Summertime, and the livin' is... easy? Well, not exactly, Mr. Gershwin. It's almost August, New York City is humid as hell, Wall Street is wracked with financial chaos, and the effects are being felt everywhere. In the storage networking industry especially, the shakeout among startups is well and truly underway.
As we predicted, Cereva Networks Inc. has got plenty o'nothin'. The company was rumored to be auctioning off its assets, but apparently even that's proving to be difficult (see Cereva's Fire Sale and Cereva Is Cerover).
Cereva built its product as a tightly integrated system, so breaking it apart and selling off portions of the technology is an awkward task. Even if it manages to break up the product into workable pieces, are these any better than the point products built specifically to do each task that are available from other vendors? There are no takers yet, so maybe not.
Then there's multiprotocol SAN switch startup Acopia Networks Inc., which, just six months after closing a $10 million first round, is now without a CEO. Sources close to the company say Dan Boudreau walked out, as he does not believe Acopia can live up to its mission in the current climate. Can't blame him, really. (See Acopia Founder Quits.)
Other startups in this market will do anything just to stay in business, even if it means laying off half the workforce. SAN Valley Systems Inc., Acirro Inc., and TrueSAN Networks Inc. are the latest to swing the axe (see SAN Valley Hacks Headcount, Acirro Sheds Staff, and TrueSAN Swings Axe).
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