The prudence needed for storage technology companies

Blitzscaling has been on my mind a lot. Ever since I discovered that word a while back, it has returned time and time again to fill my thoughts. In the wake of COVID-19, and in the mire of this devastating pandemic, is blitzscaling still the right strategy for this generation of storage technology, hyperconverged, data management and cloud storage startups?

What the heck is Blitzscaling? 

For the uninformed, here’s a video of Reid Hoffman, co-founder of Linked and a member of the Paypal mafia, explaining Blitzscaling.

Blitzscaling is about hyper growing, scaling ultra fast and rocketing to escape velocity, at the expense of things like management efficiency, financial prudence, profits and others. While this blog focuses on storage companies, blitzscaling is probably most recognizable in the massive expansion of Uber (and contraction) a few years ago. In the US, the ride hailing war is between Uber and Lyft, but over here in South East Asia, just a few years back, it was between Uber and Grab. In China it was Uber and Didi.

From the storage angle, 2 segments exemplified the blitzscaling culture between 2015 and 2020.

  • All Flash Startups
  • Hyper Converged Infrastructure Startups

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Resilient Integrated Data Protection against Ransomware

Early in the year, I wrote about NAS systems being a high impact target for ransomware. I called NAS a goldmine for ransomware. This is still very true because NAS systems are the workhorses of many organizations. They serve files and folders and from it, the sharing and collaboration of Work.

Another common function for NAS systems is being a target for backups. In small medium organizations, backup software often direct their backups to a network drive in the network. Even for larger enterprise customers too, NAS is the common destination for backups.

Backup to NAS system

Typical NAS backup for small medium organizations.

Backup to Data Domain with NAS Protocols

Backup to Data Domain with NAS (NFS, CIFS) Protocols

Ransomware is obviously targeting the backup as another high impact target, with the potential to disrupt the rescue and the restoration of the work files and folders.

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