Nemertes Impact Analysis

Expert Insight On How Recent News Affects You

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Everyone into the Pool! Storage Virtualization Reaches for
the Desktop

Server and storage virtualization increase utilization and decrease space and
energy footprints by aggregating IT assets into resource pools. Start-up Kapsean
is looking to extend the resource pooling to include desktop computers' disks.

Nemertes' benchmark, New Data Center, found that the majority of
participants already use at least one storage virtualization technology -
chiefly backup to disk. As desktop storage is well suited to this application,
Kapsean's offering may meet with a warm reception if pitched and priced
properly.

Impacts:

Enterprises: If you are not centralizing desktops (via virtual desktops or
thin clients) then explore systems like this to get more out of your desktop
investment.

Vendors: Not everyone will centralize desktops; tools to leverage desktop
investments can succeed as long as they take into account the realities of
desktop usage, component performance, and reliability.

Investors: As the flipside of the thin/virtual desktop market, companies
leveraging desktop resources, like Kapsean, or making them more efficient, such
as privately-held power management companies Verdiem and Faronics, could be
targets for acquisition by storage and management vendors, such as Symantec
(NASDAQ:SYMC) or HP (NYSE:HPQ).

http://www.nemertes.com/data_centers/new_data_center_executive_summary_toc_vol_1 [3]

http://www.kapsean.com/Company/PressReleases/2008-03-31.aspx [4]

John Burke, Principal Research Analyst

 

Cisco Application eXtension Platform Underscores Need To
Collapse Branch Devices

Cisco's (NASDAQ:CSCO) Application eXtension Platform (AXP) provides a
Linux-based blade server for the Integrated Service Router (ISR). The AXP
underscores the increasing desire among enterprises to consolidate branch
services into a single box.

IT executives participating in the Nemertes' benchmark, Building the
Successful Virtual Workplace, told us they planned to reduce the number of
branch office devices to five in 2007-2008, down from seven in 2005, primarily
to reduce the cost and complexity of managing the branch. With AXP, Cisco joins
Riverbed (NASDAQ:RVBD) in opening up platforms to third-party applications.

Impacts:

Enterprises: Leverage your existing and planned ISR deployments to deliver
integrated applications as they emerge.

Vendors: Leverage Cisco's AXP to deliver your applications as an integrated
service within the ISR, rather than as a separate appliances.

Investors: Keep your eye on the growing list of third-party vendors bringing
AXP-based services to market, including Avocent (NASDAQ:AVCT) and privately held
StillSecure.

http://www.nemertes.com/nemertes_benchmark_building_a_successful_virtual_workplace [5]

http://www.cisco.com/en/US/products/ps9701/index.html [6]

Irwin Lazar, Principal Research Analyst and Program Director, Unified
Communications and Collaboration

 

Vericept and BlueCoat Align: What's In Your SSL?

Last week, privately-held Vericept and Bluecoat Systems (NASDAQ:BCSI) aligned
to link data leakage prevention with secure web access. Aligning these functions
is particularly important for non-VPN SSL traffic, underscoring Nemertes'
finding that 75 percent of participants in the "Security and Information
Protection" benchmark have such encrypted traffic on their network. The
alliance is based on mutual adoption of Internet Content Adaptation Protocol
(ICAP) (RFC 3507) and membership in the ICAP Forum.

Impacts:

Enterprises: Get a handle on your encrypted traffic. Are your data leakage
practices encryption-aware?

Vendors: Visibility into encrypted communications is a core security
requirement. Make sure your security applications don't have encryption blind
spots by aligning with, or integrating in, encryption-aware solutions.

Investors: ICAP is worth watching. The ICAP Forum touts 81 members, including
Akamai (NASDAQ:AKAM), BlueCoat, Google (NASDAQ:GOOG), McAfee (NYSE:MFE),
privately-held Reconnex, and Secure Computing (NASDAQ:SCUR).

http://www.nemertes.com/products_services/research/benchmarks/nemertes_benchmark_security_and_information_protection [7]

https://www.vericept.com/index.php?id=1040 [8]

Ted Ritter, Research Analyst

 

It's just a Video Game!

Meru Networks, a privately held company, introduced a new virtual reality
wifi management tool at Interop last week. Network management will never be the
same. Unlike most management tools, their new monitor displays wireless networks
as virtual worlds; users can literally walk through walls and look at
parameters, such as signal strength and throughput.

In Nemertes' recent benchmark, Advanced Communications Services -Next
Generation Wireless,63 percent of participants are actively deploying fixed
wireless networks, or plan to in the next three years. Meru's interface could
set a standard, not only for managing such wifi networks, but for wired networks
as well.

Impacts:

Enterprises: Meru proves that wifi can be made much less complex. Demand easy
to use solutions from your wifi vendors.

Vendors: The virtual reality interface raises the bar for management tools.
Expect much more demand for tools that are easy to use.

Investors: Watch the big players. Meru's management tool is likely to
challenge wifi infrastructure vendors, such as Cisco (NASDAQ: CSCO) and Juniper
( NASDAQ: JNPR). Meru's lead in this technology could make them attractive as a
partner or as a takeover bid.

http://www.nemertes.com/benchmarks/nemertes_benchmark_advances_communications_services [9]

http://www.merunetworks.com/news/press_releases/index.php?articleID=042108b [10]

Mike Jude, Senior Analyst

 

IBM Going After a Piece Of The SMB Pie

IBM (NYSE: IBM) announced its "Blue Business Platform" initiative, a
hardware, software, and services platform aimed at the SMB market. The first
offering is "Lotus Foundations Start", a family of servers bundling office
applications including e-mail, security, and backup.

Thirty-one percent of IT executives participating in the Nemertes benchmark,
Advanced Communication Services, expressed a desire to use
all-in-one-devices to consolidate small and branch-office systems. IBM's
approach provides another option for delivering multiple functions on a single
server.

Impacts:

Enterprises: SMBs and branch offices should investigate Blue Business
platform, as well as Microsoft's (NASDAQ:MSFT) competing Small Business Server,
to reduce IT infrastructure costs and improve service options.

Vendors: Develop a platform consolidation strategy that meets the
application, security and resiliency requirements of SMBs.

Investors: Keep track of other vendors in this space, which include,
privately-held Unison Technologies and EmergeCore Networks, as well as Novell
(NASDAQ: NOVL) Branch Office.

http://www.nemertes.com/benchmarks/nemertes_benchmark_advanced_com [11]

http://www-03.ibm.com/press/us/en/pressrelease/24111.wss [12]

Katherine Trost, research analyst