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Incipient Is All Potential: Page 2 of 3

Based in Waltham, Mass., Incipient is renting an office in a Microsoft Corp. (Nasdaq: MSFT) building along Route 128. Reich says the company has no affiliation with Microsoft, other than renting the space, which is apparently the cheapest on the block.

Incipient claims to be developing “software that eases SAN administration and supports advanced fabric silicon, while complimenting existing storage hardware and management software."

Not much of a clue there. And Reich’s lips are sealed on the company’s technology plans. But any firm starting out in the SAN software field faces a tough battle competing with Veritas Software Corp. (Nasdaq: VRTS) and EMC Corp. (NYSE: EMC), as well as other startups already having a go, like OTG Software Inc. (see OTG Software: Growing in the Shadows).

Still, Reich believes it's a good time to launch a startup. “Two years ago it was almost impossible to hire good people on the developer side, as they were all earning tons of money on stock options; that’s not the case anymore."

Moreover, “Just because a lot of money has already been poured into this sector, that doesn’t mean it has been well spent."