Yueh attributes some of that success to his move from Irvine, Calif. to Menlo Park.

FORBES: How Silicon Valley Helped Jed Yueh's Delphix Grow 225% in 2012

Yueh pointed out that when Bill Gates decided to locate Microsoft (MSFT) in Seattle, it made a huge difference.

FORBES: How Silicon Valley Helped Jed Yueh's Delphix Grow 225% in 2012

Yueh believes that the key to recruting this top talent is to create an environment that allows them to work on the hardest engineering problems.

FORBES: How Silicon Valley Helped Jed Yueh's Delphix Grow 225% in 2012

Hsu Sheng-yueh, a high-school graduate, took the CPU exam in July, passed with flying colors but was denied entry because his father had a criminal record.

CNN: LEARNING BY (BAD) EXAMPLE

One of the key things Yueh learned was that he needed to hire the most talented engineers, and Avamar lacked the talent he needed to compete.

FORBES: How Silicon Valley Helped Jed Yueh's Delphix Grow 225% in 2012