Only three days into 2008 and we’ve already seen two monster exits in Israel. Yesterday it was XIV with a $350M exit on a $3M investment. Today, Israeli financial media is reporting (here, in Hebrew) that Network Appliance purchased Onaro for $120M (although, Onaro’s official headquarters are in Boston).

Onaro develops storage-management software that allows Storage Area Network (SAN) to “be mapped, predictively tested, and monitored.” The company was founded in 2002 and in 2005 was courted by Cisco. NetApp is a leader in network-attached storage (NAS) devices. This acquisition should help it strengthen its SAN offerings.

This is a great exit for investors Cedar Ventures and Newbury Ventures which pumped a total of $10M into the company.