IBM Buys Diligent for Estimated $200M

A Globes article published today reported that IBM has bought Israeli storage solutions developer Diligent Technologies Corporation for an estimated $200 million.  The acquisition comes just one week after the computing giant bought FilesX for $70-90 million (see post). 

IBM is snatching up Israeli startups left and right–  It recently acquired XIV, partnered with Siverge and is keeping its eye on the mysterious Ctrue.  From Globes:

“Diligent Technologies is closely linked with XIV executive chairman Moshe Yanai, who is now responsible for storage development at IBM. Yanai and Diligent chairman and CEO Doron Kempel co-founded the company as a spin-off of EMC Israel in 2002. EMC Corp. (NYSE: EMC) still owns 20% of Diligent, which develops solutions for one of the hottest fields in data storage – the prevention of duplicating files when they are backed up (de-duplication). The company’s solutions enables data storage facilities to back up only changes made in files, rather than duplicate the entire file, thereby eliminating redundancies to save space and memory mechanisms.

According to IVC Online, Diligent Technologies has raise $50 million. Its shareholders, in addition to EMC, include Accel Partners, Gemini Israel Funds, Eastward Capital Partners, and Matrix Partners.”


Siverge Partners With IBM on Powerful Processor

siverge.gifIBM is certainly taking advantage of the lightspeed innovation happening in the Israeli tech world. Herziliya-based Siverge Networks has told EETimes that it is collaborating with IBM on the development and production   of a convergence processor, codenamed Griffin. The chip will be available in the second half of this year, and will be sold to companies such as Alcatel-Lucent, Nokia-Siemens, Ericsson and ZTE.

Siverge, which was founded in 2005 and has 50 employees, “will use IBM development tools and subcomponent libraries in the design of the dedicated ASIC chip that is claimed to support a large number of telecom interfaces, various communications speeds and a wide range of networking protocols.”

Siverge’s core technology and architecture, according to its website, “enables OEMs to build converged packet-based communications systems for next generation networks that also support TDM services. This allows the design of multi-service, multi-rate and multi-interface line cards utilizing Siverge’s true one-chip universal gateway solution. Carriers can deploy a single platform for new packet based networks while supporting traditional services, revolutionizing the economics of carrier networks.”

According to Yuval Berger, CEO of Siverge: “In the next few years we see two main needs in the networking space. One is the need for much larger bandwidth, driven primary by the extensive use of video of all kinds. In practice, the ability of service providers to tackle this is very limited, since the costs of upgrading the networks are very high. As a result of that, bandwidth extensions are limited and incremental.

“The second problem is the need to converge different protocols across the networking generations while achieving true multi-service capabilities. Our chip is set to be the first processor that will solve both of the problems without compromising performance, which will be about 10 times higher than available chips.”

In January, Siverge raised $12 million in its first round of financing through Evergreen Venture Partners and Cedar Fund. The financing round marked Evergreen’s 100th venture investment.