"[BlueArc’s multitiered approach] is going to allow companies to reduce their initial capital outlay for robust enterprise quality storage, and it’s going to allow them to reduce their total cost of ownership over time," says Cox. And BlueArc’s products are so scalable (they can deploy with as much as 200 terabytes of storage compared with competitors’ 2 to 6 terabytes), companies don’t need to deploy as many units. "The fewer the number of units, the less costly it is to manage," adds Cox.

An Uphill Battle

Mark Chandler, director of information systems at drug discovery company NeoGenesis Pharmaceuticals, concurs with Cox. "Backing up one large disk as opposed to many servers makes life so much simpler," he says. Chandler also likes BlueArc’s competitive prices, which made him decide to stop purchasing from EMC. Barrall says BlueArc’s products start at $40,000 and average between $100,000 and $200,000. Chandler also selected BlueArc over the competition because its servers are compatible with the two platforms his company runs, Windows and Linux.

In spite of BlueArc’s advantages (strong engineering and R&D, solid technology, good customer service and happy customers), the company still faces an uphill battle for survival. Cox notes that to break even, BlueArc is going to have to double its 2002 revenue of $19 million. And to do that, he says, the company needs to increase its visibility and credibility by partnering with resellers that focus on vertical markets, which would open another distribution channel.