Systems management start-up Qlusters Inc. has closed down after seven years. Management yesterday notified the 30 employees of the move. The company failed to take off even though the sector is a hot one with takeovers at hundreds of millions of dollars.
According to IVC Online, Qlusters raised $34 million, including $10 million in a financing round a year ago. The company was co-founded by Ofer Shoshan and Dr. Moshe Bar. Its product, OpenQRM, was based on open source code and designed for an enterprise's physical and virtual servers. In April, the company announced that it was transferring the latest version, OpenQRM 3.5 to the open source community and would cease supporting it. When the company announced no new strategic plan, speculation arose that it was nearing the end of the road.
In the past year, Qlusters has suffered from the departure of top executives, including Shoshan, who resigned as CEO in late 2007 and was replaced by Dror Nemirovsky, as well as CTO William Hurley, who went to BMC Software Inc. a year ago.
Shoshan said in response to the report, "I was surprised. I thought that the road was open, because there are few companies with a product, money in the bank, and agreements with large international companies."
Qlusters was not available for comment.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2008
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