StorageNetworks kaput

StorageNetworks Inc., the once-high-flying start-up that supplied storage to enterprise businesses as a storage service provider (SSP), is liquidating its operations, according to a story from Reuters.

The company Thursday fired most of its employees and announced that 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 US$154 per share. On Thursday, its stock was at $1.46.

StorageNetworks customers were primarily dot-com companies who didn’t own their own storage. When 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.

Of the SSPs, at least one other company remains, which has built its business model on the needs of enterprise-size businesses. That is Arsenal Digital Solutions, a company that provides data protection, business continuity and monitoring/management services.

As of June 30, Reuters says, StorageNetworks had 60 employees, before it announced a 35 percent reduction in force.

The StorageNetworks Web site is not online, and the company was not available for comment.