application-centric approach to drive storage devices and share intelligence about the storage
infrastructure. CommVault offers three main products: Galaxy Backup & Recovery, QiNetix DataMigrator
and QiNetix Quick Recovery.

    Galaxy Backup & Recovery¾provides fast and granular backup and recovery for heterogeneous
    environments. Galaxy allows policy-based actions to be administered across all operating
    environments, applications and storage devices, allowing for simplified management and ease of
    administration. The Galaxy product saves time for administrators by treating data as a logical entity and
    mapping it to the appropriate resource, thus eliminating the unnecessary time spent determining data’s
    physical location, as is typically done in restore. CommVault’s Galaxy Backup & Recovery offer the
    following features and benefits:
      Ease of management and administration¾unified view of SAN/NAS/LAN through single browser.
      Seamless integration with leading technologies¾supports all leading operating systems and
      applications, including UNIX, Linux, Windows and Oracle.

    QiNetix DataMigrator¾provides data management and migration for Microsoft Exchange. DataMigrator
    allows the migration of Exchange messages or attachments to less expensive secondary storage.
    Meanwhile, access to the messages and attachments remain transparent to the user. DataMigrator
    decreases the size of the Microsoft Exchange Information Store which reduces backup windows, primary

     disk space and administrative burden and improves the Exchange server performance. DataMigrator
     provides the following features and benefits:
       Ease of management and administration¾centralized browser interface, transparency to user
       Storage utilization¾better prevention of capacity issues
       Integration with Galaxy product

     QiNetix Quick Recovery¾uses snapshot technology to create point-in-time recovery volumes on
     magnetic disks, raising the availability of business critical applications. Quick Recovery allows for
     recovery in minutes and protects application data from corruption, user errors and viruses. The
     software provides timely recovery because it is application smart and quickly recognizes all volumes
     associated with a particular application. CommVault’s Quick Recovery product provides the following
     features and benefits:
       Ease of management and administration¾unified interface for tracking snapshots
       Automated snapshot management¾stores and accounts for changed data in recovery volume,
       eliminates manual record keeping
       Seamless integration with leading technologies¾Galaxy product, Windows File Systems, Exchange
       Server and SQL Server

Customers/Markets/Sales Model¾CommVault’s products are used by hundreds of customers in verticals
including financial services, automotive, government, health care, retail, insurance, legal and energy.
Notable customers include eBay, Sony, Austin Ventures, Liz Claiborne, Thomson Financial, Shell, Lehman
Brothers, Boston University, Skadden Arps, Navistar and Grant Thornton. CommVault sells its products
through both an internationally dispersed direct sales force and a worldwide network of VARs and system

Partnerships¾CommVault’s strategic alliance partners include BlueArc, Brocade, Bull Infrastructure
Systems, EMC, Hewlett-Packard, Hitachi Data Systems, Microsoft, Network Appliance, St. Bernard
Software, Stratus Technologies and XIOtech. The company also maintains partnerships with companies
including Dell, IBM, Sun, Seagate, StorageTek, McDATA, Nishan Systems, DataCore, Informix and Oracle.

Recent Developments/Announcements
February 3, 2003
  Announced the addition of 138 new customer accounts in the quarter ended December 2002, resulting in
  greater than 57% year-over-year license revenue growth.

January 6, 2003
  Storage magazine named CommVault Galaxy 4.1 the Best Storage Product of the Year in the backup and
  disaster recovery category.

November 5, 2002
 Announced the addition of 114 new customer accounts in the quarter ended September 2002.

October 28, 2002
 Announced the signing of a worldwide distribution and support agreement with Hitachi Data Systems.

October 8, 2002
 Announced the availability of QiNetix Quick Recovery and QiNetix DataMigrator.

October 7, 2002
 Introduced the QiNetix platform for integrating data protection, availability, migration, storage resource
 and SAN management software solutions.

Challenges¾Data protection and backup is clearly one of the more mature storage software markets.
CommVault must brand itself as compatible and value-added to not only the existing recovery and backup
offerings provided by equipment vendors such as EMC, Sun and HDS but also to the storage management
solutions provided by larger software vendors such as VERITAS and Legato.

Executive Team & Board of Directors
 Name                           Title                               Background
 Bob Hammer                     Chairman, President & CEO           Sprout Group
 Lou Miceli                     Chief Financial Officer             Not available
 Al Bunte                       Senior VP                           Not available
 Larry Cormier                  VP, Marketing                       Not available
 Brian McAteer                  VP, Sales                           Not available
 Anand Prahlad                  VP, Development                     Not available
 Suresh Reddy                   VP, Professional Services           Not available
 Dave West                      VP, Business Development            Not available
 Tom Barry                      Director, Venture Investor          DLJ Merchant Bank
 Keith Geeslin                  Director, Venture Investor          Sprout Group
 Alan Anderson                  Director                            Quintus
 Armando Geday                  Director                            Globespan Semiconductor

Financing ($ in millions)
 Round           Date            Amount            Post Valuation    Investors
   1             5/96            $30.0                 $39.0         Dain Rauscher Wessels, Donaldson
   2             12/97             5.2                  44.0         Lufkin & Jenrette, Microsoft,
   3             10/98             3.0                  54.1         Morgan Keegan & Company,
   4             3/99              3.0                  61.0         Sprout Group, Van Wagoner Capital
   5             12/00            33.6                   NA          Management
   6             2/02             22.0                 220.0
                     Total       $96.8

                                                     NSI Software

NSI Software
One liner         Backup and recovery software for distributed enterprise
Location          Hoboken, NJ                              Stage            Shipping Product
Web site                      Employees        NA
Founded           January 1991                             Patent portfolio NA
Competition       Avamar, CommVault, Computer Associates, Kashya, Legato, LiveVault, Permabit, BakBone, SANgate, Veritas

Business Summary
    escription¾NSI Software provides its customers with distributed, continuous data protection and
D   availability for multiple operating systems. The company’s products allow rapid disaster recovery for
mission-critical information in demanding environments such as health care and financial services. NSI
was founded in 1991 and has a base of more than 20,000 software licensees worldwide.

Product Offering¾NSI has two key products: Double-Take and GeoCluster.

     Double-Take¾This software product uses patented technologies to continuously monitor changes to
     files. Only byte-level changes are replicated to multiple servers over standard network connections.
     Double-Take ensures that data is protected and available up-to-date via off-site locations. NSI’s software
     works with all mainstream applications. Double-Take offers the following features and benefits:

         Host-based, real-time replication without geographic limitations¾Replicating changes as they occur at
         the byte level over any shared or private IP-based LAN, WAN or SAN, ensures that changed data can be
         protected nearly immediately and that an up-to-date replica can be made available in an instant if
         Application protection¾Double-Take enables users to protect a wide range of enterprise applications
         such as Exchange and SQL.
         Automatic failover for uninterrupted service¾In the event of a primary server outage Double-Take
         allows a secondary server to stand in with the push of a button or automatically, providing maximum
         availability to end users.
         Investment protection¾Double-Take runs on users’ existing server and storage platforms, with no
         capital expenses associated with purchasing new hardware.
         Low cost and high return on investment¾Double-Take delivers extensive functionality that is typically
         offered only in high-end products, at a much lower entry price point. In most business critical
         environments Double-Take will pay for itself within months.

    GeoCluster¾This software product moves data from a failed server to an alternate location by design
    and extends the capabilities of Microsoft Cluster Service (MSCS). GeoCluster solves MSCS’ limitation of
    shared disk storage with a single point of failure with geographic restrictions. GeoCluster offers the
    following features and benefits:

        Multisite disaster recovery protection¾Real-time, continuous offsite data protection and failover to
        ensure that business-critical data and applications can be recovered quickly, despite complete failure
        at any single site.
        Improved data availability¾With byte-level replication ensuring maximum application performance
        and minimum bandwidth requirements, GeoCluster reduces exposure to data loss and eliminates the
        single point of failure of shared disk storage.
        Reduced downtime¾Application failover is fast and automatic, eliminating or greatly reducing any
        More flexibility¾Only replicated drive letters and capacity need to match between cluster nodes,
        making it possible to create clusters using existing servers and storage. GeoCluster supports
        active/active configurations where each node can be supporting production users but failover for the
        other node as required.
        Lower cost option than building a traditional cluster¾Since replication occurs over standard IP LAN or
        virtual local area network (VLAN) connections, dedicated links, channel extenders or storage routers
        are not required.

Customers/Markets/Sales Model¾NSI’s customers include more than 100 of the Fortune 500 industry
leaders in international banking, finance, legal services, retail and manufacturing. The company relies on
a worldwide network of channel partners, strategic technology partners and a direct sales force to deliver
solutions throughout the world.

Partnerships¾NSI’s strategic technology partners include Dell, HP and IBM.

Recent Developments/Announcements
January 13, 2003
  Announced the completion of $15 million in new financing, bringing the company’s total financing to
  more than $50 million.

December 9, 2002
 Double-Take is named best high availability/fault tolerance solution in W2KNEWS’ 2002 Reader’s
 Choice Awards.

October 7, 2002
 Announced that the latest edition of Double-Take achieved certification on Microsoft Windows 2000
 Server, Advanced Server and Datacenter Server.

Challenges¾Data replication and backup is a mature and crowded space with solutions offered
historically by both hardware vendors and independent software vendors. Opportunities exist for new
entrants as new challenges arise with more heterogeneous and extended networks requiring replication to
remote sites.

Executive Team & Board of Directors
 Name                         Title                               Background
 Donald Beeler                Chairman, President & CEO           Plexar Communications Consultants,
                                                                  Wiltel Data Systems
 Scott Meyers                 COO, CFO & VP, Finance              Digital Metacom
 Robert Beeler                VP, Product Development             Naval Air Warfare Center
 David Demlow                 VP, Product Management              Seagate Software
 Gerard Gregory               VP, Global Consulting               RSI/Wiltel, Morgan Guaranty Trust
 Bob Guilbert                 VP, Marketing                       EMC
 Mike Lesh                    VP, Professional Services           Openpages, EMC/Data General
 Bill Norberg                 VP, Worldwide Sales                 StorageNetworks

Financing ($ in millions)
 Round            Date         Amount            Post Valuation    Investors
   1              5/00         $36.0                   NA          ABS Capital Partners, Dell
   2              1/03          15.0                 $40.0         Ventures, J. & W. Seligman,
                      Total    $51.0                               Morgan Keegan & Company


One liner      Data protection/backup software
Location       Marina del Rey, CA                   Stage                Shipping Product
Web site                   Employees            70
Founded        April 1997                           Patent portfolio     NA
Competition    Avamar, CommVault, Computer Associates, Legato, LiveVault, NSI Software, SANgate, Veritas

Business Summary
       escription¾Storactive delivers real-time, versioned data protection technologies that achieve the
D      backup and recovery software for both client PCs and enterprise servers.

Product Offering¾Storactive’s solutions use rapid, disk-based architecture to deliver up-to-the-moment
data protection, transparent operation and fast recovery. This gives servers, PCs and laptops perpetual
protection with virtually no impact on network bandwidth. Storactive’s products, Storactive LiveBackup
for client PCs and laptops, and Storactive LiveServ for enterprise servers, help organizations defend against
digital disaster while enhancing data availability, ensuring business continuity and lowering storage
management costs.

    LiveBackup¾LiveBackup’s exclusive, up-to-the-moment protection guarantees the most current
    backups possible by tracking changes to files as they occur. This means that files are protected
    throughout their entire lifecycle and recovered data is always as recent as the last save. Protection is
    robust and perpetual and even hard-to-protect Outlook inboxes are tracked in real time and laptops are
    protected even while they are roaming. Storactive LiveBackup operates transparently to users,
    administrators and infrastructure and, because backup is automatic, end-users can work without IT
    training on procedures. Self-serve file recovery brings users back to productivity quickly, without
    burdening IT. LiveBackup leverages Microsoft.NET architecture to provide enterprise-class scalability,
    while employing redundancy elimination technology to minimize impact on network performance.
    Additional features of the software include the following:

 Feature                Description                         Benefit
 Real-Time Protection   LiveWatch technology monitors       Backup schedules are eliminated and recovered data will
                        files for changes and backs up      always be as recent as the last save
                        data as it is saved
 Exclusive ZoneBackup   Handles even open files since it    Even hard-to-protect Outlook inboxes are tracked in real
 Technology             backs up only changed “zones”       time, with no special “open files agent” required
                        of existing files
 Transparency           LiveBackup operates                 Does not interfere with end-user work patterns or
                        automatically in the background     network performance, thus assuring data is always
                        without requiring special           backed up
                        interaction or causing network
 Disconnected State     Replicates changed files to a       Data is protected from loss on laptop and mobile
 Support                local cache if the server is not    computers even while roaming
 Central Management     Data from distributed PCs is        Administrators can enforce consistent backup policies
                        backed up to a central server,      across the WAN and manage features available to users
                        under control of a central
                        management console
 Remote                 The Microsoft Management            Administrators can remotely monitor and control the
 Administration         Console interface can be            LiveBackup server and remotely repair malfunctioning
                        accessed from remote                systems
 Self-Serve File        Recovery wizards facilitate         Users can recover their own files without help from the
 Recovery               easy recovery of lost user          IT staff, lowering TCO and improving productivity
 System Rollback        Versioning technology allows        Malfunctioning systems can be restored without costly
                        all corrupted files and systems     troubleshooting; virus attack damage can be literally
                        on a PC to be brought back to       undone
                        a known good state
 True Bare-Metal        Nonfunctional PCs can be            Lost, stolen or unbootable PCs and laptops can be
 Disaster Recovery      restored to a working state         completely restored in only hours (versus days),
                        without the need to reinstall the   lowering TCO
                        operating systems and
 Enterprise Ready       Scales up by leveraging             Reduces impact on network bandwidth and provides
                        Microsoft .NET technology;          efficient storage capability
                        features data compression and
                        redundant file elimination
 Document Migration     IT can centralize data for          Data transfers and software deployments can be made
 Tools                  migrations in advance; data can     across a PC fleet; migrations can be performed with
                        be transferred with both source     zero downtime
                        and target PCs off or on-line

LiveBackup’s client-server architecture features a familiar Windows interface requiring minimal training
for end users, so they can readily use the software’s self-serve recovery capabilities without IT assistance.
And, LiveBackup’s Microsoft Management Console is easy on IT administrators, enabling them to centrally
manage all of a corporation’s distributed data assets, simplifying restoration and other activities.
LiveBackup is enterprise ready, designed to provide maximum storage efficiency and transparency to the
network, as well as leverage the scalability of Microsoft.NET.

