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

To: GVTucker who wrote (9896)	4/18/2000 11:30:00 AM
From: Tony Viola	Read Replies (1) \| Respond to of 17183

GV, >--in addition, CPQ has some potential to move higher end on the storage side if the new Alpha servers are as good as advertised. I didn't exactly understand this. Do you mean that, if Compaq's high end Alpha servers sell well, they'll get additional pull-through storage sales as a result? I agree that IBM is a much bigger threat than Sun. Sun is kind of like Dell in that they get their storage through acquisition only, rather than development, like the big 3 do (EMC, CPQ, IBM). That will always put them behind, IMO. Tony

To: GVTucker who wrote (9896)	4/18/2000 1:59:00 PM
From: JDN	Read Replies (2) \| Respond to of 17183

Dear GV and All: Did you all see Mike R. on CNBC around 1:00pm. He didnt seem too worried. Specifically asked about IBM challenge, his response, they are TOO LATE and TOO LITTLE. When they mentioned IBM was spending 400MM to catch up he pointed out EMC has spent 2 1/2 BILLION to stay ahead!! JDN

To: GVTucker who wrote (9896)	4/18/2000 10:25:00 PM
From: Bill Fischofer	Read Replies (3) \| Respond to of 17183

EMC vs. SUNW, IBM, etc. EMC will always have competition. Competition exists because the market which EMC leads is enormous and one of the fastest growing of all technology markets. It is vital to understand this because the media periodically mentions competition as if it is something new or unexpected. It is neither. The chance of EMC being displaced from its leadership position in storage systems is very small in my view. EMC has a single-minded focus on storage whereas all of its erstwhile competitors have divided focus. Almost all of the storage IBM, SUNW, HWP, CPQ, etc. sells is to their own processor markets. For all their new-found passion for storage systems these are first and foremost processor companies whose main interest is protecting their processor turf. Unfortunately this puts them all on the wrong side of history and there is simply no graceful way for them to make the switch to a storage-centric worldview without catastrophic disruption of their business plans. This is a classic "Innovator's Dilemma" in Clayton Christiansen's parlance. Believe IBM or SUNW, for example, is serious about storage when you read that they are spinning off their processor business. Until then it's just marketing bluster designed to distract the press and prolong their processor franchises.