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Candera Swears It's Beyond Compare: Page 2 of 3

Candera will sell the SCE 510 only in dual-node, high-availability pairs, with a list price starting at $120,000. And how about performance? Terlizzi claims a single FC port on the SCE 510 is able to support either 24 dual-ported hosts or 12 dual-ported RAID controllers.

At this point, Candera says it has more than 50 prospective customers in various stages of the sales pipeline, along with one actual paying customer [ed. note: we hope Candera gave them free T-shirts or something]. Unfortunately, Candera's not able to tell us who its customer or prospects are just yet. The company began beta testing its virtualization appliance in January 2003.

Unlike other virtualization approaches in the market, Candera says it's the only special-purpose SAN appliance that is neither a PC-based device nor a modified Fibre Channel switch. "There's been so much marketing in this space, our biggest challenge is explaining what we do and why we're different," says Terlizzi, who was previously with NAS switch startup Z-force Inc. before joining Candera this summer.

Other "virtualization" products -- representing a mish-mash of a category -- include appliances like IBM's SAN Volume Controller and HP's Continuous Access Storage Appliance (CASA); intelligent switches that are still in development from Brocade Communications Systems Inc. (Nasdaq: BRCD) and Cisco Systems Inc. (Nasdaq: CSCO); and software from DataCore Software Corp., FalconStor Software Inc. (Nasdaq: FALC), and Veritas Software Corp. (Nasdaq: VRTS). (See IBM Plays With Self (Virtually) and V-Switch Alliances Take Shape.)

As it tries to line up revenue-producing customers and cut through the rest of the noise in the market, Candera is also looking to raise a third round of funding -- in the range of $15 million to $25 million -- in the fourth quarter of 2003, according to Terlizzi.