    LiveServ¾Storactive’s LiveServ is a powerful, real-time data protection and file versioning solution that
    can get servers back up and running with little or no impact from system disruptions. LiveServ’s up-to-
    the-moment, disk-to-disk backup eliminates data vulnerabilities between traditional backups by
    capturing changes as they are saved. This means that protected data is always current and can be
    recovered up to the moment a loss occurs. And, unlike simple mirroring, LiveServ captures every
    version of every file, so that any version can be recovered.

Because LiveServ recovers from disk, not from tape, any amount of data can be easily and reliably
restored, whether from individual files or e-mails to bare-metal disaster recovery. LiveServ’s rollback
capabilities enhance data availability and security by allowing quick reversals of the effects of malicious
code, human error and hardware, software or system failure.

LiveServ complements traditional backup solutions while adding valuable capabilities to existing
infrastructure. It eases data management by compressing data, eliminating redundant files and
consolidating servers. Thus, LiveServ increases overall storage efficiency and allows more centralized
administration, reducing overhead and extending the life of existing storage resources.

LiveServ’s features include the following:

    Real-time protection¾Data is backed up as changes are made so it is always current and can be
    recovered up to the minute a loss occurs.

    Transparency¾Continuous protection levels network loading, providing a high level of protection
    without significantly impacting network performance. And, since backups occur while servers are
    running, backup windows are reduced or eliminated, supporting 24x7 operations with no need for
    server downtime or reduced performance.

    Disk-To-Disk Backup¾LiveServ leverages the speed, power and falling costs of disk-based storage for
    fast, transparent protection and extremely rapid recovery. It’s a financially feasible alternative or
    complement to tape-based systems.

    Versioning¾LiveServ maintains an audit trail of all changes to protected files, so it is easy to restore any
    version of any file at any time. This protects data more completely than simple mirroring or scheduled
    snapshots, allowing fine-grain, point-in-time recovery to a known good state prior to data loss.

    Rapid File, System and Disaster Recovery¾LiveServ’s disk-to-disk backup, combined with its
    versioning capability, allow for the fastest, easiest restoration of data after corruption or loss from
    viruses, system failure or human error. LiveServ is a zero-loss data protection solution, restoring data at
    any grain size, from a single file or e-mail message to full bare-metal disaster recovery.

    Compression/Redundant File Elimination¾While LiveServ captures every version of every file, it
    stores only the changes and eliminates duplicate files and blocks. This compresses data, increasing
    network and storage efficiency, controlling growing volumes of data and extending the life of existing
    storage by reducing the total volume of data to archive to tape.

    Data Consolidation/Central Administration¾Data consolidation onto fewer servers helps centralize
    administration and reduces administrative overhead, easing the burden on IT.

    Compatibility with Legacy Backup¾LiveServ snaps easily and seamlessly into existing backup
    infrastructures, complementing their capabilities with real-time, versioned protection.

    Extensible API¾LiveServ’s public API allows developers to easily create agents to protect complex data
    structures in many applications.

Customers/Markets/Sales Model¾Storactive customers include Swiftcomm, Adexa, Lassoo Interactive,
Pacific Contract Manufacturing and Desert Sands Unified School District. The company has regional
representatives throughout North America and also operates a facility in Europe. Storactive also has
developed relationships with VARs, system integrators, consultants, training organizations, ISPs and
hardware and software OEMs.

Partnerships¾Storactive’s partners include Ontrack, IPR International, NxTech Systems, Bredy Network
Management, tiedata and St. Bernard Software.

Recent Developments/Announcements
February 12, 2003
  Announced the formation of its board of advisors, made up of Michael Peterson, president and senior analyst
  for Strategic Research Corporation; Clive Surfleet, founder of Agora Research and former senior vice
  president of Hewlett-Packard; and Neal Ater, CEO of Jibe Inc. and former senior vice president of VERITAS.

September 3, 2002
  Announced the availability of Storactive LiveServ.

August 1, 2002
 Announced that Jake McGill had joined Storactive as Executive Director of OEM and Strategic Alliances.

July 9, 2002
  Announced an enhanced 2.52 version of Storactive LiveBackup that includes new and improved features
  for disaster recovery and simplified client machine deployment.

May 22, 2002
 Announced that 1,000 seats of Storactive LiveBackup had been installed by Desert Sands Unified School
 District in Indio, California. This 25-school district uses LiveBackup to safeguard the critical data that
 resides on the decentralized desktop systems used by its faculty and administrative staff.

Executive Team & Board of Directors
    Name                           Title                                Background
    Tony Bautista                  President & CEO                      Seagate Software, Dega Technology
    Don Flanagan                   Chairman                             Seagate Software
    Mikhail Ryzhkin                CTO                                  Quarterdeck, Inset Systems, IMSI
    Gerald Carrido                 Director, Technical Services
    Jake McGill                    Executive Director, Sales            Edgewater Technology, Primix
                                                                        Solutions, Seagate Software, Sytron
                                                                        Software, Archive Tech.,
                                                                        Compugraphic, Computervision
    Steve Coppock                  Executive Director, Marketing        Veritas Software/Seagate Software,
                                                                        RCA, Pacific Crest Technologies,
    Leonard Cayetano               Director, Software Engineering       SharedGreetings, Earthlink Network,
                                                                        Touchstone Software, Symantec
    Andy McCormack                 Controller                           Quarterdeck, Countrywide Home
                                                                        Loans, KPMG, Event 411, Meridian
    Michael Holton                 Director, Venture Investor           Smart Technology Ventures
    Quinn Morgan                   Director, Venture Investor           Moore Capital Management
    Mark Patton                    Director, Venture Investor           Mellon Ventures
    Bob Brown                      Director                             eCritical, Seagate Software, Arcada,
                                                                        Emerald Systems

Financing ($ in millions)
    Round              Date         Amount             Post Valuation    Investors
      1                6/99          $5.3                  $24.0         Fortunetech Partners,,
      2                9/00           0.5                    NA          Grand Pacific Funding, H&Q Asia
      3                9/01          15.7                    NA          Pacific, Maton Ventures, Mellon
                           Total    $21.5                                Ventures, Moore Capital
                                                                         Management, Smart Technology
                                                                         Ventures, Tyco Capital


One liner       Data replication and disaster recovery software
Location        Santa Clara, CA                               Stage             Shipping Product
Web site                                 Employees         26
Founded         January 2001                                  Patent portfolio  NA
Competition     Avamar, CommVault, Computer Associates, Kashya, Legato, Live Vault, NSI, Permabit, BakBone, SANgate, VERITAS

Business Summary
        escription¾Topio develops and markets next-generation data replication and disaster recovery
D       solutions that dramatically extend an enterprise’s capabilities for disaster recovery.

Product Offering¾Topio’s flagship product, SANSafe, offers a unique solution for effective data replication
and disaster recovery. SANSafe enables systemwide data consistency, support for heterogeneous SAN
environments, storage subsystems, direct-attached storage (DAS) and storage virtualization schemes
exploiting all networking environments, especially IP and a lower total cost of ownership. SANSafe also
provides minimization of the performance degradation usually associated with disaster recovery, multisite
support and simple and automated disaster recovery management.

Key features of SANSafe include

     Systemwide data consistency¾SANSafe ensures systemwide data consistency over large distances.
     Based on patent protected software, SANSafe enables asynchronous data replication that preserves data
     consistency across all SAN-attached storage devices, storage subsystems and DAS. Moreover, SANSafe
     minimizes the performance degradation associated with short distance disaster recovery, thereby
     substantially increasing applications performance and overall system throughput.

     Heterogeneous long distance business continuity¾SANSafe’s out-of-the data path, patent protected
     solution supports data consistency across all SAN-attached storage devices, storage subsystems, DAS and
     storage virtualization schemes. SANSafe also minimizes the performance degradation associated with
     long distance disaster recovery, thereby substantially increasing applications’ performance, overall
     system throughput and allowing replication from hundreds to thousands of miles.

     Standard IP infrastructure¾SANSafe replicates data over the standard IP infrastructure. This,
     combined with out-of-the data path replication, provides customers with several advantages over other
     disaster recovery deployments. Use of standard IP allows SANSafe to provide disaster recovery over long
     distances. IP also provides a robust and time-tested method to move large amounts of data. Finally,
     SANSafe’s use of IP enables a cost effective transport mechanism instead of expensive leased
     telecommunication lines.

     Scalable and manageable recovery¾SANSafe provides IT managers with an easy-to-use web-based
     interface. The user can easily configure, monitor and manage replication for applications, databases and
     file systems independent of the logical volume or SAN virtualization properties and mapping scheme.
     SANSafe protects all or a portion of users’ data centers while automating recovery processes, maximizing
     valuable IT resources and staff and lowering TCO.

Key benefits of SANSafe include

    Systemwide disaster recovery
    Unmatched data consistency and data reliability
    Support for heterogeneous server and storage environments
    Long distance replication over standard IP infrastructure
    Optimized disaster recovery TCO
    Simple and automated disaster recovery management
    Multisite support
    Minimal I/O performance degradation

SANSafe is generally available for Solaris and Windows 2000 environments today. In the future, SANSafe
will also be available on other platforms and within the SAN Fabric.

Customers/Markets/Sales Model
Partnerships¾Currently recruiting channel partners.

Recent Developments/Announcements
January 28, 2003
  Announced the completion of a $10 million second round of venture financing from Sigma Partners and
  Sequoia Capital, raising the total funding to date to $13 million.

September 17, 2002
  Announced SANSafe, the first disaster recovery solution to enable consistent systemwide disaster
  recovery over long distances for heterogeneous environments with minimal performance degradation.
  Announced its entrance into the business continuity marketplace with a new approach to enterprise-
  class data replication.

Executive Team & Board of Directors
    Name                          Title                                 Background
    Yoram Novick                  Chief Executive Officer               IBM
    Eric Herzog                   VP, Marketing                         IBM, Digital Appliance, Zambeel,
                                                                        Streamlogic, Maxtor, Everex, Mass
                                                                        Micro Systems, Giga Cell
    Frank Lord                    VP, Sales                             SANrise, Cisco, AT&T
    Shmuel Levy                   Director, Venture Investor            Sequoia Capital
    Peter Solvik                  Director, Venture Investor            Sigma Partners
    Mark Santora                  Director, Venture Investor            Network Appliance
    Yoram Snir                    Director                              Cisco

Financing ($ in millions)
    Round          Date             Amount             Post Valuation    Investors
      1            3/01              $3.3                   NA           Sequoia Capital, Sigma Partners
      2            11/02             10.0                   NA
                       Total        $13.3


One liner        Backup reporting software
Location         Bellevue, WA                           Stage              Shipping Product
Web site                         Employees          35
Founded          January 1999                           Patent portfolio   NA
Competition      Legato, Veritas, Computer Associates

Business Summary
     escription¾Bocada, The Storage Intelligence Company, delivers software solutions that help ensure
D    the reliability and policy-compliance of mission critical data storage systems. BackupReport Suite 2.0,
Bocada's flagship software product, gathers, analyzes and presents critical information about the reliability
and efficiency of enterprise data protection solutions across most leading data protection software. The
Suite consists of four integrated modules, Reliability and Diagnostics, Backup Resource Intelligence, Media
Intelligence and Charge-Back. The company was founded in 1999 and began shipping the BackupReport
product in September 2001. BackupReport Suite 2.0 became available in November 2002.

Product Offering¾BackupReport is a cross-vendor, backup reporting, analysis and billing solution.
Bocada’s flagship product provides a consolidated and centralized view of backup activity via an intuitive
interface, regardless of the backup application, operating system or storage (LAN/WAN, DAS, NAS or SAN).
BackupReport analyzes and reports on activities from a central location, eliminating the need for adding
additional agents to backup servers or protected resources. BackupReport has four key modules:

     Reliability and diagnostics¾allows IT professionals to discover failed backups down to the target level
     and determine the most likely causes of failures in time to prevent the loss of critical data.

     Backup Resource Intelligence¾allows IT managers to predict and monitor the impact, source and
     growth of backup demand. This module also allows the user to view the backup window for individual
     servers and drill down to bottlenecks affecting performance. The software also helps analyze demand
     on backup resources to better utilize and allocate for future requirements.

     Media Intelligence¾offers robust media reporting on volume utilization and media throughput in
     addition to the ability to locate the exact tapes associated with a specific set of planned restores.

     Billing and Compliance¾enables users to track and bill customers on a per backup or per megabyte

     Custom Reports¾allows IT professionals to tailor any report to meet their specific requirements.
     Customer reports can be scheduled for automatic distribution to selected individuals, using an
     organization’s existing web and information delivery systems.

     Zones¾allows IT professionals to flexibly associate protected resources with user-defined zones that can
     be used as selection criteria across all reports and for integration with third party database solutions.

     Open Database¾allows users to create unlimited additional reports using standard reporting tools.

Customers/Markets/Sales Model¾Bocada targets the enterprise and has customers spanning all major
industries, including financial services, health care and retail.

Partnerships¾Bocada works closely with consultants, systems integrators and value-added resellers to
gain a better understanding of customers’ needs and proliferate the product. The company also works
closely with peer software developers to ensure integration with leading solutions.

Recent Developments/Announcements
November 11, 2002
 Announced the shipment of BackupReport Suite 2.0, Bocada’s agentless, multivendor storage intelligence

July 30, 2002
  Announced a worldwide distribution partnership with Stratus Technologies to deliver fault-tolerant

Challenges¾As storage environments become increasingly heterogeneous, Bocada’s cross-vendor
reporting will offer users exponential time savings. Bocada must sell the benefit of centralized
measurement of backup performance across the network, as opposed to reviewing results on a per server
or per device basis.

