<<It appears that some are extrapolating that to mean that NTAP's gains could be EMC's losses. (just guessing on my part there). >>
I read the report and I did not see this statement or anything that suggests that to be the case. ML's report follows//;
Technology Report - Focuses on Storage (Steve Milunovich 212-449-2047/John Roy 212-449-6456)
Two names were added to Gilder's Telecosm list: Procom (PRCM, $63 7/16, not rated), a supplier of network attached storage like
Network Appliance (NTAP, $87 11/16, C-1-1-9), and Storage Networks, a private storage outsourcing company.
We agree with GTR on four key technology points: 1. "The market will be big enough for all." With usage growing upwards of 100%
per year demand looks strong for the foreseeable future. 2. Storage performance, capacity, and manageability are not yet meeting the
users needs. Gilder's theory is that this "undershoot" plays to the advantages of vendors with integrated solutions, such as EMC
(EMC, $76 7/8, B-1-1-9) and NetApp. 3. Gigabit Ethernet is coming on strong to challenge Fibre Channel in the storage space. 4.
Network attached storage (NAS) is well-positioned in the storewidth space. Gilder rightly identifies that NAS is delivering on the
promise of "cheap, simple data sharing that take advantage of the reversal in network and I/O speed advantages."
We were surprised that Procom was added to the list as we believe there are some execution issues for the company. When we visited
the company earlier this month we came away with the same conclusion as Gilder on the attractiveness of the Linux-based
architecture, but manufacturing a reliable storage product is not easy and Procom has yet to establish a reliability track record. We
continue to rate EMC and NTAP Buys. |
