Network Appliance Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance

NTAP 115.78

+3.1%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Uncle Frank who wrote (7331)	3/28/2001 6:36:37 PM
From: SecularBull	of 10934

It's about the business model of EMC as it relates to the products it produces. For Compaq, the issue is how you sell your products, and the margin pressure on commodity products like PCs. Compaq's model was built from the ground-up around the indirect model, with it's distributor agreements, etc. EMC is a SAN company, making a ton of money on SAN. The shift towards an NAS initiative is a clear demonstration of the fact that NAS is eating away at SAN's dominance. Perhaps EMC was quicker to ADMIT that NAS was more stealing share sooner than CPQ was willing to admit that the direct model of DELL was stealing business from CPQ. If the company waits until earnings growth begins to decelerate to make that admission, the game is over. Nevertheless, changing the model towards NAS at EMC is problematic. Not only are they more directly competing with NTAP, but also with their own bread-and-butter business. (See Compaq selling direct, cutting out their distribution infrastructure.) Oh well. Got to go. ~SB~

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next