X-IO and Pivot3 enter mutual back-scratch deal

Loosely-coupled alliance with IP, product, staff, and engineering services aspects

X-IO is going to add Pivot3 hyper-converged products to its customers and provide IP, software and engineering services to Pivot3.

Here's the juice. We know X-IO is offering Nexsan's E60 arrays as a cold storage tier to its customers and partners. Now it's allying itself with hyper-converged and hybrid array startup Pivot3 in what we might call a loosely coupled way:

  • Some X-IO sales and marketing staff will move to Pivot3
  • X-IO customers and channel will be offered Pivot3 products
  • X-IO is licensing some software and patents to Pivot3
  • X-IO is providing engineering services to Pivot3 to add functionality to its products

In effect X-IO is going to redirecting its energies from trying to grow ISE/iglu market share in the external data storage systems market to investing in new technologies, markets, and alliances. Axellio is the prime example of that.

It will, we understand, carry on developing and supporting the ISE and iglu products, but without a large investment in what it sees as now unproductive sales and marketing efforts in a market that's changed. That market has become, in our view, effectively closed to such market share growth efforts by small players. ®


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