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Top Ten Private Companies: Spring 2003: Page 2 of 16

Two honorable mentions are in order for two startups that just missed making the list (this time) and are worth keeping an eye on: Sistina Software Inc., makers of a clustered file system based on Linux, and EqualLogic Inc., a maker of IP SAN storage arrays.

Wait a second! you might expostulate. Linux?! Don't worry, we haven't turned into tree-hugging hippies just yet. But there's plenty of evidence to show that Linux is making headway in the enterprise. One of IBM Corp.'s (NYSE: IBM) biggest resellers, Mainline Information Systems, is reselling Sistina's software; and the startup is not short of cash either, having just landed $10 million in Series B funding in February, following strong customer traction (see Sistina Seeds Growth).

Meanwhile, EqualLogic doesn't technically have any paying customers yet for its so-called "self-managing" storage arrays on iSCSI. But the Nashua, N.H., startup has shipped its box to several beta customers, including a major bank that told us they were very impressed with it (see EqualLogic Draws Bank's Interest). With the iSCSI specification now approved and endorsed by Microsoft, there's little standing in the way of its adoption. And EqualLogic has done enough to win the support of three major VCs, including Charles River Ventures, TD Capital Technology Ventures, and Sigma Partners, which stumped up $15 million for EqualLogic last month (see EqualLogic Tallies $15M).

As always, this Top Ten list follows the rules we've already established, including the precondition that all of these companies must have shipping products and revenue-producing customers. Tricksssssy startupsssss in ssssstealth need not apply (see our previous list, Top Ten Private Companies: The Fall Lineup).

Disagree with our choices? Tough luck. Come up with up some better picks and post them to our message boards. And of course, keep the insider information coming – we love that.