Feeds

Isilon cuts staff, recruits NetApper

Fizz, not Fitz

Remote control for virtualized desktops

Scale-out NAS supplier Isilon has made a first quarter loss, fired about 40 people, and recruited another NetApp sales exec to bolster its executive ranks.

Prelimanary results for the first quarter of 2009 show revenue in the $26.5m to $27m range, which is 10-12 per cent up on the year-ago quarter. But it's also 15 to 17 percent down on the final 2008 quarter. The company expects a net loss of $0.16 to $0.217/share.

CEO Sujal Patel fingered the now usual suspect. "It's clear that persistent global economic weakness and uncertainty has led to contraction in many of our customers' IT budgets," he said. "Softening economic conditions during the quarter required that we take steps to maintain the company's path towards profitability and to ensure that we're in a position to pursue strategic growth initiatives...We have implemented a workforce reduction that will impact approximately 10 per cent of our global employee base and result in cost savings of approximately $4.0 million per year."

The workforce reduction of about 40 people will create a one-time operational expense of approximately $850,000 in the second 2009 quarter, but hopefully, it will result in savings of $4m a year.

Turning to the single Isilon recruitment here, George Bennet was America's sales VP from 2003 to 2008 at NetApp, and his region's revenue was $600m when he started and $2bn plus when he finished. Isilon want some of that star sales quality.

He left NetApp to join Quantum as SVP world-wide sales in September 2008 and has now exited Quantum to join Isilon as SVP for world-wide field operations, the head honcho for global product and services sales, reporting direct to CEO Sujal Patel. At Isilon he can say hello to Leonard Iventosch who joined it in October 2008 as VP for channel and OEM sales, having left a similar position at NetApp in July.

Why did Bennett leave Quantum after just eight months? Was it just more dollars or does Isilon's future look better to him than recently bailed-out Quantum's?

Isilon has included Steve Fitz, its previous SVP world-wide sales, in the headcount reduction, after two years in post. He joined Isilon in April 2007, coming from EMC and reporting to the then-Isilon CEO, Steve Goldman. Isilon is presently recovering from Goldman's somewhat unsatisfactory leadership which ended with Patel coming back to resume the CEO position. The company did not issue a "Thanks Steve, for all your efforts" statement, which is unusual. This generally indicates a degree of dissatisfaction about performance or some other aspect of the defunct employee's role.

Isilon has announced the availability of its new IQ36000 and other hardware, which we covered in March. It has also announced "an integrated nearline archive solution combining Isilon's new 36NL and Ocarina's ECOsystem storage optimization software." This combo could deliver up to 10-to-1 data reduction and average storage utilisation rates of up to 90 per cent.

Patel is clearly hoping for NetApp-like sales revenue growth and looking to Bennett to add the fizz that Fitz didn't. ®

Remote control for virtualized desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.