Mark,
Upgrading the 100 year old twisted copper pair and one-way coaxial networks to support broadband is definitely (IMHO) the investment sector of the decade. And as the new network infrastructures are being rolled out, new services that demand increased digital storage are a given.
Currently, all the big data pipes lead straight to computers. But TVs out number computers by a 5:1 ratio. That is why Bill Gates is placing billion dollar bets on his attempt to control the operating system for the set top box. It's certain, sometime in the near future, that broadband data will be blasting to not only my computer, but to the TV as well. When that happens, it's a whole new world.
So I think, probably as you believe, when the broadband pipe hooks to the television is when there will be a huge ramp up in high end storage demands. When will this happen? I really don't know. Right now it's so clear the bottleneck is in the network infrastructure and that is where most of my investments and time are spent. My due diligence on the data storage sector is really just starting.
Sorry I can't offer any better opinions. Hopefully in about six months or so I'll do better.
MikeM(From Florida)
PS There is a small cap, Ampex Corp (sym: AXC) that intrigues me. I think studying that company, it's competitors, it's solutions, etc. may be a great way to learn about storage needs of broadband deployment of entertainment services. But I'm certainly not recommending it as an investment idea. |
