notes form MER's Stsorage Conference:
> Merrill Lynch
>
> Network Appliance (NTAP; $58.13; C-1-1-9)
> Apr01E$0.41 02E$0.60
> * In comparing total cost of ownership for storage arrays, NTAP believes that Sun is approximately 2.5X and EMC is roughly 3X that of NTAP.
> * Brocade switches will be bundled in future NTAP solutions. In order to simplify expanded NTAP storage arrays, Brocade switches will be used to connect filers and disks and effectively create the redundancy otherwise provided by cross-connecting each filer with each disk. This move effectively makes NTAP an OEM for Brocade.
> * Texas Instruments, Oracle, Merrill Lynch and Deutsche Telekom all selected NTAP versus EMC or Inktomi. Mr. Warmenhoven believes that NTAP is continuing to penetrate the Enterprise.
> * Mr. Warmenhoven characterized EMC> '> s new Chameleon NAS product as immature and noted that EMC has pursued a > "> bait and switch> "> strategy with Chameleon. This will undoubtedly be a long contest but it does not sound like NTAP is feeling much of competitive pressure.
> * Network Attach Storage (NAS) remains an evangelistic sale and Mr. Warmenhoven believes that EMC> '> s entry into the market represents an implicit endorsement of NTAP and its strategy. In 1993, Cisco enjoyed its largest YY revenue growth rates. 1993 was the year that IBM introduced its SNA hubs and routers designed to > "> kill> "> Cisco and they had the opposite effect. The past may be playing out again.
> * Mr. Warmenhoven listed local mirroring capabilities and SAN fabric between the system and disks at the top of his wish list for new storage developments.
> * While competitive cataclysms make for good press and better novels, Mr. Warmenhoven pointed out that EMC and NTAP collectively own less than 25% market share in servers. Compaq, Dell, HP, IBM, and other server vendors own the remainder. While EMC and NTAP will undoubtedly become more competitive, the market opportunity remains large and viewing storage as a zero sum game is premature.
> (T. Kraemer)
>
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