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

To: TigerPaw who wrote (11823)	1/12/2001 4:12:00 AM
From: Gus	Respond to of 17183

Here are some bullish reports from the networked storage supply chain. Not coincidentally, McDATA, Inrange, and Emulex are the only vendors providing FICON support. Recall that IBM managed to sell 250 mainframes during the 4Q2000 and that the 4th quarter is traditionally the strongest quarter for enterprise storage vendors. EMULEX ....Storage remains a priority within IT spending," Folino told attendees of the Needham Growth Conference in New York. "I think it's fair to say we've got good visibility over the next few quarters. The trends have looked good and they continue to look good....." cbs.marketwatch.com INRANGE ....Shipments and revenues in the Open Storage Networking line of business, which includes the company's industry-leading, 64-port IN-VSN(TM) FC/9000(TM) Fibre Channel Director and optical networking products, continued to gain traction, contributing greatly to what should be record fourth quarter revenues. The company expects revenue growth in Open Storage Networking for the fourth quarter year-over-year period to exceed previous guidance of 200%. In addition, the company expects total quarterly revenue growth of approximately 47% for the same fourth quarter year-over-year period.... siliconinvestor.com McDATA - 400+ total end-users as of the IPO in August 2000 - 900+ total end-users as of the 4Q2000 (125% increase in less than 5 months!!!) - MCDT's major OEMs are EMC, IBM and Hitachi which combined control about 90% of the heteregenous systems market with mainframes (ESCON) attached. - MCDT has 46 US system integrators and 6 European system integrators including Comparex, the leading ESCON supplier in Europe with annual turnover in the E1.5 to 2.0 billion euros range. Comparex, based in Germany, also has a 5-year deal with EMC and a shorter deal with Sun. McDATA established its reseller agreement with Comparex in March 1999 when Comparex was still a major reseller of Hitachi products. EMC and Comparex inked their 5-year deal in early 2000 after HWP dumped EMC for Hitachi. Comparex and Sun inked their deal in mid-2000. Sample customers: - 40% of Fortune 100 - 9 out of top 10 telecommunications companies - 5 out of top 5 network communications companies - 4 out of top 5 US commercial banks - SAN backbone sizes currently range from 1 director (32 ports) to 70 directors (2,240 ports) with most deployments consisting of 20 directors (640 ports) to 40 directors (1280 ports) per customer (multiple sites). SAN expansion consists of directors, fabric switches and loop switches. - For reference, EMC indicated that as of 3Q2000, its typical SAN backbone deployments were in the 100-150 port range with atypical deployments in the 1,000 to 1,500 port range. McDATA's datapoints may indicate a further acceleration of EMC's own SAN deployments during the 4th quarter which is typically its strongest sales season. Also, it is easier to expand a SAN once the director backbone is in place at the core and IT personnel become fluent in the technology and begin to extend the reach of the technology throughout the enterprise. - The typical customer demand consists of high availability directors at the core and lower-cost solutions at the department and workgroup levels. This mirrors the way EMC's customers requested lower-cost Clariions at the branch, department and workgroup levels to go with Symmetrix at the core. Aside from having the largest ESCON installed base (5,100 sites worldwide), Mcdata is also the only vendor to have a complete array of products ranging from fabric switches to director switches. - SAN deployments occuring in phases. Example #1 Chase Manhattan - 1500+ port to connect New York and Dallas - phase 1 consists of 4 Symmetrix connected to 8 directors (256 ports) in Dallas. Example #2 First Union - business goal: paperless storage of millions of check images - EMC storage, IBM AIX servers, Storagetek robotic tape libraries - 12 directors (384 ports) plus 24 ES1000 (216 ports) connecting 28 terabytes of data to 12 application servers mcdata.com vcall.com It looks like EMC's proposed tax-free dividend to its shareholders is in very good shape. The director switch market is the fastest growing FC switch market segment. It went from $5M in 1998 to $54M in 1999 to around $250M-$300M in 2000. With IBM's mainframe upgrade cycle now underway and with EMC's large installed base beginning to deploy their FC SANs, it increasingly looks like 2001 will be the breakout year for McDATA, which may very well be the dividend that keeps on growing for diligent EMC shareholders.

