Bankrupt Kasten Chase Pulls Plug
Bankrupt Kasten Chase Pulls Plug
June 5th, 2006: After unsuccessful attempts to secure a acquisition deal, Data storage encryption and key management solution developer Kasten Chase has announced that it is filing for bankruptcy and ceasing operations.
After a damaging bid to move from a secure modem business into storage security, the Canadian company says that its demise stems from the slow development of the storage security market.
Speaking with enterprisestorageforum.com, Greg Schulz, founder and senior analyst at StorageIO, supports this saying that the storage security market is still in its infancy.
“The market is there, it's just a matter of time before it ramps up and the real demand and buying starts to kick in,” says Schulz. “Regarding Kasten Chase, it will be interesting to see who picks up their intellectual property in the liquidation sale.”
Kasten Chase said in a statement that it has been engaged in discussions with a number of parties in an attempt to rectify its financial situation through an acquisition or a reseller arrangement with an established storage vendor.
The company was unable to find a buyer or a vendor willing to support a significant product commitment for its mainframe tape encryption and key management solution. Because of this, it says that “the Board has determined it is in the best interests of the Company to discontinue operations immediately.”
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