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Isilon's Losses Roll On: Page 3 of 4

The vendor, which recently reached the 500 customer mark, racked up 91 new customers during the second quarter. "This was the best quarter in Isilon's history for customer wins," explained Goodman.

The Isilon CEO was also questioned by analysts about the competitive landscape -- a controversial topic, given previous sniping between Isilon and rival NetApp. (See Isilon's Counting on Clusters and NetApp Stokes Competitive Fires.) "During the second quarter, we did not see any fundamental change in the macro environment or the competitive landscape," said the exec.

Brett Goodwin, vice president of marketing and business development at Isilon, explained that there was no specific pricing pressure from NetApp and EMC during the quarter, despite recent saber-rattling in the clustered NAS space. "There wasn't really a change," he said. "As it relates to NetApp, it's still their traditional products that we run into - it's very rarely their GX [product]."

Isilon had previously predicted that it would reach profitability sometime in the second half of this year, but this timeframe has now been pushed back. "We expect to reach breakeven and profitability in 2008," said Isilon CFO Stu Fuhlendorf during last night's call.

— James Rogers, Senior Editor Byte and Switch

  • EMC Corp. (NYSE: EMC)
  • Isilon Systems Inc. (Nasdaq: ISLN)
  • Network Appliance Inc.