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2006: Storage Business Highlights: Page 4 of 6

Lawsuits

Most Fun to Watch: In May, Symantec filed suit charging Microsoft “misappropriated” technology from Veritas VolumeManager and used it in its Vista OS. (See Symantec Locks Horns With Microsoft.) While the suit failed to derail Vista’s launch, and we don’t know if Symantec will see any damages, it set the stage for an ongoing battle between the software giants. (See McAfee, Symantec Hit Back Against Changes to Windows.)

Biggest Payout: Finisar Corporation won $79 million in back damages in a patent infringement case against the DirecTV satellite television company. (See Finisar Wins $78.9M.) We don’t know if this will have a positive impact on Finisar’s storage monitoring and testing products, but we expect the cost of satellite TV service to rise to cover the bill.

Executive Moves

Best Departures: While the dust's still settling on many executive arrivals and departures in 2006, the best moves certainly include the dismissal of Chris Calisi from Overland Storage. (See Overland Names Interim CEO and Overland's Woes Widen.) And it's tough to argue against the departure of McData's management, though Brocade has regrettably spent $4 million to retain them awhile. (See Brocade Bags McData For $713M and Kelley Gets 1.1M Reasons to Stay.) Another good move was the departure of Scott McNealy from Sun. Though the jury's still out on the long-term efficacy of the overhaul there, storage appears to be picking up. (See Sun Takes Action Amidst Concerns, Schwartz Shakes Up Sun, and Sun's Storage Rebounds.)