Microsoft scoops up NAS vendor Avere for hybrid cloud services

Microsoft moved to bolster its cloud storage capabilities with the acquisition of NAS vendor Avere Systems, giving it a high-performance file system to manage unstructured data in hybrid clouds.

The Pittsburgh-based NAS vendor Avere's OS file system is incorporated in FXT Edge filers in all-flash or spinning disk versions for on-premises or hybrid cloud configurations. Avere also provides a virtual appliance, the Virtual FXT Edge filers, which are available for Amazon Web Services (AWS) and the Google Cloud Platform. 

The terms of the deal were not disclosed.

Microsoft disclosed the acquisition in a blog post on its website but declined an interview request to provide more details about its plans for the cloud NAS vendor. Microsoft acquired early cloud NAS vendor StorSimple in 2012, and gives that technology to Azure subscribers to tier data into the cloud.

However, Avere CEO Ron Bianchini wrote in a company blog post that the two companies' "shared vision" is to use Avere technology "in the data center, in the cloud and in hybrid cloud storage ..." while tightly integrating it with Azure.

"Avere and Microsoft recognize that there are many ways for enterprises to leverage data center resources and the cloud," Bianchini wrote. "Our shared vision is to continue our focus on all of Avere's use cases -- in the data center, in the cloud and in hybrid cloud storage and cloud bursting environments. Tighter integration with Azure will result in a much more seamless experience for our customers."

Avere was founded in 2008 as a company that focused on the data center with its FXT Core Filers that used flash to accelerate network-attached storage (NAS) performance on disk systems. The company later transitioned to the cloud with its Avere FXT Edge Filers that served as NAS public clouds, allowing customers to connect on-premises storage to AWS, Google Cloud and Azure services.

In addition to NFS and SMB protocols, the Avere Cloud NAS appliance supports object storage from IBM Cleversafe, Western Digital, SwiftStack and others through its C2N Cloud-Core NAS platform.

The only other vendor that offers end-to-end is Oracle. But Oracle does not have a global namespace. Avere has a global namespace.

The NAS vendor also sells FlashCloud, which runs on FXT Edge Filers with object APIs to connect to public and private clouds. The systems can be clustered so that cloud-based NAS can scale on premises while also providing high-availability access to data in the cloud. Customers can use FlashCloud software as a file system for object storage and move data to the cloud without requiring a gateway.

"They provide a true NAS filer," said Marc Staimer, founder of Dragon Slayer Consulting. "They provide a complete, end-to-end package. The only other vendor that offers end-to-end is Oracle. But Oracle does not have a global namespace. Avere has a global namespace."

Avere founders Bianchini, CTO Michael Kazar and technical director Daniel Nydick came from NetApp, which acquired their previous company Spinnaker Networks in 2004 for its clustered NAS technology.

Some of Avere's customers include Sony Pictures' Imageworks, animation studio Illumination Mac Guff, the Library of Congress, Johns Hopkins University and Teradyne Inc. The company is private so it does not disclose revenue, but a source close to the vendor put its bookings at $7 million in the fourth quarter of 2016 and $22 million for the year. Those bookings were up from $4.8 million in the fourth quarter and $14.5 million in 2015.

In March of 2017, Google became an Avere investor during the company's $14 million Series E funding round. Avere raised about $100 million in total funding. Previous investors include Menlo Ventures, Norwest Venture Partners, Lightspeed Venture Partners, Tenaya Capital and Western Digital Technologies.

The Avere team will continue to work out of its Pittsburgh office for Microsoft.