When Tricord Systems Inc decided to ditch its former identity as a server maker and reinvent itself as a storage management software outfit, it was clear that the transition would involve some pain. It is now clear that the makeover will be a lengthy procedure. While the company was able to slash costs by 81.1% in the past year, Tricord still made a net loss of $2.1m, though this was well down on the $10.9m recorded the year before. As server revenues trickle away and software has yet to benefit the company’s accounts, total revenue for the year was down 69.5% to $3.8m. Its storage management software is designed to allow data to be managed as a single volume regardless of the number of disks, storage controllers and storage systems involved. Tricord is, in effect, a start-up with all the risks that this involves. Tricord raised $3m in December 1998 from a private placing in which the lead investor was Rod Canion, founder and former chief executive of Compaq Computer Corp (CI No 3,561).
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