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Malavalli’s Start-Up InMage Acquired by Microsoft

To offer value with cloud-connected solutions based on Azure

This announcement was published on the official Microsoft blog and posted by Takeshi Numoto, corporate VP, cloud and enterprise marketing, Microsoft Corp.:

Microsoft acquires InMage: Better BC with Azure

I’m pleased to announce that Microsoft has acquired InMage Systems, Inc., an innovator in the emerging area of cloud-based BC.

Our customers tell us that BC – the ability to backup, replicate and quickly recover data and applications in case of a system failure – is incredibly important. After all, revenue, supply chains, customer loyalty, employee productivity and more are on the line. It’s also very complicated and expensive to do. CIOs consistently rank BC as a top priority, but often don’t have the budgets or time to do it right.

As the productivity and platform company for the mobile-first, cloud-first world, Microsoft is committed to solving this challenge for customers. This acquisition will accelerate our strategy to provide hybrid cloud BC solutions for any customer IT environment, be it Windows or Linux, physical or virtualized on Hyper-V, VMware or others. This will make Azure the ideal destination for DR for virtually every enterprise server in the world. As VMware customers explore their options to permanently migrate their applications to the cloud, this will also provide a great onramp.

In January, Forrester Research identified the company as an enabling technology that plays a key role in delivery for top DR-as-a-Service providers HP and Sungard. (The Forrester Wave: Disaster-Recovery-As-A-Service Providers, Q1 2014, Forrester Research, Inc., January 17, 2014)

In May, the company won a Penton Media Best of TechEd award. Most importantly, customers across a variety of industries, including financial services, healthcare and government, rely on InMage technology to keep their organizations up and running.

An IT manager at MCR Safety, a manufacturer of personal protective equipment, put it simply: “The technology is like a high-performance DVR to protect our entire IT infrastructure and business.”

With the completion of this acquisition, we are now working to integrate the InMage Scout technology into our Azure Site Recovery service in order to give customers a simple, cost-effective way to ensure BC with the power and scale of the Azure global cloud. The company already announced its plan to enable data migration to Azure with Scout. Existing customers can continue to use the InMage products and services they trust and, moving forward, customers will acquire Scout through Azure Site Recovery. We will also continue to work with InMage service provider partners, as well as new partners, to give our mutual customers a range of solution options.

As Laura DuBois, research VP, IDC, said: “This is a great move to meet important customer needs with the cloud as a target for DR. InMage has distinguished itself in a poorly understood and underserved market.”

Enterprise customers are looking for the best, most valuable ways to take advantage of the cloud. BC is often a great place to start, which is why we are very focused on delivering strong solutions in this area for our customers. It is a key element of our continued effort to deliver a consistent hybrid platform and a broad range of services that connect customer, partner and Microsoft clouds.

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Founded in 2001, InMage, formerly Abhai Systems, raised a total of around $40 million in venture capital from firms like Hummer Winblad Venture Partners, Amidzad Partners and Intel Capital including:

  • $10 million series B funding bringing total funding to $17.3 million
  • $15 million in 2008 in series C
  • $7.5 million of $10.5 million round in 2013.

In addition to HQs in San Jose, CA, it has engineering operations in Hyderabad, India.

Former co-founder and CTO of Brocade, Kumar Malavalli, also an investor, is the big guy behind the start-up as co-founder - with Rajeev Atluri with a number of storage patents pending in next generation data protection technology. Prior to InMage and Brocade, he served in management and technical capacities at Amdahl, Canstar, and HP. Holding numerous patents in FC arena, Malavalli appears as an investor in several other storage start-ups including InterSAN (sold to Finisar in 2005 for $9.5 million), SV Systems (apparently disappearing), Karthika Technologies (acquired by Kasten Chase), Orchesys, and Alpine Technologies. Chairman of InMage, he replaced John Ferraro as CEO in 2011.

InMage is involved in backup disaster recovery technology for enterprises and MSPs. Its software, based on "True Continuous Data Protection", provides unified protection for enterprise and hybrid cloud environments and includes two products:

  • Scout leverages the advantages of disk-based data protection to provide application - aware recovery that can meet remote and/or local requirements. It continuously captures data changes in real time as they occur and performs local backup or remote replication simultaneously with a single data stream and is available for Windows, Linux, Solaris, AIX and supports hypervisors.
  • ScoutCloud simplifies Disaster Recovery as a Service including disk-based recovery, CDP, application snapshot API integration, asynchronous replication, application awareness, and WAN optimization.

inmage scout

Scout service will be integrated into the Microsoft Azure Site Recovery service and InMage will enable data migration to Azure with Scout.

InMage also offers hardware for SMBs with 4000 Series of backup and disaster recovery appliances launched last October for petabyte data protection requirements.

Financial terms of the acquisition by Microsoft were not disclosed.

Former acquisitions of storage companies by Microsoft

Year Company acquired Price* Activity of acquired company
2002 XDegrees NA Solutions to secure information stored across enterprise systems
2005 Iomega's ByteTaxi 2.9 Software to set up peer-to-peer Internet and private networks
2006 String Bean Software NA Software to allow a storage server to function as a NAS or iSCSI target
2006 Winternals Software NA Windows-based data protection and recovery software
2012 StorSimple NA Cloud-integrated storage solutions

* in $ million

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