Rackable whacked after sales exec splits

Summary:Rackable Systems' vice president of worldwide sales has left the company and investors aren't happy. According to a regulatory filing, Rackable's Thomas Gallivan has resigned effective Jan.

Rackable Systems' vice president of worldwide sales has left the company and investors aren't happy. According to a regulatory filing, Rackable's Thomas Gallivan has resigned effective Jan. 7.

Shares were down nearly 7 percent on the news. Rackable provides high-density computer servers and high-capacity storage systems for data centers. Amazon, Microsoft and Yahoo accounted for 60 percent of the company's 2005 revenue. Gallivan gets a severance payment of $171,000 spread over 3 months. Rackable said its domestic sales operation will be handed off to president Todd Ford. Thomas Barton, CEO, will handle international sales.

It remains to be seen what impact Gallivan's departure will have on Rackable's customers. However, as long as Internet giants continue to build big data centers Rackable should be fine.

Topics: Big Data

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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