Adaptec Rounds Out External Storage Line With Eurologic Buy

Eurologic, Dublin, Ireland, offers a range of SCSI, iSCSI and Fibre Channel arrays, plus its Spheras Storage Management suite of software. The company has a strong play with tier-two and some tier-one storage OEMs, said Ahmat Houssein, vice president and general manager at Adaptec.

"We wanted to establish our ability to drive external storage solutions," he said. "We believe the growth of external storage will be strong. And the small- and midsize-business spaces will be the next big growth space for external storage."

Adaptec's traditional products are mainly focused on components that go into building a storage infrastructure, including host-bus adapters and silicon for ATA, Fibre Channel and Serial ATA solutions. The Milpitas-based vendor also offers some small RAID subsystems. The company's primary sales focus is on storage OEMs and custom server builders, Houssein said.

The acquisition could allow the combined company to cut the cost of building Eurologic's products, Houssein said. "Adaptec has components that will help drive Eurologic's cost down and performance up," he said.

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More than 30 percent of Adaptec's sales go through the channel, compared with about 20 percent for Eurologic, Houssein said. "Eurologic gives us a credible product set to go to the channel," he said.

"But we will still have a predominate OEM focus."

Solution providers applauded the acquisition, saying the price was right.

Danny Hamady, CEO of Momentum Microsystems, a Fremont, Calif.-based solution provider that works with both vendors, said he looks forward to working with a single organization. "It's a value-add for us," he said. "We don't need dual relationships, dual POs [purchase orders] or dual purchasing programs."

Brad Wenzel, president and CEO of Wenzel Data, a Stillwater, Minn.-based solution provider that also works with both vendors, said the acquisition will combine Adaptec's channel presence with Eurologic's strong product lines.

"Eurologic has always had the best enclosures, as far as I am concerned," Wenzel said. "It gives Adaptec a good enclosure line."