Cereva Networks Inc., announced Tuesday that it has ceased all operations and closed its Marlborough, Mass., facility.
Storage analyst Steve Dupliesse, Enterprise Storage Group, Milford, Mass. said that CEO Mahesh N. Ganmukhi was "not confident enough in the product to accept a new round of financing." Ganmukhi resigned as Cereva's CEO after declining a new cash infusion of about $30 million, he said.
To date, Cereva has received more than $137 million in financing and $20 million in credit from several investors including Matrix Partners, North Bridge Venture Partners, Oak Investment Partners, Sumitomo Corp., Intel Corp., Global Crossing Ventures Inc., Goldman Sachs, Worldview Technology Partners and Comdisco Ventures.
Cereva posted a notice of its closing on its Web site Tuesday evening.
In May 2001, Cereva appointed Ganmukhi, a former member of its board of directors, as the company's new CEO.
According to Bruce MacDonald, director of corporate communications for Cereva, Ganmukhi was appointed to the position on May 18, the same day as former President and CEO Alan Lutz resigned. A move that caused many in the industry to question Cereva's stability, which as it turns out, was not so promising.
Lutz was credited with attracting Cereva's management team as well as raising millions in investment capital for the Marlborough, Mass.-based storage startup.
Founded in 1998 by Raju Bopardikar, the company's chief technology officer, Cereva developed its fabled Internet Storage system aimed at accelerating content delivery for service providers.
The company claimed that the product combined massive parallel processing with high-speed networking and specialized storage systems that eliminate system bottlenecks and boast more than one petabyte of capacity in a small enclosure. The system never saw the light of day on the commercial market.
According to Dupliesse, Cereva's storage subsystem was not being received well during its beta testing cycle.