Executive Team & Board of Directors
    Name                              Title                                 Background
    Mark Silverman                    President & CEO             , Venture Law Group;
                                                                            Davis Polk & Wardwell; Heller,
                                                                            Ehrman, White & McAuliffe
    Cory Bear                         Chief Technical Officer               Legato Systems
    Scott Wolchko                     Chief Financial Officer               Morgan Stanley
    Ross Morris                       VP, Sales
    Liam Scanlan                      VP, Product Development               Legato Systems
    Greg Gottesman                    Director, Venture Investor            Madrona Venture Group
    Pete Higgins                      Director, Venture Investor            Madrona Venture Group, Second
                                                                            Avenue Partners
    James Thornton                    Director, Venture Investor            Tucson Community Ventures
    Steven Hamerslag                  Director                    

Financing ($ in millions)
    Round              Date             Amount             Post Valuation    Investors
      1                2/01              $4.0                   NA           Catamount Ventures, Guide Ventures,
      2                3/02               4.2                   NA           Madrona Venture Group, Second Avenue
                              Total      $8.2                                Partners

                           File System/Distributed File System Management

                                                     KOM Networks

KOM Networks
One liner       File system management software
Location        Ontario, Canada                           Stage              Shipping Product
Web site                       Employees          NA
Founded         1969                                      Patent portfolio   NA
Competition     PolyServe, Scale8, Sistina, Spinnaker, Xythos

Business Summary
        escription¾KOM NETWORKS’ vision is to be the industry leader in providing innovative data
        management solutions that enable organizations to gain control over vast amounts of mission-critical

Product Offering¾KOM NETWORKS’ software protects, stores and manages data of all types and
amounts and is designed to operate natively on numerous systems and platforms. The company’s first
block-level virtualization product was introduced in 1983 and many of the key building blocks established
with this technology still persist in KOM’s products today. The company’s product portfolio is divided into
three main product groups: File Level Storage Virtualization, Nearline and Archival Storage, and Data

File Level Storage Virtualization¾With KOMWORX Data Manager (DM), files, not blocks of data, are
stored on data partitions, meaning that the system can track exactly where the file is stored. Armed with
this ability, users can dynamically expand and dynamically shrink their storage space. The result is
maximization of the capacity and efficiency of various storage devices through appropriate file storage.
Moreover, if a partition is damaged, an entire group of files is not completely lost and damaged files are
easy to identify. Users can easily identify which files are damaged. KOMWORX DM operates in Windows
NT and Windows 2000 environments.

     KOMWORX DM¾A powerful and versatile product that brings file level virtualization to data storage
     administration. This unique tool enables data administrators to pool heterogeneous hard disk storage
     devices (including RAID, JBODs, flash and solid-state) into a single storage entity, the Virtual Volume,
     which can be centrally managed and is dynamically scalable up to 500 petabytes. Storage devices and
     capacity can be added on-the-fly and legacy hardware can be phased out, as slowly or quickly as needed,
     without ever losing access to the data. The benefit of this approach is that users always know where
     data is and can readily access it. With KOMWORX DM, any number of flexible policies can be set to
     seamlessly migrate files between storage devices.

KOMWORX DM lets users combine and organize available storage into Resource pools that can be shared
between multiple Virtual Volumes. Resource Pools are the containers for users’ physical storage within
KOMWORX DM, while Virtual Volumes are the containers for data files and the policies that control where
they are stored.

Nearline and Archival Storage¾OPTISTORM and OPTISERVER incorporate block-level virtualization
because of its ease of use and its portability. Once a virtualized storage space has been set up and data
added to it, users can simply remove the optical media from the storage device. All the data is self-
contained on the media.

    OPTISTORM¾Combines all of the advantages of optical storage while retaining the access,
    convenience and functionality of hard disk drives. Operating on Windows NT/ 2000 platforms,
    OPTISTORM seamlessly integrates into the operating system so that users are completely unaware that
    they are accessing and storing data on optical drives. OPTISERVER offers the same functions as
    OPTISTORM for UNIX environments. OPTISERVER for Open VMS is designed for all versions of Alpha
    and VAX OpenVMS environments.

Data Protection¾SHIELDWORX provides protection of files from modifications that may be introduced by
a virus, application, user error or malicious act. SHIELDWORX enables users to set any disk partition
(including the system partition) to a read-only state, thus making it virtually impossible for anyone to alter
data in any way. SHIELDWORX operates efficiently and seamlessly, never infringing on the performance
of any of other applications. The software operates in both Windows NT and Windows 2000

Customers/Markets/Sales Model¾KOM’s web site states that the company’s solutions are being used by
thousands of large and small enterprise, including hospitals, insurance companies, banks, NASA and state
lottery administrators. The company sells its products through a global reseller network.

Partnerships¾KOM’s partners include Compaq, Computer Associates, Hewlett-Packard, IBM, JVC, Nishan
Systems, FalconStor, DISC, Sun and StoreAge.

Recent Developments/Announcements

January 22, 2003
  Announced the signing of 12 new ISVs and distributors in Europe, the Middle East, China, Taiwan and
  Southeast Asia.

January 16, 2003
  Announced the opening of its new Paris headquarters.

December 19, 2002
 KOM adds support for DISC’s new DVD-RAM Library.

October 14, 2002
 Announced a partnership agreement with StoreAge Networking Technologies to deliver policy-based
 storage management solutions through the integration of the volume management and storage
 management capabilities of StoreAge’s Storage Virtualization Manager with the data lifecycle
 management technology of KOMWORX.

October 11, 2002
 Announced that it had appointed EMITAC (Emirates Technology Company) as a business partner for the
 United Arab Emirates and Qatar.

September 19, 2002
  Announced the following appointments: Tom Scholer as vice president of Strategic Accounts, Peter
  Smails as vice president of Sales and Marketing and Richard Vinig as director of Marketing.

August 27, 2002
 Announced the opening of new Asia-Pacific headquarters in Singapore. The company also announced
 that Thomas Lok had joined KOM as vice president of Asia-Pacific Operations.

Executive Team & Board of Directors
    Name                         Title                                    Background
    Dr. Taher Shaath             CEO                                      Not available
    Tom Scholer                  VP, Strategic Accounts                   TrustedAnswer (Amdahl), Global
                                                                          Information Distribution, MTC
    Ahmed Chebbour               VP, Alliances                            Hyland Software, Computer
                                                                          Associates, Global Information
    Peter Smails                 VP, Sales & Marketing                    OTG Software
    Thomas Lok                   VP, Asia-Pacific Operations              OTG Software, Smart Storage, EMC,
                                                                          CommVault, Storage Tek, IBM
    Richard Vining               Director of Marketing                    OTG Software, Smart Storage,
                                                                          Plasmon, Cygnet Systems, TAB

Financing ($ in millions)
     Round             Date         Amount               Post Valuation    Investors

Financing information is not available.


One liner       File system management software
Location        Beaverton, OR                          Stage              Shipping Product
Web site                      Employees          65
Founded         May 1999                               Patent portfolio   NA
Competition     KOM Networks, Scale8, Sistina, Spinnaker, Xythos

Business Summary
     escription¾PolyServe develops software products for servers and storage subsystems in data centers
D    using Intel-based server farms. The company was founded in 1999 by a group of individuals
experienced in NUMA, multipath I/O and SAN deployment. PolyServe’s products reduce data center
infrastructure costs by simplifying the provisioning and maintenance of storage applications running on
multiple servers.

Product Offering¾PolyServe has two primary products: PolyServe Matrix Server and PolyServe Matrix

    PolyServe Matrix Server¾A highly available, scalable and resilient cluster file system for Linux or
    Windows. The product allows servers attached to a SAN to read and write data concurrently with full
    data coherency. Matrix Server includes PolyServe’s proven high availability software that monitors
    application and hardware health and provides automated failover for high system and application
    availability and reliability. In addition, Matrix Server provides cluster management, storage
    management and fabric management functionality not found in competing cluster file system products.

    Matrix Server includes a fully distributed, fully journaled cluster file system that supports on-line
    additions and deletions of nodes. PolyServe Matrix Server is based on several distributed computing
    breakthroughs, including a completely symmetric, distributed lock manager, no master/slave
    relationships among servers and innovative, distributed metadata management, which avoids the single
    server bottleneck on file operations. Matrix Server is not designed to be a bootable file system; instead, it
    provides a shared file system across the cluster. The Matrix Server product offers the following features
    and benefits:
      Allows data center architects to create centrally managed cost-effective clusters of standard Intel-based
      servers for enterprise applications, replacing large expensive SMP UNIX servers.
      Makes server clusters simple to manage, highly reliable and flexible.
      Supports databases (Oracle9i, IBM DB2), applications (ERP, CRM, custom), application servers (BEA
      Web Logic, IBM Web Sphere), web servers and NFS and CIFS file servers.
      Enables administrator to virtualize a cluster of Windows or Linux servers and manage them as a
      single coherent entity. The server cluster behaves much like a single large SMP UNIX server.
      Fully symmetric cluster file system for high scalability and availability.

     PolyServe Matrix HA¾Provides high availability and application management features for a cluster of
     Intel-architecture Linux or Windows servers. Matrix HA allows data center architects to build highly
     available, fault tolerant, resilient server clusters. By automatically monitoring the health of applications,
     server hardware, storage subsystem and network connections, Matrix HA increases availability of
     applications while reducing the complexity and cost of managing both the servers and the applications
     themselves. PolyServe also offers Matrix HA features integrated with an enterprise-class cluster file
     system in the PolyServe Matrix Server product. PolyServe Matrix HA offers the following features and

         Ensures continuous application uptime despite multiple hardware or software failures.
         Granular, rapid monitoring of server, storage, network and application health¾manages both network
         and server failover.
         Enables N:N, N:M and N:1 failover configurations with intuitive management console.
         SNMP administration and ability to monitor SNMP devices.
         Server group administration and configuration from anywhere in the enterprise.
         Start, stop and move applications around cluster from a central management console.
         Supports multiple network interface cards (NICs) and ability to set traffic routing preferences.
         Network interface failover/backup pairs allows servers and applications to survive common “cable
         pull” events.

Customers/Markets/Sales Model¾More than 200 customers have chosen PolyServe as a key provider of
mission-critical, enterprise-class system software. Global 2000 corporations in vertical markets as diverse
as telecommunications, media, financial services, technology, biosciences, retail and government depend
on PolyServe solutions for key parts of their software infrastructure. Customers include SBC, Qwest,
Reuters, American Express, Goldman Sachs, Amgen, Marconi, XIOtech, Nike, Burlington Coat Factory and
the U.S. Federal Reserve.

Partnerships¾PolyServe’s partners include Brocade, CommVault, Dell, EMC, Emulex, Hewlett-Packard,
IBM, Intel, McData, NTT Comware, Oracle, QLogic, Sun, SuSE, Topspin Communications and XIOtech.

Recent Developments/Announcements
October 29, 2002
 Announced that the company had raised $19.5 million in Series C funding.

September 25, 2002
  Received Investors’ Choice Award at Datacenter Ventures Conference.

August 13, 2002
 Announced an agreement with SuSE Linux to jointly provide Linux support and services to worldwide
 enterprise customers.
 Announced co-marketing arrangement with HP to provide joint customers with highly available and
 scalable computing infrastructures using PolyServe software and HP’s ProLiant, Linux-based servers.
 Announced comprehensive support for Sun Linux and Sun’s new general-purpose Linux server, the
 Announced certification of the Emulex LightPulse line of Fibre Channel HBAs for the PolyServe Matrix
 Server software.
 Announced a co-marketing agreement to provide CommVault Systems’ Galaxy enterprise data protection
 software with PolyServe’s Matrix Server.

June 13, 2002
  Introduced the PolyServe Matrix Server product.

Executive Team & Board of Directors
Name                           Title                                   Background
Michael Stankey                President & CEO                         PeopleSoft, DEC, American Software
Michael Callahan               Chief Technical Officer                 AskJeeves
Carter George                  VP, Corporate Development               Unix, IBM, Sequent Computer
Ralph Hedberg                  VP, Product Development                 IBM, Sequent Computer Systems
Steve Norall                   Director, Product Marketing             Oracle, American Management
                                                                       Systems, Microsoft
James Brzusek                  VP, Field Operations                    PeopleSoft, BAAN, Oracle, Sun,
                                                                       Harris Corp.
Aneel Bhusri                   Chairman, Venture Investor              Greylock Partners
Reed Hundt                     Director                                Benchmark Capital, FCC
Ronald Kase                    Director, Venture Investor              New Enterprise Associates
William Miller                 Director                                StorageNetworks
Roger Strauch                  Director                                AskJeeves, Symmetricom, TCSI

Financing ($ in millions)
 Round             Date         Amount                Post Valuation    Investors
   1               3/00          $2.8                      NA           Greylock Partners, New Enterprise
   2               12/00         22.0                      NA           Associates, Roda Group
   3               10/02         19.5                      NA
                       Total    $34.3


One liner         Distributed file systems
Location          San Francisco, CA                         Stage              Shipping Product
Web site                            Employees          60
Founded           September 1999                            Patent portfolio   NA
Competition       Acciro, Exanet, Spinnaker, Polyserve, Sistina, Xythos

Business Summary
      escription¾Scale8 was founded in 1999 with a mission to meet the increasing demands for data
D     storage resulting from rapid growth in file-based data. The company began commercially shipping its
first product in October 2000 and now serves global enterprises in North America, Asia and Europe.
Scale8 provides the file storage infrastructure for Fortune 500 companies such as Fujitsu, Microsoft and
Viacom. The company’s Global Storage Service helps customers create virtual storage repositories for
sharing and distributing file content across a WAN. Currently, Scale8 provides file storage solutions based
on patent-pending Distributed Storage Software (DSS) technology. This technology is delivered via the
Scale8 Global Storage Service and in a family of NAS products.

Product Offering¾Scale8 offers its technology through two main product and service offerings: 1) the
Scale8 N2200 NAS System, a high-capacity NAS system for Internet file serving and reference data
applications; and 2) Scale8's Global Storage Service, which enables companies to create a virtual storage
repository for sharing and distributing terabytes of file content via the wide area network.

     Scale8 N2200 NAS System¾The NAS System N2200 is an advanced NAS system utilizing Scale8’s
     patent-pending DSS technology and low-cost industry-standard building blocks to provide large-scale
     storage capacity. With Scale8 DSS, the N2200 brings new levels of scalability and data protection to
     customers requiring quick and convenient access to large amounts of low-cost storage. The N2200 is an
     excellent fit for a wide variety of applications, including Internet file serving and reference data
     repositories for multiple terabytes of file-based information such as seismic data, video, CADs, film
     animation elements, photographs, scanned documents and medical images. Using Scale8’s S70 storage
     nodes with advanced technology attachment (ATA) disk technology, the N2200 enables creation of
     storage systems with exceptional economics beginning as small as 6 TB (terabytes) and scaling as high
     as 108 TB. Its flexible, modular architecture allows users to grow in economical increments as needs
     increase, while maintaining a single view across all storage within the system to lower management
     costs. The N2200 combines the capacity of multiple systems with the simplicity of managing one system.
     The N200 provides the following customer benefits:

         Seamless Expansion¾N2200 NAS Systems can be modularly expanded from 6-108 terabytes without
         system downtime, enabled by Scale8's unique Distributed Logical Volume Manager (DLVM)
         technology. Scale8's patent-pending DVLM technology shatters this limitation, by enabling file content
         to be transparently distributed across multiple Intelligent Storage Nodes. It is the Scale8 DLVM that
         enables the N2200 to seamlessly scale to extreme levels of capacity and to deliver high levels of data
         availability. The DLVM stripes files across ISNs (intelligent storage nodes) in a manner analogous to
         striping a file across multiple disks in a RAID array. The DLVM provides two layers of RAID 5
         protection, called Dual Data Protection, which allows the N2200 to provide breakthrough levels of fault
         resiliency. For example, in a base 3-node system with 36 disks, the system can withstand the failure of
         as many as 14 drives, without interrupting data availability.

