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Zeugma Spins a Remix

Zeugma Systems Inc. has done some housecleaning, laying off hardware personnel as the startup turns its focus to software and applications.

The net effect was zero, as Zeugma still has more than 100 employees after hiring applications experts and adding to the sales team, CEO Andrew Harries says.

If anything, the change shows how Zeugma, which is done with developing its base hardware, plans to go beyond box selling, into the business of services creation and support.

"We're starting to move into applications development," says Andrew Harries, Zeugma's CEO. "We needed to add to that team substantially, but we didn't need as many people on the hardware side. Sometimes you've got to do a remixing of your team."

One factor at play here is that Zeugma doesn't need to develop new line cards right now. The company's Zeugma Services Node (ZSN) gets fed with generic router cards and, separately, high-performance computing cards. The latter get programmed to accommodate the services and applications a carrier wants. (See Zeugma Systems Inc., Zeugma Rethinks Edge Routing, and What Zeugma Isn't.)

It's certainly possible for the carrier to program those services by itself. But Zeugma also hopes to make a business of selling prefab applications that it's written for the platform.

Hence, Harries stresses that Zeugma is hiring people to craft those services. "Applications is really where it's at for us right now," he says.

Zeugma is also bringing in some partners' technologies as services. One example would be a deal with Telchemy Inc. announced earlier this month. (See Zeugma Tests With Telchemy.)

— Craig Matsumoto, West Coast Editor, Light Reading

gbmorrison 12/5/2012 | 3:30:53 PM
re: Zeugma Spins a Remix Any idea how much of their $40M in VC funding is left? Any revenue or customers yet?
Pete Baldwin 12/5/2012 | 3:30:50 PM
re: Zeugma Spins a Remix No substantial revenues yet, but they do hope to name some customers -- customers that are running applications on the box -- going into next year.
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