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CNT's Undercover Deal With Sanera: Page 2 of 3

Patrick Harr, Sanera's VP of marketing and business development, says pretty much the same thing: "The agreement with CNT is in place and is in effect today. The agreement covers Sanera's products."

Byte and Switch reported last year that Sanera laid off around 20 percent of its workforce as it prepared to ship a product to CNT, which was its first signed OEM (see Sanera Tightens Its Belt).

Originally, CNT was expecting to start selling and servicing Sanera's DS10000 director switch this fall, based on that deal, according to an independent industry consultant who wishes to remain anonymous. "That OEM deal had been morphing into an acquisition by CNT until they decided to buy Inrange instead," says the consultant.

So why did CNT ultimately choose to buy Inrange rather than Sanera? The most likely explanation is that Inrange had a shipping product with the FC/9000 director that was generating a sizeable revenue stream, unlike Sanera, which was still months away from getting its switch out of beta.

In any case, Sanera had at least two serious suitors in CNT and McData -- an enviable position for any startup.