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Astute Onloads $15M: Page 2 of 2

Even with revenue and new funding, Astute is swimming in treacherous waters. Trebia Networks, which joined Astute and Agilent Technologies Inc. (NYSE: A) in shipping silicon for building IP SANs in October of 2002, went belly-up last August (see Vendors Chip Into IP Storage and Trebia Croaks). A market for iSCSI accelerators is beginning to develop, but analysts also foresee a consolidation of the market (see Alacritech Initiates iSCSI Race and Report: Fibre Channel's Outbound). The field includes Alacritech Inc., iReady Corp., Silverback Systems Inc, iVivity Inc., and iStor Networks Inc.

Established players such as Adaptec Inc. (Nasdaq: ADPT - message board), QLogic Corp. (Nasdaq: QLGC - message board), LSI Logic Corp. (NYSE: LSI - message board), and Intel Corp. (Nasdaq: INTC - message board) have accelerator chips of their own.

— Dave Raffo, Senior Editor, Byte and Switch