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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (79)	9/29/2000 8:26:00 PM
From: Glenn Petersen	Respond to of 187

More on ManagedStorage: redherring.com ASP MANAGEDSTORAGE managedstorage.com Broomfield, CO FUNDING: $50M PRIOR FUNDING: $10M ROUND: 2nd CATEGORY: ASP DESCRIPTION: Outsourced data storage. LEAD INVESTOR: Providence Equity Partners (over $25M) OTHERS: Great Hill Partners; First Union; J.P. Morgan; EMC Corp. THE HERRING TAKE: CEO Bill Johnson's answer was nothing short of spectacular when queried about competition. "The only competition we have," he says, "is time itself." He wasn't talking about the magazine. It was a weird response because the outsourced data storage arena is indeed getting crowded, with VCs opening their wallets at a furious pace. There are three facets to Managedstorage's data storage approach: data protection, archiving, and what Mr. Johnson called "storage by the slice," a reference to small customers with relatively small needs. Data security is of paramount concern to the startup, for without it they'd die. Mr. Johnson acknowledged as much, and says Cisco and Brocade supply him with all the encryption and firewall security his company needs. The reticent Mr.Johnson derives his revenue by charging his 10 customers storage fees per gigabyte. Managedstorage currently employees 250, and will be hiring more. Mr. Johnson pointedly refused to disclose his burn rate, what kind of salary he was drawing, and even when he expected his startup to be profitable. Once this round is exhausted, Mr. Johnson says, he'll begin looking for a 3rd tally "north of $50 million." Says Mr. Johnson, who was eager to hang up the phone: "We have a lot of work to do."