McDATA Revolutionizes Storage Networking With The World’s Most Innovative, Cost-Effective Fibre Channel SAN Switch

 

McDATA's 24-port Sphereon 4500 brings unprecedented flexibility, functionality to mid-range market

BROOMFIELD, Colo. October 16, 2002 McDATA Corporation (Nasdaq: MCDTA/MCDT), the worldwide leader in open, ultra high-availability storage networking solutions, today announced the next evolution in storage networking, the availability of the worlds most cost-effective, flexible and feature-rich Fibre Channel SAN switch for the mid-range market. Designed from the ground up to address the needs of small-to-midsize enterprises, the McDATA Sphereon 4500 Fabric Switch delivers groundbreaking, industry-exclusive features and capabilities previously unattainable in the mid-range market.

The world’s only 24-port SAN switch, the Sphereon 4500 offers the highest port density in the industry and delivers “connectivity on demand” in 8-port increments through McDATA’s exclusive FlexPort Technology. It allows small-to-midsize companies to build scalable, reliable and easy-to-manage storage networks with the most cost-effective SAN switch on the market. Customers want simplicity through management, so McDATA is packaging every Sphereon 4500 with its all-new, web-based SANpilot™ management software, which provides all the features necessary to easily manage small SAN fabrics.

“Our storage needs are constantly changing, both in terms of size and technical requirements. That's why it's absolutely critical that our storage network is scalable, flexible and highly reliable. We've found that McDATA, with its Sphereon 4500 Fabric Switch, can both meet and exceed those needs,“ said Christian Popp, SAN Architect at BASF IT Services. "Not only can the Sphereon 4500 be implemented without causing disruption, but its handling and management meet the same high standards we know from the other McDATA devices in our network. The Sphereon 4500 provides a high level of functionality, scalability and flexibility which is a key to us being able to do business successfully.”

Today, with the introduction of the Sphereon 4500, McDATA provides the most robust, high availability storage networking solutions available. McDATA’s family of hardware and software embody its vision of technology driven by a customer focus, and a commitment to achieving greater customer value.

“The 4500 rips the costs in half, bringing high-end features to the midrange market, and offers 'buy what you need, not what you don't’ flexibility,” said Steve Duplessie, analyst for the Enterprise Storage Group. “What’s not to like?”

No other Fibre Channel switch on the market today can match the value found in the Sphereon 4500, such as:

  • FlexPort Technology, which provides non-disruptive “connectivity on demand”, in 8-port increments;
  • 24-port building block, which provides incremental connectivity for 50-percent more connectivity than competitive offerings, dramatically reducing cost of ownership while assuring unparalleled ease of scalability;
  • HotCAT™, hot code load and activation, redundant power and cooling, and hot-plug capable transceivers, providing the highest availability in its class;
  • Industry’s highest port density: 24 ports in 1u high (1.75”) chassis, which maximizes floor space;
  • High performance, full 2Gb/s non-blocking performance on all 24 ports with very low latency;
  • Fibre Channel and loop connectivity, which makes it the ideal SAN switch for storage consolidation, directly attaching disk or tape and maximizing storage utilization.
  • Single Enterprise OS (E/OS) provides a common operating system across all McDATA Director and Switch products, which simplifies management for customers and delivers seamless interoperability and backward compatibility.

McDATA expects to achieve a 30-percent share in the mid-range fibre channel switch market, over time. “We've factored into our market share projections, the business problem we're solving. Customers are concerned about cost of ownership, consolidation, scalability and extending intelligent networking far beyond simple connectivity,” said Doug Rainbolt, vice president of switch products, McDATA. “Customers have been over-promised features that have never been delivered. McDATA will give these customers the options they've been looking for and enable the seamless migration from chaos to the simplicity of an intelligent storage infrastructure.”


