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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

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Aug 24 5:00 PM EST

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To: janski who wrote (16912)	6/29/1998 8:59:00 PM
From: Craig Stevenson	Read Replies (3) of 29386

Janski, The older generation switch certainly has higher latency than the MKII, but this is less of an issue in LAN applications, such as data backup, where the connection is set up and not torn down until the transfer is done. The 1/4 gig gear also has an advantage because there is far less competition, and the 250 megabit/second speed is substantially faster than Fast Ethernet, or 155 Meg ATM. This is a nice little niche area that Ancor has exploited to some degree for data backup applications. My disappointment with not having the MKII optimized for LAN applications stems from my belief that the MKII had to REPLACE the older generation 1 gig gear, in order for Ancor to produce it in sufficient quantity. (Economies of scale would further reduce the price of the MKII, making it even more competitive.) The 1/4 gig gear would continue to be manufactured and sold into the niche markets that required it. Craig

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