Isilon Systems (NASDAQ: ISLN) Message Board

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Technology Stocks : Isilon Systems (NASDAQ: ISLN)

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From: pirate_200	5/22/2008 1:46:33 PM
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More detailed introduction of Isilon Isilon does a packaged "cluster" system: think of it as a group of servers working together with a high speed interconnect. They are built from the ground up to do a good job with Web 2.0 stuff like video, streaming etc. and aren't so great with small requests like database transactions. The competition is the usual suspects: NetApp, EMC and to a lesser extent HP, IBM etc. anyone that sells clustered servers for storage. NetApp and EMC have both been working on products to attack Isilon: NetApp it's Ontap GX? product and EMC with it's Hulk/Maui? product. So far, it seems these products are behind in technology, but these are big competitors. The problem for Isilon is that these big competitors will eventually get things right and just getting a small portion of their existing customer base will give them a "unit installed" lead over Isilon. They then claim leadership in "clustered storage" and Isilon has to deal with the FUD (Fear Uncertainty Doubt) as their respectitive marketing departments start attacking them. Isilon has a window of opportunity to win. Unfortunately, they've been mismanaged over the last year, it is not clear that current management is on the ball either. They completed a financial audit and their financials are up to date. However, Q1 had the lowest number of new customers in over a year. Q2, reporting in July, will be key to show whether things are really on an uptrend here or whether the best exit for this company is a buyout/acquisition by competitor. At $4.84-ish today, it is probably a good buy simply as a future buyout candidate. It is unclear whether they'll continue on their own in the long term.

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