McData representatives have declined to comment on "rumors." Sanera did not respond to requests for information.
As noted previously, McData has enough cash on hand for such an acquisition, with $230 million in cash and short-term investments as of December 31, 2002. It also raised $172.5 million in February through convertible subordinated notes, which McData said would be used for, among other things, "potential acquisitions" (see McData, Emulex Rake It In and McData Raises $172.5M From Notes).
Not everyone believes Sanera would be taking the right step in agreeing to a deal with McData. Michael Welts, executive VP of marketing for high-scale SAN switch startup Sandial Systems Inc. -- and a potential Sanera and McData competitor -- compares selling out to an established vendor as "waving the white flag."
"When we think about the potential growth in this market, why sell yourself short?" he asks.
But if Sanera does accept McData's reported lower offer, it would be opting for what it sees as the best of all possible outcomes in a market that is still an extremely tough place for startups to try to go it alone.
To realize the benefits of cloud-native software, an application must actually be cloud-native—designed to run in the cloud, interacting with disaggregated cloud services, fully manageable as code—to deliver the expected benefits.
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
