StorageNetworks, the once high-flying start-up that supplied storage to enterprise businesses as a storage service provider (SSP), is liquidating its operations, according to Reuters.
The company has fired most of its employees and announced that its CEO, Paul Flanagan, was leaving immediately. StorageNetworks had previously been on the market, but failed to attract a buyer.
A small transition team remains in place to shut the company down.
In its heyday, StorageNetworks stock was valued at $US154 per share. On Thursday, its stock was at $US1.46.
Its customers were primarily dot-com companies that didn’t own their own storage. When the dot-coms started failing, StorageNetworks’ fortunes fell.
A number of other SSPs also went out of business. Among them were StorageProvider, SANrise and Scale8. Several companies remain, though with different business models. Among them is Storability, which markets the management software it used in supporting customers.
At least one other SSP remains, having built its business model on the needs of enterprise-size businesses. Arsenal Digital Solutions provides data protection, business continuity and monitoring/management services.
Reuters said StorageNetworks had 60 employees as of June 30 before announcing a 35 per cent reduction in staff numbers.
The StorageNetworks Web site is not online, and the company was not available for comment.