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Vicom Goes Broke: Page 2 of 3

In its bankruptcy filing, the company lists more than 250 creditors, including Arrow Electronics Inc., AT&T Corp. (NYSE: T), Bell Microproducts (Nasdaq: BELM), Ernst & Young, Motorola Inc. (NYSE: MOT), Xerox Corp. (NYSE: XRX), and the Alameda County Tax Collector.

Doris A. Kaelin, an attorney with Cupertino, Calif., law firm Murray & Murray, who is representing Vicom, did not respond to requests for an interview.

Tam says that as Vicom goes through its bankruptcy reorganization, "we intend to continue full sales, service, and operations for our entire range of storage products. We do not expect this transition to affect any Vicom customer, product, or service." [Ed. note: Probably easy to follow through on that one when you have just a couple of users, eh?]

The company developed a virtualization router that it OEM'd to Sun Microsystems Inc. (Nasdaq: SUNW), IBM Corp. (NYSE: IBM), and Hewlett-Packard Co. (NYSE: HPQ). However, Sun has discontinued reselling Vicom's box, and neither HP nor IBM sold a significant number of units.

About one year ago, Tam was pushed aside, and the company's backers installed a new management team. The idea was that Vicom would refocus its energy on OEM deals and emphasize data management features like replication and data migration rather than virtualization per se (see Vicom's CEO Steps Down).