Byte and Switch: Whats going on with ManagedStorage?
Sweeney: Weve made a couple of announcements lately. One of the more important ones was that weve reached positive EBITDA [see MSI Reports EBITDA-Positive Q3]. Were very excited about that. Probably more significant is our exclusive relationship with Cable & Wireless in the U.K. We also purchased [the Datavault storage service business of] Sanrise in January [see MSI Springs on $22M]. From February to November 2003 we grew our billable storage base 700 percent.
Byte and Switch: What was your arrangement with StorageNetworks? [Ed. note: StorageNetworks sold its enterprise managed storage services business to ManagedStorage when it exited the market in June 2003 see MSI Courts the Enterprise.]
Sweeney: We had an exclusive marketing arrangement. They could only refer customers to us for managed storage services. They exited the business, and we migrated all their customers to our services this spring. That gave us entrée into the enterprise marketplace. We are going to introduce enterprise services in January [2004]... officially announce it.
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