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SAN Valley Does the Cisco Two-Step: Page 3 of 3

As for SAN Valley's relationship with Cisco, in the past such type of "co-opetition" arrangements have generated mixed results -- sometimes favoring Cisco, but often resulting in a big win for the startup.

ONI Systems Inc. (Nasdaq: ONIS), for example, took Cisco's money and leveraged its reputation to the full while it was getting started -- but then reportedly gave its patron the bum's rush when Cisco tried to acquire it. ONI has since gone on to considerable success as a public company.

Then there's Procket Networks Inc.. Cisco was a lead investor in this startup, which started life as a developer of OC192 (10 Gbit/s) and OC768 (40 Gbit/s) components. Procket subsequently switched direction and is now working on a routing system that will go head to head with Cisco's core routers. In effect, Cisco ended up funding a potentially powerful new competitor (see New Kid on the Cisco/Juniper Block).

Brocade is another storage networking company that's partnered with Cisco. However, this relationship now looks as if it may be heading into stormy waters after Cisco set up a stealth-mode spin-in called Andiamo Systems Inc. that will compete with Brocade in the SAN market (see Ciscos Secret SAN Strategies Revealed). Brocade has had to change its product strategy to react to the threat from Andiamo/Cisco and others (see Brocade Unveils Big SAN Switch).

— Jo Maitland, Senior Editor, Byte and Switch http://www.lightreading.com