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Rackable Systems Sheds Storage

HPC specialist Rackable Systems has announced plans to sell off part of its storage business, an indication that the economy is still deeply troubled.

Specifically, the vendor is looking to divest its RapidScale clustered file system appliances, according to Maurice Liebenstern, Rackables general counsel and senior vice president of development.

”We have been working with this asset for quite some time, and we have determined that it’s a better strategy for us to look for an alternative than undertake additional investment,” he says.

Rackable, which has experienced some tough recent quarters, first discussed its plans to get rid of RapidScale technology on its second-quarter earnings call earlier this month, when James Wheat, the company’s CFO, explained that the product line is “not likely to meet our future expectations."

Today, Liebenstern told Byte and Switch that the decision to divest RapidScale was based on a “cost benefit analysis” and “expertise,” hinting that the technology is consuming more R&D that Rackable can realistically devote to it.

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