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

To: PAR who wrote (23916)	8/30/1999 8:54:00 AM
From: Neil S	Read Replies (1) \| Respond to of 29386

SAN Market Poised for Major Growth In Year 2000 According to Peripheral Concepts SANTA BARBARA, Calif.--(BUSINESS WIRE)--Aug. 30, 1999--Storage Area Networks (SAN) related revenue will exceed $2 billion in 1999, and is forecast to explode in the latter part of 2000, building upon an installed base of fibre channel and consolidated storage array systems, according to a new report issued by Peripheral Concepts Inc. Table 1 illustrates how host connected Fibre Channel will supplant SCSI, and how SAN revenue will grow to capture 40 percent of the disk array business by 2002. Revenue In $ Billion 1998 1999 2000 2001 2002 All Disk Arrays 18.4 20.8 23.2 25.5 27.5 Fibre Channel Host Connect 3 8 15 20 23 Arrays in a SAN configuration 0.8 2 4 7.5 12 Hubs and Switches Management Software "SAN will radically change the way data is accessed and managed, and will alter the parameters with which IT managers buy and integrate storage," said Farid Neema, president of Peripheral Concepts. A new report issued by Peripheral Concepts analyzes the three major building blocks of a SAN: the interconnecting fabric, the SAN management software and the storage subsystem. The report discusses the results of four recent independent user surveys involving more than 1,000 medium and large IT installations. It analyzes the profile and the strategic directions of 30 among the most influential companies developing SAN, and compares features of more than 40 products. Most of the 1998 SAN installations used hubs in arbitrated loop topologies. The FC switch market is catching up; it will surpass hubs in revenue in 1999, and continue its ascent at a higher compounded annual growth rate. The combined hub and switch market will grow more htan 15-fold in four years. As traditional data and file management continue to evolve to provide higher levels of functionality, some of their components have emerged to form new classes. These new classes include administrative management, storage resource management (SRM), replication management and security management. The revenue attributed to backup far outweighs all other categories in 1998, but its market share decreases as SRM and other classes show much faster revenue growth. One of the first applications that users want when implementing SAN is to be able to back up and protect their data through the SAN. Effectively protecting data on a SAN requires a number of elements. Many of them are currently in the early stages of implementation. These items include centralized management, support for sharing removable-media libraries, LAN-less and server-less backup, heterogeneous platform support, and real-time backup. One survey shows 30% of medium size IT operations have plans to tie their tape library to fibre channel in the next 18 months. It is also estimated that 25% of the tape library revenue will be associated with SAN configurations by 2002. The entire storage industry is in turmoil. In the past two years, we witnessed the largest number of alliances and acquisitions ever. All major system suppliers and independent storage vendors have pre-announced some activity related to SAN. SAN is real. The materialization of SAN has started in the data center, but the market has not matured and the user is still unfamiliar with the concept, cautious and skeptical. Peripheral Concepts is a leading consulting firm specializing in storage and storage management. The report contains more than 200 pages and costs $2,675. An Executive summary is available upon request. The company profile and the report table of contents can be viewed on the Web at www.periconcepts.com. Peripheral Concepts can be contacted by telephone at 805/563-9491 or fax 805/563-6020. --30--mt/la* rj/la CONTACT: Peripheral Concepts Inc., Santa Barbara Farid Neema, 805/563-9491