Save or Share this Report

For CIOs

Storage IPOs Hot, Acquisitions Not

Multiple Storage Firms Go Public As Pace Of Acquisition Slows

November 27, 2007

Primary author headshot


  • By Andrew Reichman
  • with Rachel A. Dines,
  • Thomas Mendel, Ph.D.,
  • Simon Yates

Why Read This Report

For the last several years, enterprise storage has been an acquisitive market, with big fish gobbling up minnows and even peer-sized firms at a dramatic rate. But during the past year, the pace of acquisition has slowed and a significant number of storage IPOs have been announced. Does this signal a fundamental shift in the storage industry or is it just an incidental pause? Until technologies from new start-up firms emerge, the acquisition boom might be on a slowed trajectory. Additionally, the expense and disruption of buying and integrating technologies compared to internal development might have left a sour taste for acquirers. The recent IPO penchant demonstrated by 3PAR, BlueArc, Compellent, Data Domain, EqualLogic, Isilon, and ONStor is interesting, though. All are systems companies that, by going public, are committing to going it alone and competing long term with their much larger brethren. Going the IPO route means that small companies get to maintain their independence and avoid the disruptions inherent in acquisitions, but it also means they have to go head to head with the giants of the industry as well as bear the burdens of Wall Street.

Get Access

Already a Client?

Log in to read this document.

Become a Forrester Client

Customers are the new market-makers, reshaping industries and changing how businesses compete and win. Success depends on how well and how fast you respond. Forrester Research gives you insights and frameworks aligned to your role to shorten the time between a great idea and a great outcome, helping your teams win in the age of the customer. Contact us to learn more.

Purchase Report

This report is available for individual purchase ($499 USD).


Table of Contents

  • Acquisitions Were Business As Usual For The Past Six Years
  • A New Wave Of Storage Firms Goes Public

  • Tech Strategy Professionals: Beware Of Acquisition/IPO Turmoil

  • Acquisitions March On, But Internal Innovation Has Value As Well
  • Supplemental Material
  • Related Research Documents