Delayed Curtain Call for Sun's A7000 Encore Storage
news.com
Sun storage grows cold
By Stephen Shankland
Staff Writer, CNET News.com
May 11, 1999, 1:30 p.m. PT
Sun Microsystems has delayed its high-end data storage product line nine months, at a time when competitors are becoming increasingly active.
The high-end storage products that Sun acquired from Encore will be delayed at least nine months, from the first quarter of 1999 to the beginning of 2000, Sun said in a filing with the Securities and Exchange Commission.
The delay was the result of "increased complexities associated with the completion of the product," Sun said in the filing. So far, Sun has spent about $19 million of the $30 million total research and development needed to complete the products, Sun said. Sun acquired Encore in July 1997 for $85 million.
The Encore products form the basis of Sun's A7000 product line, which is designed to give Sun a high-end storage product that can connect to mainframe computers, Sun servers, and servers from other manufacturers.
Meanwhile, competition in this space has heated up.EMC, the dominant company in the sector, has pledged to become increasingly competitive in light of Hewlett-Packard's decision last week to put its emphasis on selling Hitachi Data Systems high-end storage systems instead of EMC's products. |
