SGI Offering Support to Verari Customers

SGI is looking to fill the void for customers of financially struggling Verari, which is restructuring after laying off the bulk of its employees. SGI says it will offer customized support to Verari customers through its own services unit. Verari's CEO hopes to have a new plan for the company in place within a couple of weeks.

SGI is offering product support to customers of struggling server rival Verari Systems.

Verari has laid off the bulk of its 225 or so employees and is undergoing what CEO David Wright calls a restructuring, though it's unclear what the company may look like-or whether it will be around-after the restructuring.

There are 20 or so employees left to fulfill the remaining customer orders and to work on the restructuring plan.

Rumors of Verari's financial troubles began circulating last week, and employees were told Dec. 11 of the layoffs.

SGI officials announced Dec. 15 that it will provide customized support to Verari customers through SGI's own services unit.

"Verari global customers will now benefit from our worldwide service infrastructure and our experience supporting existing Verari customers in Europe," David Yoffie, senior vice president of services at SGI, said in a statement. "Customers will be able to work with SGI to define custom support solutions that address their specific needs."

More information can be found here.

Wright is blaming the global recession and credit crunch for the company's financial ills. It got to the point where Verari-which makes servers, storage devices and the Forest containerized data center-couldn't make payroll, forcing the layoffs.

In a posting on its Website, the company says it is undertaking a process that "will protect our customers investment and benefit our creditors as we restructure the business."

The note says the company expects to have a plan in place soon. In an interview, Wright said he hoped to have one within a couple of weeks.

What that plan will look like is unclear, he said.