PRUDENTIAL SECURITIES EQUITY RESEARCH
PREVIEW ENTERPRISE/DATA STORAGE TOUR SEPTEMBER 13-15
Subject: PC/DATA STORAGE INDUSTRIES
COMPUT DATA STORAGE INDUSTRY
Current: HOLD
Analyst: Kimberly Alexy (212) 778-1049
Prior:Andrew Saland (212) 778-8591
Risk: High
o Next week, we will be hosting our 3 rd annual data storage tour in Silicon
Valley on September 13-15.
o Participating companies include EMC, Sun Micro, HP, Dell, Network
Appliance, Auspex, Legato, Adaptec, Quantum DSS, Quantum HDD, Seagate, Maxtor,
Komag, and HMT.
o For the enterprise storage vendors, we expect to review overall demand
trends, discuss visibility into Q4 and 2000, compare/contrast NAS vs. SANs and
review relative competitive positioning and market dynamics. On average, we
believe overall growth trends remain strong for the enterprise storage
companies and expect discussions will be positive in tone.
o For the disk drive and component suppliers, we expect to discuss current
industry demand and pricing conditions, the outlook and timing for an industry
recovery and key growth trends for the future. We believe that OEM pricing
remains very aggressive and that while Q3 estimates may be on track, Q4
estimates may prove overly optimistic. We see no signs of OEM price easing
and believe the recent rally will prove short-lived. |
