Storage IPO Market Stays Hot

For storage vendors, 2006 will be remembered as the year the sector returned to favor on Wall Street.

Isilon and Double-Take both successfully completed initial public offerings on Friday, bringing to four the number of storage companies that have gone public this year. Along with Riverbed and CommVault , the storage companies are the first to brave the public markets since Xyratex went public in mid-2004.

Isilon was the biggest surprise of the bunch, posting a 78 percent gain in its debut, the third strongest IPO of the year in any sector, according to MarketWatch.com.

The clustered NAS vendor raised more than $100 million in its debut, thanks to its 240 percent sales growth in the first nine months of the year, but the company lost $15 million on $41.6 million in revenues and faces tough competition from the likes of EMC and NetApp.

Double-Take raised $51 million in its debut and its stock scored a 15 percent gain in its first day of trading. The backup and recovery specialist earned $5 million in the first nine months of the year, and sales were up 44 percent to $26.2 million.

One factor behind the storage sector’s resurgence on Wall Street is its steady growth, which has hovered around double-digits even as other technology sectors have faltered (see Another Solid Quarter for Storage).

Back To Enterprise Storage Forum

Paul Shread
eSecurity Editor Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.

Latest Articles

What are Serverless Storage Systems?

Serverless storage systems help simplify business data storage operations. Here is how they work and best use cases for these systems.

Fortifying Your Backups from Ransomware

With the increase in sophisticated ransomware attacks targeting backup data, enterprises need to proactively implement effective defenses.

10 Best API Management Tools & Platforms 2021

API management tools aid in the building, publishing and integration of APIs across the cloud. Explore top tools now.