K,
Let me start by saying that, contrary to DavidG, I appreciated your input.
Now, let me disagree with you a little myself. <g>
I am not enthusiastic about the deal because it seems to lack synergy.
I think there could be a lot of "synergy" for LSI in the FibreChannel/storage system area. This is an important future growth area for LSI and the computing industry as a whole.
Second, the DD and high end computing segments are not very pretty right now and the rate of growth is certainly questionable. I think I read somewhere that symbios specializes in unix based systems which is also not the place to be as INTC encroaches on the high end market. So I view this market as slow growth at best given INTC's plans. On the DD side competition is very tough and margins will be squeezed for all suppliers. Also, weren't there some announcements last week involving LU in terms of targetting this segment? If so, competition will get tougher not easier.
The disk drive segment is down right now, but it is traditionally cyclical and will be back like gangbusters. The CRUS/LU announcement made last week was not targeting any Symbios/LSI markets that I am aware of, since CRUS/LU are not focused on SCSI. I believe the principal DD competition will be Adaptec, which is formidable enough in its own right.
Regards,
G.P.
|
