Feeds

Rackable puts RapidScale storage biz up for adoption

Wants visitation rights

Internet Security Threat Report 2014

After suffering a disappointing second quarter, Rackable Systems wants to dump its RapidScale storage appliance business which the company purchased for nearly $40m only two years ago.

The data center vendor said today it plans to sell RapidScale along with its development team, patent portfolio and hardware assets. Rackable has already taken a $1m charge to break its lease on the facility that housed the RapidScale business and moved the engineering crew into its main Fremont, California headquarters.

In Rackable's Q2 earnings conference call, CFO James Wheat said the company reviewed RapidScale's progress and concluded the business wasn't likely to meet expectations.

Rackable's filing with the US Securities and Exchange Commission chalked up the lowered prospects to an "inability to license certain third party software on reasonable commercial terms."

The RapidScale line is a combination of storage appliances and file system software made to improve the performance of data sharing in large clusters. Rackable acquired the business when it purchased Terrascale for $38m in cash in August 2006.

"I would say it's a fine product. It's a good market. But we've concluded it's not a good fit for Rackable and thus the strategical alternative," said Wheat during the Q2 earnings call.

Despite putting the business up for adoption, Rackable apparently would still like some visitation rights.

"The most attractive alternative would be a sale of the asset to a partner who can invest in the technology — because it's going to take investment and a partner who has an expert sales and service force to deploy complex software," said Wheat. "And hopefully we'll be able to maintain a strong relationship with any prospective buyer." ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.