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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: StockHawk who wrote (3547)	6/21/2000 8:26:00 PM
From: Danny Chan	Read Replies (1) \| Respond to of 10934

maybe but like many others I'm really surprised that GG pricked PRCM instead of NTAP. maybe he just felt that he "should" have added NTAP long time ago. Here is what steve at ML have to say about PRCM: Gilder Technology Report - Focuses on Storage (Steve Milunovich 212-449-2047/John Roy 212-449-6456) Two names were added to Gilder's Telecosm list: Procom (PRCM, $63 7/16, not rated), a supplier of network attached storage like Network Appliance (NTAP, $87 11/16, C-1-1-9), and Storage Networks, a private storage outsourcing company. We agree with GTR on four key technology points: 1. "The market will be big enough for all." With usage growing upwards of 100% per year demand looks strong for the foreseeable future. 2. Storage performance, capacity, and manageability are not yet meeting the users needs. Gilder's theory is that this "undershoot" plays to the advantages of vendors with integrated solutions, such as EMC (EMC, $76 7/8, B-1-1-9) and NetApp. 3. Gigabit Ethernet is coming on strong to challenge Fibre Channel in the storage space. 4. Network attached storage (NAS) is well-positioned in the storewidth space. Gilder rightly identifies that NAS is delivering on the promise of "cheap, simple data sharing that take advantage of the reversal in network and I/O speed advantages." We were surprised that Procom was added to the list as we believe there are some execution issues for the company. When we visited the company earlier this month we came away with the same conclusion as Gilder on the attractiveness of the Linux-based architecture, but manufacturing a reliable storage product is not easy and Procom has yet to establish a reliability track record. We continue to rate EMC and NTAP Buys.