Data system maker Acopia fetches $210m
Privately held data virtualization company Acopia Networks Inc. of Lowell will be acquired for $210 million by F5 Networks Inc. of Seattle. The deal disclosed yesterday is the latest sign of surging interest in virtualization, a set of technologies that helps companies process data more efficiently with fewer machines.
F5 specializes in application delivery systems -- a form of virtualization that lets companies support large numbers of software users, while running the software on relatively few servers. Andrew Stern, F5's director of corporate development, said his company and Acopia are a good fit, because they share the same goal -- simplifying the management of massive corporate networks. "It's really a management issue now," said Stern. "Companies are trying to figure out how can I intelligently manage this monster data center that I have?"
Acopia's hardware and software tries to simplify the process by creating a "virtual layer" of software that can manage hundreds of file storage systems. In a standard data center, each file is associated with a particular storage system. Acopia's products let data center managers treat all their file storage systems as one centrally managed pool of files, no matter how many storage systems are actually on the network.
This allows end users to get easy access to files anywhere in the system. It also makes it easier to move data between individual storage devices without disrupting access to the affected data. Data managers can also consolidate data files onto fewer storage devices, reducing their hardware and electricity costs.
Acopia's approach to data files is similar to the way VMware Inc. uses virtual software to pool the power of server computers. "You could view Acopia as VMware for the storage layer," said Acopia president Christopher Lynch. VMware, a subsidiary of EMC Corp. in Hopkinton, is one of the software industry's fastest growing companies, and a symbol of the booming demand for cost saving virtualization technologies. EMC has recently sold significant stakes in VMware to Intel Corp. and Cisco Systems Inc. EMC also plans to raise up to $949 million this summer by selling about 10 percent of VMware shares to the public.
EMC also offers a file virtualization product called Rainfinity that competes against Acopia. Richard Villars, vice president of storage systems research at IDC Corp. in Framingham, said this could be a problem for Acopia's new owner.
Acopia currently claims about 100 clients, but to increase its customer base, F5 will have to sell Acopia products to major EMC customers, and to customers of other major storage hardware vendors, such as IBM Corp.
"The storage industry is a fairly conservative and close-knit group," said Villars. "They're going to have to prove to the storage community that they're actually adding value."
The deal is set to be completed next month. F5 Networks stock fell $11.25, or 13.4 percent yesterday, to close at $72.43 on the Nasdaq stock exchange.
Hiawatha Bray can be reached at bray@globe.com. 
