SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Network Appliance
NTAP 109.28-2.0%Nov 26 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Fortney Veeble who wrote (308)6/24/1998 7:59:00 PM
From: DownSouth  Read Replies (2) of 10934
 
The following URL links to an article in June 15 Internet World magazine. The article gives good press to the tornado forming around caching appliances, in which NTAP is as major player with their NetCache version of the network appliance. (CSCO, INKT, and CacheFlow are in this forming storm as well.)

What the web page version of this article does not show is a graphic in the hardcopy version showing sales of caching appliance hardware sales going from near $0 in 1998 to $3.5B dollars in 2002. A similar line for software versions of caching appliances going to $500M during the same period.

iw.com

On another note, regarding NTAP's margins: I believe the company has warned the market that their margins will be decreasing as they sell larger file servers. Their new architecture of clustered servers allows for multi-terrabyte configurations. The downside of this is that disk drives become larger cost/price components of the configuration. Their is a margin squeeze on disk drives, whereas there is plenty of margin in the "headend" and software components of the configuration. So I expect their margins will be slipping from the 60% range down to the 45% range, while their revenue growth will be rewarded by more expensive configurations.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News