Data Domain Inc. (DDUP)

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Data Domain (NASDAQ:DDUP) continues to maintain client confidence in the area of disk-based storage appliances. They have successfully competed in the enterprise arena against companies such as EMC (EMC), NetAPP, Symantec's Veritas (via DCT) and others.

One of their popular technologies is De-duplication. De-duplication (de-dupe) removes duplicate information as data is backed up or archived. It can be done on the file level, where duplicate files are replaced with a marker pointing to one copy of the file, or at the sub-file or byte level, where duplicate bytes of data are removed, resulting in a significant decrease in storage capacity requirements.

A primary challenge for Data Domain is their ability to reach clients. They are a small company with a small reseller program of fewer than than 150 partners. Unless they have close to exponential representation in the market via qualified SI's and VAR's the larger competitors such as EMC, NetApp, HIT may win the majority of new business in this tech sector. Client demand in the enterprise space has increased significantly for disk backup (versus tape), network-based disaster recovery and "de-dupe" solutions. One interesting development is the progress of their Quantum cross licensing agreement.

[edit] Company Background

Data Domain is a leading provider of Enterprise Protection Storage systems for disk backup and network-based disaster recovery. Over 750 enterprises worldwide use Data Domain’s award-winning solutions to reduce backup costs and simplify their data recovery. Data Domain’s inline data deduplication and replication technologies offer data reduction rates that enable new efficiencies in enterprise data protection. The company’s products and solutions integrate into customers’ existing infrastructure and are compatible with leading enterprise backup software products.

Founded in 2001, Data Domain is a pioneer in the capacity optimized storage (COS) technology market. Using its Global Compression™, high-speed inline deduplication technology, Data Domain systems can store several months of backup and recovery data at a price point equivalent or lower than tape. How? Massive data deduplication and compression. On average, 10x-30x data reduction rates are achieved at very high throughput rates, shrinking data volume to an absolute minimum. A fraction of the physical storage is needed to store months of backup data. Once data is reduced, it becomes both cost-efficient enough for disk-based backup and highly mobile, enabling secure replication via customers’ existing network infrastructure for disaster recovery purposes.

Data Domain delivers the performance, reliability and scalability to address the data protection needs of enterprises across the globe. Its products include the award-winning DDX Array Series, Appliance Series and Gateway Series—each of which massively reduce data volume, eliminating the need for tape backup. All Data Domain systems are simple to deploy and offer customers the flexibility of NAS or VTL (virtual tape library) interfaces.

All Data Domain systems work with its Replicator software option which extends these data reduction and cost benefits to the network, enabling Wide Area Network (WAN) vaulting for DR, remote office data protection and multi-site tape consolidation. Backup data sets are effectively shrunk down to a size where WAN vaulting is economically and operationally feasible.

Data Domain systems offer advanced levels of data verification and integrity through Data Domain’s Data Invulnerability Architecture, which includes RAID-6 protection. These extra measures of protection are designed to ensure that backed-up data is accurate and recoverable.

Data Domain products are sold through a network of over 100 channel partners and its direct sales force. The company’s corporate headquarters are in Santa Clara, California.

[edit] Products Overview

[edit] High-Speed Inline Deduplication for Disk-Based Backup and Network-Based Recovery

Data Domain delivers powerful, proven Enterprise Protection Storage systems using high-speed inline deduplication to optimize data protection and disaster recovery (DR) performance. Data Domain offers a comprehensive range of products to meet the data protection needs of enterprises of all sizes, as they seek to reduce costs and simplify data recovery. Data Domain systems support all leading backup and enterprise applications for seamless integration into existing IT infrastructures.

• Data Domain DDX Array Series: The industry’s most scalable, high performance protection storage systems, DDX offers up to 20 petabytes of capacity, up to 12.8 TB/hour of throughput and includes management and support for up to 320 remote locations. DDX is designed for data centers with at least 20 TB of application data to protect as well as multi-site DR and tape consolidation initiatives.
• Data Domain Appliance Series: The industry’s highest throughput deduplication appliances with integrated storage, for cost-effective, scalable data protection.
• Data Domain Gateway Series: Enterprise protection systems that extend the benefits of Data Domain deduplication technologies to enterprises with third-party external storage systems.
• Data Domain Replicator Software: The industry’s most network-efficient, automated, ultra-safe replication software solution available for DR, remote office data protection and multi-site tape consolidation.
• Data Domain Virtual Tape Library Software: By emulating multiple tape libraries over a Fibre Channel interface, this option provides Enterprise Protection Storage for SAN environments.

[edit] Data Domain Technology

Data Domain high-speed inline deduplication systems have transformed disk backup, network-based disaster recovery and remote office data protection. Data Domain Enterprise Protection Storage systems include unique technological advantages, including:

• Global Compression, highly efficient deduplication and compression technology, radically changing storage economics to less than $0.35/GB
• Data Invulnerability Architecture, providing unprecedented levels of data integrity, data verification, and self-healing capabilities
• Replication technology, enabling automatic, secure transfer of compressed data over the wide area network (WAN) with 99% bandwidth reduction
• Compatibility with all leading backup and enterprise applications, ensuring seamless integration with existing infrastructures

[edit] Additional Corporate Information

Website http://www.datadomain.com

Headquarters Data Domain, Inc. 2300 Central Expressway Santa Clara, CA 95050 USA

[edit] References