Watch Out for WAFS: Page 2 of 3

Despite all the good news, threats remain. After all, the WAFS road is strewn with the carcasses of startups with similar aims that didn't fare as well, including Acirro (see Acirro Hits Zero), Storigen (see Storigen Ends With a Whimper), and Zambeel (see Zambeelians Reemerge at StorAD).

Defunct startups did several things wrong, sources say. Basically, they lacked one or more of the elements now seen as vital to WAFS advancement, including the following:

• Support of IP. Most WAFS products can run over Internet links as well as dedicated connections. In the past, file sharing products often required dedicated connections, or only worked with certain routers.
• File centralization. Some old WAFS gear didn't use a centralized server model, which lets enterprises cut down on the amount of software and hardware required to support remote users. Distributed file sharing is definitely outr.
• Performance. WAFS suppliers have features that cut down on repetition in file delivery on both the server and over the remote connection, which speeds up the link. According to Arun Taneja of the Taneja Group consultancy, the goal is to deliver files over the WAN as fast as they appear on the LAN. Anything less isn't cutting it.
• Security. WAFS products come with encryption and other security features, which can act as adjuncts to a company's own hardware-based security.
• Broad market appeal. When it comes to WAFS, more is merrier. Companies that tried to cater to specific segments or vertical markets, such as video service providers, are pushing up daisies.

The current crop of WAFS vendors say features like those above give them a winning hand. But more will be needed to bring them to the next level -- including acquisition or public offering.

Partnerships are key, and all the vendors are working in that area. Some already have coveted OEMs: Signiant, for instance, says its full-year 2003 revenues exceeded those of 2002 by 100 percent, thanks in part to its OEM partnership with EMC Corp. (NYSE: EMC) (see Signiant Wins EMC's Love). Tacit has an OEM deal with BlueArc Corp. and has arranged for IBM Corp. (NYSE: IBM) to resell its wares in Europe.

On the downside, partners are fickle (EMC looked over Actona, DiskSites, and Tacit before hitting on Signiant all the way back in 2002). Exclusivity isn't guaranteed, either. Ultimately, there may not be room for more than one or two vendors to hit it really big. But we know of at least four that won't stop trying.