NTAP will win the Convergence Market Share wars because of Open standards OSN for NAS and SAN. The other storage players, IBM, CPQ, EMC, etc all either buy from NTAP or in the instance of EMC are entering into an area where the difference in the technology deployed, allows for easier integration one way, but not in the other way, that is, NTAP is in an easier position to enter EMC markets than EMC can enter and take market share from NTAP. I agree with the rest of the analysis of your artilce, very much impressed with the analysis provided.
The Summary says it all:
<NAS and SANs are complementary technologies. They are converging today under the pressure of powerful
<market and technology trends. OSN is the ultimate force that drives the convergence and permits
<standards-based, best-of-breed solutions. Michael Alvarado/Puneet Pandit Network Appliance.
I am,
Truly your$,
-Crystal Ball
P.S. If the growth rate exceeds 30 to 50% each quarter, thats at a minimum, 1.30 x 1.30 x 1.30 x 1.30 = 3.51,
or 351% which is far in excess of the P/E range of 140-180 lately. I only mention this because storage is the fastest growing high technology market space, and seems to have no saturation point, storage will just continue to increase year after year. NTAP is OVERSOLD. I see a return to is 52 week high sooner than later. |
