Although we had the superior product, we could not market our way out of a wet paper bag. Our CEO counted on our (then) superior engineering & expected our products to market themselves. Eventually the IB engineering caught up and surpassed ours, but our marketing never even came close to theirs, so they were the clear winner.
We ended up going with a new upstart called Pathscale, which then was bought by qlogic, and then Intel. Our benchmarks showed a clear win over Mellanox at the time. In particular on larger jobs the Mellanox drivers seemed to consume a fair bit of ram for each client you were talking to, so even 32 nodes jobs would consume a fair bit of ram. We even built a cluster out of hypertransport connected infinipath cards in a "HTX" slow instead of PCIe. Managed I believe 1.4us latency, which is still reasonably competitive today. We built SDR (first public cluster), DDR (first public cluster), QDR based clusters. But then Intel said the new Infinipath would not be supported on AMD nodes, or even previous gen Intel nodes, I said it's a non starter and switched to Mellanox. I talked to several other HPC sites that said the same thing, months later Intel killed off the product. Sad and short sited on Intel's part.
MyriAPI was later replaced by a new firmware / host stack called GM. I think at some point we stopped shipping firmware source. I think that point was the transition from MyriAPI to GM...
Anyway, IB at least had lower latency than Myrinet, which is what counts in a lot of HPC. I don't remember the numbers, but I got quite close to Myrinet latency with the on-board 1GbE NICs on Sun x2200s, an un-managed switch, and Open-MX, which was interoperable with the Myrinet MX protocol. (I remember MX being slagged off by Mellanox; I don't know how similar MXM later was for IB.)