Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Nathan L. who wrote (7250)	7/27/1999 1:47:00 PM
From: TraderEd	Respond to of 17183

<<Do you or anyone else have any info on EMC's next generation products? Should only further EMC's lead. <<< With respect to this question, is any one going to the meeting being held in Newton, MA by EMC next week? I am sure all these question will be addressed there.

To: Nathan L. who wrote (7250)	7/27/1999 1:53:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 17183

Nathan, Question is can I buy the product with all those features and how well does it perform in the real world? I've read in a few places, none official, that availability of the features is spread out, even into next year. Probably only contacting IBM would reveal the real story. I find it very hard to believe that IBM is anywhere near EMC in terms of software. Why not? IBM is the big mama of all hardware and software. They can do whatever they want. Just takes money, and they have plenty of that. Do you or anyone else have any info on EMC's next generation products? Should only further EMC's lead. No, but I'm keeping my eye out. I'm still very bullish on EMC. Ruettgers is practically guaranteeing the next 2 years or so, and they seem to have it all going re development, manufacturing, quality, sales, etc. There should be enough business for EMC, IBM and a few others with the internet going wild and enterprise too. Tony

To: Nathan L. who wrote (7250)	7/27/1999 4:55:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 17183

Nathan, the article below pretty much reflects what a lot of you on the thread were saying, that Shark is no great shakes. Also says IBM has a somewhat spotty record for storage execution. So, I stand corrected and hope the author is right! One reason I thought IBM should be solid in storage development, as in enterprise storage products, is because they are so damn good at enterprise server products development. They even beat the last System 390 first ship schedule by a month. Enterprise servers, enterprise storage...should go hand in hand priority-wise. Maybe not. ====================================================================== Industry Analysis Jul 27, 1999 Computers: Why EMC is Safe from IBM's Shark Storage System Chris Bulkey (7/27/99) Late to market, and lacking some comparable performance features, IBM (NYSE:IBM - news) unveiled its much anticipated enterprise storage system (ESS) code named Shark. While sporting some impressive features, we believe that the competitive threat to EMC Corp. (NYSE:EMC - news) will be minimal. The initial IBM version lacks a critical performance application -- Fibre Channel connectivity, which essentially is the future of intelligent enterprise storage. Giving Shark a Fibre Channel feature will require a separate connection box, which will increase cost and lower performance. Adding the connection is also not a viable long-term solution. EMC's Symmetrix, on the other hand, does allow direct (native) connection. Another area in which Shark falls short is the software required to run the storage functions. Shark has host resident software, which does not run on the storage system itself, and pales in comparison to the value added by EMC's software functionality. Increasing software sales has been an area in which EMC has invested heavily over the past few years. The payoff has been dramatic. The company is on track to generate $700 million in software sales -- more than double 1998 levels. While IBM intends to have a more complete Fibre Channel and software functionality by late 2000, EMC will likely be into a new product cycle by then, which again will leave IBM behind the curve. In addition, IBM has a somewhat spotty record for storage execution, which will likely delay a complete offering until sometime in 2001. EMC is confident that IBM will have difficulty in delivering on its promise. In terms of convenience and ease of storage, Shark again lags EMC's Symmetrix product. IBM's management notes that Shark can store can up to 11 terabytes (TB) of data, which on the surface appears to surpass Symmetrix. This claim is misleading because Shark requires extra cabinets to provide such capacity, which takes up more floor space. If EMC's product were to command the same floor space, it would be able to store up to 19 TB of data. Over the near-term Shark presents little challenge to EMC, and will likely be a product cycle behind EMC by the time it has full functionality. IBM is a great company, but storage represents only about 10% of revenue. The company's future growth lies more in its e-commerce and services business. Over the long-term, IBM remains EMC's biggest threat, but don't forget about EMC's tremendous software and services growth, which further enhances the company's market leading position. Some analysts believe that the market for data storage is big enough to support two key vendors. Deutsche Bank Alex Brown analyst Philip Rueppel believes that market growth will provide room for both EMC and IBM to compete.