    Easy Integration and Implementation¾N2200 NAS Systems use standard network file server (NFS)
    protocols and require no third-party software. In addition, management is simplified compared with
    traditional NAS systems, since up to 108 terabytes can be managed as one virtual storage system.

    High Availability¾N2200 NAS Systems provide resiliency for multiple disk failures within and between
    nodes, enabled by Scale8's unique Dual Data Protection capability.

    Cost Efficiency¾N2200 NAS Systems provide exceptional economics, enabled by off-the-shelf
    components and high-density disk drives. In addition, simplified management of a large-scale NAS
    system provides low overall total cost of ownership.

    Global Storage Services¾The leading solution for storing and distributing terabytes of digital media.
    Scale8’s solution provides its content, providing customers the following advantages:

        Ability to store data with zero data loss
        24/7 global file distribution capabilities
        Easy absorption of demand surges
        Speed of implementation¾fewer than three months
        Minimized costs through “pay-as-you-go” model
        Eliminated distraction of storage management

     Scale8’s Global Storage Services provide the following key benefits:

         Multisite file sharing¾provides geographically dispersed servers and applications common read/write
         Disaster protection¾all files stored with Scale8 are immediately replicated to an alternative geographic
         Reduced costs¾customers can utilize Scale8’s existing global infrastructure and avoid initial capital
         expenditures increase capacity
         Internet file serving¾use authenticated uniform resource locators (URLs) to serve files directly from
         the storage center to end user browsers

Global Storage Service is centrally managed at the Scale8 Service Management Center, a 24/7 facility using
advanced networking and monitoring tools for monitoring and controlling all Scale8 systems worldwide.

Customers/Markets/Sales Model¾The N2200 will be generally available in March 2003, with pricing for
a base configuration of 6 terabytes starting at $105,000. Pricing for a 12 terabyte configuration starts at
$145,000. The company’s Global Storage Services target the following industries, based on the large file
sizes associated with their applications: Internet music and radio, content providers and video on demand,
Internet photo lockers, Internet file storage, disaster protection services, digital media production,
broadcasting and publishing.

Partnerships¾Not available.

Recent Developments/Announcements
March 3, 2003
 Announced the N2200 NAS System, with general availability later in the month.

January 14, 2003
  Announced contract to provide its storage platform to Australia’s largest digital music service provider.

December 10, 2002
 Named Melinda Gross as vice president of Worldwide Sales.

October 8, 2002
 Named Robert Ewald as president and chief executive officer.

Executive Team & Board of Directors
Name                         Title                                Background
Robert Ewald                 President & CEO                      Learn2, Silicon Graphics, Cray
                                                                  Research, Los Alamos National
Patrick Rogers               Chief Operating Officer              Hewlett-Packard
Joshua Coates                Chief Technology Officer             Inktomi, Microsoft
Laurie Lindsey               VP, Engineering                      Learn2, Compuware, Western Digital,
                                                                  FileNet, Novell
Dave McDonald                VP, Finance & Administration         NationsBanc Montgomery Securities,
                                                                  Allied Signal, Aerospace
Melinda Gross                VP, Worldwide Sales                  Network Appliance, Silicon Graphics,
                                                                  Digital Equipment Corporation
Bob Thomas                   Senior Director, Marketing           Hewlett-Packard
John Beletic                 Executive Chairman, Venture          Oak Investment Partners
Philip Gianos                Director, Venture Investor           InterWest Partners
Frederic Harman              Director, Venture Investor           Oak Investment Partners
Matthew Hemington            Director                             Cooley Godward
Robert Paluck                Director, Venture Investor           CenterPoint Ventures

Financing ($ in millions)
                 Date         Amount             Post Valuation    Investors
   1             12/99         $5.0                    NA          CenterPoint Venture Partners,
   2             7/00          26.5                  $99.5         Crown Advisors International Ltd.,
   3             7/01          23.3                   73.3         Individuals’ Venture Fund,
                     Total    $54.8                                InterWest Partners, Oak Investment
                                                                   Partners, Star Ventures

                                                   Sistina Software

Sistina Software
One liner         File system and volume management
Location          Minneapolis, MN                       Stage              Shipping Product
Web site                       Employees          29
Founded           August 1997                           Patent portfolio   NA
Competition       KOM Networks, Polyserve, Scale8, Spinnaker, Xythos

Business Summary
     escription¾Sistina provides file system and volume management software to manage highly
D    integrated storage environments. The company offers customers high-performance, robust and
scalable solutions with support for multiple servers, operating systems and subsystem hardware. Sistina
targets customers using large databases, file-serving and scientific or web applications in a heterogeneous
SAN environment. The company also provides consulting and support services to Internet and enterprise
data center customers. Sistina was founded in June 2000 as a spinout from the University of Minnesota.

Product Offering¾Sistina has two primary products: Global File System and Logical Volume Manager.

    Global File System (GFS)¾enterprise-class cluster file system that provides customers with low-cost,
    shared data storage and management. GFS is ideally suited for high performance and technical
    computing and parallel database applications, requiring high performance I/O, scalability, elimination of
    bottlenecks and simplified management. The Global File System supports leading Linux server
    platforms. Sistina most recently released GFS 5.1, offering the following features and benefits:

        Scalability¾Not only does Sistina GFS support on-line expansion of storage capacity, but GFS also enables
        on-line server expansion to support the addition of computer resources and network or I/O capacity.
        Sistina GFS currently supports vendors’ on-line expansion capabilities up to 256 nodes.

        High availability¾Sistina GFS creates a single image of the data for all nodes in the cluster. Should a
        server node fail, the load is automatically redistributed and balanced on the remaining servers and
        user access to the data is uninterrupted.

        Flexibility¾Sistina GFS allows end users to interoperate with multiple industry standard devices,
        including standards such as SCSI, Fibre Channel, iSCSI and Ethernet. Furthermore, GFS supports
        multiple, cascading I/O fencing methods, including manual, network power control and Fibre Channel
        switch zone control. Sistina GFS also supports the ability to share a Fibre Channel switch in existing
        environments to preserve existing infrastructure investments.

        Simplified Manageability¾Sistina GFS was designed with the needs of professional data center
        managers in mind. Installation and configuration tools simplify implementation, while features such
        as cluster-wide synch and flush, as well as support for multiple I/O methods, reduce strain on
        management resources. Since Sistina GS is fully POSIX (portable operating systems interface)
        compliant, no changes to existing enterprise applications are required for integration in a clustered

        High Performance¾Sistina GFS offers a high performance computer environment. Designed with
        direct I/O support, databases operate at raw partition speed. Other features include hardware
        configurable allocation methods for integration in a clustered environment.

        Affordability¾GFS provides a viable alternative for companies focused on taking advantage of industry
        standard servers and storage devices to deliver enterprise class results while reducing infrastructure

    Logical Volume Manager (LVM)¾a subsystem for on-line disk management that has become standard
    for Linux implementations. LVM groups arbitrary disks into volume groups and then allocates total
    capacity to logical volumes to be accessed as regular block devices. LVM decreases the amount of time
    required for storage administrators to upgrade hardware, remove failing disks, reorganize workloads
    and adapt to changing system needs. LVM allows Linux operating systems to be used in an enterprise
    server environment. Sistina most recently released LVM 1.0.5. LVM offers the following features and

        High Availability¾By supporting multiple device configurations, LVM maintains a high level of system
        availability by mirroring disks for redundancy. Read and write operations continue uninterrupted,
        even as updates are being made to the disk subsystem configuration. LVM’s atomic transaction design
        also allows for use in pair based, failover environments without worrying about the consequences of
        restarting a file server.

        High Performance and Scalability¾With tens of thousands of downloads, LVM’s proven architecture
        allows administrators to accommodate the ever-increasing storage needs of demanding consumers.
        Standard features within LVM, such as striping, allow maximum throughput to be attained by
        configuring storage resources for optimal performance.
        Ease of Management¾The logical grouping from dozens to hundreds of physical devices allows
        system administrators to manage multiple devices as one entity, ensuring uninterrupted, consistent
        access to mission critical data.

Customers/Markets/Sales Model¾Sistina’s GFS is used by Fermilab, NASA¾Goddard Space Flight
Center, InfoSpace and Lawrence Berkley National Laboratory. Sistina markets GFS and LVM to Internet
and enterprise data center customers through a direct sales force and through OEM and reseller

Partnerships¾Sistina’s partners include Hewlett-Packard, Brocade, Oracle, IBM, Mainline Information
Systems, Aspen Systems, ATIX GmbH, Collier Computing, Datamatic Sistemi Servizi, Globe-IT, Singapore
Computer Systems and Western Scientific.

Recent Developments/Announcements
February 10, 2003
  Announced that the company had secured $10 million in its series B round of financing.

December 9, 2002
 Announced new version of Logical Volume Manager in Linux Kernel for robust, flexible volume

November 25, 2002
 Announced support for the IBM eServer Bladecenter.

September 30, 2002
  Announced general availability of Global File System (GFS) version 5.1.

September 3, 2002
  Announced support for new high-performance clustering implementation for high-performance
  computing at the University of Buffalo¾SUNY.

Challenges¾Sistina has successfully released multiple generations of its GFS product but is vulnerable to
VERITAS’ apparent commitment to this market and capitalizing on the growth of Linux.

Executive Team & Board of Directors
    Name                           Title                                Background
    Frank Crusing                  President & Chief Executive          Oracle, NOAA, United States Air
                                   Officer                              Force
    Matthew O’Keefe                Founder & Chief Technical Officer    University of Minnesota, Brocade
    Michael DeClerck               VP, Engineering                      U.S. Department of Energy
    Brad Ferguson                  VP, Services                         Oracle
    Joaquin Ruiz                   VP, Marketing & Product              Nishan Systems, Hewlett-Packard
    Bruce Bergman                  Chairman                             Bergman & Associates
    Zenas Hutcheson                Director, Venture Investor           St. Paul Venture Capital
    Jeff Hinck                     Director, Venture Investor           Crescendo Ventures

Financing ($ in millions)
    Round              Date         Amount             Post Valuation    Investors
      1                5/00          $1.4                  $ 7.5         St. Paul Venture Capital, Crescendo
      2                11/00          3.5                   14.5         Ventures, Validus Partners
      3                2/03           6.2                    NA
      4                2/03          10.0                    NA
                           Total    $21.1

                                               Spinnaker Networks

Spinnaker Networks
One liner       Distributed file system server
Location        Pittsburgh, PA                         Stage              Shipping Product
Web site                   Employees          >100
Founded         December 1999                          Patent portfolio   NA
Competition     KOM Networks, Scale8, Sistina, PolyServe, Xythos

Business Summary
     escription¾Spinnaker Networks develops enterprise-class NAS servers that offer very high scalability
D    while dramatically increasing performance and capacity in a system that is easier and more cost-
effective to manage than current traditional solutions. Spinnaker’s storage system solution, Spinnaker
SpinServer, empowers IT managers with unlimited and nondisruptive scaling with multiserver
management under a single, centralized file system.

Product Offering¾Spinnaker’s SpinServer 3300 NAS server offers high performance storage, scalable
from one half terabyte to 11,000 terabytes of capacity. SpinServer provides fast, reliable and simple to
manage storage solutions for demanding enterprise and service provider application environments. The
SpinServer 3300 combines the benefits of an Ethernet-based NAS solution with the power of a unique two-
stage distributed file system. Separating network and disk-related functions, the SpinServer architecture
provides high performance and high capacity storage, while enabling centralized management of large,
global file systems, including multiserver file systems. Simple to deploy, scale and manage, the SpinServer
family of products helps organizations meet expanding demands for storage and simultaneously reduce
management costs, improve storage-dollar ROI and virtually eliminate access downtime. Features and
benefits of SpinServer include those below.

    Transparent Capacity Scaling¾The Spinnaker SpinServer 3300 supports single server scaling up to 22
    terabytes and, with the addition of Spinnaker SpinCluster software, clustering of as many as 512 servers.
    A single file system can be scaled across any number of SpinServer systems without requiring changes to
    user shares, mount points or namespaces. Nondisruptive scaling (to both users and applications) allows
    seamless expansion, even during times of heaviest access. High capacity scaling also makes it possible
    to support applications that call for extremely large files and namespaces.

    Transparent Performance Scaling¾Built on an industry standard Intel microprocessor platform, the
    Spinnaker SpinServer 3300 delivers industry leading performance per server. In a SpinCluster
    environment, a single file system can utilize the cumulative performance of all clustered SpinServers.
    From the second to the 512th server, each SpinServer addition delivers near-linear performance
    scalability. The SpinServer design delivers the performance required to run a broad array of enterprise-
    class applications without requiring users to split files into segments.

    Centralized Management¾The SpinFS distributed file system enables all servers to be managed as a
    single, global storage resource from a single management console and with a single management view.
    Administrators, at their convenience (even during peak system utilization) and from a single console,
    can quickly and nondisruptively add, move or reconfigure storage to maximize efficiency and to
    eliminate stranded capacity. File systems, network ports and other resources can be logically grouped
    into virtual servers to facilitate user segregation, fine tune access security and simplify ongoing
    management. A single global file system can span hundreds of SpinServers across multiple locations on
    LAN, MAN or WAN connections. Location-transparent to the user, the SpinServer data storage model
    lets users focus on the task at hand, rather than on data and file tracking. In addition, by separating user

    access from file system management, the SpinFS technology ensures zero downtime administration for
    normal storage administrative functions.

    Seamless Integration¾SpinServer solutions support popular file serving protocols such as network file
    system (NFS) and common Internet file system (CIFS) to serve multiprotocol user and application
    environments. Support for industry standard interfaces, like Fibre Channel, enable high-speed access to
    Spinnaker SpinStor/RAID and SpinStor/JBOD disk arrays. Support for both simple network management
    protocol (SNMP) and common information model (CIM) ensures that the SpinServer 3300 management
    can be easily integrated with current and future management frameworks and software.

