Blade server and containerized data center startup Verari Systems is shutting down today, according to reports. This has me wondering what the fates have in store for other specialty hardware players such as BLADE Networks or Liquid Computing.

Verari's FOREST Container

Twitter, InsideHPC and others are indicating that blade server and storage startup Verari Systems is being shut down today. My calls to the company were answered by a receptionist named Sarah who hung up on me the first time I asked about the company’s fate, and who replied, “I have nothing to say,” before hanging up on me again when I called back. Emails to the company have not been returned. However just 10 days ago Verari said it had been selected to provide its containerized data center products for NASA’s Nebula cloud computing platform.

Verari has raised more than $54 million from investors that include Sierra Ventures, Carlyle Venture Partners, Voyager Capital and Celerity Partners. If Verari has indeed been closed, it will join the ranks of some other massively funded companies chasing a hardware dream such as SiCortex or SGI, which both were shut down this year. This has me wondering what the fates, or investors, have in store for other specialty hardware players such as BLADE Networks or Liquid Computing or some of the newer, stealthier specialty hardware companies such as SeaMicro and Smooth Stone.

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By Stacey Higginbotham

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  1. Yes. They are done. Possibly re-emerge after new year but I highly doubt it. They lost a major client.

  2. The company did not loose a major client. It was poorly managed by the CEO who slowly drained all the finances for executive luxuries. Too many chiefs in the kitchen. Imagine what all the employees are dealing with right about now.

    Yes, they are done.

  3. 13 VP’s sure, I heard .fr client also slowed down purchases. Thanks for clarification Mr.X. The deal about the client is what I was told from an V sales guy in person. Doesn’t matter really since the outcome is still the same.

    How is Appro doing is whatI would like to know.

  4. A rumor is circulating that a bunch of “key employees for the container business” will be rehired next week and be part of a New Company started by one of the key investors in Verari… the current stockholders, investors, and so on are out of luck, but key members of Verari management are going to that new company. Seems like a deal for those involved, if true.

  5. MR X is correct.

    The company did not loose a client, the company had 16 execs with 6 figure incomes during an economic downturn. Delusions of large bonuses and an overinflated ego by CEO David Wright (who BTW can talk the talk but couldn’t motivate a jelly donut) and his cronies from EMC killed what was a thriving business.

    Don’t harp on Sarah, she’s a nice girl who is about to lose her job along with many other dedicated employees who worked their ass off over the last year or so.

    Dave Driggers and Vic Hester (IMHO) ARE VERARI. They founded the technology and to be quite honest, should have kicked all the EMC goons out at first light of their floundering.

    I sincerely send good wishes to the REAL workers of Verari and hope the company is able to emerge successful in 2010 and beyond.

    Former employee who saw the writing on the wall and decided to leave before being told to.

  6. Sarah (that one) Monday, December 14, 2009

    I’m curious as to the reaction you anticipated from me? A rant against my employer of six very pleasant years? A list of ten things I’ll miss most about having health insurance? Did that seem realistic? Did you feel that I, a stranger you showed no concern for, owed you such personal information? I don’t suppose that your industry experience led you to suspect that if we were, in fact, closed, that I would be in the building answering calls merely to help my former coworkers in the light of very recent and upsetting news?

    You paint me as rude. But as for your manners, Stacey, well I’m sure you’ve heard the old adage about if you have nothing nice to say…. so once again I’m left with the statement of “I have nothing to say.”

  7. Oh, man. She hung up on you when you were trying to find out company information? GASP! I can’t believe that someone who’s losing their job involuntarily wouldn’t want to comment on it. I think you need to think about her situation before you go about name dropping an employee who obviously wouldn’t be authorized to speak to the media. If she was my employee, I’d be stoked on her response.

    I’m not trying to be a dick, but I think, for future reference, one should know that “lose” has one o in it, “loose” means something else entirely fellas. And it’s “chefs in the kitchen.”
    -The Emperor

  8. Smooth-Stone Gets $48M for ARM Servers Sunday, August 15, 2010

    [...] some of the risk associated with investing in chip firms. In recent years, several chip and systems companies have been forced to close their doors because they couldn’t raise their next round of [...]

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