Actifio, With New VC Bucks, Wants to “Virtualize” Data Management, Become the Next Data Domain

Take two of the more impenetrable terms in the IT industry, “data management” and “virtualization,” and put them together. What do you get? The doubly difficult moniker of “data management virtualization.”

To an outsider, this might sound like enough jargon to kill a small child. But it’s actually pretty straightforward. What’s more, the sector could end up producing the next big storage-software company—something along the lines of Data Domain, which went public in 2007 and was acquired by Hopkinton, MA-based EMC for $2.1 billion last summer (as co-founder Kai Li discussed with me when he was on leave in Seattle).

That’s what Actifio is banking on, anyway. The stealthy startup in Waltham, MA, talked with me yesterday after my colleague Ryan reported the company had completed its $8 million Series A financing round, led by North Bridge Venture Partners and Greylock Partners. The startup’s CEO and founder is Ash Ashutosh, a 25-year data storage veteran, former vice president and chief technologist of Hewlett-Packard’s StorageWorks division, and founder of AppIQ and Serano Systems.

To understand where Actifio fits in requires a little background. The big issues with data centers break down into three pieces. The first is servers and computing power. The second is networking and communication that lets data move around. And the third is data storage and protection. The first two categories have been strongly affected by the trend of virtualization—software that lets companies efficiently run multiple operating systems on a given server, by effectively separating software from hardware and applications from operating systems. Big players in the sector include VMware, Cisco, IBM, Citrix, HP, Dell, and Microsoft.

But Actifio is concerned with the last of the three categories, data management, and here virtualization is less proven. Sure, there are plenty of big storage companies—EMC, NetApp, Symantec, and Isilon Systems spring to mind. But to hear Ashutosh describe it, nobody has quite figured out

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.