Sanrise Inc. was one of the first storage service providers (SSPs) to benefit from the gold rush of venture capital funding and one of the last to abandon what is increasingly being seen as a broken business model (see Sanrise Ships Its Wares).
This week it quietly announced that it will segue to selling software, instead of renting out storage on a piecemeal basis over a network.
Of all the SSPs to raise funding (at one time nearly 20 of them), Sanrise attracted the most attention and the most money, raising over $200 million.
Almost all of these companies have now refocused their business models in the face of the staggering costs required to set up and maintain worldwide networks of expensive storage systems.
Brutal layoffs and restructuring across this sector took place all summer, prompting these companies to target new markets. Sanrise was no exception (see What's Up With Sanrise?), although it has not been the fastest to react to the change (Creekpath Systems Inc. and StorageNetworks Inc. [Nasdaq: STOR] began selling software back in July -- see SSPs Switch to Selling Software).