What do you think of QLGC's purchase of ANCR?
Carolyn, I have tried to dig a little to find the effects this deal may have on ADIC.
I have come to no conclusions yet but it seems on the surface that QLGC is positioning themselves as a stronger player in their area of storage.
I would think that they would continue to supply ADIC and ANCR's many other customers with switches.
I see no blatant threat to ADIC's Market position as a result of this deal, but I think we should all dig a little deeper and watch this one unfold for further influences.
I have not taken this too far yet because of other work and would appreciate anyones input.
The following are little cuts from various reports that may relate, though it mostly is old news that if nothing else may remind us of the positioning that has been taking place this past year. Notice the great overlap in cooperative companies involved. I have added the bold font.
--Puna
This starts with the press release I received today:
<<03:52 AM ET 05/08/00
UPDATE 1-QLogic to buy Ancor in $1.7 billion stock deal
(Adds comment from QLogic CEO, details on financial advisers,
share price)
NEW YORK, May 8 (Reuters) - High-speed electronic connector
component maker QLogic Corp. said on Monday it had
signed a deal to buy Ancor Communications , a provider
of fiber switches for data storage networks, in a stock deal
worth about $1.7 billion.
Under terms of the deal, which has been approved by the
boards of directors of both companies, QLogic will exchange
0.5275 shares of its common stock for each share of Ancor common
stock, QLogic said in a statement.
The deal values each Ancor share at $52.71, well above its
Friday closing price of 31-3/16 on the Nasdaq stock market.
QLogic said it expects the acquisition, which must be
approved by regulatory agencies and shareholders of both
companies, to be accretive to its earnings in its fiscal year
ended March 2002.
The Aliso Viejo, Calif.,-based company said it also expects
the deal, to be accounted for as a pooling of interests, to
close in the third quarter of calendar year 2000.
"With the addition of Ancor's performance-oriented, scalable
switch products, QLogic will be uniquely positioned to deliver
total storage area network solutions to the marketplace," QLogic
chief executive H.K. Desai said. "Customers will benefit from
end-to-end tested storage area network solutions, as well as
faster time-to-market deployment of Fibre Channel products."
Ancor Chief Executive Ken Hendrickson will be nominated as a
member of QLogic's board of directors after the deal closes.
The company said SG Cowen Securities Corp acted as financial
advisor to QLogic for the deal, while Goldman Sachs
& Co. represented Ancor.
QLogic's shares rose 8-7/8 on Friday to close at 99-15/16 on
the Nasdaq stock market.>>End Press Release
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Ancor Communications Inc. (Nasdaq: ANCR) provides scalable, high-performance Fibre Channel switches for storage area networks (SANs). The company's customers include Sun Microsystems, Hitachi Data Systems, MTI Technology, and ADIC as well as select distributors.
About QLogic
QLogic Corporation is a leading designer and supplier of semiconductor and board-level I/O and enclosure management products. The company's products provide high-performance interface connections for computer systems and their attached data storage peripherals, such as hard disk drives, tape drives and RAID subsystems. In addition, QLogic provides enclosure management products that monitor and communicate management information related to components that are critical to computer system and storage subsystem reliability and availability. QLogic's highly integrated, fully featured solutions are targeted at the computer system, storage device and storage subsystem marketplaces. QLogic Customers include: AMI, Compaq, Dell, DPT, Fujitsu, Hitachi, IBM, Mylex, Quantum, Raidtec, Siemens, Sun and Unisys. The company is utilizing its expertise to develop products for emerging standards such as Fibre Channel and Ultra3 SCSI, as well as, SAF-TE, SES, and IPMI enclosure management solutions.
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>>>QLOGIC CORPORATION PARTNERS WITH LEGATO SYSTEMS IN DEMONSTRATING A STORAGE MANAGEMENT VISION FOR THE FUTURE OF STORAGE AREA NETWORKS (SANS)
COSTA MESA, Calif., Feb. 2, 1999 - Qlogic Corp, (NASDAQ: QLGC)an industry leading designer and supplier of Storage Area Network data delivery services, today joined with Legato Systems, Inc. (NASDAQ: LGTO), a leader in the enterprise storage management software market, in demonstrating SAN solutions for the Information Utility. In support of Legato Systems' demonstrations for its newly announced Information Utility initiative, QLogic is providing its QLA2100 Fibre Channel host bus adapters. QLogic develops and markets a comprehensive suite of software and hardware components that deliver data between nodes in a Storage Area Network.
>>>About Legato Systems
Legato Systems, Inc. develops, markets, and supports an integrated set of enterprise storage management software products for heterogeneous client/server computing environments. Large customers around the world select the Company's solution because of its reliability, platform independence, and unique ability to seamlessly integrate with existing and future computing environments. Legato's storage management software has become the recognized de facto standard with the largest installed base, representing over37,000 customers, protecting more than 4,000,000 systems. Twenty-four of the world's largest system and applications vendors have chosen Legato as a strategic partner for protecting their customers' data, including Banyan, Compaq, Data General, Fujitsu/Amdahl, Fujitsu/ICL, Groupe Bull, Hewlett-Packard, Hitachi, Informix, NEC, Netscape, Network Appliance, Nihon-Unisys, Oracle, Siemens Nixdorf, Silicon Graphics, Sony and Sun Microsystems. The Company's NetWorker, BusinesSuite, SmartMedia, and GEMS products are also licensed, resold, or endorsed by other major vendors, including BMC Software; Computer Associates; Tivoli, an IBM company; Microsoft Corporation; MTI Technology; Novell; and SAP.