Industry’s Highest Availability, Most Cost-Effective SAN Switch - Extending McDATA’s Legacy
The Sphereon 4500 offers unprecedented value without compromising on performance or reliability. The Sphereon 4500 extends McDATA’s longstanding heritage of delivering industry-leading ultra high availability Directors and highly reliable fabric switches, but with unprecedented cost-effectiveness for the small-to-midsize market. No other similarly priced Fibre Channel SAN switch on the market today can match the Sphereon 4500’s high availability characteristics, “pay-as-you-grow” flexibility, port density and other standard features.

Unrivaled Flexibility
McDATA’s exclusive FlexPort Technology enables companies to reduce their initial SAN investment without compromising future scalability because the Sphereon 4500 is effectively three products in one: It can be purchased as an entry-level eight-port switch and upgraded with a software license key to a 16-port and 24-port solution. This all can be done non-disruptively and without installing a new switch: McDATA is the world’s only SAN switch vendor with this capability.

McDATA’s FlexPort Technology allows customers to buy only the ports they need, with additional connectivity “at their fingertips” versus going through a time-consuming buy cycle. The resulting SAN – built with a larger 24-port building block – is superior, in terms of fabric performance, cost-effectiveness, scalability and ease of management, than a SAN built using smaller port count switches. Customers gain the benefits of using bigger switches without having to pay up front for them.

Easiest to Deploy and Manage
Included with every Sphereon 4500 at no additional cost is McDATA’s latest SAN management software, SANpilot, an all-new, easy-to-use, embedded, web-accessible management tool with a simple navigation Graphical User Interface (GUI). SANpilot™ is a powerful, comprehensive management software product that provides the user with all of the necessary features to manage small SAN fabrics, including:

  • Fabric and topology views
  • Zoning configuration
  • Performance monitoring
  • FlexPort configuration
  • Health monitoring and fault isolation
  • Online Help

“With the Sphereon 4500, McDATA has changed the way companies build and deploy storage networks,” said McDATA President and Chief Executive Officer John Kelley. “This product delivers more features, performance, reliability, flexibility and cost savings than any other competitive offering on the market today. The addition of the Sphereon 4500 to our full family of core-to-edge SAN solutions truly solidifies McDATA’s place in a class of its own in the storage networking industry and supports McDATA’s commitment to defining, enabling and accelerating the migration to an intelligent infrastructure… an infrastructure where IT becomes a profit center as opposed to a cost center.”

Availability
The McDATA Sphereon 4500 is available today through all of McDATA’s resellers and systems integrators. McDATA anticipates its OEMs and master resellers, including EMC, Hitachi Data Systems and IBM, will make the Sphereon 4500 available to their end-user customers and channel partners, with the majority scheduled to launch in the fourth quarter of 2002.

WHAT THE INDUSTRY IS SAYING ABOUT THE SPHEREON 4500

Wake Forest University Baptist Medical Center
“If we were deploying our first SAN today, McDATA’s Sphereon 4500 is exactly what I’d want to build it with. Its compatibility with existing McDATA SAN products fully protects our current investment, it’s easy to deploy and manage, and the ‘pay-as-you-grow’ feature ensures that customers buy only what they need,” said Bob Massengill, technical services manager for Wake Forest University Baptist Medical Center. “The 4500 brings to the mid-range market the level of flexibility, reliability and performance we’ve come to expect from McDATA. It really is a great product.”

Salem Group, Inc.
“As a McDATA Elite Platinum Partner, we are glad to see that McDATA has addressed the market's arbitrated loop connectivity demand with a more robust solution than their competitors offer. The ability of the Sphereon 4500 to non-disruptively grow in port count with a simple software license key is a major differentiator for McDATA and a real benefit for customers,” said Dave Rosenblatt, VP/Connectivity Specialist, Salem Group, Inc.

