Egenera Blog

Change can be painful, but if we ignore the need for change the end result is often worse. Egenera is evolving and it was necessary to re-align our business model and company infrastructure, resulting in the decision to lay off about 28% of our global workforce. It would be easy to blame it all on the economic situation, but it’s partially related to the company’s shift from a direct to an indirect sales model.

Our BladeFrame business remains strong and we will continue providing product enhancements that preserve and leverage our customers IT investments. Many customers have already discovered the value of our PAN Manager Software. Fujitsu-Siemens has been offering PAN Manager throughout Europe and Dell recently began shipping the Dell / PAN System in the US. We see a tremendous opportunity to grow our global software business by working closely with our OEM and alliance partners. And we will continue to recruit more resellers worldwide, and expand our alliances with key industry players.   James Staten of Forrester summed up our potential aptly with “Egenera’s crown jewels are in this software and PAN Manager is one of the most mature, feature rich and enterprise tested of the virtualization software managers on the market.”

There is no doubt that everyone is concerned about the uncertainty of what lies ahead in 2009. However, our collective efforts to streamline the business and monitor expenses, while moving to a greater focus on our PAN Manager software, will position Egenera as a stronger company. Better days are ahead and we are on course to weather this storm.