To better play in that market, Gervais says that Qualstar's products need to be more easily adaptable into SAN implementations and must add more networking features to challenge competitors in the network-attached storage field.
"We need a Web [management] interface, true hot-swap capabilities, and rendundant power supplies to provide more of a true NAS solution," Gervais says. Wells Fargo Van Kasper's Tanous is closely watching the rollout of the rack-mount product, which he says could help Qualstar win important OEM contracts with larger system vendors, like IBM Corp. (NYSE: IBM) or Hewlett-Packard Co. (NYSE: HWP).
"SAN implementations need total compatibility," says Tanous. "And customers are going more and more to the system houses for [SAN] equipment."
"With our previous table-top units, we haven't been that OEM-friendly," says Gervais. "With the rack-mount unit, we are."
For connecting to Fibre Channel networks, Qualstar currently offers a bundled router from Chaparral Network Storage Inc. While Gervais says Qualstar has no current plans to develop its own Fibre Channel technologies, he says the uncertain future of Chaparral may force his hand.