To: TigerPaw who wrote (11823)	1/12/2001 4:19:00 AM
From: Gus	Read Replies (1) \| Respond to of 17183

Here are some bullish reports from the networked storage supply chain. Not coincidentally, McDATA, Inrange, and Emulex are the only vendors providing FICON products. Recall that IBM managed to sell 250 mainframes during 4Q2000 and those mainframes will most likely anchor the largest data centers. The 4th quarter is also traditionally the strongest quarter for enterprise storage vendors. EMULEX ....Storage remains a priority within IT spending," Folino told attendees of the Needham Growth Conference in New York. "I think it's fair to say we've got good visibility over the next few quarters. The trends have looked good and they continue to look good....." cbs.marketwatch.com INRANGE ....Shipments and revenues in the Open Storage Networking line of business, which includes the company's industry-leading, 64-port IN-VSN(TM) FC/9000(TM) Fibre Channel Director and optical networking products, continued to gain traction, contributing greatly to what should be record fourth quarter revenues. The company expects revenue growth in Open Storage Networking for the fourth quarter year-over-year period to exceed previous guidance of 200%. In addition, the company expects total quarterly revenue growth of approximately 47% for the same fourth quarter year-over-year period.... siliconinvestor.com McDATA - 400+ total end-users as of the IPO in August 2000 - 900+ total end-users as of the 4Q2000 (125% increase in less than 5 months!!!) - MCDT's major OEMs are EMC, IBM and Hitachi which combined control about 90% of the heteregenous systems market with mainframes (ESCON) attached. - MCDT has 46 US system integrators and 6 European system integrators including Comparex, the leading ESCON supplier in Europe with annual turnover in the E1.5 to 2.0 billion euros range. Comparex, based in Germany, also has a 5-year deal with EMC and a shorter deal with Sun. McDATA established its reseller agreement with Comparex in March 1999 when Comparex was still a major reseller of Hitachi products. EMC and Comparex inked their 5-year deal in early 2000 after HWP dumped EMC for Hitachi in 1999. Comparex and Sun inked their deal in mid-2000. It's going to be interesting to see if that MCDT-EMC-SUNW storage network/server combo that Comparex is reselling now will siphon off a lot of IBM and Hitachi mainframe customers in Europe. Sample customers: - 40% of Fortune 100 - 9 out of top 10 telecommunications companies - 5 out of top 5 network communications companies - 4 out of top 5 US commercial banks - SAN backbone sizes currently range from 1 director (32 ports) to 70 directors (2,240 ports) with most deployments consisting of 20 directors (640 ports) to 40 directors (1280 ports) per customer (multiple sites). SAN expansion consists of directors, fabric switches and loop switches. - For reference, EMC indicated that as of 3Q2000, its typical SAN backbone deployments were in the 100-150 port range with atypical deployments in the 1,000 to 1,500 port range. McDATA's datapoints may indicate a further acceleration of EMC's own SAN deployments during the 4th quarter which is typically its strongest sales season. Also, it is easier to expand a SAN once the director backbone is in place at the core and IT personnel become fluent in the technology and begin to extend the reach of the technology throughout the enterprise. - The typical customer demand consists of high availability directors at the core and lower-cost solutions at the department and workgroup levels. This mirrors the way EMC's customers requested lower-cost Clariions at the branch, department and workgroup levels to go with Symmetrix at the core. Aside from having the largest ESCON installed base (5,100 sites worldwide), Mcdata is also the only vendor to have a complete array of products ranging from fabric switches to director switches. - SAN deployments occuring in phases. Example #1 Chase Manhattan - 1500+ port to connect New York and Dallas - phase 1 consists of 4 Symmetrix connected to 8 directors (256 ports) in Dallas. Example #2 First Union - business goal: paperless storage of millions of check images - EMC storage, IBM AIX servers, Storagetek robotic tape libraries - 12 directors (384 ports) plus 24 ES1000 (216 ports) connecting 28 terabytes of data to 12 application servers mcdata.com vcall.com It looks like EMC's proposed tax-free dividend to its shareholders is in very good shape. The director switch market is the fastest growing FC switch market segment. It went from $5M in 1998 to $54M in 1999 to around $250M-$300M in 2000. With IBM's mainframe upgrade cycle now underway and with EMC's large installed base beginning to deploy their FC SANs, it increasingly looks like 2001 will be the breakout year for McDATA, which may very well be the dividend that keeps on growing for diligent EMC shareholders.

