Behind the firewall 18

Engenio turning NetApp business away ... EMC's Invista meets Maranti's CoreStor switch ... Intel and LeftHand bond.

Looks like we got it wrong. Last month we ran an item saying that Xiotech missed its own financial forecast by more than 50% and had laid off a similar number of people. In fact, we had already reported on our sister site, SearchStorage.com, that the layoff represented a smaller portion of the workforce (25%). The discrepancy was due to a miscommunication with our source. As for the financials, Xiotech is a private company, but officials say they grew the business in double digits from the first to the second quarter of 2005, that year-over-year growth from 2003 to 2004 was 25% and that they did meet their internal forecasts. They believe our source was comparing performance to a preliminary planning document that was in play before current President and CEO Casey Powell put the company more deliberately on a course toward a break-even financial performance.

Netapp, SMB player? Numerous sources confirm that Network Appliance (NetApp) is working on a small- to medium-sized business (SMB) product, but it's still unclear what it will look like, when we'll see it and how much it will cost. Dot Hill is widely thought to have won the bid to build the enclosure, but the company won't confirm the rumor. @exb

Intel and LeftHand sitting in a tree ...

In its eternal quest to own every commoditizing market and blanket the world with its chips, Intel has apparently tapped iSCSI SAN provider LeftHand Networks to supply the brains for a line of entry-level SAN arrays that Intel manufactures for the "white-box" channel. Offspring from the

Intel/LeftHand relationship include MPC's DataFrame 420, Silicon Mechanics' SANform M100 and Verari Systems' PUREcluster to name a few. Supposedly, the company hasn't publicized the deal because it doesn't want to ruffle the feathers of other big-name OEM partners.

@exe

Other vendors that had bid on the business were said to be Xyratex, NetApp's current enclosure supplier, and Adaptec. Engenio, we hear, said "Thanks, but no thanks" to the business because margins were too low for its taste. NetApp nemesis EMC sells its low-end Clariion AX100 through Dell starting at $4,900.

Who needs Cisco's intelligent switch, anyway? Maybe not EMC if it can use the intellectual property it picked up last month from failing intelligent switch maker Maranti. The company is making good on a long-standing rumor that it's going out of business, despite what one pundit called "really cool technology at the chip level that lets you look deep within the packet."

Presumably, EMC will refashion Maranti's CoreStor switch to run its Invista virtualization software. EMC confirmed that it had indeed purchased Maranti IP and assets, but wouldn't elaborate on its plans for the technology or how much it had paid for it.

Maybe IBM just isn't cut out to sell low-end storage. After exiting the low-end NAS market, We're hearing that IBM's TotalStorage DS300 and DS400 products are slow starters in their own right. Craig Butler, manager, TotalStorage disk solutions, admits that initial sales of the entry-level arrays were hampered by the fact they didn't come in dual-controller models. Since then, however, "the dual-controller model is working and they're ready to go," says Butler.

There's a new CEO at Revivio. Former CEO Paul Lewis has left the firm to "pursue other interests," says a Revivio spokesperson. "Paul and the Board came to an agreement that different skills were required to lead the company through its next phase of growth," they say. In Lewis' stead, Kirby Wadsworth, senior VP of marketing and business development, has assumed the role of acting president.

This was first published in August 2005

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