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

To: Boplicity who wrote (7741)	4/13/2001 2:08:55 PM
From: DownSouth	Read Replies (1) \| Respond to of 10934

<<CEO Dan Warmenhoven said NetApp has had an even more difficult time than EMC because 35 to 40 percent of NetApp's customers are new each quarter. That means it has less opportunity to sell to existing customers>> I hope the above helps in understanding what I was saying. It helps me understand why you are mistaken. NTAP has a larger % of new customers each quarter because it is gaining more new customers as a % of sales. In order to gain new customers, prospects must be making significant storage investment commitments ("spending"). EMC has a larger installed base, committed to EMC, but their growth is half that of NTAP and the # of new customers as a percent of sales is smaller. So their support revenues are larger and their customers making smaller incremental addons are more significant. EMC and NTAP have been moving into the space of the "computer companies" (I assume you mean box makers.). It is the box makers that have been and will continue to loose opportunities to NTAP and EMC. They will continue to because, in the case of NTAP, the cost of ownership is much lower than what the box makers can provide, with increased throughput and reliability to boot. Box makers will not "move into the space both EMC and NTAP are addressing". They are already there. EMC and NTAP are moving into their space with disruptive innovations. The box makers have not responded with competitive offerings--none of them.