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

To: jhg_in_kc who wrote (7701)	9/20/1999 8:33:00 AM
From: GVTucker	Read Replies (3) \| Respond to of 17183

From September's ML CIO survey: "Will your enterprise storage spending pause in early 2000 because you've 'overbought?' Yes--11% No--89% Do you think EMC is worth the price premium it charges? Yes--31% No--39% Not sure--30% EMC should be in good shape with only 10% suggesting any enterprise storage slowdown in the new year, a figure compensated for by rising Internet spending. Users are split regarding EMC's significant price premium, which is the thing we [i.e. ML's analysts] worry about. Even EMC's own surveys find complaints here. Although 40% responded that EMC doesn't warrant the premium, we guess that many buy it anyway because you don't get fired for buying EMC. Competitors are still well behind in open systems functionality. We found three beta testers of IBM's Shark, who thought the product might do well but didn't have enough experience to come to a conclusion. Three users of the HP/Hitachi product were complementary, calling it 'superb' and 'good'. ...Price is becoming less important relative to reliability. Internet companies are finding that uptime is money. The ante to play the game is Cisco routers, Sun servers, and EMC storage."