The second area native IP SANs represents a bigger long-term opportunity. But it will start small. Intel Corp. (Nasdaq: INTC) understands this: It sees the arc of iSCSI starting with low-end storage systems designed for small and medium-sized businesses that can't afford a Fibre Channel SAN, either in terms of buying it or managing it. Intel views the world in the PC model: As volumes increase, iSCSI-based systems will become cheaper and more robust, scaling up into higher-end markets (see our interview with Mike Wall, GM of Intel's Storage Components Division).
The other issue is that IP SAN vendors aren't selling iSCSI. They're selling SANs.
"Customers don't wake up and say, 'This is the day for iSCSI,' " says Peter Hayden, CEO of EqualLogic Inc., which is developing an iSCSI-based storage system. "Customers wake up and say, 'I've got to build a SAN.' " The challenge is conveying the benefits of storage area networks to an entirely new class of customers.
So far, it's been startups like EqualLogic, Intransa Inc., Sanrad, and StoneFly Networks Inc. that have been the most aggressive at marketing iSCSI-based systems. But more established players, including Intel, Network Appliance Inc. (Nasdaq: NTAP), and Adaptec Inc. (Nasdaq: ADPT) are starting to get in on the action as things start to coalesce. (See EqualLogic Tallies $15M, Intransa Cranks Up IP SAN, StoneFly Offers 'Complete' IP SAN, Intel & Emulex: iSCSI Tag Team?, NetApp Blitzes on iSCSI, and Adaptec Details IP SAN Betas.)
The only question left on iSCSI is timing (although perhaps that's been the only question all along). IBM had its own false start with the iSCSI-based 200i storage device, which it gently phased out last year once it became clear no one was interested in buying it. Big Blue's current strategy is to support iSCSI across its entire range of storage products, but it will "enable that in the timeframe with the rest of the market," says Hillsberg (see IBM Ditches iSCSI Box).