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EqualLogic Tallies $15M: Page 2 of 4

EqualLogic is basing its supposedly "self-managing" storage arrays on iSCSI, which sends block-level SCSI storage commands over TCP/IP networks. The startup is also using Serial ATA drives, which are designed to provide high-end features at a lower cost. Hayden says the company is working with several disk manufacturers, including Hitachi Ltd. (NYSE: HIT; Paris: PHA), Maxtor Corp. (NYSE: MXO), Seagate Technology Inc. (NYSE: STX), and Western Digital Corp. (NYSE: WDC) (see Western Digital Hatches Raptor).

In Hayden's view, any big questions about when iSCSI will take hold have been answered, now that the Internet Engineering Task Force (IETF) has ratified the protocol and the technology has been quickly endorsed by major vendors, including Microsoft Corp. (Nasdaq: MSFT) and Network Appliance Inc. (Nasdaq: NTAP) (see iSCSI Gets Go-Ahead, NetApp Blitzes on iSCSI, LSI Lines Up iSCSI Mates, Microsoft to Unleash iSCSI, and Silverback Makes iSCSI Howl).

"There have been a lot of people casting a cloud over iSCSI, but I think that's rapidly clearing," he says. "The big missing link has been the end storage -- and now it's possible to deliver a full SAN solution to customers."

In addition to EqualLogic and NetApp, other vendors going after the IP SAN storage space include Eurologic Systems, Intransa Inc., LeftHand Networks, and Pillar Data Systems. Dell Computer Corp. (Nasdaq: DELL) also has said it has iSCSI plans in the crockpot (see LeftHand Picks Up $20M Round, Intransa Quiet on Plansa, Larry's Stealth Storage Startup, and our interview with Rhonda Gass, VP of Storage Systems Development, Dell).

So what's different about EqualLogic? Hayden says the key is the startup's "PeerStorage" architecture, which allows up to 256 arrays to gang up together and automatically load-balance data.