EqualLogic Scores $20M

IP SAN startup EqualLogic Inc. has raised a third round of $20 million in funding, in what management hopes will be its last trip to the venture well (see EqualLogic Grabs $20M). The Nashua, New Hampshire-based vendor has now raised $52 million since its initial funding in 2002 (see EqualLogic Takes Flight and EqualLogic Tallies $15M).

EqualLogic will use the money to expand its business, which execs hope will be profitable by early 2005. Once that happens, the company will look at IPO or other options within 14 to 16 months, says marketing VP John Joseph.

EqualLogic gilded today's news with a separate announcement of its 100th customer, Johnson Health Network. The company has also sold its SANs to Mesirow Financial, Cypress Corp., and the U.S. Department of Defense (see DoD Picks Equallogic).

In addition, EqualLogic boasts 50 resellers, including one signed with Sun Microsystems Inc. (Nasdaq: SUNW) in April. EqualLogic also claims four unannounced OEMs deals.

"We are contracted with four more ... to provide products as part of a larger offering," says Joseph. While not divulging who these OEMs are, he acknowledges they are predominantly system vendors like Sun.Joseph says more news about the identities of the OEMs will be "trickling out" over the next three to six months.

In general, all this spells progress for EqualLogic, which last year was struggling to get leads for its gear (see Top Ten Private Companies: Early Summer 2004, page 6}). But all isn't quite hearts and flowers: Even as iSCSI is gaining popularity in some large companies, the market is still in flux (see ISCSI Shakin' Goin' On). What's more, chipmakers are falling off the radar, indicating that iSCSI's direction still isn't firmed up (see Xiran Gets Crossed Out).

Nonetheless, with fresh input and a respectable roster of customers and partners, EqualLogic is guaranteed a hand in the game for a while longer.

Mary Jander, Site Editor, Byte and Switch