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SAN Startups on the Block: Page 3 of 4

According to another source, the company is definitely up for sale. "Isakovich is a mercurial guy and sold what he had once developed," the source says. "He has been trying to sell his company -- or its intellectual property, the SAN operating system -- to EMC Corp. [NYSE: EMC] and others for some time."

TrueSAN appears to have gained the most traction with LSI Logic Storage Systems Inc., the only Tier 1 reseller of its software. LSI offers TrueSAN's storage management software for its MetaStor storage array. LSI and EMC representatives declined to comment for this story (see TrueSAN Supports LSI).

Last but not least, next-generation NAS startup Zambeel is another company we've been hearing a lot about lately. But unfortunately the news, if it's true, isn't good.

"The question around the office these days is whether or not we have two weeks or a month's worth of cash left," says a company insider. This source also mentioned that there are guys in white coats with clipboards on site taking inventory, which sounds suspiciously like Chapter 7 bankruptcy proceedings. We were unable to confirm any of this with the Zambeelians; for one thing, the PR contact listed on its Website is no longer with the company.

We do know that Zambeel's chief operating officer, Karl Schubert, resigned last month following a round of layoffs at the Fremont, Calif., startup (see Zambeel COO Skedaddles).