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Rackable Racks Up Terrascale: Page 2 of 3

In response to analyst questions today, Sastri said "nearly 70 percent" of Terrascale's primary competition comes from NetApp. Additionally, though, he sees Isilon, Panasas, and Ibrix in competitive situations.

Sastri claims Terrascale has won at organizations like Mitre, Raytheon, and the University of Florida because of its high-throughput I/O capabilities. While those have mostly been addressed to the HPC crowd, Sastri and Rackable CEO Tom Barton says that will now change, as the companies work toward releasing products for the general storage market.

Rackable predicts that the merger will be accretive to its revenues throughout 2007 by about $.05 in earnings per share on a non-GAAP basis. However, execs concede there will be $.01 to $.03 dilution to EPS in the third and fourth quarters of this year.

Rackable CEO Barton said the merger won't affect Rackable's existing partnerships with Xyratex and ONStor.

Mary Jander, Site Editor, Byte and Switch

  • Ibrix Inc.
  • Isilon Systems Inc. (Nasdaq: ISLN)
  • Network Appliance Inc. (Nasdaq: NTAP)
  • ONStor Inc.
  • Panasas Inc.
  • Rackable Systems Inc.
  • Terrascale Technologies Inc.
  • Xyratex Ltd.