RealTime IT News

StorageNetworks Chief Resigns

Earlier this week, EMC and McData said fourth-quarter sales would be stronger than previously projected, citing pumped-up demand for data storage equipment and software.

But before the word "recovery" could even fully form on sector-watchers' lips, along came a string of announcements from StorageNetworks .

The Waltham, Mass., firm this afternoon said it will cut about 110 jobs, or 50 percent of its workforce, as it reorganizes around its relationship with technology services provider Electronic Data Services (EDS was also on the defensive today).

For StorageNetworks, the layoffs follow the elimination of 80 jobs in late October.

Additionally, the company said co-founder, CEO and president Peter Bell will step down to "pursue other personal and business interests." The 37-year-old will stay on as the StorageNetworks' chairman.

Paul Flanagan, who joined the company in 1999 and most recently served as COO and CFO, will assume the top spots. Flanagan said the job cut was due to "current economic climate and the immaturity" of the some of StorageNetworks' target markets.

"We have decided to focus our energies on the excellent opportunity we have to work with our partner EDS in further enhancing our storage management software products," Flanagan said in a statement.

The move should not affect the company's managed service offerings. Scott Dussault, vice president of finance of StorageNetworks, has been appointed CFO.