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

To: Fred Levine who wrote (9216)	2/13/2000 2:18:00 PM
From: Mannie	Read Replies (2) \| Respond to of 17183

Fred-have you seen the March issue of Red Herring? There is a 100 or so page special section on storage technologies. It is great. One items that stood out when they questioned EMC's ability to maintain prices, Ruettgers was quoted as saying that EMC finds that when they reduce prices by 1%, they see a 4% increase in demand.

To: Fred Levine who wrote (9216)	2/13/2000 2:33:00 PM
From: Ron M	Read Replies (1) \| Respond to of 17183

Fred and thread: The March issue of of Red Herring has a series of some 17 articles on varying aspects of storage. Most all of which mention EMC in generally a favorable light. An interview with Michael Ruettgers contains some interesting responses, such as: "Global 2000 companies are doubling their storage requirements every year." "Moore's law establishes an elasticity of demand that is about 1.5 to 1......" "In bandwidth, the ratio is 2.5 to 1. But for storage, it is actually 4 to 1, which means that for every percent we can drive down the price of storage we get a 4 percent increase in demand." When asked what keeps him up at night he responded; " I worry about our ability to hire 4500 people next year and make then productive. When you look back at the beginning of the '90s, we were more concerned about competitors; we had bigger ones at the time." And when asked what he predicts for the future of storage technology he responded; "I'm not sure you're going to see much disruption in the disk-storage area of the market. What you will see is a continued replacement of tape systems by disk-storage systems. And you may finally see the emergence of optical drives for some applications. Optical has been one of those promising technologies that has always been five years away. Maybe in the next five years it will actually become useful."