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

To: John F. who wrote (5599)	12/8/2000 7:18:18 AM
From: Lynn	Respond to of 10934

Dear John: These are ML's rather than my thoughts. These comments are from a research report released 12/06 titled, "EMC Corp: A Win, Win for EMC and Network Appliance-Far From a Zero Sum Game:" Investment Highlights: EMC’s entry into the mid-range NAS space will likely expand the NAS market and accelerate its growth because of EMC’s endorsement, but these new products do not appear to be “NetApp Killers”. EMC intends to take a solutions oriented approach to the entire storage market. We believe NTAP will face more competition from EMC but we did not see any new, major software that hugely disturbs what is occurring in this space. Fundamental Highlights: It is important for investors to remember that the market opportunity is likely well north of $7B in 2003, which suggests that NTAP should be able to continue growing in the 100% YoY range for several years, in our opinion. This further legitimizes the NAS space, which introduces more competition but also helps NTAP, in our view. The newer NAS players will likely have a more difficult time, which our surveys have been saying. We would be buyers of both stocks here but think that Network Appliance (NTAP; C-1-1-9; $81.56) shares ought to close out the year at least above $100. [end of quote] BTW, for anyone who also holds shares of EMC (as do I), ML give a 12 month price target for it of $130 in this report. Lynn

To: John F. who wrote (5599)	12/8/2000 1:33:35 PM
From: chmang	Read Replies (2) \| Respond to of 10934

Funny coincidence : I heard today of client who has a need for an "appliance" to put 300 gb of non-critical data that can be accessed directly by many external NT servers. He has 4 offers which are technically very different: Netw.App. 175000 $ EMC IP4700 121000 $ IBM (?) 81000 $ SGI 81000 $ No price list reference or % discount has been indicated. No decision taken for the moment. As you can see EMC is 30 % under NTAP which is typically the position of the challenger versus the leader in the storage deals. In storage farms EMC is always 30 to 50 % higher than its challengers and has managed to survive healthily with that price pressure . So in the end the best performing product should win.