Lucent Technologies
“The Sphereon 4500 succeeds in bringing McDATA’s heritage of delivering industry-leading, high-end features and functionality to the small-to-midsize market. McDATA’s Sphereon 4500 will help break the barriers to SAN adoption by enabling scalable, high availability storage networking at an entry level price,” said Joseph Mele, Vice President and General Manager of Lucent Technologies' Optical Edge and Network Management Business Unit. “Through our participation in the McDATA OPENready Interoperability Partner Program, we plan to continue our work with McDATA to deliver solutions that can combine the unique attributes of the Sphereon 4500 and Lucent products to enable reliable, high performance storage networking over distance.”

EMC
“Flexible SAN switches are essential elements in allowing small-to-midsize customers to deploy cost-effective and scalable storage networks,” said Paul Ross, EMC’s Director of Networked Storage Marketing. “McDATA's Sphereon 4500 delivers the flexibility and reliability these customers need at a very affordable price.”

MSI Systems Integrators
“Storage area networks can provide real business benefits in almost any IT environment,” said Phil Sauvageau, executive vice president of products and services for MSI Systems Integrators, based in Omaha, Neb. “The McDATA Sphereon 4500 allows small to mid-sized IT environments the ability to implement SANs in very manageable and cost-effective increments. McDATA's FlexPort technology allows you to buy what you need when you need it. Its support of loop and switched protocols allows for easy integration with both disk and tape devices. The inclusion of the SANpilot built-in web-based management software brings additional value by simplifying management tasks for IT staff. Also, when it comes to addressing scalability, the Sphereon 4500 is fully compatible with McDATA's 6000 Series Intrepid Directors, which means customers are perfectly positioned to leverage their investment into an enterprise-wide SAN.”

StorageTek
“Flexibility, cost-effectiveness and performance are the main requirements small-to-mid-size enterprise customers have in their storage networks, and McDATA’s Sphereon 4500 is designed from the ground up to meet these needs,” said Tim Steadman, director of corporate alliances at StorageTek. “As anOPENready Interoperability Partner, StorageTek is closely aligned with McDATA and will continue to deliver disk and tape based SAN solutions that are compatible with and leverage the unique benefits of the Sphereon 4500.”

Gartner, Europe
“The pay-as-you-grow concept of McDATA's Sphereon 4500 allows customers to optimize their investments in SANs,” said Josh Krischer, analyst at Gartner Inc. “Unused ports in switches are “dead capital” on which, in most of the cases, in addition to initial investments also monthly maintenance charges are paid. There is no reason to purchase “up-front” capacity because of the continuous price reduction. This scheme is similar to capacity on demand which some vendors use for servers and storage and will help the user to cope with the tighter IT budgets.”

Hitachi Data Systems
“Hitachi Data Systems is pleased that McDATA's Sphereon 4500 is available for the SAN switch market,” said Robert Ward, senior director, Product Management. “When combined with Hitachi Freedom Storage Thunder 9200 systems, customers will be able to deploy industry-leading SAN solutions easily and cost effectively with industry leading flexibility and availability.”

Yankee Group
“McDATA's new Sphereon 4500 switch is a distinct and welcome addition to McDATA's family of switches and directors,” said Jamie Gruener, Senior Analyst, the Yankee Group. “This switch is uniquely suited for small and medium-sized businesses by being easy to manage as well as cost-effective. This announcement signifies McDATA's aggressive new initiative into the workgroup SAN market and well positions McDATA for growth in this market segment.”

IBM Microelectronics
“The Sphereon 4500 is based on a sophisticated IBM system-on-a-chip ASIC that integrates more than 22 discrete chips, including the SERDES, on to a single chip solution,” said Bruce Beers, IBM vice president of IT marketing, IBM Microelectronics. “This 12 million gate IBM ASIC provides McDATA with cost advantages while delivering high end features to their midrange enterprise customers.”

META Group
“Director-class features and functions incorporated within less expensive switch solutions with simplified deployment and robust management is driving the efficiencies and effectiveness of SAN attached storage resources into departmental and midsize data centers,” said Carl Greiner senior vice president, Enterprise Data Center Strategies, META Group.

