StorageNetworks Founder Steps Down From Day-To-Day OperationsStorageNetworks Founder Steps Down From Day-To-Day Operations

Many companies struggle with the complexity of their storage infrastructures. But most aren't about to toss their data over the wall and let someone else manage it. Unfortunately for StorageNetworks Inc., it seems they don't even want the software that will make it easier for them to get the most efficiency out of their storage--and the company is paying the price.

Founder Peter Bell stepped down from his positions as president and CEO on Wednesday so he can pursue other efforts. He'll remain on as chairman of the board. Peter Flanagan, Bell's CFO since 1999, will take over day-to-day operations as president and CEO.

About 110 other employees will be on the move, too: The company says it will let go of about half its workforce. Those left behind will continue to push storage resource-management software. The software StorageNetworks used as a pure service provider can help any company make full use of storage on the floor so it doesn't waste money on additional capacity that will also be underutilized.

Bell recently admitted that he hadn't yet successfully completed the mission he started out with in 2000. According to him, nobody is yet helping companies get efficiency out of their storage. Perhaps they never will. Bell and half his employees just took a nasty fall while trying.