I picked this up last night on Mike Workman's blog over at Pillar. Looks like they're suffering the downturn. Storagezilla thinks this could be 30% of the workforce. I'm sure this is going to be one of many bad news stories from the storage industry we hear over the next few months.
I've never understood the point of Pillar's offering. Differentiating performance tiers based on the specific place on a disk seems a dead end idea. Firstly, disks might appear to be random access devices but if you're accessing one cylinder on a drive you can't be accessing another at the same time. You need some pretty clever code to ensure that lower tiered I/O requests don't overwhelm tier 1 requests in this kind of shared environment. In addition, everyone says SSDs are the future. Once these devices are mainstream, Pillar's tiering model is defunct (unless SSDs have some performance variant across different parts of the silicon!) as there's no differential in performance across an SSD device.
For me, a Compellent type architecture still seems best - granular access to each storage tier (including SSD) with dynamic relocation of data.
** disclaimer - I have no affiliation with Pillar or Compellent **