Yup, you got it. YottaYotta is no more. Storage is a tough game.

From WSJ: Uh huh. Competition for Equalogic.

John West at InsideHPC.com points to an article on fault tolerant servers and the push to get them into HPC systems. One of the key soundbites is something John feeds up Well, that is one way of looking at it … It is arguably more correct to point out that cycles are cycles, and clusters offered an opportunity to massively expand lower cost cycles. Calling Supercomputing folks “cheapskates” isn’t likely to win you friends there.

5.56% of value wiped off the books. Right now we are at 10,523.07 on NYSE. 6.9% drop on NASDAQ. S&P; 500 is down 7.05% All this just today. Folks, this is about to get bumpy. 5% of market value just evaporated. Thats $50B of each $1T of market cap. A billion here, a billion there, and pretty soon we are talking about real money. Tech got whalloped. Our partners at Wipro had a 10% decline.

… if the fluctuation-dissipation theorem holds for what we are seeing in the economic state. Basically this theorem describes the power spectrum of the Fourier transform of a particular state variable in an system at or near equilibrium subject to external driving forces. That is, it helps you figure out where most of the driving force behind observed changes in that state variable are, while measuring the dissipation or irretrievable loss of energy in the system.

It remains to be seen if this is happening, but … Along comes company X, who wants to buy a large HPC system. They call up company Y, and asks them to build a system design and quote for them. Off Y goes, works through everything, gets updated pricing. They notice that all their T&C; from their suppliers are suddenly Net-cash terms. Basically buy it, but pay with a credit card or other immediate instrument.

You can see them here. $93,8M revenue, $29.5M gross profit. COGS of $64.4M. OPEX of $58.1M. Operating profit (loss) is $29.5M - $58.1M or -$28.6M (or for the accounting types with us ($28.6M) ). When they are done with the rest of accounting, their net income is ($35.1M) or -$35.1M. This is a net loss, but it is lower than previous net losses by $4.6M. Their revenue increased $14.8M or so.

I wasn’t aware of it until Doug pointed it out in our comment section. Short version, Clearspeed is in significant cost reduction mode right now. Reducing R&D; to fulfill existing orders, reducing cost structures, etc. My follow-on comment addressed the interim results. You can see their share price versus time here on Yahoo. The decline looks like a straight line on a logarithmic graph. A long tail. Not quite the same as what the VCs like.

See this article on HPCwire (and another on SupercomputingOnline). Last month was one of our best JackRabbit months ever. In this market, with IT management under pressure to deliver better faster high performance storage service for less money, the case for JackRabbit is compelling. More soon though. I promise!

Lots of new things, so little time. My apologies. Will update soon. I promise.