To: TigerPaw who wrote (11823)	1/12/2001 4:29:43 AM
From: Gus	Read Replies (1) \| Respond to of 17183

Here are some bullish reports from the networked storage supply chain. Not coincidentally, the good news is coming from the only vendors providing FICON products -- Mcdata, Inrange and Emulex. Recall that IBM managed to sell 250 mainframes during 4Q2000 and those mainframes will most likely anchor the largest data centers. The 4th quarter is also traditionally the strongest quarter for enterprise storage vendors. EMULEX ....Storage remains a priority within IT spending," Folino told attendees of the Needham Growth Conference in New York. "I think it's fair to say we've got good visibility over the next few quarters. The trends have looked good and they continue to look good....." cbs.marketwatch.com INRANGE ....Shipments and revenues in the Open Storage Networking line of business, which includes the company's industry-leading, 64-port IN-VSN(TM) FC/9000(TM) Fibre Channel Director and optical networking products, continued to gain traction, contributing greatly to what should be record fourth quarter revenues. The company expects revenue growth in Open Storage Networking for the fourth quarter year-over-year period to exceed previous guidance of 200%. In addition, the company expects total quarterly revenue growth of approximately 47% for the same fourth quarter year-over-year period.... siliconinvestor.com McDATA - 400+ total end-users as of the IPO in August 2000 - 900+ total end-users as of the 4Q2000 (125% increase in less than 5 months!!!) - MCDT's major OEMs are EMC, IBM and Hitachi which combined control about 90% of the heteregenous systems market with mainframes (ESCON) attached. - MCDT has 46 US system integrators and 6 European system integrators including Comparex, the leading ESCON supplier in Europe with annual turnover in the E1.5 to 2.0 billion euros range. Comparex, based in Germany, also has a 5-year deal with EMC and a shorter deal with Sun. McDATA established its reseller agreement with Comparex in March 1999 when Comparex was still a major reseller of Hitachi products. EMC and Comparex inked their 5-year deal in early 2000 after HWP dumped EMC for Hitachi in 1999. Comparex and Sun inked their deal in mid-2000. It's going to be interesting to see if that MCDT-EMC-SUNW storage network/server combo that Comparex is reselling now will siphon off a lot of IBM and Hitachi mainframe customers in Europe. Sample customers: - 40% of Fortune 100 - 9 out of top 10 telecommunications companies - 5 out of top 5 network communications companies - 4 out of top 5 US commercial banks - SAN backbone sizes currently range from 1 director (32 ports) to 70 directors (2,240 ports) with most deployments consisting of 20 directors (640 ports) to 40 directors (1280 ports) per customer (multiple sites). SAN expansion consists of directors, fabric switches and loop switches. - For reference, EMC indicated that as of 3Q2000, its typical SAN backbone deployments were in the 100-150 port range with atypical deployments in the 1,000 to 1,500 port range. McDATA's datapoints may indicate a further acceleration of EMC's own SAN deployments during the 4th quarter which is typically its strongest sales season. Also, it is easier to expand a SAN once the director backbone is in place at the core and IT personnel become fluent in the technology and begin to extend the reach of the technology throughout the enterprise. - The typical customer demand consists of high availability directors at the core and lower-cost solutions at the department and workgroup levels. This mirrors the way EMC's customers requested lower-cost Clariions at the branch, department and workgroup levels to go with Symmetrix at the core. Aside from having the largest ESCON installed base (5,100 sites worldwide), Mcdata is also the only vendor to have a complete array of products ranging from fabric switches to director switches. - SAN deployments occuring in phases. Example #1 Chase Manhattan - 1500+ port to connect New York and Dallas - phase 1 consists of 4 Symmetrix connected to 8 directors (256 ports) in Dallas. Example #2 First Union - business goal: paperless storage of millions of check images - EMC storage, IBM AIX servers, Storagetek robotic tape libraries - 12 directors (384 ports) plus 24 ES1000 (216 ports) connecting 28 terabytes of data to 12 application servers mcdata.com vcall.com It looks like EMC's proposed tax-free dividend to its shareholders is in very good shape. The director switch market is the fastest growing FC switch market segment. It went from $5M in 1998 to $54M in 1999 to around $250M-$300M in 2000. With IBM's mainframe upgrade cycle now underway and with EMC's large installed base beginning to deploy their FC SANs, it increasingly looks like 2001 will be the breakout year for McDATA, which may very well be the dividend that keeps on growing for diligent EMC shareholders.