Feeds

3Com to can SAN plan

Product development brought to a halt to save R&D spend

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

3Com has abandoned its attempt to break into the Storage Area Network (SAN) market, less than six months after embarking on the strategy. The company's president and COO, Bruce Claflin, described the move, which is being made to allow the company to focus on its networking and Palm products, as a "difficult but good business decision". A 3Com spokesman told US newswires that the company was months away from releasing the SAN products it had announced last November through partnerships with four storage vendors: Clariion, Data General, Legato and MTI. The company recently posted Q3 1999 results, which showed a slowdown in its growth -- year-on-year profits were up tenfold but still not as high as the company had originally expected. At the same time, company executives predicted sales will continue to slow in Q4. It's clear, then, that 3Com feels its plans for the SAN market were rather too enthusiastic and it needs to focus on what it's best at right now instead of pushing into new areas, conserving its R&D spend for other, more core projects. The spokesman said the investment 3Com would have to make to get to the forefront of the SAN arena was not one is was prepared to make. Yet he maintained the company's line on the SAN market was that it continues to be highly lucrative. That suggests that, at the very least, 3Com nowadays has a rather more short-term outlook than it has had in the past, or worse, it's financial position for the next quarter is looking considerably poorer than the last one. ®

New hybrid storage solutions

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.