Other components of Spinnaker’s product offering are

    Spinnaker SpinServer 3300G¾The Spinnaker SpinServer 330G NAS Gateway combines the most
    scalable and highest performance NAS with the disk storage systems from industry leading vendors.
    Scaling from one terabyte to 11,000 terabytes of capacity, the SpinServer 3300G consolidates the file
    services of any size enterprise into a single file system. The SpinServer 3300G shares a common storage
    pool with block-level applications and provides cost savings through simplified management and less
    redundant hardware. Only the SpinServer 3300G recovers stranded capacity across multiple SAN
    islands to create a unified file systems with a single namespace. The SpinServer 3300G is based on the
    same architecture as the 3300. Both products are fully compatible and can be seamlessly connected in
    the same cluster. The SpinServer 3300G combines the benefits of an Ethernet-based NAS solution with
    the power of a unique two-stage distributed file system.

Other components of Spinnaker’s product offering are

    Spinnaker SpinCluster¾Spinnaker SpinCluster software provides seamless capacity and performance
    scaling of Spinnaker SpinServer NAS servers. The SpinCluster software integrates as many as 512
    SpinServers clustered via a switch-attached Gigabit Ethernet interconnect. This capability lets
    enterprises and service providers nondisruptively scale SpinServer solutions to satisfy business and
    application growth demands. Key features of SpinCluster are

    Cumulative Performance¾software enables the connection of multiple SpinServers into a SpinCluster. A
    single file system may be nondisruptively and transparently scaled across the entire SpinCluster to
    utilize the total installed capacity and performance of the cluster. Each SpinServer addition delivers
    near-linear performance scalability from the second to the 512th server in the cluster.

    Global File System¾the architecture allows creation of one or more global file system(s) that span
    hundreds of geographically dispersed SpinServers connected via a LAN, MAN or WAN. The file system
    can be accessed from any client port within the cluster. Upon a user request for a file, SpinFS routes the
    request to the appropriate

    Single Management Console¾enables all storage resources to be managed from a single management
    console. Spinnaker SpinManager, a web-based GUI and a command line interface, provides visibility and
    control across the entire Spinnaker storage landscape. SpinManager also provides a single management
    view of all Spinnaker storage resources.

    Spinnaker SpinMove¾This software enables nondisruptive file system movement anywhere within a
    Spinnaker SpinServer cluster. Ideally suited for demanding enterprise and service provider application
    environments, SpinMove software streamlines common storage administrative functions, enables
    greater storage efficiency, ensures high data and application access during administrative processes,
    reduces management costs and maximizes utilization of storage-related capital resources.

    Spinnaker SpinHA¾Configured on two or more Spinnaker SpinServers, this software provides fast,
    transparent disk access failover in the event of a server failure. The high availability solution offers
    server redundancy and complete access restoration with no data loss. With SpinHA, all data write

    operations on a primary server are simultaneously pushed to a partner SpinServer and held in memory.
    In the event of a failure, the partner assumes ownership of the disks and data, commits the outstanding
    writes and provides data access for the failed system users. Failover occurs nondisruptively and
    transparently for clients utilizing stateless protocols. Spinnaker’s flexible SpinHA solution allows a
    single SpinServer to have multiple failover partners, lowering the overall cost to provide high availability
    data access for mission critical applications. The SpinHA software offers a complete and robust solution
    for enterprise and service provider environments where around-the-clock data access is essential to
    operations. The SpinHA solution prevents data loss and delivers greater than 99.99% data availability.

    Spinnaker SpinMirror¾This software enables mirroring of data to Spinnaker SpinServers connected via
    a LAN, MAN or WAN in a Spinnaker SpinCluster. The software provides a robust data mirroring
    solution for enterprises and service providers requiring complete data protection and immediate service
    restoration in the event of a disaster. With the unique multipoint mirroring functionality, SpinMirror is
    extremely effective at data distribution for applications where many users are accessing the data.

Customers/Markets/Sales Model¾The company is targeting Fortune 1000 companies and service
providers, including pursuing customers in the financial services, government, oil and gas, medical,
entertainment, manufacturing/distribution and services industries.

Partnerships¾Spinnaker’s partners include Oracle and VERITAS.

Recent Developments/Announcements
March 3, 2003
 Announced that iArchives, a leader in information conversion technology, has deployed the SpinServer
 3300 as the network storage component of its content-conversion imaging technology.

February 19, 2003
  Announced the appointment of Larry Ford to the board of directors.

January 27, 2003
  Received NetBackup qualification from VERITAS Software.

December 10, 2002
 Joined the Oracle PartnerNetwork to provide network attached storage for Oracle users.

November 6, 2002
 Named a member of TSANet (Technical Support Alliance Network), the industry’s largest vendor-neutral
 support alliance.

October 21, 2002
 Announced that the Spinnaker SpinServer 3300 had posted the highest score ever reported on the
 Standard Performance Evaluation Corp. System File Server 3.0 test for NAS server performance, with
 131,930 IOPS (input/output operations per second) running the User Datagram Protocol (UDP) and
 117,538 IOPS running the Transmission Control Protocol (TCP).

October 7, 2002
 Announced the general availability of the SpinServer 3300 product family.

Executive Team & Board of Directors
    Name                           Title                                 Background
    Ronald Bianchini               President & CEO                       FORE Systems, Scalable Networks
    Michael Kazar                  Chief Technical Officer               FORE Systems, Transarc
    John Dean                      VP, Finance                           Procter & Gamble
    Jeff Hornung                   VP, Marketing                         Dell, Network General, Hewlett
    Kevin Nigh                     VP, Operations                        Marconi, FORE Systems
    Rich Sanzi                     VP, Software Engineering              FORE Systems, Transarc
    Ben Speiser                    VP, Systems Engineering               FORE Systems, 3Com
    Matt Howard                    Director, Venture Investor            Norwest Venture Partners
    John Jarve                     Director, Venture Investor            Menlo Ventures
    Larry Ford                     Director                              ADC Telecom., IBM, Software
                                                                         Associates, Info. Advantage

Financing ($ in millions)
    Round              Date         Amount              Post Valuation    Investors
      1                3/00         $20.4                    NA           GIC Special Investments, Mellon
      2                5/02          31.0                    NA           Ventures, Menlo Ventures, Norwest
                           Total    $51.4                                 Venture Partners

                                                 Xythos Software

Xythos Software
One liner      Internet file management software
Location       San Francisco, CA                      Stage              Shipping Product
Web site                         Employees          25
Founded        June 1999                              Patent portfolio   NA
Competition    KOM Networks, PolyServe, Scale8, Sistina, Spinnaker

Business Summary
    escription¾Xythos develops file management software for secure access and sharing of files over the
D   Internet. The company’s products offer enterprise users the ability to access and share information
from any Internet location, reducing the burden on e-mail systems. Xythos was founded in 1999 by two
former Oracle software architects.

Product Offering¾Xythos has two file management software products, WebFile Server (WFS) and
WebFile Client (WFC), that can be quickly integrated because they work seamlessly with desktop
applications and any browser.

    WebFile Server¾Without changing how or where files are stored on the network, the Xythos WebFile
    Server can help users to better “see” the information related to their job function or project and more
    easily use it together with co-workers and others outside the enterprise. The WebFile Server software
    delivers advanced file and content management functionality without changing the way users access and
    store unstructured file information and without costly content and workflow re-engineering. Users gain
    easy access and sharing, while network management achieves greater control, security and cost
    efficiencies related to managing and storing user files. WebFile Server is designed to work with users’
    existing data center and network infrastructure, help the IT department better manage unstructured file
    content and give users secure HTTP access to files in any storage system including RAID, SAN or NAS.
    Xythos’ WebFile Server product offers the features and benefits shown on page 115.

        Easy file access and sharing¾HTTPS-based file transport provides secure connection to network file
        server, DASL-compliant searching, unlimited meta data tags, complete WebDAV access for tracking,
        one-click permissions
        Compatibility and support¾operates within existing server and storage environments (UNIX, Linux,
        Solaris, NT, Windows, etc.), desktop-to-URL drag and drop functionality and UFT8 encoding for
        multiple language character sets
        Performance improvement and cost savings¾lowers cost and burden on network services by
        decreasing use of attachments, eliminating need for duplicate files and controlling access with tickets
        Flexibility and scalability¾Java-based, multidatabase support, full XML support, support for multiple
        file server and storage systems, cross-server copy

    WebFile Client¾Complements the WebFile Server by providing full WebDAV functionality for non-
    WebDAV enabled Windows applications, in addition to adding automatic file synchronization for off-line
    file access. The WebFile Client’s new Intellitach technology also makes it a perfect companion for all
    Notes and Outlook users, helping eliminate the growing problems related to file attachments. With
    WebFile Client, secure file access and sharing is just a mouse click away, even in older non-Web folder
    compatible Windows applications, helping businesses save time and avoid unplanned software upgrade
    costs. WebFile Client delivers the latest WebDAV functionality to a user’s PC or laptop, including version
    control, file locking and advanced permission control from inside the applications users already know
    and use, eliminating the need to learn new software. The Xythos client safely translates non WebDAV
    compatible application file requests over HTTP using secure sockets layer (SSL) and existing enterprise
    authentication standards permitting the legacy Windows application to consider remote file requests as
    "local". With WebFile Client, users get access to file sharing features not even exposed in Windows XP.
    When used with Notes or Outlook client software, Intellitach can automatically guide locally stored files
    to the security of the WebFile Server where they can be safely shared and managed. Users get the
    benefit of still being able to use their email software the way they always have, so there’s nothing new to
    learn in order to begin safe file collaboration. WebFile Client offers the following features and benefits:

        Drive letter mapping¾maps a drive letter to the WebFile Server
        Instant integration with Windows applications¾presents WFS directories as local network drives; file
        control available via¾application or Explorer; control file sharing, versions, locking and open and
        save files directly from Windows
        Security¾uses SSL 128-plus bit encryption for all file transmissions
        Automatic off-line synchronization¾synchronizes between client and server and updates upon
        connection/disconnection from Internet

Customers/Markets/Sales Model¾Xythos’ customers include Chubb and Son Insurance, Brigham and
Women’s Hospital, Fortis Technologies, Pace University, ThruPoint, University of Memphis and University
of Michigan. Xythos uses a direct sales force and reseller relationships to market to enterprises,
universities and government agencies.

Partnerships¾Xythos has partnerships with BellSouth, Stellent, SAS and Blackboard.

Recent Developments/Announcements
February 24, 2003
  Announced a global OEM agreement with SAS, whereby SAS will use the Xythos WebFile Server as the
  file management platform for SAS Drug Development and provide it directly to its customers in the
  pharmaceutical, biomedical and medical device industries.

February 4, 2003
  Announced a partnership with Japanese IT consulting firm Future Knowledge Consulting.

January 27, 2003
  Announced that the WebFile Server technology has been incorporated into the latest version of
  BellSouth’s instant messaging service.

September 3, 2002
  Announced the availability of WebFile Server in French and German languages, available through Swiss
  reseller, PAT Consultants, Inc.

Executive Team & Board of Directors
    Name                         Title                                Background
    Edward Miller                President & CEO                      Xippix, SQL Software, Platinum
                                                                      Technology, Island Graphics, Oracle,
                                                                      Automatic Data Processing, Dark
                                                                      Star Systems
    Kevin Wiggen                 Chairman                             Oracle
    Barry Lind                   Chief Technical Officer              Oracle
    Dane Iverson                 Chief Financial Officer              Netschools
    Gary Zuckerman               VP, Business Development             Vitria Technology, ChannelPoint,
                                                                      Platinum Technology
    Scott Saffian                VP, Sales                            Xippix, Aurora Technologies,
                                                                      Network Tools, Bytex Corporation,
    James Till                   VP, Marketing                        Skydesk, Macmillan Publishing,
                                                                      Paragraph International, Compton’s
                                                                      New Media
    Susan Cheng                  Director, Venture Investor           IDG Ventures
    Ryan McIntyre                Director, Venture Investor           Mobius Venture Capital
    Dave Roberson                Director                             Hitachi Data Systems

Financing ($ in millions)
    Round            Date         Amount             Post Valuation    Investors
      1              1/01          $6.2                  $20.2         IDG Ventures, Mobius Venture
                         Total     $6.2                                Capital

                                            Virtualization Software

                                               DataCore Software

DataCore Software
One liner     In-band virtualization and SAN management software
Location      Fort Lauderdale, FL                       Stage                Shipping Product
Web site                          Employees            175
Founded       February 1998                             Patent portfolio     NA
Competition   Allocity, FalconStor, Fujitsu/Softek, Monosphere, StoreAge, Vicom

Business Summary
     escription¾DataCore develops software that automates and consolidates storage management for
D    enterprise customers worldwide, significantly reducing their costs and increasing the return on
investment from information technology assets. First introduced in March 2000 and now in version 5.0,
the company’s SANsymphony software was a pioneer for open storage networking platforms, supporting
all major brands of disk arrays and operating systems.

Product Offering¾DataCore’s flagship SANsymphony product is the company’s in-band block-level disk
virtualization software. SANsymphony offers enterprises of all sizes heterogeneous, open system
capability, performance and security features and allows users to organize a mix and match of popular
storage devices into a network storage pool. Open systems application servers running Windows, Unix,
NetWare and Linux are allocated virtual volumes from the pool on demand, without the painful hardware
reconfiguration and rebooting they go through today. DataCore’s software runs on one or more Storage
Domain Servers configured from commercial Wintel platforms. No overhead or software is added to either
the application hosts or the storage devices.

SANsymphony frees disks from being confined to individual hosts, while leveraging Fibre Channel’s
enhanced distance, connectivity and performance. The result is a versatile and scalable relationship
between application servers and networked storage resources. With SANsymphony, virtual volumes of
arbitrary size are rapidly allocated, without disruption, from the network pool to application servers who
require additional capacity. To the application hosts, the virtual volumes appear as direct-attached disk
drives. A secure, centralized graphical user interface provides the single point of management for
authorized storage administrators. Security features designed into SANsymphony ensure that only the
hosts explicitly granted permission to a given volume may access it even though the devices are on the
same SAN. Continuous availability of SANsymphony storage pooling services is assured by deploying a
network of redundant Storage Domain Servers.