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>>>http://www-ftp.legato.com/News/Press/PR202.html :
(ONE YEAR TO THE DAY EARLIER-Note-- the following is filed as Feb.2nd 1999 on Legato's chronology files?):
ADIC Supporting Legato Systems Storage Area Networking
ADIC SAN-Rready Hardware and Legato Systems Software Combine To Deliver Storage Networking (SAN) Solutions Available Today
Redmond, WA, February 2, 1998 - Advanced Digital Information Corporation (NASDAQ: ADIC) today announced its support for Legato Systems' (NASDAQ: LGTO) Information Utility vision for the future of full compatibility between the company's Fibre Channel-ready storage products and the Storage Area Networks (SANs).) implementation developed by Legato Systems (NASDAQ: LGTO). Interoperability between ADIC SAN-ready tape libraries and Legato SAN software was demonstrated today at Legato's worldwide SAN press conference The newly announced interoperability was demonstrated today at a news conference in at the Doubletree Hotel in San Jose, California. It means that IT organizations will be able to use ADIC Fibre Channel-ready storage products with Legato NetWorker and Legato SmartMedia to implement SANs, which make it possible to share storage resources among multiple hosts and data zones. This resource sharing offers users the benefits of increased performance, more centralized administration of data, and the potential for lowering storage costs. can now use Legato NetWorker and ADIC tape storage hardware to implement SANs which make it possible to share storage resources among multiple hosts and data zones. This resource sharing offers users the benefits of increased performance, more centralized administration of data, and the potential for lowering storage costs.
"Legato has recognized that SAN architecture is bringing a storage network-centric model to enterprise management-a change that will provide more efficient use of storage resources, give better data protection, and profoundly transform the way organizations organize and use information," commented Bill Britts, ADIC executive vice-president of sales and marketing. "ADIC's long cooperation with Legato means not only that Legato NetWorker, Legato Smart Media, and Legato GEMs initiative work with ADIC Fibre Channel-ready tape libraries today, but also that our future tape storage products will integrate seamlessly into the Legato storage network model. We are working together to make storage smarter."
"ADIC, both with their SAN-ready tape library products and their SCSI-to-Fibre interconnect devices, has been both early and innovative in its support for the idea of SAN architecture," commented Nora M. Denzel, senior vice president of at Legato Systems. [or other Legato name, title]. "Our long partnership with ADIC is one of the key elements that will enable our concept of an Information Utility to take SAN solutions from their current, early stage of development to the next level of power and utility. This is a roadmap, shared by key leaders in the storage industry, which will make information continuously and transparently available across the enterprise. It will not just change the way data is stored-it will change the way information is used and the way that networks are designed."
A Fibre Channel SAN is the ideal solution to the problem of high data volumes, since it allows the large-scale transfer of stored data to be off-loaded to separate, dedicated storage networks. In a SAN, multiple hosts can dynamically share drives and libraries within the storage system-in effect making the storage network a new link between system hosts. Sharing storage resources through SAN architecture can mean decreased network traffic, more efficient resource utilization, faster backup performance, and more centralized-hence more secure and easily administered-data storage.>>
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EVERYONE SEEMS TO BE BANDING TOGETHER FOR COMMON SUPPORT:
<<ADIC Joins Legato Systems Open Celestra Architecture for SANs
Celestra Consortium unites storage industry leaders to deliver SAN applications
Redmond, WA. August 26, 1999 ? Advanced Digital Information Corporation (ADIC) today announced that it has joined the Celestra Consortium, a new organization promoting an open and integrated architecture for effective data movement and management of Storage Area Network (SAN) environments. The Celestra Consortium, founded by Legato Systems, provides a forum for facilitating the adoption of open-systems technology and increasing the efficiency of SAN integration. The Consortium is designed to encourage rapid development of interoperable SAN solutions
About the Celestra Consortium
The Celestra Consortium was kicked off at an introductory meeting in Monterey, Calif. on June 15 and 16, 1999. The founding members of the consortium have demonstrated a strong commitment to SANs and solution interoperability and are considered the leading vendors in this market. They include 3PARdata, ADIC, Amdahl, Ancor, ATL, ATTO, Auspex, Brocade, Bull, Chaparral, CommVault Systems, Compaq, Computer Associates, ConvergeNet, DG/Clariion, EMC, Gadzoox, INLINE Corp., JNI, McDATA, MTI, NEC, Network Appliance, Novell, Overland Data, Pathlight, Siemens, SGI, Spectra Logic, SmartSAN, Troika, Vixel and Xiotech. Members provide input and funding to support consortium integration efforts...>>
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