IBM Buys Grid Startup for $300 million

IBM formally announced the deal today to acquire XIV, an Israeli grid storage startup. As we explained earlier in the week, XIV's developed a storage solution that's half the price of comparable Tier 1 solutions without sacrificing on the availability features and capabilities. As for performance, one IT manager I spoke with who had the technology in house, described XIV's Nextra solution as "blazingly fast".

The company has reportedly raised $3 million to date with net executive chairman Moshe Yanai owning 75% of the company. He will net $225 million in the deal and will become an IBM fellow, reports Globes.

But like I said yesterday, XIV still has to some scores to prove not the least of which is non-stop operation. The Nextra solution didn't allow for in-line software upgrades a year ago - a necessary passport into the Tier 1 storage world.