Lessons learned from the COPAN acquisition
The rumors of the demise of COPAN were rampant in late 2009. There was broad speculation that general operations had wound down and that the company was maintaining a skeletal staff. It was clear that COPAN’s end was near and the management team was scrambling for an exit strategy. Most people assumed that the recent silence from COPAN suggested that the company had not survived.
It was in the context of this situation that I saw a tweet last night about COPAN being acquired. The first questions were who and for how much and the tweet suggested that the answers were SGI and $2 million dollars respectively. Wow, what an amazing decline. COPAN raised $124 million dollars in multiple financing rounds and they exit the market at a $2 million valuation.
COPAN focused on MAID (massive array of idle disks). The technology allowed them to spin down unused disks to reduce the power and cooling requirements. The design included proprietary highly dense disk packaging that provided the densest storage in the industry, and actually required some datacenters to specially reinforce their flooring. They focused on $/GB and said that they offered the lowest in the industry both from an acquisition and operational cost standpoint. All of this sounded compelling from a marketing perspective, but the reality was different.


24. Feb, 2010 
