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Data Domain Gets Compressed: Page 3 of 4

Li, however, says the company received lots of positive feedback from its five beta-customers [ed. note: after all, how could five people be wrong?]. He also says Data Domain's strategy of enhancing, rather than competing with, existing backup software companies should give it leverage.

"We're not making changes to the standard backup software. We're just enabling them to do what they're built to do." Avamar, by contrast, requires customers to install its own data backup software.

The DD200 disk-based recovery appliance works with a variety of backup software, including Veritas Software Corp. (Nasdaq: VRTS) NetBackup, Legato Systems Inc. (Nasdaq: LGTO) Networker, and IBM Tivoli Storage Manager.

The startup also insists that its software can compress backup data an order of magnitude faster than standard software compression, and that, because it uses an object-based storage, it can identify changes below and across blocks.

"They've put a different spin on it... They've gone for integrity first and performance second," says Gartner Inc. analyst Nick Allen. "They're guaranteeing the recovery of data... and their price is pretty compelling."