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Storage - Wednesday, August 15, 2007

Storage's 3Par Files $100M IPO

Fremont, CA-based has filed for a $100M IPO. It plans to trade on the Nasdaq or the NYSE, with Goldman Sachs and Credit Suisse as co-lead underwriters.

3Par sells centralize data storage that promise to do the usual: reduce administrative costs, improve server and storage usage, lower power requirements and support the growth of data. Utility storage uses virtualization, automation and clustering to create shared computer infrastructures. In fact the company prominently promotes its use in conjunction with VMWare. 3Par's products are massive and cost several hundred thousand bucks a unit.

3Par started shipping its products in March 2002, lists customers such as MySpace, Credit Suisse, Dow Jones, Priceline.com and Verizon.Competitors include EMC, IBM, HP and Dell. So how does 3Par compete? The company says it can prove to buyers that it can save them 50% in total cost of ownership over the incumbents.

The company had revenue of $23.8M, $38.2M and $66.2M in the years ending March 2005, 2006, and 2007, respectively, and a narrowing net loss for those periods of $17.4M, $16.3M and $15.5M. 3Par has raised around $185M in VC funding since its 1999 from Mayfield fund, Menlo Ventures, Worldview Technology Partners, Integral Capital Partners and Van Wagoner Capital Management.

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