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Xyratex RAIDs Ario IP: Page 3 of 3

That strategy is in the hands of former Snap Appliance executives Pollard and interim CEO Eric Kelly. Kelly was CEO and Pollard was marketing VP at Snap when Adaptec acquired the NAS vendor for $100 million in July 2004. (See Adaptec's $100M Snap Decision.)

The deal comes at the end of a year of twists for Ario. When it picked up $8 million in funding in September, then-CEO Russell Krapf said the startup was shifting its product base from controllers to storage systems based on the CSA family. (See System Startups Get Fresh Funding.) Then Krapf jumped to a sales VP job at chip vendor SolarFlare Communications in early November, and Kelly replaced him.

Pollard says the Xyratex deal gives Ario some much-needed money and gets it out of a losing proposition. "To be successful in the JBOD and RAID business, you have to have a lot of OEM partners and high volume because it's an expensive venture," he says. "Xyratex had all of that."

Dave Raffo, News Editor, Byte and Switch

  • 3PAR Inc.
  • Adaptec Inc. (Nasdaq: ADPT)
  • ARIO Data Networks Inc.
  • Compellent Technologies Inc.
  • EqualLogic Inc.
  • Network Appliance Inc. (Nasdaq: NTAP)
  • Rackable Systems Inc.
  • SolarFlare Communications Inc.
  • Xyratex Ltd.