TidalWire
“The Sphereon 4500 brings TidalWire a powerful switch to meet our customers’ requirements of flexibility, cost-effectiveness and investment protection from their storage networks. We are pleased to bring Sphereon technology to our reseller and integration partner customers who work in the SMB space,” said Jeff Brandes, TidalWire president and CEO.

Bloor Research, Europe
“McDATA's new entry level SAN products are very promising. The capacity on demand capability of the Sphereon 4500 provides high flexibility,” said Tony Lock, senior analyst, Bloor Research. “Enterprises that do not need the full port count right away can start with the number of ports that they need and scale up as their requirements grow. In this way they can keep control of their costs and only pay for what they need, when they need it.”

Macarthur Stroud International, Europe
“Businesses require systems that are ‘always on’. McDATA’s new switches enable users to build high availability storage networks across the enterprise. The scaleable range will enable users to implement networks today that can grow to meet their future needs,” said Hamish E. Macarthur, Macarthur Stroud International.

Ashton, Metzler, and Associates
“Small and midsize businesses understand the limitations of direct-attached storage, mainly in terms of the complexity of management and the associated costs. Their challenge is two-fold: Which technologies make sense for them and which vendors make sense for them in a world that is rapidly changing,” said Jim Metzler, Ashton, Metzler, and Associates. “Flexibility in a storage networking product is essential. As is the ability to allow a customer to cost effectively get started, allowing them to do the job today, but will allow them to, again, cost-effectively add capacity. That's a key characteristic of effective scalability for any SAN solution.”

META Group, Europe
“Small and medium enterprises require fibre channel based SANs to be flexible, scalable, and reliable. IT organizations are also looking for technologies providing clear benefits at reasonable prices,” said Sean Derrington, Sr. Program Director with META Group in France. “Moreover, IT organizations will benefit from typically enterprise functions (e.g., port density, availability) in fibre channel switches moving down market.”

Infonetics Research
“According to our research among end-users in North America, the adoption of storage interconnection products will be the highest among medium-sized organizations from 2002 to 2004. Products that are low cost and flexible will lead the way in this adoption,” said Neil Osipuk, Directing Analyst at Infonetics Research.

Evaluator Group, Inc.
“The McDATA 4500 is a very scalable and affordable fibre channel switch solution that should be well received by Small-to-Medium Business enterprises,” said Randy Kerns, analyst for the Evaluator Group, Inc. “The characteristics of simple web-based management interface to software on the switch, high performance with no compromises, scaling of 8, 16, and 24 ports, and the redundancy and availability characteristics seen in director-class products are right on target.”

Aberdeen Group
“SANs aren't only for the carriage trade any more,” said Dan Tanner, Director of Storage Research at Aberdeen Group. “Small to medium enterprise SAN adoption will increase, spurred on by flexible, affordable, and simply manageable products like McDATA’s Sphereon 4500.”

IDC, Europe
“Although storage networking is continuously progressing, SANs have been perceived as costly and complex. As such, many midrange enterprises have, so far, hesitated to move to Fibre Channel fabrics,” says Claus Egge, Research Director IDC EMEA Storage Systems Research. “With the Sphereon 4500's ability to allow for a pay as you grow approach as well as its relatively dense port count, McDATA is clearly addressing these issues. Midrange businesses are increasingly recognizing the benefits of the improvements to reliability and performance that Fibre Channel-based fabrics can bring. The growth of this market midrange segment will be stimulated by the price points and scalability of products such as the 4500.”

LSI Logic
“LSI Logic works closely with McDATA as a strategic alliance partner to deliver industry-leading storage solutions with the performance and scalability required for businesses ranging from entry-level to the data center,” said Joel McGill, alliance manager, LSI Logic Storage Systems, Inc. “As a technology leader in high performance, highly scalable storage solutions for the open enterprise, LSI Logic is excited that McDATA has released the Sphereon 4500 to deliver flexible and reliable connectivity to our mutual customers.”

