Drobo is a company that manufactures data storage devices and solutions. They are best known for their line of external storage arrays that utilize proprietary data protection technology. Drobo was founded in 2005 and experienced rapid growth in their early years. However, there have been questions in recent years about whether Drobo is still a viable, ongoing business. In this article, we will look at the history of Drobo, their current status, and the future outlook for the company.
Drobo History
Drobo was founded in 2005 by Geoff Barrall and Gernot Heiser. The company is headquartered in San Jose, California and initially focused on delivering easy-to-use, expandable data storage solutions for consumers and small businesses.
Some key events and milestones in Drobo’s history:
– First product launched in 2007 – the Drobo external storage array which could utilize different sized hard drives and proprietary BeyondRAID technology to provide data protection.
– Received over $40 million in venture capital funding from firms like Charles River Ventures and Sigma Partners between 2007-2010. This allowed fast growth of sales and marketing.
– Released business focused DroboPro models in 2009 with increased connectivity and optimization for business environments.
– Expanded sales channels internationally and grew partnership network to over 2,500 resellers by 2012.
– Shifted to modular design with Drobo Mini and Drobo 5D/5N models in 2013, providing more flexibility for drive upgrades.
– Added solid state drive (SSD) acceleration capabilities and refreshed product line with Gen 3 models in 2014/2015.
– Raised another $21 million in venture funding in 2016 to continue developing new products.
– Released Drobo 5C in 2016 and Drobo 5N2 in 2017, their current flagship consumer and small business NAS storage devices.
Is Drobo Still in Business?
So with this history in mind, is Drobo still operating and selling products today in 2023?
The short answer is yes, Drobo does still appear to be in business, however their current operations and focus seem to be much smaller than their peak in the late 2000s and early 2010s.
Here are some signs that Drobo is still operating:
– Website – Drobo.com is still online selling their products. The website appears to be actively maintained.
– Social Media – Drobo has active Twitter, Instagram and YouTube accounts which are all still being updated with new content as of 2023.
– New Products – While limited, Drobo did launch the Drobo 8D in 2022. This shows they are still investing in R&D for new product launches.
– Support – Drobo’s support site is still operating with updated resources. Customers can get replacement parts, data recovery assistance and warranty support.
– Reviews – New customer reviews of Drobo products appear on sites like Amazon and YouTube, indicating continued sales.
However, there are also signs that Drobo has downsized significantly:
– Private Company – Drobo was acquired by StorCentric in 2018. They are no longer publicly traded or releasing detailed financial results.
– Small Team – Drobo’s company team page shows approximately 30 employees, much smaller than their past team.
– Limited New Products – Drobo has not launched many new storage devices since 2017. The pace of innovation and releases has slowed.
– Web Traffic Decline – Estimated web traffic to Drobo.com has declined since 2015, suggesting lower interest and sales.
Overall, the evidence suggests Drobo is still operating but their business seems to have shrunk substantially from their heyday in the late 2000s and now focuses more narrowly on their core external storage product line. They appear to cater mostly to their existing customer base vs. pursuing wide market growth.
Reasons for Drobo’s Decline
Drobo was clearly a high-growth business in their early years, so why did the company’s fortunes turn in the mid 2010’s, leading to their current diminished state? There seem to be a few key factors:
– Increased Competition – The external storage and NAS device market became extremely competitive with companies like Synology, QNAP and others taking market share. Drobo struggled to differentiate themselves as the novelty of their BeyondRAID technology wore off.
– Rapid Technological Change – Storage technology advanced rapidly with new interfaces like Thunderbolt 3 and USB-C as well as higher capacity hard drives and SSDs. Drobo may have struggled to keep pace with hardware innovations.
– Shift to Cloud Storage – More small businesses and consumers moved to cloud backup and storage solutions from companies like Amazon, Google and Dropbox during this period. This reduced the demand for on-premise storage devices like Drobo’s offerings.
– Lack of Software/Services – Drobo remained primarily a hardware focused company. Many competitors moved to offering robust operating systems, apps and services to add value. Drobo did not build out a strong ecosystem beyond their basic storage products.
– Increased Support Costs – Drobo’s proprietary BeyondRAID technology meant providing support and maintenance for their complex devices proved costly over time as the customer base grew. Their support burden likely increased even as new sales declined.
