Features - Enterprise Data Insights:

ARSENAL PLACED IN NEW STORAGE SERVICES MAGIC QUADRANT

Arsenal Digital Solutions, a leading Storage Management Services (SMS) provider, recently announced that the company has been included by Gartner Inc in its first-ever Storage Services Magic Quadrant, a market evaluation of the industry's leading storage services companies(1). Among the 11 vendors assessed in the Magic Quadrant, Arsenal is the only private, venture-backed company.

As the complexity and cost of managing storage continue to overwhelm IT organizations, outsourced storage services is becoming an attractive alternative to many companies. Arsenal is focused on data protection and storage management services and the company has established strong partnerships and developed a cost-effective services architecture to meet evolving customer needs.

According to Gartner's North American Storage Services forecast, the overall North American storage service market is expected to grow from $12 billion in 2001 to more than $17 billion by 2006 at a 7.1 percent compound annual growth rate (CAGR). Of that overall services market, the "managed storage services" segment is the second fastest growing segment at 9% CAGR, or $3.7 billion by 2006.

"Arsenal's inclusion in the Magic Quadrant is a confirmation of the company's growth, success and contribution to the evolution of storage services," said Frank Brick, chairman and CEO, Arsenal Digital Solutions. "In the last year alone, Arsenal gained tremendous traction in both customer and revenue base. Our investors expressed confidence in our ability to execute with a new round of financing to take Arsenal to the next level of growth, including the delivery of new, innovative data protection and storage management services and expansion beyond our current geographic footprint of 22 data centers and 17 cities."

With its clear technology vision and track record in execution, Arsenal is the fastest-growing provider of storage management services in North America, managing more than 700 customers and increasing revenues by more than 215% in 2002. Arsenal provides its enterprise customers and partners with data protection and storage management services that include backup and restore, SAN and NAS, remote backup and remote management.

Gartner is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. This latest Magic Quadrant from Gartner evaluates providers of storage services based on the vendor's ability to execute and the completeness of vision in terms of value proposition, technology, service offerings and market presence and growth potential. The Storage Services Magic Quadrant is now available from Gartner. Details for obtaining the full report are available at www.gartner.com.

(1) The Magic Quadrant is copyrighted April 2003 by Gartner, Inc. and is reused with permission, which permission should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Garner, Inc.'s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the "Leaders" quadrant. In some situations, firms in the Visionary, Challenger, or Niche Player quadrants may be the right matches for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant.