Market Research

SEPATON, Inc. the leader in enterprise-class disk-based data protection solutions, today announced that it extended its record for the sixth consecutive year of delivering product excellence, broadening new customer adoption among the world’s most recognizable enterprises, and reaffirming existing customer commitment by expanding protected data capacity across its install base. According to market research firm IDC, SEPATON’s growth out-paced the overall market.*

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The modernization of backup continues with the shift from tape to disk. Ranked as an IT priority in 2010 by ESG’s IT Spending Intentions Survey, “improving data backup and recovery” takes priority over a number of other IT initiatives. In 2010, disk-assisted data protection will continue to dominate backup and recovery improvement projects.

“Our scale-out architecture and unrivaled approach for serving enterprises with large data volumes and complex backup environments was clearly demonstrated this past year perhaps more than during any other period in our company’s history. This despite the tight controls placed on spending in unprecedented market conditions,” said Mike Worhach, president and CEO, SEPATON, Inc. “Despite these realities, existing customers expanded their investments with SEPATON, many new customers from around the globe selected SEPATON for their data protection, and our OEM business saw record growth year-over-year. We remain steadfast in our focus of using scalable, high-performance solutions to drive down the overall cost and risk of protecting enterprise data and delivering to our customers a powerful, flexible, extensible architecture to manage and control their data throughout its data protection lifecycle.”

In 2009, SEPATON achieved many company and product goals that have enabled it to further its dominant position in the market for enterprise-class virtual tape libraries and advanced data protection software, including data deduplication and remote replication. Some of these accomplishments include:

• SEPATON received $15.5 million in venture funding, led by new investor Focus Ventures. The funding round was acquired at a time when overall venture capital financing had slowed down dramatically due to the economic downturn. SEPATON, however, attracted a new top-tier investor with participation from all previous parties.
• Analyst firm IDC positioned SEPATON as an industry leader within its IDC MarketScape open systems virtual tape library (VTL) report*. SEPATON is also highlighted as one of the few firms growing faster than overall storage market.
• SEPATON’s OEM channel sales continued to strengthen driven by the rapid adoption of its enterprise technology. SEPATON expanded its customer base in 2009 bringing its total customer count to more than 2,000. Particularly strong adoption was seen in vertical industries, including government, education, insurance/financial services, aerospace, energy, entertainment, retail and healthcare securing new accounts such as Cobham, plc, Dow Jones & Company, Inc., Financial Information Services Agency of New York, The John F. Kennedy Center for the Performing Arts, Korean Electric Power Company (KEPCO), Presbyterian Healthcare Services, San Francisco Public Utilities Commission, Scholastic, and Weis Markets. SEPATON’s technology now protects over 200PB of data worldwide.
• More than 85% of our largest 20 worldwide customers expanded the capacity or performance of their S2100®-ES2 VTL, proving its flexibility and ease of upgrade capabilities. The average SEPATON system deployed in 2009 features more than 115TB, a 50% increase over the average capacity of the previous year.
• SEPATON is uniquely able to protect large volumes of data in a single, highly scalable system. For example, a large federal agency is protecting more than 1PB of data by scaling capacity and performance in one SEPATON VTL using three processing nodes to maintain wire speed performance throughout backup, deduplication, and restore operations.
• SEPATON delivered the first remote replication solution designed for the world’s most data intensive enterprises with the release of DeltaRemote™ software.
• An independent testing lab, openBench Labs, conducted a hands-on product review and confirmed that using SEPATON’s DeltaStor® high-performance data deduplication software is a highly effective way to contain data protection costs in virtual machine environments.
• SEPATON was named the recipient of the 2009 Frost & Sullivan North American Technology Innovation Award in the field of Data Deduplication Software in recognition of its groundbreaking efforts in the development of its DeltaStor software.
• SEPATON partnered with Bus-Tech to enable mainframe environments to implement disk-based backup and recovery seamlessly without changing their backup policies.

About IDC MarketScape

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.

About SEPATON, Inc.

SEPATON is the only disk-based data protection company with a scale-out backup and recovery system built to achieve the performance and capacity requirements of the most data intensive organizations. Built on our patented scale-out architecture, SEPATON products enable data-intensive enterprises to back up, deduplicate, replicate, and restore petabytes of data at wire speed without disruption to their existing infrastructure. As a result, these products provide the most return on their investment in backup technology. For additional information call 866-SEPATON or visit http://www.sepaton.com.

SEPATON, S2100, DeltaStor, and DeltaRemote are registered trademarks and DeltaScale and DeltaCache Recovery are trademarks of SEPATON, Inc. All other brand and product names are or may be trademarks of their respective owners.

* “IDC MarketScape: U.S. Open Systems Virtual Tape Library 2009 Vendor Analysis, Doc #219914, September 2009".