Going soft: Kaminario exits the hardware business

Software-centric business model to reach disruptive industry price point

Kaminario has announced it will leave the hardware business, and said Tech Data will build the certified appliance hardware needed to run its software.

Tech Data will provide the K2 and K2.N hardware, with Kaminario providing the Vision OS, Clarity analytics software (getting machine learning and AI), and Flex automation and orchestration software.

The K2 array is a composable infrastructure platform, with users able to set up virtual arrays using its resources. Tech Data will be able to build it more efficiently and at lower cost than Kaminario because of its superior manufacturing capabilities and buying power.

Kaminario, working with Tech Data and its own 200+ set of channel partners can, it says, provide its customers with fully integrated hardware-software all-flash storage appliances at a disruptive industry price point. In fact it claims customers will get the software-defined economics and flexible consumption typically seen only by hyperscale cloud providers.

The latest generation of the K2 all-flash array is now available to all resellers through Tech Data and includes the VisionOS and the Clarity support, analytics and management platform. The K2.N and Flex, when generally available, will also be offered through Tech Data.

Kaminario will continue to provide centralised support management for all data centre implementations based on Kaminario software.

It will strengthen its marketing focus on the service provider market, in which it sees telco, hosting and colo, managed service providers, technical resellers and IT outsourcers operating.

Q & A

We asked Kaminario's founder and CEO, Dani Golan, some questions about the switch to software.


Kaminario's Dani Golan

El Reg: Why is Kaminario is getting out of the hardware business?

Dani Golan: There are several reasons why this shift toward software business models makes so much strategic sense for Kaminario. We simplify our operations and remove the inventory holding costs from our operational model. We can now more easily collaborate with our supply-chain partners and continue to lower our cost of customer acquisition. You can see the differences in this model reflected in public market valuations of software companies vs. traditional storage array companies.

El Reg: What do you mean by a disruptive industry price point?

Dani Golan: Pricing depends on a wide range of factors that go into an implementation, i.e. performance v. capacity configurations; size of implementation; growth commitments, etc. However, we will continue to position Kaminario as the price-performance leader and beat any other array vendor from a cost-efficiency standpoint.

This partnership and shift in operational model makes us even more efficient. We are seeing price points dip below $0.50/GB at scale and anticipate continued erosion – particularly as savings associated with falling NAND prices are passed directly on to customers.

With regards to comparisons to hyper-scale cloud pricing, we will be releasing some data that directly compares our Cloud Fabric pricing to that of Amazon EBS.

El Reg: Will the change to software-centricity lower Kaminario's internal costs?

Dani Golan: Absolutely. Tech Data brings operational capabilities that Kaminario cannot replicate including; buying power, logistics reach, operational efficiency, and cost of capital. They are also in a position to help expand go-to-market reach with extensive relationships with technology resellers and cloud service providers.

These efficiencies will be extremely important as Kaminario continues to grow while improving profitability. This shift toward a software business model is fundamental to reaching our goal of becoming cash-flow positive in 2018.

El Reg: Will Kaminario be slimming down its staffing as it no longer has to design and manufacture its own array appliance hardware?

Dani Golan: As you know, we do not publicly comment on specific organisational changes. But given we are shifting our business model to meet market and customer demands, we will be aligning resources and investments to support our core competencies, drive profitable growth and increase operational efficiency.


Kaminario aims to become cash flow-positive this year and, we'd guess, move into profitability in 2019. This move to software centricity parallels that of Nutanix.

We might imagine that, were Kaminario to envisage an IPO, then it and its bankers might both feel investors will give it a higher value as a software company. This is a bold move and confirms the primacy of software in storage. ®

Other stories you might like

  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading
  • Big Tech loves talking up privacy – while trying to kill privacy legislation
    Study claims Amazon, Apple, Google, Meta, Microsoft work to derail data rules

    Amazon, Apple, Google, Meta, and Microsoft often support privacy in public statements, but behind the scenes they've been working through some common organizations to weaken or kill privacy legislation in US states.

    That's according to a report this week from news non-profit The Markup, which said the corporations hire lobbyists from the same few groups and law firms to defang or drown state privacy bills.

    The report examined 31 states when state legislatures were considering privacy legislation and identified 445 lobbyists and lobbying firms working on behalf of Amazon, Apple, Google, Meta, and Microsoft, along with industry groups like TechNet and the State Privacy and Security Coalition.

    Continue reading
  • SEC probes Musk for not properly disclosing Twitter stake
    Meanwhile, social network's board rejects resignation of one its directors

    America's financial watchdog is investigating whether Elon Musk adequately disclosed his purchase of Twitter shares last month, just as his bid to take over the social media company hangs in the balance. 

    A letter [PDF] from the SEC addressed to the tech billionaire said he "[did] not appear" to have filed the proper form detailing his 9.2 percent stake in Twitter "required 10 days from the date of acquisition," and asked him to provide more information. Musk's shares made him one of Twitter's largest shareholders. The letter is dated April 4, and was shared this week by the regulator.

    Musk quickly moved to try and buy the whole company outright in a deal initially worth over $44 billion. Musk sold a chunk of his shares in Tesla worth $8.4 billion and bagged another $7.14 billion from investors to help finance the $21 billion he promised to put forward for the deal. The remaining $25.5 billion bill was secured via debt financing by Morgan Stanley, Bank of America, Barclays, and others. But the takeover is not going smoothly.

    Continue reading

Biting the hand that feeds IT © 1998–2022