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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: The Other Analyst who wrote (51)	7/23/2000 8:02:37 PM
From: David Hansen	Read Replies (2) \| Respond to of 187

I believe that STOR is all about a disruptive technology. Storage in itself is not new but managed storage that hits a market need at the right time - like STOR has will continue to be rewarded. No one is giving STOR its current evaluation based upon today's market. Look for STOR to AGRESSIVELY go on an acquisition streak that will be compared to Cisco's run. It has the cash to do it and it has a tremendous need to grow storage revenue. STOR will be at the heart of every mega-pop's storage initiative, every storage ASP, etc. It will come down to a David vs Goliath battle. EMC is Goliath. Goliath has taken a closed systems approach with proprietary systems that start to remind you of Digital Equipment Corporation... Goliath is associated with the Big Blue ways of business. Goliath is big and slow. David, on the other hand is open systems based, has a handful of early adopters and can turn on a dime with development. EMC is a great run company and I don't expect it to come tumbling down any time soon. But you have to ask yourself why STOR has such a foothold in this emerging market space unless EMC was asleep at the switch.... My bet is that the couple of hundred motivated millionaire employees at STOR are going to work to dominate this market. Look for these milestones: - 60% of revenues to be coming from storage (vs the current 40%) - continued leadership in professional services that will remind you of INS's performance (bought by Lucent) - 3 for 1 stock split - within 3 months - an early acquisition and an announced strategy around planned acquisitions The street is expecting great things from this company, I doubt Peter Bell or any of the seasoned execs that he brought on board plan on disappointing the street. With the announced lawsuit, etc from EMC that we heard on the IPO day, I believe that it takes the battle up another level. This isn't business anymore.... it's personal. Bell is going to put his heart and soul into this one...