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Technology Stocks : Son of SAN - Storage Networking Technologies

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To: George Dawson who wrote (4655)	10/31/2002 4:27:29 PM
From: Gus	Read Replies (1) of 4808

One of the most vexing problems for most storage start-ups is that storage customers are very conservative and risk-averse. For instance, EMC and Storagetek are the only two independent storage vendors that have managed to exceed the $2B revenue milestone in the last 30 years with EMC being the only to exceed the $5B revenue milestone. Quantum DLT exceeded the $1B milestone to reach $1.4B before falling back to $1B-$1.1B. NetApp didn't stay long over $1B before falling back to $800M. There are actually very few ideas in the storage start-up world that existing storage vendors don't already have in their technical road maps or that they can't buy. And what few original ideas are out there are also, by definition, too radical and more than what a risk-averse storage market may be willing to buy right now or even in the medium-term. It doesn't help that most of those storage start-ups, particularly the loud ones, have interesting ideas that appear to be hastily cobbled together with very bad and very risky failure management schemes, if any, most likely as a result of the rush-to-IPO mentality that still lingers on like a really bad hangover, dry pukin' and all.<g>

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