Hey, Bosco, good luck in the storage sector- seriously.
I think you should check on how much longer EMC is committed to royalty payments to MTI. I might be wrong, but I think not all patent payments go on forever.
To be fair, best I can tell, MTI makes the best storage stuff in the business. A study by Coopers and Lybrand made that very clear about a year ago. There simply is no comparison. But making the best product did little good for Syquest, WordPerfectCorp, etc. Personally, I don't understand why anyone in need of storage wouldn't call EMC. What few customers MTI has are buying on the cheap, i.e., no margin- my opinion. I can't see standing in front of a truck with license # "EMC".
Having said that, I expect EMC to retrace 20 or 30 points in the near term, then do its usual and double or triple again by Xmas. Recent EMC news re Asia (including Japan) looks real bullish. EMC's software business makes them the fastest growing software company on the planet (words of their CEO). "Forget about it".
I see you post to the 3COM thread. I have no idea why they went into the SAN business with MTI and Legato, vs. EMC for both hardware and software, but now that I see 3COM struggling, maybe there's a message.
As stated, good luck to you. I am currently the only bear on the thread, and since I am not in the storage business and know only what I read, you'll see my ignorant opinions take some pretty good hits.
Greg |
