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Sepaton's Got Virtual Tape: Page 2 of 3

Still, Sepaton is playing catchup against Diligent Technologies Corp., Quantum Corp. (NYSE: DSS), and Storage Technology Corp. (StorageTek) (NYSE: STK), which already have virtual tape libraries and disk-based backup systems that emulate tape. Sepaton is counting on doing it better because of its Enhanced Replication Engine that can emulate a variety of tape libraries simultaneously.

“It can emulate all popular tape libraries,” Worhach says. “You can get it out of the box and up and running in minutes. Customers don’t have to retrain their staff."

A company spokesman says Sepaton’s name change signifies a “new focus,” but it might be more of a curse-breaker. As SANgate, the company went through a series of CEO changes, laid off 26 employees at its Israel R&D facility earlier this year, and suffered through poor sales with its first data migration appliance (see SANgate Loses Third CEO and SANgate Shuts Israel R&D).

On the upside, in March, Sepaton closed a $4.7 million round with Jerusalem Venture Partners

and is looking for more funding. It's also got a new approach to the market, one that at least one analyst thinks is the right one.

Mike Peterson, president of Strategic Research Corp., says SANgate's previous product was "the wrong product, wrong market," and the virtual tape library fills a need to shrink backup windows.