SANsymphony’s virtualization approach is completely independent from the storage and host supplier.
The software’s built-in centralized management allows users to drag-and-drop from a central GUI to
allocate any size virtual volume from the network pool to UNIX, Windows, NetWare, Linux or Mac OS
servers. SANsymphony software supports all Fibre Channel, SSA, ATA and SCSI-based disk drives and
disk arrays qualified by their respective suppliers on the selected storage domain server base platform.
This architecture makes a Powered by DataCore solution easier and more cost effective to implement and
scale. SANsymphony’s broad network connectivity options allow servers, desktops, laptops and NAS
systems to connect into Powered by DataCore storage pools via Fibre Channel, IP/Ethernet LAN, IP WAN
(for remote mirroring) and hybrid IP/Fibre Channel connections. As a result, advanced capabilities such
as network-wide caching, snapshots and remote mirroring are widely affordable.

SANsymphony’s management features include

    Flexible storage domains enable users to map storage assets to departmental requirements and
    workloads and facilitate charge-backs;

    APIs intended for third party software integration;

    Extensive I/O monitoring tools;

    Comprehensive network discovery and diagnostic utilities to simplify configuration and quickly isolate
    potential problems.

Additionally, SANsymphony offers optional features such as

    Dynamic network managed volumes
     Appear to clients as largest addressable disk but only consume physical space as needed
     Are automatically allocated space just-in-time
     Never need resizing or repartitioning

    Local and remote bi-directional data replication
     Volume-level point-in-time snapshot
     Synchronous remote mirroring and asynchronous IP-based remote mirroring

    Host-based alternate pathing drivers to ensure diverse routes to mirrored data.

    Client-side block-level caching that accelerates I/O performance of LAN-attached systems.

    Laptop and desktop IP-based remote mirroring and restoration services to ensure a recovery image is
    always available at a central site.

The Powered by DataCore offerings provide a wide range of price/performance attributes, giving users the
option to tailor their solution as needed. SANsymphony software runs as a layered SAN infrastructure
product on commercial Intel-based intelligent storage virtualization nodes known as storage domain
servers (SDS). Each SDS node employs sophisticated caching to turbo-charge application I/O performance
and off-load back-end disk arrays. Individual storage virtualization nodes can be configured for optimal
speed and bandwidth, while multiple nodes can be deployed to scale performance linearly as the business
demands grow. Datacore’s software exploits the intrinsic power of the storage domain servers on which it
runs to achieve phenomenal performance. A wide variety of price/performance points are achieved by
varying the configuration (i.e., the number of HBAs, cache memory size, number of CPUs (central
processing unit) or I/O bus structure of the underlying server). SANsymphony’s users directly benefit from
the rapid advancement in x86 server architectures as well as third-party improvements in
price/performance attributes.

Customers/Markets/Sales Model¾DataCore sells its products primarily through systems integrators,
technical VARs and OEMs. Key OEM partners include Fujitsu, Hewlett-Packard, Hitachi and IBM.
Customers using DataCore products include ABN AMRO, Alcatel, Belgacom France, Chase Manhattan
Bank, The Dannon Company, Euroforum, Finis AG, NTT, Maimonides Medical Center, Novartis, Pioneer
Investments and Oxford University.

Partnerships¾DataCore has developed an impressive list of technical partners in its DataCore
SANVantage Technical Partner program. Members include Adaptec, Atempo, ATTO Technology, BakBone
Software, Cambex, CommVault Systems, digital Storage, Emulex, Eurologic Systems, ExaDrive Networks,
Fujitsu, Gadzoox, Imperial Technology, Inrange, Interphase, JNI, LSI Logic, McDATA, MTI, Nishan
Systems, Platypus Technology, QLogic, SANcastle, SAN Valley, TROIKA and Vixel.

Recent Developments/Announcements
March 3, 2003
 Announced that IBM Japan xSeries EXAct sales channel partners, Nippon Information and
 Communication, Japan Business Computer and Matsushita System Solutions will distribute DataCore's
 SANsymphony software with IBM eServer xSeries 440 servers.

February 17, 2003
  Announced that SANsymphony has been qualified under IBM's ServerProven Program, ensuring full
  compatibility for solutions utilizing IBM servers and storage.

February 12, 2003
  Announced a partnership with Argo21, a systems integrator with well-known repair and maintenance
  bases across Japan. Argo21 will be a DataCore partner in Japan offering consulting, installation, sales
  and support service for SANsymphony customers.

February 11, 2003
  Announced that SANsymphony has completed interoperability testing to support "hybrid" IP-based
  storage networks built on intelligent Cisco storage switches and routers, including the SN 5428.

January 20, 2003
  Announced the appointment of Carlos Carreras as vice president of Americas Sales and Worldwide
  Business Development.

October 15, 2002
 Announced a strategic partnership with Datalink Corporation whereby Datalink will incorporate
 SANsymphony into its storage management and control offerings.

October 9, 2002
 Announced that Edwin Kania of company investor Flagship Ventures had joined DataCore’s board of

October 1, 2002
 Announced new performance numbers for SANsymphony that included transaction rates as high as
 400,000 IOPS and data throughputs of as much as 2.1 GB per second. The company noted that the
 performance achieved is (a) eight to 25 times the highest published performance of any other
 virtualization scheme; (b) three to 20 times the performance of any mid-range array; and (c) two to 10
 times the performance of any comparably configured high-end storage subsystem.

September 26, 2002
  Named the Best Storage Management Tool by the readers of Windows & .NET magazine in the September
  15 issue. The Readers’ Choice award is DataCore’s 11th award win since SANsymphony began shipping
  more than two years ago.

September 17, 2002
  Challenged EMC to a head-to-head storage performance duel in order to prove that SANsymphony is
  capable of powering large-scale storage consolidation requirements.

September 16, 2002
  Announced that DataCore had joined the Oracle PartnerNetwork to begin automating the on-line
  provisioning of disk space for large Oracle database sites.

August 7, 2002
 Announced the signing of a master reseller agreement with Bell Microproducts Solutions that enables
 the company to sell SANsymphony in the Netherlands.

July 11, 2002
  Announced that Hitachi, Ltd. would sell SANsymphony through an OEM partnership with DataCore. In
  addition, Hitachi announced that it would immediately begin reselling SANsymphony 5.0 into the
  Japanese market.

Executive Team & Board of Directors
    Name                          Title                                Background
    Ziya Aral                     Chairman & CTO                       Encore Computer
    George Teixeira               President & CEO                      Encore Computer, Gould, SEL
    George Scanlon                Chief Financial Officer              Seisint, Ryder System
    John Bocskor                  VP, Product Development              Encore Computer
    Howey Chin                    VP, SAN Market Development           Gadzoox, Vitesse Semiconductor,
                                                                       National Semiconductor
    Mark Friedman                 VP, Storage Technology               Demand Technology Software,
                                                                       Seagate Software, OnDemand
                                                                       Software, Storage Tek, Landmark
    Carlos Carreras               VP, Americas Sales & Worldwide       Vignette, IBM
                                  Business Development
    Kenneth Horner                VP, Marketing                        Red Sky Interactive, Sterling
                                                                       Software, Seagate Software, Tech
                                                                       Data, Rexon
    Timothy Logan                 VP, Asia Pacific Operations          Amdahl
    Roni Putra                    VP, Software Engineering             Gould Research Labs
    Cindy Sauln                   VP, Customer Programs &              VERITAS
    Scott Margol                  General Counsel & VP, Corporate      Ruden, McClosky, Smith, Schuster &
                                  Affairs                              Russell
    Francis Glorie                Director, European Operations        Micro Warehouse France, Archive,
                                                                       Irwin Magnetics
    Peter Barris                  Director, Venture Investor           New Enterprise Associates
    Robert Smith                  Director, Venture Investor           Vista Equity Partners
    Bruce Bergman                 Director                             Bergman & Associates, Brocade
    James Felcyn                  Director                             Citrix Systems
    Jack Smith                    Director                             DEC
    Edwin Kania                   Director, Venture Investor           Flagship Ventures

Financing ($ in millions)
    Round             Date         Amount             Post Valuation    Investors
      1               6/98           NA                     NA          Atherton Venture Partners, Banc of
      2               12/98         $6.0                  $14.5         America, Comdisco Ventures, Dain
      3               5/00          35.0                  250.0         Rauscher Wessels, Flagship
      4               10/01         37.0                    NA          Ventures, Hitachi America, Ltd.,
                          Total    $78.0                                Intel, JT Venture Partners,
                                                                        Netangels, New Enterprise
                                                                        Associates, Van Wagoner Capital
                                                                        Management, Vista Equity Partners

                                    StoreAge Networking Technologies

StoreAge Networking Technologies
One liner      Virtualization software
Location       Nesher, Israel                             Stage               Shipping Product
Web site                          Employees           66
Founded        January 1999                               Patent portfolio    NA
Competition    Allocity, DataCore, FalconStor, Fujitsu/Softek, Monosphere, Vicom

Business Summary
    escription¾StoreAge Networking Technologies provides enterprise SAN storage management
D   solutions. The company provides hardware and software offering improved scalability, performance
and data availability for the enterprise. StoreAge focuses on virtualization, using asymmetric technology.
The company was founded in 1999 as a spin-out of Intelligent Information Systems (IIS).

Product Offering¾StoreAge provides solutions for availability, recovery, backup, consolidation and
provisioning and policy-based storage management. All of the company’s products are compatible with
heterogeneous environments, supporting multiple connections, server platforms and subsystems.
StoreAge offers four products: Storage Virtualization Manager, Multiview, Multicopy and SVM Policy
Manager for Exchange.

    Storage Virtualization Manager (SVM)¾a storage appliance that provides centrally managed pooling
    and virtual volumes across the entire SAN. SVM offers the following features and benefits:
      Pooling¾volumes can be allocated from multiple SAN devices to multiple servers
      Striping¾increases performance by striping a volume over several devices
      Virtual volume management¾expand volumes by adding capacity “on-the-fly”
      Central management¾single point of management for all SAN devices
      Integration¾SVM does not affect data when integrated with existing SAN

    Multiview¾innovative snapshot copy application that allows the creation of multiple read/write virtual
    point-in-time copies of volumes. Multiview offers the following features and benefits:
      Scalability¾unlimited views from a given volume
      Reduced total cost of ownership¾eliminates need to replicate data for each views
      Read/Write views¾each view can be used for either operation
      Server and LAN-free backup¾ensures continuous availability of on-line data
      Block level incremental backup¾saves time and media by only backing up changed blocks
      Cascading versions¾able to create multiple point-in-time volumes
      OS release testing¾applications or operating systems can be quickly tested

    Multicopy¾innovative copy application that enables the creation of multiple physical copies of volumes,
    independent of hardware. Multicopy provides the following features and benefits:
      High performance¾creates copies on multiple devices and does not use server resources
      Protection¾multiple point-in-time copies eases recovery
      Central management¾common methodology for managing copy processes across SAN
      Reduced TCO¾copy capabilities with multiple storage vendors allows cost-effective purchasing
      Instant availability¾copies are instantly available for read and write operations
      Pause/resume¾copy tasks can start and stop according to network load

    SVM Policy Manager for Exchange (SVM PM)¾storage management facility that works in conjunction
    with SVM to simplify the administration of Exchange systems. SVM PM provides the following features
    and benefits:
      Storage expansion¾uses thresholds triggers to automatically expand volumes
      Snapshots¾allows rollbacks to previous points in time
      Instant restores¾tightly integrated disaster recovery capabilities
      Zero-downtime backup¾allows backup activity to take place without taking Exchange off-line
      Clustering¾enables scalable Microsoft Cluster Server environments
      Accelerated testing and deployment¾uses snapshots to accelerate Exchange application testing

Customers/Markets/Sales Model¾StoreAge uses a variety of OEM partners, systems integrators/VARs
and storage service providers to increase its channel presence in targeting enterprise customers.

Partnerships¾StoreAge’s partners include ATTO Technology, BakBone, Brocade, Computer Associates,
EMC, Emulex, Eurologic, Hewlett-Packard, IBM, Infinity I/O, Inrange, JNI, KOM Networks, LightSand,
McDATA, Microsoft, NeoScale, Nishan Systems, QLogic and Sun.

Recent Developments/Announcements
February 25, 2003
  Announced that Kansai Paint Co. Ltd., the largest Japanese paint manufacturer, had deployed StoreAge’s

January 27, 2003
  Announced the deployment of SVM in the data center of Muller GmbH & Co. KG, a large discount
  drugstore chain in Germany.

January 20, 2003
  Announced that StoreAge has been awarded Certified Partner status by Microsoft Corporation.

December 16, 2002
 Announced that StoreAge’s SVM has been certified ca Smart with Brightstor Storage Resource Manager
 from Computer Associates.
December 11, 2002
 Announced the first availability of an evaluation-ready network-based virtualization solution based on
 the integration of StoreAge’s SVM with the Rhapsody Intelligent Platform and Xpath API.

October 22, 2002
 Announced a partnership with LightSand to provide customers with high-speed wide area data
 movement between multivendor storage devices.

October 14, 2002
 Announced a partnership with KOM NETWORKS to deliver policy-based storage management solutions
 that operate across virtually all storage platforms.

Challenges¾StoreAge is going head-to-head with VERITAS in the virtualization space.

Executive Team & Board of Directors
 Name                        Title                              Background
 Eli Shapira                 Chief Executive Officer            Intelligent Information Systems
 Robi Hartman                Chairman                           Intelligent Information Systems
 Mark Spowart                President, U.S. Operations         QLogic
 Nachum Nelson               Chief Technical Officer            Intelligent Information Systems
 Dani Naor                   Manager, Business Development      Not available
 Yermi Kaplan                Director, Venture Investor         Ophirtech
 Eddy Shalev                 Director, Venture Investor         Genesis Partners
 Jacob Shemesh               Director, Venture Investor         Intelligent Information Systems

Financing ($ in millions)
 Round           Date         Amount           Post Valuation    Investors
   1             12/99         $3.2                $10.0         Ampal-American Israel Corp., CDC
   2             1/01          25.0                 65.0         Holdings, Challenge Fund, Cisco
                     Total    $28.2                              Systems, Genesis Partners,
                                                                 Intelligent Information Systems,
                                                                 Morgan Keegan & Co., Ophirtech,
                                                                 Poalim Investments

                                              Vicom Systems, Inc.

Vicom Systems, Inc.
One liner      Storage virtualization software
Location       Fremont, CA                              Stage               Shipping Product
Web site                            Employees           50
Founded        January 1982                             Patent portfolio    NA
Competition    Dentz/Viathan, Fujitsu/Softek, Aceis Networks, Cloverleaf Communications, DataCore

Business Summary

D    escription¾Vicom is a developer of software and hardware solutions used for storage management of
     distributed, heterogeneous architectures. The company was founded in 1982 and entered the SAN
management market in 1996. Vicom believes its combined hardware and software offering provides
greater interoperability and cost control because coordination with third parties is unnecessary. Vicom’s
software products, Vicom Data Migration Engine and Vicom Storage Virtualization Engine, were developed
to address the shift in the storage market to best-of-breed solutions and increasingly heterogeneous
environments. Vicom believes its products offer heterogeneous connectivity, higher performance and
lower cost of ownership.

