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

To: Tony Viola who wrote (9133)	2/3/2000 11:11:00 AM
From: Bill Fischofer	Read Replies (1) \| Respond to of 17183

Re: Server market Of course the number of processors operating as servers is going to explode in the years ahead, however that is actually part of the sea change that is occurring in the enterprise IT market. Classically, the datacenter consisted of a handful of very large mainframe-class processors operating hundreds of refrigerator-sized disks ("Direct Access Storage Devices" in IBM-speak) sprawled out in what we used to refer to as a "DASD farm". The new model is the opposite: hundreds of servers arrayed in "server farms" connected to a centralized Enterprise Storage Network. What was once literally a "peripheral" is moving to the center while at the same time the formerly "central" processor is moving to the periphery. The enterprise becomes data-centric rather than processor-centric. The implications of this shift are enormous and no "server" vendor will be untouched. The rule in IT is that the highest margins move to the center. That means high-margin central servers becoming low-margin server racks while formerly low-margin "disk drives" become high-margin storage networks. No company is better positioned than EMC to fully leverage this shift to its advantage, which again is why EMC remains a core holding.