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Technology Stocks : Digital Island,Inc - (Nasdaq- ISLD) -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (157)	7/20/1999 2:08:00 PM
From: gdichaz	Read Replies (1) \| Respond to of 1884

Frank: Can't applaud and agree all the time, can I. :-) So, on one point I question your view - at least as I understand it. First, let me check. Are you saying that a fiber glut is an absolute slam dunk? If so, when? Now you suggest a colocation glut. I can see the second, but despite Gilder's idea of zero cost for fiber use in the future, I wonder if a "glut" will actually be a reality in the next 5 to 10 years at least. Seems to me that so far, uses have expanded much faster than capacity and if the past is any guide, new uses unforeseen right now will use much more fiber capacity than we can possible guess to be the case. But the main point is, none of this is at all certain. No one knows what demand will be in the distant future, not even the near future. Therefore I for one, do not plan to act as if a fiber glut is a near term (or even distant) problem. Where am I wrong? Chaz

To: Frank A. Coluccio who wrote (157)	7/20/1999 2:52:00 PM
From: Thomas Zoran	Read Replies (1) \| Respond to of 1884

Frank, Couldn't agree more...if market dynamics change, ISLD must adapt quickly to retain leadership. This is essentially the case with all leaders, however, but their failure to do exactly that is common...re: The Innovator's Dilemma from Christenson from Harvard. What's good about holding the leader though is that they will have better means to adapt to rapid change than new upstarts... In general, I think we are in good agreement. And I agree on the colo glut theory...there is no way people will spend $6000/mo for a 42U rack at Exodus down the line with the amount of supply coming in. Tom