Both companies supply SRM software, and AppIQ said it will use XStormTech’s technology to improve the performance and scalability of AppIQ’s software. The companies announced a licensing deal earlier this year under which XStorm’s technology was to be incorporated into AppIQ’s SRM product, the AppIQ Solution Suite.

Both companies are competing with major players in what has become a crowded and competitive market, and the deal may show not only that AppIQ liked what it saw in XStormTech, but also that XStormTech was happy to make a sale while it could.

According to AppIQ, current SRM software cannot scale to the size of storage installations operated by the large companies that would benefit most from the use of the technology. XStormTech’s software will solve this problem by dramatically improving the speed by which file systems with millions of files can be discovered, scanned, and reported on, AppIQ said.

The company also said that XstormTech’s technology will improve integration between AppIQ’s SRM software and the physical elements of storage systems.

XStormTech founder Vijay Sarashetti has joined AppIQ and will lead the liaison between AppIQ’s Massachusetts-based developers and New Jersey-based XstormTech’s development and support center in Hyderabad, India.

In March 2003 AppIQ secured $12m of second-round funding. As of last month, AppIQ claimed six customers. Also in August sources told ComputerWire that AppIQ is about to announce a major OEM deal, but no announcement has been made since then.

This article was based on material originally published by Computerwire