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

To: Tony Viola who wrote (10681)	7/20/2000 1:25:30 PM
From: JDN	Read Replies (2) \| Respond to of 17183

Dear Tony: No, unless the CC is in print somewhere. I believe it was in his opening remarks to the CC if not its in the questions as those are the only two portions I listened too. JDN

To: Tony Viola who wrote (10681)	7/20/2000 2:51:51 PM
From: Gus	Read Replies (1) \| Respond to of 17183

JDN/Tony, What I heard was a backhanded compliment wrapped in an unstinting appraisal of Sun's Purple offering. MR indicated that Sun continues to be the dominant server company -- one of the 4 Horseman of the Internet -- and that pulls in a lot of server-attached storage sales. EMC, however, was still gaining market share at Sun's expense because Sun's storage systems does not support heterogeneous computing environments like EMC. If you listen to it again, MR panned the latest offerings from the competition: 1) IBM/CPQ -- "rearranging chairs on the Titanic, 5th IBM high-end product in 5 years -- Ramac II, Iceberg (Storagetek), Tarpoon, Shark, Storageworks (Compaq)" 2) Hitachi -- "nice specs, no software, nowhere to be found" 3) HWP -- "EMC sold more of its newest Symmetrix in 9 weeks ($500 million) than HWP sold for the entire year" 4) SUNW -- "One of the 4 Horseman of the Internet, accelerating server sales, probably the only server company to gain storage share but Purple contains features that Clariion already introduced in 1992 and 1997, and Purple still doesn't have all the features already in use in Clariion's newest mid-range SAN (42% of $148m) product." So since storage is only a feature to Sun, servers sales matter more to Sun. Since IBM, which just posted 30% revenue growth in server and high-end storage, is nipping at Sun's heels in the server market, the news from EMC that Sun's server sales may be accelerating should be welcome news, sorta'. Gus By the way, note the 15% sequential increase in Service/Rental revenues from $115 million in 1Q00 to $132 million in 2Q00. EMC Professional Services/Support consist of about 3,800 global personnel -- largest inhouse service organization dedicated to storage only -- with a 99% employee retention rate, which is much, much higher than EMC's company-wide 90% retention rate.