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

To: Todd DeMelle who wrote (23488)	7/26/1999 11:53:00 PM
From: Kerry Lee	Read Replies (2) \| Respond to of 29386

Today's MTIC announcement had 2 very interesting implications to consider which is totally different than previous Ancor OEM press releases: 1. <<"The Ancor product expands MTI's Connection Services to support MTI's Data Services strategy that provides completely integrated data storage solutions," said Dan Brown, MTI's vice president of product development. "The Gladiator storage servers will ship with two to four switches integrated in each cabinet, and many of our customers will want to connect several of these systems together. >> IF I read the above correctly, this is potentially VERY significant volume for Ancor. This implies that every single Gladiator ships with 2-4 eight port Ancor switches. Does this mean that MTI's SAN integrated SAN solution skips hubs altogether and goes straight to high performance switches? That's what it seems to say to me. They then state that "many" MTI customers will be connecting "several" systems together.This suggests that "many" MTI customers will be buying between 6-12 switches. If memory serves me correct, the main reason why Sequent represented such big revenue to Brocade is that each NUMA-Q server shipped with 2 eight port Silkworms which sat in-between the CPU and the disks. As a point of reference, BRCD shipped approx $18 million to SQNT in fiscal 1998. 2.<< "With 20,000 storage systems installed at over 9,000 customer sites worldwide, MTI brings a wealth of storage experience to storage area networking," said Ken Hendrickson, Ancor's CEO. Gladiator storage servers with Ancor switches are expected to begin shipping at the end of July 1999.>> Again, there is an implied installed base here of potential Ancor switch customers..more importantly, Ancor actually states the expected initial shipment date of "end of July 99", unlike their previous press releases on both HDS and SUNW. This suggests a high degree of confidence in getting some volume this year. They went out of their way to state that HDS ramp is not until Y2K and that Sun would not ramp until Q4 99 at the earliest. These are very bullish statements considering Ancor is still technically in a SEC quiet period..very interesting...Am I reading too much into this press release???