Thread: Check out these research comments released by ML yesterday, paying close attention to the last two sentences:
"The Hyperspeed Infrastructure Buildout: Accelerating Business Cycle Powering Technology Leaders," by Steven Milunovich, CFA, First Vice President and John M.A. Roy, Ph.D., Director
Reason for Report: Industry Trends
Investment Highlights:
Category leaders should increase their advantages; increasing return
economics win.
We like IBM (IBM, B-2-1-9, $120.19) in services, EMC (EMC, B-1-1-9,
$95.94) and NetApp (NTAP, C-1-1-9, $93.94) in storage, and Sun (SUNW,
B-1-1-9, $122.38) in Unix.
Fundamental Highlights:
The pace of business is accelerating, and IT executives are being directed to
go full speed ahead on initiatives and do it now.
Time-to-market is the key to building technology infrastructures. The way
for IT teams to be successful today is to choose leaders and go with the
products they know and the vendors they trust.
It is getting closer to “winner takes all.” As most IT executives know who
the leaders are, infrastructure decisions become default decisions and the
leader in a category benefits heavily from this environment.
In services and Unix, the revenue leaders grew the most. Only in storage
did the revenue leader not grow the most, which we see as an artifact of a
new category in storage (networked attached storage).
Leaders will likely continue to benefit from this hyperspeed environment.
With the Internet infrastructure continuing for a number of years we may
get “super-dominant” players in each category.
[end of comments]
"Super-dominant." Oh, that sounds good.
Lynn |
