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[AllThingsD] Calxeda Has Shut Down

NTMBK

NTMBK

Lifer
Sources tell AllThingsD that Calxeda, the Austin-based chip design startup that had raised somewhere north of $90 million in venture capital funding, has effectively ceased operations today.
A source said the company had sought to raise a fourth round of capital but was unsuccessful. “They just ran out of runway,” as one source put it.
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http://allthingsd.com/20131219/calx...rvers-has-shut-down/?reflink=ATD_yahoo_ticker

Wow, didn't see that coming. Guess that's one less competitor in the new microserver market.

EDIT: Sorry, just read the update at the bottom. Calxeda are describing it as a "restructuring", so they not be totally out for the count... or it may be that they are "restructuring" themselves into a mere patent holding shell, looking for an acquisition.
 
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I wonder if anyone gonna pick them up. And as CHADBOGA said, microservers are indeed hard. I doubt its gonna get much easier. The segment itself is locked in a niche it cant get out of for years.
 
NTMBK said:
http://allthingsd.com/20131219/calx...rvers-has-shut-down/?reflink=ATD_yahoo_ticker

Wow, didn't see that coming. Guess that's one less competitor in the new microserver market.

EDIT: Sorry, just read the update at the bottom. Calxeda are describing it as a "restructuring", so they not be totally out for the count... or it may be that they are "restructuring" themselves into a mere patent holding shell, looking for an acquisition.
Click to expand...

Sounds like mass layoffs, which sounds serious.

"The shutdown will idle nearly all of Calxeda’s roughly 125-strong workforce, who have been informed of the move. Some have already started changing their LinkedIn profiles to reflect that they’re now looking for new jobs. It’s unclear exactly how the company will unwind its operations, or if it will file for bankruptcy. One asset it does have is intellectual property regarding the design of ARM-based chips for use in servers. A source said that Hewlett-Packard and Dell, both of which have been making plans to add ARM-based chips to new small server designs, may be considering a scenario where they buy out the company’s patents."
 
poor HP has gotten on wrong side of things for the past 5 yrs now. another hole in their moonshot dream
 
@NTMBK - if thats the case, there wont be words like "shutdown" and "LinkedIn profiles to reflect that they’re now looking for new jobs". HP already got burned bad by webos. I am not sure if they are willing to take another huge risk

buying calxeda means getting into bad books of intel and possibly getting sidelined on the traditional server side. hp definetly cant take it
 
what's most interesting to me are a few things

1) Calxeda was considered a darling of the VC investment community 3 years ago when they were starting to talk up the ARM based microserver opportunity

2) They had bigtime financial backers including ATIC (limitless funds) and ARM

3) They had FB CTO recently join their board

Their last round of funding was OCT 12 and between then and now VC's decided the businesses was never going to make it so they decided to not throw more money down the toilet. Didnt Intel start sampling Avoton in 1H 2013? Maybe there is a connection :sneaky:
 
I'm not really suprised. Calxeda had become q vaporware vender. Their 32bit product wasn't successful, and their 64bit was perpetually a couple quarters away from ready.

Now ARMs own 64bit cores are right around the corner and calxeda still has nothing on the market. The window slammed shut on them.
 
erunion said:
I'm not really suprised. Calxeda had become q vaporware vender. Their 32bit product wasn't successful, and their 64bit was perpetually a couple quarters away from ready.

Now ARMs own 64bit cores are right around the corner and calxeda still has nothing on the market. The window slammed shut on them.
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There's also bigger players in the market. AMD making ARM based Opterons being the most obvious.
 
I knew this would happen as soon as I looked at the price tags on what they were selling. I remember the anandtech article that said they were charging $20000 for a server when an equivalent-performance intel-based server could be had for 1/3 the cost.
 
NTMBK said:
The microserver market is barely off the ground, so I think it's rather early to be declaring winners and losers just yet!
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You're welcome to hold out hope if you like but ARM is entirely uncompetitive in the microserver market. Makes it a little difficult to run a profitable business selling ARM servers.
 
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