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Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST
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To: Tom Duxbury who wrote (14489)2/19/1998 10:45:00 AM
From: Roy Sardina  Read Replies (1) of 29386
 
The problem that most of the FC Switch vendors have is that they build high port count switches (>8 port). While this has been ok for the present OEMS (DEC, SQNT, etc.) the high volume prospects (DELL, CPQ, etc.) all want lower port count, and much lower port prices. To lower the price of their large switches is difficult, first there is the fact that they are built like tanks (read highcost VERY reliable components), and they have features that only LARGE enterprise systems vendors need (or are willing ot pay for) So, if you want high volume and higher revenuwe you have to make a low cost switch, and that means lower port counts and fewer features.

You do all this and hope you don't canabalize your high end business.
My guess is that a 8 port switch won't hurt the 12-16 port business they are in.

As to a comment that someone made regarding SQNT being interested in high port count switches. It makes sense if you look at the SQNT product offering this is an expandable machine that could have many more than 16 total connections (cpu's + disk) so a >16 port switch seems very complementary to the business. McData (www.mcdata.com) already offers a 32 port switch.

It's also interesting to note that the IBM deal was for ANCR 1/4 speed switches. ALot of people have written that segment off, but it appears ot solve the needs of many customers. SUNW sold thousands of 1/4 speed FC RAID systems.

Roy Sardina
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