TDF Singapore,

Evergreen Canada Israel Investments

and Microdent, an investment company run by Eitan Wertheimer, have invested $13 million in ExaNet, a startup that develops next-generation data storage systems.

Its systems, based on parallel computing technology, have proved the ability to create enormous capacity of up to 40 petabytes. That is equivalent to 40 million gigabytes or 40 billion megabytes.

Instead of allocating a given bandwidth to each user, the system dynamically adjusts the bandwidth according to changing demand, meaning according to the volume of data the user is withdrawing from the storage site. The system maintains quality of service based on a service level agreement, defined in the supplier-customer agreement.

ExaNet CEO Nir Peleg says that the company's solution is a unique and innovative combination of efficiency, speed, simple operation and installation, and cost-efficiency ratio. ExaNet's solution addresses the burgeoning need for data storage capacity as communications expand in scope, quality and memory need. This growth in itself is the product of the ever-expanding Web and the jump in the number of users and the kinds of Web-based applications.

Data-storage market expected to be worth $70 billion in 2003

Hi-tech research firm

Gartner Group

(NYSE:IT) believes the data storage market will grow at a pace of 24% a year, from $30 billion in 1999 to $70 billion in 2003.

Other research indicates that the data storage solutions market is not likely to be affected by the general slump in hi-tech.

ExaNet was established in 2000 in Herzliya Pituach. The company is currently establishing headquarters in the United States. It has 30 workers on staff, most of whom are software engineers, and is in the process of recruiting new workers.