Diligent Software – Profile
HQ: Framingham, MA with development center in Israel.
Management: Diligent’s CEO Doron Kempel, COO Paul Morin and sales VP Mike Parise are all EMC vets.
Investors: Company was spun-off from EMC. It has since raised a $22M follow-on round in October 2004 co-led by Accel Partners and Matrix Partners. Gemini Israel Funds also participated in this round bringing Diligent’s total funding to $37M.
Business Model: Diligent sells virtual tape software for companies with legacy mainframes. It’s essentially a fix for companies that want to marry legacy systems with modern storage methods. Many competitors but VCs are juiced by Diligent’s customer growth and also its strategy – open systems running on Linux boxes, in contrast to competitors who run on proprietary hardware/software.
Competitors: Sepaton, Data Domain, and Candera.
Dirt: Sexless company – Framingham depresses us – sexless space – view the online demo at your own peril – and yet VCs have invested about $75M in the past year in 4 companies all doing essentially the same thing. Storage geeks know that there is a lot of money to be made in the antiquities section of the IT world. With all the competition, the challenge will be to find margins.