Magazine Article | July 1, 2002

Your Share Of The Convergence Market

Storage and networking are starting to converge. The channel can help bring these technologies together and integrate the customer's enterprise.

Business Solutions, July 2002

The technology industry never tires of evangelism. The latest trend that pundits are promoting is the convergence of storage and networking. This spring, both storage and networking vendors preached this message at Storage Networking World, the Cisco Partner Summit, NetWorld + Interop, and SAN West.

The convergence of these technology sectors is inevitable. Network and storage are inherently tied. But, the two technologies have operated independently of one another in the past. Why is this changing? Storage is now at the forefront of IT buyers' minds, helping solve their growing data needs. Being in the spotlight opens up storage vendors for criticism, as well as competition. IT buyers want more similarities between their storage and networking solutions so they can more easily manage their growing IT infrastructure. Networking vendors are hearing these requests. Networking companies already face the diminished product margins and see the storage market as a new source of revenue. Cisco (San Jose, CA) is making its play in this market with its new Cisco SN 5248 storage router that incorporates IP and Fibre Channel switching technologies. Other networking companies like Concord Communications (Marlborough, MA) promise a new storage-related product release this summer.

Convergence Begs For Channel Help
The trend toward convergence also offers promise for the channel. Because VARs and integrators act as a bridge between technology vendors and end user customers, they have an opportunity to bring storage and networking pieces together. Depending on the technology focus of your channel business, you may require added expertise to begin offering storage and networking solutions. To obtain the selling, integration, and support skills necessary, a VAR or integrator typically has two choices: invest in education or partner with another channel company that offers the technology component that you're missing.

Learn, Partner, Or Fall Behind
Educational tools exist to bring your business up to speed. Organizations like Infinity I/O (Half Moon Bay, CA) offer Storage Networking Industry Association (SNIA)-certified courses to teach the channel about storage. According to CEO Deborah Johnson, the company recently added a course on emerging storage standards like InfiniBand and iSCSI (Internet SCSI [small computer system interface]). Vendors can also be a reliable source for learning. Cisco offers its Partner E-Learning Connection Portal to channel companies. Vice President of Worldwide Channels Paul Mountford says they are trying to educate their networking and telephony partners about the opportunities in technologies like storage and wireless.

Some VARs recognize the value of providing the total solution to the customer but prefer to partner for technologies beyond their expertise. Carl Wolfston III, president of storage integration company Headlands Associates (Pleasanton, CA), is one of them. With over 20 years of contacts in high tech, Wolfston's main source of new business is other VARs' accounts. Wolfston has established a trusting relationship with these channel companies. In the partnering engagements, Headlands focuses on solving the storage problems and makes the VAR partner into a hero for supplying a more comprehensive customer solution.

More Convergence To Come
While the convergence of networking and storage is relatively new, the merging of different technologies is not. Past examples are endless: point of sale (POS) and e-commerce, supply chain management and warehouse management solutions, and document and content management solutions. The lines of these technologies begin to blur. Each time this occurs there is opportunity for channel integration and profit.

And, there's still more convergence to come. Companies like 3Com (Santa Clara, CA) and Cisco are preaching that the convergence of storage and networks won't stop there. Future communication technologies will help unite data, storage, voice, video, and wireless into a common infrastructure. So, the channel will have to stay tuned.