Hewlett-Packard eyes Brocade? Word is that HP is seriously considering putting in a bid for Brocade Communications Systems. HP's recent splurge on storage management software company, AppIQ, and a string of OEM deals suggests the company is getting serious about storage again. Buying Brocade would be a huge move on HP's part, but the firm has the cash and many people say Brocade is ready to sell. Both companies declined to comment.

Little company makes big plans. Virtualization upstart StoreAge Networking Technologies is reportedly planning to go public on the London Stock Exchange (LSE). The tea is better over there, and sources close to the company say the LSE offers better evaluations for emerging companies. StoreAge is also working on a reseller/OEM/ something-even-bigger deal with Computer Associates (CA). Some industry analysts think CA might buy the company, given the recent iLumin Software Services acquisition and its renewed focus on storage. CA declined to comment.

				What you see isn't always what you get ... Data corruption and file migration issues are plaguing EMC's Rainfinity customers, according to sources close to the company. EMC officials deny that there are any problems with the product. EMC acquired file-virtualization startup Rainfinity for approximately $100 million in August. As a consequence of these problems, sources say that Jack Garrahan, one of EMC's first employees and someone who played an instrumental role in building the company's NAS business, has resigned. Apparently he heard about the quality issues after telling 100 EMC sales reps that he wanted 1,000 Rainfinity sales calls in 30 days. Jerry Haigh, EMC's virtualization expert and the architect behind the Rainfinity deal, is rumored to have been promoted to the role of VP/GM.

Dig 4-gig? You might have to wait if you're a Cisco Systems customer. The networking giant made a big splash announcing its 4Gb/sec switches in October and promised its directors would soon follow suit. Those in the know say qualification with OEMs has fallen behind, but no details were available.

Get off my switch! We heard another anecdote about Cisco recently. Several users complained that storage OEMs—EMC, especially—have no clue about how to configure Cisco's switches. "We wouldn't let them near our Cisco gear," says one nervous customer.

Clustering is mustering up a following. Clustered storage startup Isilon Systems has reportedly shipped more than 3PB of its Isilon IQ product. Clustering is gaining steam and sources say other storage organizations may be interested in the company. Isilon declined to comment.

Startups fight back and win. Two sets of lawsuits filed by larger storage players against startups to slow them down have been thrown out of court. Network Appliance (NetApp) has lost its case against BlueArc, and Xiotech has lost its suit against Compellent Technologies. "NetApp tried to do everything to thwart our progress," says Mike Gustafson, BlueArc's CEO and president. According to Gustafson, NetApp is continuing with this market-stalling tactic by appealing the decision. Similarly, Xiotech filed a lawsuit declaring a breach of trade secrets against Compellent. The case was rejected and Xiotech has been forced to pay all the startup's legal costs, say sources close to the company.

IBM's treasure trove. Sources say IBM has approved a giant stash of cash for storage hardware and software acquisitions. Could it be for its new NAS partner, NetApp?