Hello John. To quote from part of the _Barrons_ article you shared:
[quote begin]
But James A.M. Douglas, of Douglas Nayes in New York, looks at things a
bit differently...
But EMC? "I think it's a Y2K fear
story -- fear of losing your data,"
Douglas says. "We sold our position,
although we did very well. EMC
remains a great company, but I don't
see it achieving the growth rate in the
future that it enjoyed in the past."
[end quote]
First, I have never heard of Douglas Nayes before so I read this company's opinion of EMC without taking it seriously. Basically, I only pay attention to research or opinions made by companies and/or analysts I have both heard of and also know are highly regarded concerns.
Second, any time I read something that leads one to think storage requirements are ultimately finite I chuckle. This Douglas fellow, from his comment that EMC is basically a Y2K story, seems to hold this position. I, on the other hand, hold a totally opposite position. In a real world example, its the difference in world views between a NY City apartment dweller and a home owner. The apartment dweller has a mind set of storage capacity ultimately being finite and adjusts things accordingly. The home owner, however, starts off with seemingly ample storage facilities which mysteriously fills-up. Except for people who like a minimalist, spartan existence, after a few years, people never seem to have enough storage area. Rural non-farming people who have barns or HUGE garages on their properties are the worst: ask to look inside one of their barns some time unless you can figure things out by all the overflow outside.
Its the same for companies in the Information Age. They start off with **more** than they assume will be needed for years. They quickly learn they need more, that their storage needs are ultimately infinite, [hopefully] bringing back repeat customers to EMC.
EMC is the snack food company of the IF: deal with it one then come back for more.
Regards,
Lynn |