Comparex, Europe
“Companies in the small-to-midsize enterprise category require flexible, cost-effective storage networking solutions that will allow them to scale with growing requirements and keep current with emerging technologies,” said Rupert Auer, Manager Product Marketing & Business Development at Comparex. “With the Sphereon 4500, McDATA is able to meet these customer requirements better than any other SAN switch vendor today.”

DataCore
“McDATA’s introduction of the Sphereon 4500 addresses customer requirements for powerful, high availability SANs at entry-level prices,” said Ken Horner, vice president of marketing at DataCore. “Combined with DataCore's SANsymphony open storage networking platform, it makes for a cost-effective move from direct-attached storage to a consolidated and automated storage infrastructure.”

XIOtech
“The Sphereon 4500 brings high-end features and functionality to the mid-range market. Its cost-effectiveness, flexibility and performance will help accelerate SAN adoption among small-to-midsize enterprises,” said Dan McCormick, vice president of worldwide marketing for XIOtech. “XIOtech is committed to providing businesses with cost-effective, adaptive networked storage, enabling IT and business agility. Through our participation in the McDATA OPENready Interoperability Partner Program, we plan on continuing to work with McDATA to deliver these types of solutions to customers.”

BASF IT Services
“Our storage needs are constantly changing, both in terms of size and technical requirements. That's why it's absolutely critical that our storage network is scalable, flexible and highly reliable. We've found that McDATA, with its Sphereon 4500 Fabric Switch, can both meet and exceed those needs,“ said Christian Popp, SAN Architect at BASF IT Services. "Not only can the Sphereon 4500 be implemented without causing disruption, but its handling and management meet the same high standards we know from the other McDATA devices in our network.The Sphereon 4500 provides a high level of functionality, scalability and flexibility which is a key to us being able to do business successfully.”

Enterprise Storage Group
“The 4500 rips the costs in half, bringing high-end features to the midrange market, and offers 'buy what you need, not what you don't' flexibility,” said Steve Duplessie, analyst for the Enterprise Storage Group. “What’s not to like?”

About McDATA (www.mcdata.com)
McDATA (Nasdaq: MCDTA/MCDT) is the worldwide leader in open, ultra-high availability storage networking solutions and provides highly available, scalable and centrally managed storage area networks (SANs) that address enterprise-wide storage problems. McDATA's core-to-edge enterprise SAN solutions improve the reliability and availability of data to simplify SAN management and reduce the total cost of ownership. McDATA extensively pre-tests its solutions to provide IT organizations with the comprehensive tools, methodologies and support essential to robust SAN implementation. McDATA distributes its products through its OEMs, network of resellers and Elite Solution Partners. McDATA and the McDATA logo are registered trademarks of McDATA Corporation.

Forward-Looking Statements
This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. Readers are urged to consider statements that include the terms "believes", "belief", "expects", "plans", "objectives", "estimates", "anticipates", "intends", "targets", or the like to be uncertain and forward-looking. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, our ability to quickly integrate SANavigator and ramp sales, our relationships with EMC Corporation and IBM and the level of their orders, the impact of the continued general economic slowdown on purchasing decisions by customers and capital spending, our ability to complete the manufacturing review plan and the successful implementation of an “outsourcing-focused” manufacturing model, our ability to expand sales into higher margin channels through system integrators and distributors, a loss of any of our key customers (or our OEMs’ key customers), distributors, resellers or our contract manufacturer, our ability to expand our product offerings and any transition to new products (such as 2 Gb/s and higher port count products) and OEM qualification of such new products which may occur after the general availability dates, possible inventory charges that may occur with any transition to such new products, component quality and availability, the impact and uncertainty of typically having most of the sales volume occur in the last month and a significant amount in the last two weeks of the fiscal quarter, the development of the storage area network and switch markets, competition in the storage area network and switch markets, one-time events and other important risk factors disclosed previously and from time to time in our filings at the U.S. Securities and Exchange Commission. These cautionary statements by us should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by us. We cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.