The combination of these factors: new competitors, rapid innovation in storage technology, shifting buyer preferences and lack of complementary software/services appears to have contributed significantly to Drobo’s downfall from their early leadership position in the category. Their unique differentiator of BeyondRAID was no longer enough on its own to drive growing sales.
Will Drobo Shut Down Completely?
Given how much Drobo has declined from its peak, a reasonable question to ask is whether the company will manage to stay in business long-term or if they will eventually shut down completely?
There are arguments on both sides of this debate:
**Arguments That Drobo Will Shut Down**
– Small Team and Low Sales – Drobo’s drastically smaller team and lack of strong sales growth suggests the business is struggling to remain viable. They may be unable to keep operating at this smaller scale.
– Technology Disruption – Flash storage and cloud solutions are disrupting traditional external hard disk storage. Drobo only competes in this now secondary market.
– StorCentric Focus Shifting – Drobo’s parent company StorCentric seems focused on growing its other storage brands like Nexsan and Vexata. Drobo may no longer get resources.
– No Compelling Differentiation – With its BeyondRAID tech no longer unique, Drobo has not innovated much recently and lacks a compelling competitive edge. This will lead to continued sales declines.
**Arguments Drobo Will Remain in Business**
– Committed Customer Base – While smaller, Drobo still has a committed community of loyal customers invested in their products who generate ongoing revenue.
– Valuable Technology – Drobo’s BeyondRAID retains value for a segment of customers who want simplified data protection without IT expertise.
– Cost Cutting – Drobo has clearly cut expenses significantly in terms of team, marketing, etc. This may keep them viable with modest revenue.
– Potential Turnaround – If storage market conditions shift, for example with higher HDD prices, it could reinvigorate demand for Drobo’s economical external arrays.
Overall there is no certainty around Drobo’s future prospects. Much likely depends on how long their current stripped down operation can sustain itself financially, and if they can tap into any new growth opportunities. The company faces clear existential challenges but also still retains some differentiated value.
Drobo Product Alternatives
Given the uncertainty over Drobo’s future viability, prospective customers who are considering their products will likely want to explore alternative brands as well.
Here are some of the top competitors who offer similar external storage arrays and NAS devices that could also meet buyer needs:
– Synology – Well-reviewed NAS systems for home and business use. Packed with features and apps.
– QNAP – Wide range of expandable NAS devices, also with a focus on software and services.
– TerraMaster – Cost-effective external direct attached storage and NAS options.
– Asustor – SMB focused NAS including high capacity options with drive bays up to 20.
– Zyxel – Offer a range of basic single and dual bay NAS devices for homes and offices.
– Western Digital – Leading hard drive brand also offers simple plug-and-play external drive products.
– Seagate – Similar to WD, Seagate sells reliable direct attached and networked storage solutions.
– LaCie – External storage from this brand offers premium design and performance for creative pros.
For buyers considering Drobo specifically for its BeyondRAID technology, other alternatives that offer similar data protection and drive flexibility include:
– StorCentric Vexata – Drobo’s parent company’s high-end NAS targets enterprises but uses similar BeyondRAID tech.
– UnRAID – Software that can create redundant arrays with mismatched disks across PC hardware.
– Drive Bender – Windows software to pool drives of different sizes into a single large volume.
– Grey Beard – Linux based open-source storage OS for DIY arrays using mixed disks.
– SnapRAID – Another open-source option that offers protection for arrays built from off the shelf disks.
Evaluating products from Drobo competitors can give customers alternatives that may provide more features and better long-term viability in many cases.
Conclusion
In summary, Drobo does still appear to be operating in a limited capacity as of 2023. However, their business is clearly a shadow of what it once was during the company’s high growth period in the late 2000s and early 2010s.
Ongoing technology shifts in storage along with increased competition seem to have permanently disrupted Drobo’s position in the market. The company faces an uncertain future and may end up shutting down completely at some point if current low sales and minimal innovation continue.
Prospective customers concerned about Drobo’s viability long-term should certainly evaluate competing products from brands like Synology, QNAP, TerraMaster and others. While Drobo’s BeyondRAID retains some unique merits, there are now alternative solutions that can meet many buyer needs while providing more features and greater manufacturer stability.
With careful product research however, there remains some segment of the market for whom Drobo devices could still prove to be the optimal purchase despite the company’s apparent struggles. Their legacy of simplified data protection does still fill a niche. But for most buyers, stronger alternatives likely exist that merit consideration.