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

To: KJ. Moy who wrote (22539)	6/11/1999 12:49:00 PM
From: Roy Sardina	Read Replies (1) \| Respond to of 29386

KJ The logic is simple. most of these Tier 1 guys require a "Most Favored Nation" deal, meaning if you sell to company x for y dollars per switch I get that same price. Sun is typically a cost plus buyer, meaning they look at your BOM and say I will pay Z% above what it costs to make it, limiting your margin. Brocade chose not to do a deal in that environment (frankly because they already have a number of large OEMs) Ancor did not have that luxury. They needed the revenue and "WIN" and were willing to pay the price to get it. In addition Sun extracted Warrants for ownership, something BRCD probably wasn't willing to do. So in the end BRCD chose not to do that kind of transaction with SUNW. Dell will ship alot of FC because they are picking good partners, Clariion, ADIC, Brocade, and QLogic. Even in their worst day they ship more servers than you can imagine.....and more than the UNIX guys ship. Still at G2, no IPO soon. Roy Sardina