I think competition is hurting the original players in Fibre Channel:
This is from PMC Sierra:
New products and announcements in the first quarter of 2004 include the following:
4G Fibre Channel Cut-Through-Switch Family for Storage Systems: PMC-Sierra introduced three 4G Fibre Channel Cut-Through-Switch (CTS) devices consisting of the CTS 20x4G, CTS 18x4G and the CTS 4x4G devices. The CTS product family enables storage OEMs to deliver low-cost 4G Fibre Channel disk enclosures with higher system performance and reliability than existing deployed systems. The CTS devices integrate PMC-Sierra's proven high-speed signal integrity together with an innovative FC switch architecture to provide a best-in-class solution for enterprise storage equipment. The CTS loop switch products are PMC-Sierra's third generation of products for Fibre Channel storage enclosures.
From Mcdata:
BROOMFIELD, Colo.--(BUSINESS WIRE)--April 15, 2004--McDATA® Corporation (Nasdaq:MCDTA - News; Nasdaq:MCDT - News) today announced a revised outlook for its first quarter of 2004, ended April 30, 2004.
McDATA currently expects revenue to be in the estimated range of $94 to $104 million, compared to the company's previous range of $108 to $115 million. This change in anticipated revenue reflects less robust-than-expected early 2004 purchase patterns by customers and end-users, some of which may relate to a slow pace of economic recovery and seasonal softness in IT spending in the first quarter.
We anticipated normal industry seasonality in the first quarter of 2004, but we had nonetheless expected to maintain revenue at approximately the level of our very strong fourth quarter, based on a number of factors," said John Kelley, McDATA's CEO and chairman of the board. "Revenues have been somewhat slower to ramp than we expected and more typical of our first-quarter experience historically. We believe this is related to timing rather than underlying demand."
Some of the specific factors affecting the revised revenue range for the first quarter include somewhat slower ramp-up for new product distribution agreements and high-volume channels, softness in our segment of the storage sector and continued lengthened sales cycle times on high-end purchase decisions. The revised operating expenses outlook reflects slowing of headcount growth, overall expense management and lower variable compensation.
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