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

To: JRI who wrote (6787)	6/22/1999 2:20:00 PM
From: TraderEd	Respond to of 17183

Demand for data storage growing Worldwide market seen hitting $12.5 billion by 2003 By Stephanie O'Brien, CBS MarketWatch Last Update: 11:58 AM ET Jun 22, 1999Market Snapshot Bond Report NEW YORK (CBS.MW) -- Data storage is likely to dominate hardware budgets in the next several years, a Seagate Technology executive said Tuesday. <Picture>Today on CBS MarketWatchUS stocks bend under bondsUS West will stick with Global CrossingLehman posts profit surpriseGeneral Dynamics nabs GTE defense assetsStockWatch: Track Data offers free Friday tradesMore top stories...CBS MarketWatch ColumnsUpdated: 6/22/99 1:04:36 PM ET<Picture> The market for computer storage hardware is expected to be in the multi-billions in the next several years, Dave Aune, Seagate Technology's (SEG: news, msgs) executive director of storage systems technology, told an audience at PC Expo in New York on Tuesday. Aune said he sees as much as 75 percent of the average hardware budget being set aside for data storage in the next several years. Right now, for each dollar a company spends on data storage hardware, it spends seven dollars to manage it. The goal is to bring that cost way down, Aune told CBS MarketWatch. Attached systems Aune said two types of data storage systems -- storage area networks and network attached storage systems -- are likely to dominate that market. Storage area networks are more likely to be adopted by large organizations, while network attached storage systems may be more widely used by smaller businesses or companies that have satellite offices. They're also useful in offices that don't have their own information technology support staffs. In an interview, Aune said worldwide sales of network attached storage hardware is seen hitting as much as $2.5 billion in 2002. Worldwide sales of storage area network hardware is expected to grow to $10 billion in 2003, he said. Neither system is flawless, Aune said. Each has disadvantages when it comes to installation, operation and network security, he said. A network attached system can sell for as little as $1,000, while a storage area network can run from $75,000 at the low end to the multi-millions, depending on the needs and size of a given organization, Aune said. Demand for greater storage capability is accelerating rapidly, Aune said. That's good news for companies such as Veritas (VRTS: news, msgs) Legato (LGTO: news, msgs), Sun Microsystems (SUNW: news, msgs) and EMC (EMC: news, msgs), who make data storage products and are likely to benefit from healthy demand in the next several years.