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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Pigboy who wrote (22528)	6/10/1999 7:26:00 PM
From: Roy Sardina	Read Replies (1) \| Respond to of 29386

Actually my guess (purely conjecture) is that some "Most Favored Nation" clause would have been violated with any deal at a REALLY low price. Meaning some other large OEM would have received the same discount sending their margins down the toliet. ANd from what I understand they weren't willing to do the IP stuff. BRCD has a low cost ASIC in house already that competes with the "as yet" undelivered ANCR one. It really isn't a question of price, but of total business. ANCR needed and could afford the deal, BRCD couldn't. I have always had the same opinion of ANCR they make a good product they were fighingt a battle on a foreign turf (Silicon Valley), against BRCD that has some good money and people behind it. tough fight. The VC's have always said there has never been a busines where there is only one winner, and I doubt that FC Switching will break that rule. As to ANCR price...last fall if Sun had been quick they could have bought their switch supplier for 2-5$ per share, less than the revenue they will be paying them. Instead they got warrants for helping ANCR survive. Nice deal either way. Roy ------------------ bfm -------------------- Roy, Thanks for posting again. Congrats on your Brocade shares. You are cleaning up over there. ;-) I have a few questions. I believe you say that Ancor bagged the #1 SAN OEM in Sun and you also say-- << Ancor had a product Sun could use, and was willing to sell it and the company (re: warrants, Intellectual Property) at a price that Sun was willing to pay. >> Isn't it possible that Ancor's lower costs to implement their switch architecture and their future roadmap (rumored ASIC coming down the pipe) was the reason that ALLOWED Ancor to get this deal? This is a company that you thought was worth 2 bucks last year and yet they manage to get two Major switch OEMs recently...and one (SUN) of which is, in your mind, probably going to have MUCH larger switch shipments than the largest guy, StorageTek, now. I figured by now, you MUST have a different opinion of Ancor. ;-) Thanks for any thoughts. Oh, also wondered if you had seen SanCastles switch and what your opinions on them were? all imho,