Product Offering¾Vicom’s product offering combines hardware and software to address increasingly
heterogeneous storage environments. The following is an overview of the company’s key products:

    Vicom Data Migration Engine (DME)¾a powerful engine used to provide high performance data
    migration between heterogeneous storage systems. The DME offers customers a reliable source for live
    migration needed in 24/7 production environments. This engine is best suited for applications such as
    legacy system upgrades, migration to a new vendor device, consolidation and transition to a networked
    environment. Vicom’s DME has the following key advantages:
      No host footprint¾the DME can easily and quickly be introduced to the SAN fabric with minimal
      disruption because it does not require a host license and has prewired configurations.
      Host access during data transfer¾I/Os to source volume continue throughout the data transfer,
      minimizing extended downtime.
      Heterogeneous host support¾DME supports Windows and UNIX based OS.
      Avoid host CPU cycles¾data migration processing is offloaded from the DME.
      Prevent bottlenecks¾DME uses Fibre Channel connections (up to 16 ports) and avoids LAN
      Volume discovery¾target and source volumes are automatically discovered, minimizing
      administrative tasks.
      Proactive monitoring¾DME software alerts users to migration problems as they arise.
      Optional scripts¾available for automated execution.

    Vicom Storage Virtualization Engine (SVE)¾enables pooling and centralized management of extended
    and heterogeneous systems. The SVE allows users to pool systems and partition and allocate capacity as
    needed. Vicom’s virtualization engine allows storage network administrators to
      Reduce necessary human resources through centralized management
      Better utilize storage capacity
      Support heterogeneous servers and subsystems
      Enhance network security
      Scale arrays and servers real-time
      Simplify back-up and migration
      Maximize data availability and system up-time

The VSE works closely with hardware modules that reside between diverse host servers and subsystems,
providing a consolidated view of the extended storage environment. The software modules offer both a
GUI for drag-and-drop configuration in addition to a command line interface.

Customers/Markets/Sales Model¾Vicom focuses on marketing to both end-users and OEMs. More
recently, it has increased its focus on OEMs as the most viable approach.

Partnerships¾The company uses its partnerships with OEMs, including Hewlett-Packard, IBM and Sun,
to integrate its products into complete storage system offerings. Vicom also has a number of technology
partnerships with the likes of Brocade, Emulex, Sun, Eurologic, JNI and QLogic.

Recent Developments/Announcements
November 21, 2002
 Announced a corporate reorganization that focuses on the engineering strength of the company.

September 23, 2002
  Announced the release of Vicom’s Data Migration Engine, the company’s newest product for OEM SAN
  solution providers.

September 3, 2002
  Announced that Vicom had joined the Storage Networking Industry Association’s Storage Management

Challenges¾Vicom has stated its intentions to focus on the OEMs and decrease marketing to end-users.
While it claims relationships with leading OEMs including Sun, HP and IBM, the traction within their
product lines remains unknown.

Executive Team & Board of Directors
    Name                        Title                                 Background
    Samuel Tam                  Chief Executive Officer               Convergent Technologies
    Horatio Lo                  VP, Engineering                       Seagate, Conner Peripherals, Maxtor,
    A. Barr Dolan               Director, Venture Investor            Charter Venture Capital
    Clifford Haas               Director, Venture Investor            Sigma Partners
    Gary Tauss                  Director                              TollBridge Technologies

Financing ($ in millions)
    Round           Date            Amount           Post Valuation    Investors
      1             6/00            $26.0                 NA           Charter Venture Capital, Goldman
                        Total       $26.0                              Sachs Ventures, Pyramid
                                                                       Technology Ventures, Rahn Group,
                                                                       Sigma Partners, StorageNetworks

                                            Other Storage Software


One liner       Automated network design and management
Location        Redwood City, CA                    Stage                   Shipping Product
Web site                    Employees               19
Founded         April 1999                          Patent portfolio        NA
Competition     Netreon

Business Summary
     escription¾Netliant provides software solutions to automate sales engineering for complex enterprise
D    infrastructure. The company’s software suite is best suited for activities requiring networked
enterprise infrastructure, leading to an ideal customer base of manufacturers and professional services
providers in the data networking, storage, backup and security markets. Netliant was founded in 1999.

Product Offering¾Netliant’s product suite, NetAccelerate, delivers a comprehensive set of sales
engineering tasks with dedicated modules for storage, data networks, backup and security. NetAccelerate
provides the following benefits and features for its four key target markets:

 Storage                      Data Networks                  Backup                       Security

     Complete SAN             n
                                  Multi-tier network         n
                                                                 Backup or remote         n
                                                                                               Complete fault
     hardware and                 access and                     site policy                   tolerance support
     software preferences         distribution network           preferences              n
                                                                                               User TCP Sessions
     Backup or remote             topologies                 n
                                                                 Comprehensive                 and IPSec encryption
     site policy              n
                                  Network connection             backup media             n
                                                                                               Support for various
     preferences                  preferences and                alternatives                  security and IP VPN
     Comprehensive                interface details          n
                                                                 Disaster recovery             policies
     disaster recovery        n
                                  Fault tolerance and            and business             n
                                                                                               DMZ sub-netting,
     support                      high availability              continuity                    Remote monitoring
     Fibre Channel and        n
                                  Oversubscription and       n
                                                                 FC and Ethernet               and management
     Gigabit Ethernet             capacity planning              Switch fabric            n
                                                                                               NIDS, DOS and Virus
     redundant                n
                                  Multi-location design          topologies                    protection
     backbones                    support                    n
                                                                 Snapshot capacity        n
     Heterogeneous data       n
                                  Multiple Backbone              planning                      aggregation and
     center equipment             topology and WAN           n
                                                                 Growth extrapolation          access convergence
     iSCSI, FC, FC-AL, IP         technology options             and analysis for
     switch fabric                                               backup resources
     topologies and

Customers/Markets/Sales Model¾Netliant uses a direct sales force to target storage, data networking,
backup and security OEMs, as well as the professional services firms that serve these industries, including
systems integrators, consultants and VARs.

Partnerships¾Not available.

Recent Developments/Announcements
September 9, 2002
  Announced that Extreme Networks had launched an on-line application for designing complex data
  networks based on Netliant’s NetAccelerate product suite and hosted data services.

February 11, 2002
  Announced Netliant for Storage Networks, the next generation of automated planning and design
  solutions for equipment manufacturers, resellers, systems integrators and VAR organizations selling SAN

February 6, 2002
  Announced the release of Netliant for Data Networks 4.1, an upgrade to its scalable platform and
  patented solving technology.

Executive Team & Board of Directors
    Name                           Title                                 Background
    Mark Tudor                     Chief Executive Officer               LifetecNet, Object F/X, I2,
                                                                         StorageTek, NetFRAME, Amdahl
    Yiftah Porat                   Chief Technology Officer              Network Tools, Optimal Networks,
                                                                         Synoptics, Rosh Intelligent Systems
    Iris Itit-Shagir               VP, Professional Services             RTS Software, Tower Semiconductor
    Gadi Naveh                     Chief Architect                       Trading Dynamics, Network Tools,
                                                                         Metro Corporation, SCP Systems
    Dave Barrett                   Director, Venture Investor            Polaris Venture Partners
    Ira Ehrenpreis                 Director, Venture Investor            Technology Partners

Financing ($ in millions)
    Round              Date         Amount              Post Valuation    Investors
      1                5/00          $0.8                    $5.85        Orrick Herrington & Sutcliffe,
      2                10/00         19.5                    36.50        Polaris Venture Partners,
                           Total    $20.3                                 Technology Partners, VantagePoint
                                                                          Venture Partners, Venture Law
                                                                          Group, Wilson Sonsini Goodrich &

                                             OuterBay Technologies

OuterBay Technologies
One liner       Provider of application resource management solutions
Location        Campbell, CA                            Stage              Shipping Product
Web site                        Employees          50
Founded         June 1997                               Patent portfolio   NA
Competition     AppIQ, Astrum, CreekPath, InterSAN, TeraCloud, Veritas

Business Summary
     escription¾OuterBay provides an Application Data Management Suite that monitors and manages
D    data growth in the application environment and takes action to maintain high service levels of
performance and stability.

Product Offering¾OuterBay’s Application Data Management (ADM) is a new class of application aware
infrastructure. ADM encompasses several products, including Application Resource Manager,
LiveArchive and Instance Generator.

    Application Resource Manager¾Monitors application data environments to maintain high service
    levels of performance and stability. It includes Application Data Growth Monitor and Application Policy
      Application Data Growth Monitor¾monitors data growth at the table, index and record levels;
      identifies application modules with high data growth; recommends data retention policies to manage
      data growth.
      Application Policy Manager¾defines and implements data retention policies; conducts “what if”
      analysis and previews the impact of data retention policies; schedules automatic execution of data
      retention policies; creates alerts to highlight violations of adopted data retention policies.

    LiveArchive¾Allows a user to safely remove application data that is no longer needed for day-to-day
    operations from a production database. LiveArchive relocates this data into a relationally intact “live”
    archive database that remains on-line and accessible to users from their existing application user
    interface. The result is a smaller, high performance production database. LiveArchive is built with
    OuterBay’s Application Aware Policy Engine (A2PE). A2PE delivers flexibility, scalability and
    operational robustness to LiveArchive and provides the technical foundation for Oracle and future
    application platform support. Some key benefits of LiveArchive are
      Access archive data in real-time with the application interfaces, reporting and query tools in use today.
      Align archived and production data to maintain parity with all application updates, patches and
      Deploy as a single instance or in a distributed environment.
      Support extensions and customizations with fully documented Application Program Interfaces (APIs).
      Automate archiving processes for the entire application data lifecycle.
      Guarantee data integrity across production and archive environments.
      Secure archive process with complete rollback and recoverability and re-startability.

LiveArchive is currently available for Oracle and PeopleSoft applications, implemented as an operationally
transparent extension of the respective application environment.

    Instance Generator¾Builds an intact application database using OuterBay’s A2PE technology. Benefits
    of Instance Generator are
      Create relationally and functionally intact data subsets for smaller and more efficient test,
      development, staging and training environments.
      Create custom data subsets tailored to a user’s individual business and technology requirements based
      on application module, location or organizational unit or time period.
      Store, modify and reuse instance creation logic and parameters.
      Automate processes for the entire application data lifecycle.

Customers/Markets/Sales Model¾Some of the world's leading companies, including Sony Entertainment,
Sun Microsystems and Western Digital, rely on OuterBay's Application Data Management solutions.

Partnerships¾OuterBay has established solutions, technology and channel partnerships with industry
leaders to meet the critical systems implementation, software integration and platform deployment needs
of its customers.

Recent Developments/Announcements
January 27, 2003
  Announced that its Application Data Management Suite had won the Crossroads 2003 A-List Award.
  Announced that it has named Mark Burton to senior vice president of Sales, Marketing and Services.
  Announced the appointment of Bruce Wilson to its advisory board.

January 21, 2003
  Announced a technology agreement with EMC and has completed integration of its LiveArchive solution
  with EMC Centera, bringing to the market a new solution for archive "vaulting" for business transactions
  and attachments generated from Oracle, PeopleSoft or custom applications.
  Announced that SGI had successfully implemented OuterBay LiveArchive to ease data growth.

January 13, 2003
  Announced the general availability of its Application Data Management (ADM) suite.

December 12, 2002
 Announced the appointment of former VERITAS Senior Vice President Prashant Dholakia to its advisory

October 15, 2002
 Announced the acquisition of United Kingdom-based BITbyBIT International.

Executive Team & Board of Directors
Name                              Title                                Background
Michael Howard                    Chairman & CEO                       VERITAS, Oracle
Mark Burton                       Senior VP, Sales, Marketing &        International, Informatica, Oracle,
                                  Services                             Digital Equipment, Unisys
Chris Dier                        Chief Financial Officer              iBeam Broadcasting, Veritas, Aurum
                                                                       Software, Tolerant Systems
Roger Bodamer                     VP, Product Operations               Oracle, Dupaco
Richard Butterfield               VP, Corporate Strategy               Silicon Graphics, Sun Microsystems,
                                                                       Logitech, Information Builders
Huw Price                         VP, European Operations              BITbyBIT
Allen Beasley                     Director, Venture Investor           Redpoint Ventures, Institutional
                                                                       Venture Partners
Rory O’Driscoll                   Director, Venture Investor           BA Venture Partners
Peter Rip                         Director, Venture Investor           Leapfrog Ventures
Mark Leslie                       Director                             Leslie Ventures

Financing ($ in millions)
 Round                Date         Amount             Post Valuation    Investors
   1                  8/01         $19.0                  $31.0         BA Venture Partners, Leapfrog
                          Total    $19.0                                Ventures, Redpoint Ventures,
                                                                        Wilson Sonsini Goodrich & Rosati

                                              SANgate Systems

SANgate Systems
One liner     Data movement software for heterogeneous enterprise environments
Location      Southborough, MA                      Stage                Shipping Product
Web site                       Employees            25
Founded       May 1999                              Patent portfolio     NA
Competition   Avamar, CommVault, Computer Associates, Kashya, Legato, LiveVault, NSI, Permabit, BakBone, Veritas

Business Summary
     escription¾SANgate provides storage solutions for high performance data migration. The company’s
D    solutions are ideally suited for heterogeneous storage environments emphasizing data replication and
data mobility. SANgate’s solution is designed for mission critical applications, providing scalability,
reliability, availability and serviceability.

Product Offering¾SANgate’s flagship product is the SANblaster S1000, a portable appliance used for
executing data migrations among heterogeneous storage subsystems in multiple platforms, including
Windows and UNIX environments. SANblaster S1000 allows users to move sets of source volumes to a
target via high-performance Fibre Channel interconnects on a dedicated platform. The product utilizes
dedicated cables and does not require software installation, thereby ensuring safety and simplifying the
migration process. SANblaster S1000 can transfer data to the target at rates up to 1 terabyte per hour. The
SANblaster product provides the following benefits to users:

  Time savings¾improved planning is achieved through comprehensive set-up and planning tools used to
  reduce complexity. A dedicated appliance minimizes application downtime. SANblaster’s intuitive GUI
  minimizes training requirements. Simultaneous migration from multiple hosts eliminates repetition.
  Cost savings¾single appliance replaces need for additional hardware, upgrades or licenses.
  Data safety¾dedicated channel through S1000 appliance enhances security and does not affect
  LAN/WAN. Automated tools and error checking prevents manual user error.
User control¾enables user to efficiently manage and control migration process. Eliminates need for OS
software installations on the host. Allows heterogeneous migration capabilities for rapid deployment of
new, best-of-breed data center components.

