"The 2-gigabit switch market that [Gadzoox] and its peers had hoped would materialize last year never did," says IDC analyst Eric Sheppard. "People are still buying Fibre Channel, but to date, they appear to be satisfied with 1-gigabit speed. The OEMs have been slow to roll out 2-gigabit solutions."
Gadzoox's Foy, however, thinks that its just a matter of time before the 2-Gbit/s FC market takes off. "Its going to start happening very quickly," he says. "Were offering to replace 1-gig switches with 2-gigs for the same price, and sometimes at a lower price. Our position all along has been that SANs dont have to be expensive."
So where did Zoox zlip up?
It appears that while the company's technology has been solid, some of its marketing and management decisions have not.
"The management team probably didnt do the best job in anticipating the market," says Bill Lewis, an analyst with J.P. Morgan & Co., noting that the company didnt move quickly enough from managed hubs to switches. "The market moved past them."
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