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Technology Stocks : Adaptec (ADPT)
ADPT 19.39-1.7%10:23 AM EST

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To: Brendan W who wrote (914)1/26/1998 12:30:00 PM
From: Andy Hopper  Read Replies (1) of 5944
 
Jumping in late on this, but what it's worth:
-SCSI benefits are mainly in mult-threaded I/O environments
(e.g., Servers). IDE performance in the single disk environment
is as good as SCSI, less expensive, and a whole lot simpler. Disk
drives are climbing in capacity faster than the typical desktop user
requires, hence there is less and less need for SCSI in the typical
desktop situation.
-Adaptec's technology assets extend way beyond SCSI, but some of their
investments here may take a long time to play out. Example IEEE1394, which right now is losing mindshare to USB.
-It isn't in the best interests of system vendors to adopt any of
Adaptec's technologies they're not forced to for reasons of function because of Adaptec's historical strategy of maintaining
prices artificially high. You don't see Adaptec's SCSI chipset, for
example, embedded in many high-volume system boards. The Intels, Compaqs, Dells and Gateways of the world will pursue imbedded lower-
cost solutions.

Nevertheless, I continue to hold Adaptec for the longer term.

Andy Hopper
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