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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Tulvio Durand who wrote (6673)	6/9/1999 7:36:00 AM
From: GVTucker	Read Replies (2) \| Respond to of 17183

RE: EMC and Y2K At yesterday's Growth and Tech conference in NY (sponsor: PW) a lot of EMC's presentation was devoted to Y2K. A few highlights, quoted from the PW notes: "While the company would not rule out the possibility of some customers freezing the implementation of some new applications in the second half of 1999, EMC doesn't see this as widespread, and sees demand for increased capacity on existing systems and Internet-related storage demand as the offset." "And the company continues to see no Y2K impact on its business in 2000 from the bubble effect (depressed demand for storage in 2000 from the need to reabsorb storage capacity redeployed from Y2K test environments to production environments.)" "Rothnie [SVP EMC] indicated that the majority of its customers purchased storage in 1997 and in the first half 1998 for Y2K testing and remediation (amounting to at most 10% of EMC revenues), and that Y2K-driven storage demand has subsided considerably since the second half of 1998." PW analyst note here: "While we don't share EMC;s sanguine view of Y2k, it is an exogenous event, and is likely to have only a short term (1 to 2 quarter) impact if any."

To: Tulvio Durand who wrote (6673)	6/9/1999 11:27:00 AM
From: Tony Viola	Read Replies (2) \| Respond to of 17183

Tulvio, Not only do these people erroneously equate PC hard disk with enterprise storage, they also don't understand the role that enterprise storage plays in alleviating Y2K problems. Financial centers and other businesses need to record and store more data more often during the Y2K transition than at other times in order to be able to unscramble errors that might occur because of Y2K glitches. Thus there could very well be MORE demand for EMC equipment because of Y2K. One of the other threads (Intel or AMD, I think) yesterday had posts saying there is a five month backlog already, for people asking the IRS for up to date social security records. And, the IRS is supposed to be the furthest ahead of the gov't. agencies in Y2K preparedness! Of course, these two IRS "factoids" shouldn't really be connected. If it is 5 months, what's the critical path? I'd guess it's people handling the requests, but bigger faster CPUs and storage couldn't hurt. Tony