Shillo is telling potential partners and investors the same story: that his company will reduce cost and time-to-market for Fibre Channel switches. He also hopes to reduce the barrier to entry for companies looking to become switch players.
We want to provide a standard, integrated chip that will enable existing and new players to make much cheaper and simpler Fibre Channel switches, Shillo says. We want to let new vendors get in without having to pay the high R&D price Cisco had to pay to get in.
SANchips hopes to accomplish this through better engineering. ASICs of Fibre Channel chips are far more complex than they should be, Shillo says. He claims SANChips reduces the footprint of the switchs ASIC by 50 percent, to substantially reduce manufacturing costs. Shillo asserts that SANchips can reduce the retail price of a switch to $95 per port, substantially below the $5,000 price Hewlett-Packard Co. (NYSE: HPQ) has placed on Brocade Communications Systems Inc.s (Nasdaq: BRCD) new, low-end, eight-port switch (see HP Aims to Dazzle SMBs).
SANchips, based in Israel, has a tentative product roadmap to release an eight-port, 2-Gbit/s switch chip later this year with basic functionality, followed by a 4-Gbit/s, 16-port switch chip in the third quarter of 2005 with support for trunking and IP base management, and a 20-port switch chip in mid-year 2006 with virtualization capabilities.
Too late, says one industry insider who points to recent low-end switches from Brocade and McData Corp. (Nasdaq: MCDTA), which will beat gear based on SANchips' wares to the punch in terms of configuration -- albeit a higher price per port (see SAN Snacks From SNW).
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