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CNT Can't Smooth It Out: Page 3 of 4

When he was asked whether these will be OEM versions of other vendors' products, he replied: "We don't want to reinvent the wheel... I think they'll all be CNT-labeled products, but we'll actually have embedded some other technologies inside our products."

One project CNT reportedly has in the works is integrating technology provided by Sanera Systems Inc., which is developing high-scale switches for interconnecting Fibre Channel SAN islands into its edge router. Sources close to Sanera say CNT will use Sanera-supplied chips in an upcoming product (see Sanera Tightens Its Belt).

Another question was how EMC Corp.'s (NYSE: EMC) forthcoming IP-based connectivity option for the Symmetrix would affect CNT. EMC is said to be developing an "eBlade" in conjunction with Cisco Systems Inc. (Nasdaq: CSCO) that will extend EMC's Symmetrix Remote Data Facility (SRDF) replication software over IP (see EMC Sets Symm 6 Debut).

EMC is "doing some IP blade work, but we aren't seeing any of that affect us yet," Hudson said. He added that "that's more of a local implementation, so compared to ours... they don't have as much distance or performance." Moreover, CNT is able to mirror between heterogeneous disk subsystems -- for example, mirroring Symmetrix data to a Clariion system. An EMC spokesman declined to comment.

On another front, CNT said it signed up 20 customers for its network management service, which provides ongoing monitoring of customers' CNT equipment; the service generated $400,000 in revenue in the fourth quarter.