"This was a defensive move, we wanted that code back," says Todd Gresham, former nStor CEO and now Xyratex EVP of storage and network systems. "They have other IP and hardware that overlaps with ours -- we have no interest in that."
Gresham says Xyratex will also hire "a small number" of Ario developers as part of the deal, which he expects to close by December 29. He would not say how much the deal is worth or how many people are involved.
Xyratex, whose OEM partners include 3PAR, Compellent, EqualLogic, Network Appliance, and Rackable Systems, started shipping the low-end F5402 based on nStor technology in April. (See Xyratex Launches RAID System.) The product comprises single or dual-controller systems with two or four 4-Gbit/s Fibre Channel host links and support for up to 60 SAS and SATA drives.
Ario used the RAID IP as part of its Capacity Storage Array (CSA) series of bladed SAS and SATA expansion disk subsystems rolled out earlier this year. (See ARIO Pioneers Position.) The future of that product line is clouded, as is the path Ario will follow.
Mark Pollard, acting VP of marketing and business development for Ario, says the company is building a new long-term business plan. "The company is not out of business," Pollard says. "Once we get this deal done, we can focus on a long-term strategy."
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