Customers/Markets/Sales Model¾SANgate currently uses a direct sales force to target enterprise
customers and is actively looking to develop a network of resellers, systems integrators and consultants.

Partnerships¾Not available.

Recent Developments/Announcements
October 28, 2002
 Launched its partner program for data migration services.

October 1, 2002
 Announced that George McHorney had joined the company as chief financial officer.

September 9, 2002
  Announced that Mike Sutkowski had joined the company as vice president of Sales.

July 29, 2002
  Announced the availability of the SANblaster S1000 solution for Windows NT, Windows 2000 and Solaris
  operating environments.

Executive Team & Board of Directors
    Name                          Title                                Background
    George McHorney               CFO & Interim CEO                    Excar, Compucyte, Workgroup
                                                                       Technology, Coral Network
    Alex Winokur                  Chief Technical Officer & GM         IBM
    Mike Sutkowski                VP, Sales                            Auspex Systems, AViiON, VMARK
    Paul Feresten                 VP, Marketing & Business             TRIMM Technologies, DEC, Sanders
                                  Development                          Associates, Data General, MSI
    Nancy Kittredge               VP, Human Resources                  IronBridge Networks, SeaChange
                                                                       International, LANart
    Henk Schalke                  VP, Operations                       PinPoint, Cognex, Concurrent
                                                                       Computer, MASSCOMP, Teradyne,
                                                                       DEC, Singer Business Machines
    Thomas Crotty                 Director, Venture Investor           Battery Ventures
    Erel Margalit                 Director, Venture Investor           Jerusalem Venture Partners
    Kara Nortman                  Director, Venture Investor           Battery Ventures

Financing ($ in millions)
    Round             Date          Amount            Post Valuation    Investors
      1               1/00           $8.2                 $20.0         Battery Ventures, Jerusalem
      2               5/01           10.0                  60.0         Venture Partners Management,
      3               5/02            7.1                   NA          Third Millennium Venture Capital
                          Total     $25.3                               Ltd.

                                                     SteelEye Technology

SteelEye Technology
One liner            Provider of high-availability clustering solutions for Linux, Windows and Unix environments
Location             Mountain View, CA                           Stage                Shipping Product
Web site                               Employees            50
Founded              December 1999                               Patent portfolio     NA
Competition          Avamar, CommVault, Computer Associates, Kashya, Legato, LiveVault, NSI, Permabit,           SANgate, Veritas

Business Summary
     escription¾SteelEye Technology is a leading provider of low cost, high availability clustering, data
D    replication and disaster recovery solutions for Intel-based servers running Linux, Windows and Unix

Product Offering¾SteelEye's flagship product, LifeKeeper, maintains the high availability of applications
running on clustered Linux, NT and Solaris server systems by monitoring system and application health,
maintaining client connectivity and providing uninterrupted data access regardless of where the clients
reside¾on the corporate Internet, intranet or extranet. LifeKeeper is a commercially proven solution that

        Continuous uptime for eCommerce applications
        Enterprise-grade, high availability clustering for eBusiness
        Intuitive Java graphical user interface and easy ongoing operations management
        Flexible configurations to maximize application service levels
        Nonintrusive integration with industry-standard O/S and applications environments

LifeKeeper’s extensive features and benefits are provided to different operating environments as follows:

                Linux                      Windows NT                    Exchange                           Unix
         Fault resilient clusters   n
                                        Custom-built             n
                                                                     Easy to install, use and    n
                                                                                                     Support for
                                        application recovery         deploy                          active/active or
                                        solutions                                                    active/passive systems
         Proactive fine-grain       n
                                        Three shared storage     n
                                                                     Flexible data replication   n
                                                                                                     Supports up to 16
         protection                     configurations                                               systems in the cluster
         Limitless scalability      n
                                        Extended mirroring       n
                                                                     Exchange server             n
                                                                                                     Configure multiple
                                                                     monitoring and                  heartbeat paths
         Uptime during                                           n
                                                                     Scalable over LAN or        n
                                                                                                     Data integrity
         maintenance and                                             WAN
         Flexible storage                                        n
                                                                     Application failover        n
                                                                                                     Seamless failover of all
         configurations                                                                              clients connected to
                                                                     Graphical interface and         servers
         Multi-directional                                           administration
         Cascading failover

         Application recovery

Customers/Markets/Sales Model¾SteelEye’s customers include ADP, Boeing, Delta, EDS, Ernst & Young,
Hitachi, Intel, Ikon, Nokia, Sony and The Weather Channel.

Partnerships¾SteelEye has established numerous strategic partnerships with server hardware vendors,
operating system vendors, distributors and resellers, including IBM, Intel, RedHat and BakBone.

Recent Developments/Announcements
January 21, 2003
  Announced the immediate availability of SteelEye LifeKeeper for the e-business platform, a
  comprehensive fault-resilient protection solution for on Linux, developed in partnership
  with SAP AG, HP and IBM.

October 17, 2002
 Announced a joint development and marketing partnership with BakBone Software that will deliver the
 industry's first integrated storage management and reliability solution for the Linux operating system

Executive Team & Board of Directors
    Name                           Title                                Background
    Paul Adams                     President & CEO                      Evygo, TightLink, MERANT
    James Fitzgerald               Executive VP, Business               Sun Microsystems, Omnipage,
                                   Development                          Autotrol Technology, General Foods
    Kevin Berry                    Chief Financial Officer    , Award Software
    Bob Williamson                 VP, Engineering                      NCR
    Nelson Yount                   Chief Technology Officer             NCR
    Russell Shelton                VP, Marketing                        Serena Software, Diversified
                                                                        Software, Striva Technology, Data
                                                                        Dimensions, Computer People
    John Banfield                  Director, Sales, EMEA                Smallworldwide, Primus Knowledge
                                                                        Solutions, Zeus Technology
    Eric Copeland                  Director, Venture Investor           Venrock Associates
    William Earthman               Director, Venture Investor           Massey Burch Capital
    David Hook                     Director, Venture Investor           Hook Partners, Dali Hook Partners
    Ray Rothrock                   Director, Venture Investor           Venrock Associates
    Harvey Jones                   Director                             Tensilica

Financing ($ in millions)
    Round              Date         Amount             Post Valuation    Investors
      1                1/00         $10.8                    NA          Comdisco Ventures, Compaq,
      2                3/00           4.0                    NA          Cross Bridge Venture Partners, Dali
      3                4/01           2.7                    NA          Hook Partners, Intel, Massey Burch
      4                4/01          20.0                  $35.0         Capital Corp., Venrok Associates,
                           Total    $37.5                                Western Technology Investment

A bus is a network topology or circuit arrangement in which all devices are attached to a line directly and
all signals pass through each of the devices. Each device has a unique identity and can recognize those
signals intended for it.

Groups of SANs connected to a LAN that allow for high availability, fault-tolerant applications such as
those for on-line transaction processing.

Direct Attached Storage (DAS)
A storage device, such as RAID or JBOD, that is connected directly to a particular server.

A Fibre Channel network built around switches. A fabric can be composed of a single switch or multiple
switch. The term fabric refers to the interconnected switches, not to nodes or devices connected to the

Fabric switch
A switch using F_Port Fibre Channel protocols. Fabric switches offer full bandwidth per port, and often
offer additional fabric services (such as cascading). Brocade’s SilkWorm product is an example.

Fibre Channel
A very high-speed (up to more than 1 gigabits per second), low-latency (10 to 30 µs¾which is better than
ATM), full-duplex data communications scheme that is optimized to carry large blocks of data for both
channel- and LAN-type connections (simultaneously, on the same medium). Fibre Channel supports both
SCSI and IP.

File system
The file system is the system between the operating system kernel and the volume manager. It creates
files from the volumes provided.
Think of the following stack:

      Operating System Kernel
      File System (Formats data from volumes into files understood by the operating system)
      Volume Manager (creates volumes from LUNs)
      LUNs (aggregates physical storage or subdivides physical storage)
      Physical storage (hard disk drives, etc.)

Host bus adapters (HBAs)
An interface between the server or workstation and the SAN. Basically, these are like network interface
cards (NICs) for LANs which go into servers to connect to the SAN. Leading HBA companies include
Emulex (highest revenue), QLogic (highest number of ports sold), and JNI (highest revenue growth
recently). QLogic’s recently announced deal to acquire of Ancor produces a more vertically integrated
competitor to Brocade.

Infiniband (IB)
InfiniBand is an architecture and specification for data flow between processors and I/O devices that
promises greater bandwidth and almost unlimited expandability in tomorrow's computer systems. In the
next few years, InfiniBand is expected to gradually replace the existing Peripheral Component
Interconnect (PCI) shared-bus approach used in most of today's personal computers and servers. Offering
throughput of up to 2.5 gigabytes per second and support for up to 64,000 addressable devices, the
architecture also promises increased reliability, better sharing of data between clustered processors, and
built-in security.

I/O (input/output) describes any operation, program, or device that transfers data to or from a computer.

iSCSI is Internet SCSI (Small Computer System Interface), a new Internet Protocol (IP)-based storage
networking standard for linking data storage facilities. By carrying SCSI commands over IP networks,
iSCSI is used to facilitate data transfers over intranets and to manage storage over long distances. The
iSCSI protocol is among the key technologies expected to help bring about rapid development of the
storage area network (SAN) market, by increasing the capabilities and performance of storage data
transmission. Because of the ubiquity of IP networks, iSCSI can be used to transmit data over local area
networks (LANs), wide area networks (WANs), or the Internet and can enable location-independent data
storage and retrieval.

JBOD (just a bunch of disks) refers to a computer's hard disks that have not been configured according to
the RAID system to increase fault tolerance and improve data access performance.

LUN (Logical Unit Number)
A LUN refers to either 1.) a storage device, 2.) a block of aggregated storage (multiple disks managed by a
single controller), or 3.) a logical subdivision of a physical storage device.

A SAN device, such as a host server or a storage device, which connects to the fabric.

Network-Attached Storage (NAS)
Network-attached storage (NAS) is hard disk storage that is set up with its own network address rather
than being attached to the department computer that is serving applications to a network's workstation
users. By removing storage access and its management from the department server, both application
programming and files can be served faster because they are not competing for the same processor
resources. The network-attached storage device is attached to a local area network and assigned an IP
address. File requests are mapped by the main server to the NAS file server.

Network Storage Pooling
Network storage pooling refers to storage that has been virtualized into logical volumes that can then be
better managed. For example, tape, disk, and other storage may be in effect “combined” into logical
volumes that appear as one drive to an application. Gadzoox, in combination with DataCore, recently
offered such an offering called Axxess.

Physical entity that connects a node to the network. There are several types of ports:

   N port:     Node port. For example, this would be the port of a storage device or server that connects
               to the SAN switch.
   NL port:    FC-AL port that connects to a fabric switch.
   F port:     Fabric switch port that connects to an N port.
   FL port:    Fabric switch port that connects to an NL-port.
   E port:     Expansion port for a fabric switch. This enables a fabric switch to connect to another
               fabric switch.
   G port:     Fabric switch port that can be either an F port or an E port.

(Redundant Array of Independent Disks) A disk subsystem that provides increased performance or fault
tolerance. A RAID system comprises a RAID controller and two or more regular disk drives. The RAID
functionality is built into the controller. RAID can also be implemented in ordinary PCs via software only
but with less efficiency and performance. JBOD stands for “Just a Bunch Of Disks”, a group of hard disks
in a computer that are not set up as any type of RAID configuration.

Pronounced "scuzzy." SCSI is a hardware interface that allows for the connection of up to seven or 15
peripheral devices to a single expansion board that plugs into the computer called a SCSI host adapter or
SCSI controller. Single boards are also available with two controllers and support up to 30 peripherals.
SCSI is widely used from personal computers to mainframes.

There are several versions of SCSI:

        Fast narrow  (10 MB/second)
        Fast wide    (20MB/second)
        Ultra SCSI   (40 MB/second)
        Ultra2 SCSI  (80 MB/second)
        Ultra3 SCSI  (160 MB/second)
        (MB = one megabyte)

Each of the above versions of SCSI also come in three varieties: single-ended, high differential, and low
voltage differential (LVD). High differential SCSI enables higher cable lengths than the other forms.

Storage Area Network (SAN)
(Storage Area Network) A back-end network connecting storage devices via peripheral channels such as
SCSI, SSA, ESCON and Fibre Channel. Fibre Channel is a driving force in the SAN market, because it
supports existing peripheral interfaces as well as network interfaces. Fibre Channel (FC) can be
configured point-to-point, in an arbitrated loop (FC-AL) or via a switch. With Fibre Channel, the hosts can
not only talk to the storage system via SCSI, but also they can communicate with each other via IP over the
same topology.

Storage consolidation
Storage consolidation can be thought of as migrating from a DAS configuration to a SAN configuration so
that storage is available to all servers. This results in more efficient allocation of storage needs.

When used for storage, a switch (typically eight to 16 ports) provides full gigabit speeds at each port. This
differs from a hub where the capacity of the device is shared (more users implies less capacity per node).
Switch price per port costs are often greater than six times that of hubs.

TCP/IP (Transmission Control Protocol/Internet Protocol) is the basic communication language or protocol
of the Internet. It can also be used as a communication protocol in a private network. TCP/IP is a two-
layer program. The higher layer, Transmission Control Protocol, manages the assembling of a message or
file into smaller packets that are transmitted over the Internet and received by a TCP layer that
reassembles the packets into the original message. The lower layer, Internet Protocol, handles the address
part of each packet so that it gets to the right destination.

Virtualization is the pooling of physical storage from multiple network storage devices into what appears
to be a single storage device that is managed from a central console. Virtualization is often used as part of a
storage area network. A virtual storage device appears as one storage device to the operating system,
regardless of the types of storage devices pooled. Hard disk drives are the most common storage device
used. Virtualization is similar to a redundant array of independent disks except that the stored data is not
copied redundantly on each storage device (although this capability is sometimes provided). The benefits
of virtualization vary with each software package but usually enable a customer to add a storage device
without requiring network downtime, assign storage volumes from a downed server or storage device to
another server or storage device within the network, and mix hard disk drives of different sizes, speeds,
and vendors

World Wide Name
Eight-byte identifier for any device on a Fibre Channel network.

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